Comment

I noticed that the cost estimates for the various treatment processes all include line items for Engineering, Legal and Administration equal to 15% of construction costs, and Construction Administration equal to 12.5% of construction costs. I don’t know if AE2S is using these estimates as simply “place holders”, or if these figures are intended to be included in the final negotiated design contracts. In any case, I would recommend that the BSWSD negotiate the design and CA fees to a level that is more reflective of reasonable industry rates, or enter into a different method of payment such as the hourly rate method with a “not to exceed” total fee. When it comes time to finalize the design and CA contracts, a detailed breakdown of tasks, with associated estimated hours needed by the various disciplines to complete each task, would be a normal request for the Engineer to furnish, and then be used by the Board for negotiations.

Response

Yes, these values are placeholders for budgetary purposes. Final fees for any engineering are negotiated by the District on a case-by-case basis, as they were for the work involved in completing the Draft Report.