UNIFIED FACILITIES CRITERIA (UFC) HANDBOOK:

UFC 3-740-058 November 2010Change 2, April 2020UNIFIED FACILITIES CRITERIA (UFC)HANDBOOK:CONSTRUCTION COST ESTIMATINGAPPROVED FOR PUBLIC RELEASE; DISTRIBUTION UNLIMITED

UFC 3-740-058 November 2010Change 2, April 2020UNIFIED FACILITIES CRITERIA (UFC)HANDBOOK: CONSTRUCTION COST ESTIMATINGAny copyrighted material included in this UFC is identified at its point of use.Use of the copyrighted material apart from this UFC must have the permission of thecopyright holder.U.S. ARMY CORPS OF ENGINEERS (Preparing Activity)NAVAL\1\ FACILITIES ENGINEERING/1/ COMMANDU.S. AIR FORCE CIVIL ENGINEER CENTERRecord of Changes (changes are indicated by \1\ . /1/ and \2\ /2/)Change No.12DateJune 2011April 2020LocationAbove, 1, 11, 85Updated Table of Contents, Section Titles, Referencesand verbiage per GAO Best Practices.This UFC supersedes UFC 3-700-02A, dated 01 March 2005.ii

UFC 3-740-058 November 2010Change 2, April 2020FOREWORDThe Unified Facilities Criteria (UFC) system is prescribed by MIL-STD 3007 and providesplanning, design, construction, sustainment, restoration, and modernization criteria, and appliesto the Military Departments, the Defense Agencies, and the DoD Field Activities in accordancewith USD(AT&L) Memorandum dated 29 May 2002. UFC will be used for all DoD projects andwork for other customers where appropriate. All construction outside of the United States isalso governed by Status of Forces Agreements (SOFA), Host Nation Funded ConstructionAgreements (HNFA), and in some instances, Bilateral Infrastructure Agreements (BIA.)Therefore, the acquisition team must ensure compliance with the more stringent of the UFC, theSOFA, the HNFA, and the BIA, as applicable.UFC are living documents and will be periodically reviewed, updated, and made available tousers as part of the Services’ responsibility for providing technical criteria for militaryconstruction. Headquarters, U.S. Army Corps of Engineers (HQUSACE), Naval FacilitiesEngineering Command (NAVFAC), and Air Force Center for Engineering and the Environment(AFCEE) are responsible for administration of the UFC system. Defense agencies shouldcontact the preparing service for document interpretation and improvements. Technical contentof UFC is the responsibility of the cognizant DoD working group. Recommended changes withsupporting rationale should be sent to the respective service proponent office by the followingelectronic form: Criteria Change Request (CCR). The form is also accessible from the Internetsites listed below.UFC are effective upon issuance and are distributed only in electronic media from the followingsources: Whole Building Design Guide web site http://dod.wbdg.org/.Hard copies of UFC printed from electronic media should be checked against the currentelectronic version prior to use to ensure that they are current.AUTHORIZED BY:JAMES C. DALTON, P.E.Chief, Engineering and ConstructionU.S. Army Corps of EngineersJOSEPH E. GOTT, P.E.Chief EngineerNaval Facilities Engineering CommandTERRY G. EDWARDS P.E.Director of the Air Force Center for Engineeringand the EnvironmentDepartment of the Air ForceMICHAEL McANDREWDirector, Facility Investment andManagementOffice of the Deputy Under Secretary ofDefense (Installations and Environment)iii

UFC 3-740-058 November 2010Change 2, April 2020UNIFIED FACILITIES CRITERIA (UFC)REVISION SUMMARY SHEETDocument: UFC 3-740-05Superseding: UFC 3-700-02A, dated 1 Mar 05Description of Changes:This document is a complete update to UFC 3-700-02A, establishing uniform guidanceto describe methods, procedures, and formats for the preparation of construction costestimates and construction contract modification estimates. It addresses all phases ofconstruction cost estimating from planning phases through modification estimatesduring construction. The term construction includes remedial action environmentalprojects, dredging and other construction type work often implemented as servicecontracts.Reasons for Changes:This UFC will provide guidance on the correct way for DOD personnel to prepare aproject cost estimate.Impact:There are negligible cost impacts.Non-Unification Issues: Due to differences in Services management structure andoperational processes, not all criteria within this UFC are unified.Independent Review of Construction Cost Estimate - The independent review processesvary among the Services due to differing organizational structures and operationalprocesses, which are delineated in separate Service-specific directives.The independent reviews of Army DD Form 1391 programming documents areperformed by a specialized team of cost engineers residing in Huntsville District. Thereview is performed under the direction of HQUSACE and in coordination with theHQACSIM. For the Navy, independent reviews are performed by the Region/FECand the Consistency Review Board at NAVFACHQ.Format, Presentation of Government Estimate, and Productivity Adjustment Factors The preliminary and intermediate steps in the preparation of the estimates vary amongthe Services, however, the final estimate product is essentially the same.1) The design execution processes by which the Services produce cost estimatesare also different. The Army manages this process by means of using designiv

UFC 3-740-058 November 2010Change 2, April 2020codes, which are issued by HQDA (DAIM-FD). There are twelve distinct designcodes. The USACE in turn issues these codes to their divisions and districtsthrough the directive network (DIRNET) system within the ProgrammingAdministration and Execution System (PAX) processor (AR-420-1). The Navymanages this process by means of the MILCON Team Planning ProgrammingProcess. There are no design code directives as with the Army. The Navyprocess is an ongoing reiterative process from the initial planning byInstallation/PWD to the Program Final DD Form 1391 to NAVFACHQ.2) The Military Services utilizes the DoD Facilities Pricing Guide (UFC 3-701-01for the current year) for preparation of the DD Form 1391 MILCON projectestimates. However, the Army also produces a supplemental document (PAXNewsletter 3.2.2, Unit Costs for The Army Facilities – Military ConstructionProgram) to provide additional unit cost guidance for non-standard facilities,which are not covered by UFC 3-701-01 for the current year. The Navy does notproduce a supplemental unit cost guidance document for non-standardfacilities, but can refer to the Army PAX Newsletter 3.2.2.Other Project Costs such as Supervision, Inspection, and Overhead (SIOH) - TheServices set different SIOH percentage rates. SIOH is a cost allotment for the agenciesfield construction management of the construction projects.v

UFC 3-740-058 November 2010Change 2, April 2020CONTENTSPageCHAPTER 1 INTRODUCTION . 11-11-21-31-41-4.11-4.21-4.3PURPOSE. 1APPLICABILITY . 1REFERENCES . 1SCOPE . 1Arrangement . 1Agency Specific Requirements . 1Military Programs . 2CHAPTER 2 BACKGROUND AND OBJECTIVES . 9.32-9.42-9.52-10ESTIMATING PHILOSOPHY . 3RESPONSIBILITY FOR PREPARATION AND REVIEW . 3Preparation . 3Review . 4ESTIMATE FORMAT STRUCTURE. 4COST ESTIMATING METHODOLOGY . 4Project Comparison Estimating . 5Square Foot/Square Meter Estimating . 5Parametric Cost Estimating . 5Quantity Take Off (QTO) Estimating. 6DEGREE OF DETAIL . 6Construction Tasks . 6Analyzing Construction Tasks . 6At the Most Detailed Level . 6ACCURACY AND COMPLETENESS. 7ROUNDING FIGURES . 7Total Distributed Cost (Markup) . 7Preliminary or Alternative Cost Estimates. 7Total Cost of the Project . 7SAFEGUARDING COST ESTIMATES . 7SECURITY AND DISCLOSURE OF GOVERNMENT ESTIMATE . 7Contents of the Government Estimate . 7Access to the Government Estimate . 8Marking the Government Estimate . 8Disclosure Outside of the Government . 8Bid Protests and Litigation . 8RELEASE OF GOVERNMENT ESTIMATES UNDER THE FREEDOM OFINFORMATION ACT (FOIA) . 82-10.1Definitions . 82-10.2Requests for Government Estimates and Back-Up Data . 92-11 TEAM INVOLVEMENT . 102-12 LIFE CYCLE COST (LCC) STUDY SUPPORT . 10vi

UFC 3-740-058 November 2010Change 2, April 20202-13 WORK BREAKDOWN STRUCTURE . 102-13.1Military Programs. . 102-14 MILITARY PROGRAM SPECIFIC REQUIREMENTS . 112-14.1Programming Estimate . 112-14.2Design Estimate . 112-14.3Pre-Final Estimate . 122-14.4Independent Government Estimate . 12CHAPTER 3 BASICS FOR PREPARATION OF ESTIMATES . 3-6.33-6.43-6.53-73-8GENERAL . 13PLANNING THE WORK . 13QUANTITIES . 13TYPES OF COSTS. 14PRICE SOURCES . 14Cost Book . 14Historical Data . 15Parametric Database . 15Development of Specific Tasks . 15COSTS AND PRICING . 16Minor Direct Costs . 16Historical Pricing. 16Lump Sum Items . 16Detailed Backup of Cost . 16Predetermined Bid Items . 16COST ESTIMATE FORMAT AND SUPPORTING DOCUMENTATION . 17MILITARY CONSTRUCTION PROGRAM SPECIFIC REQUIREMENTS. 17CHAPTER 4 COMPOSITION OF GOVERNMENT ESTIMATES . 54-3.64-44-54-6GENERAL . 18GOVERNMENT ESTIMATE OF CONTRACT COST . 18Title Page . 18Signature Page . 18Pricing Schedule . 18NARRATIVE OF CONTRACT COSTS . 19Table of Contents . 19Project Narrative \2\and Assumptions/2/. 19Construction Schedule. 19Equipment and Materials Utilization . 19Labor Discussion and Utilization . 20\2\Names and Contact Information/2/ . 20GOVERNMENT ESTIMATE BACKUP DATA . 20MISCELLANEOUS SUPPORT DATA . 21REQUIREMENTS FOR REVISION TO GOVERNMENT ESTIMATE FORBIDDING . 22CHAPTER 5 LABOR . 23vii

UFC 3-740-058 November 2010Change 2, April -5.15-5.25-5.35-5.45-5.55-65-6.15-6.2GENERAL . 23Direct Labor Costs . 23Indirect Labor Costs . 23CREWS. 23WAGE RATES . 23Long Duration Projects . 24OVERTIME AND SHIFT DIFFERENTIAL . 24Overtime . 24Shift Operations. 24Tabulation of Overtime Percentages . 25TAXES AND INSURANCE . 26Rates . 26Workman's Compensation . 26Unemployment Compensation Taxes. 26Social Security Tax Rates . 27Total Percentage of Taxes and Insurance . 27FRINGE BENEFITS AND TRAVEL/SUBSISTENCE . 27Fringe Benefits . 27Travel and Subsistence . 28CHAPTER 6 LABOR PRODUCTIVITY . 296-16-26-2.16-2.2GENERAL . 29PRODUCTIVITY ADJUSTMENT CONSIDERATIONS . 29Labor Effort . 29Complexity of the Variable . 29CHAPTER 7 CONSTRUCTION EQUIPMENT AND PLANT . 307-17-27-37-47-57-67-77-8GENERAL . 30SELECTION OF EQUIPMENT . 30ESTIMATING METHODOLOGY . 30PRODUCTION RATE . 30MOBILIZATION AND DEMOBILIZATION . 31EQUIPMENT OWNERSHIP AND OPERATING EXPENSE COST RATES . 31PLANT COST . 31SMALL TOOLS. 32CHAPTER 8 MATERIALS AND SUPPLIES . 338-18-1.18-1.28-28-2.18-2.28-38-4GENERAL . 33Materials . 33Supplies . 33SOURCES OF PRICING DATA . 33General . 33Quotes from Manufacturers and Suppliers . 33WASTE ALLOWANCE. 34FORWARD PRICING . 34viii

UFC 3-740-058 November 2010Change 2, April 20208-58-5.18-5.28-5.38-68-78-88-9FREIGHT . 34FOB Factory or Warehouse . 34Unloading and Transporting the Materials or Supplies . 34Large Quantity in Bulk . 34HANDLING AND STORAGE . 34TAXES . 35MATERIALS OR SUPPLIES MANUFACTURED OR PRODUCED AT THESITE. 35GOVERNMENT-FURNISHED MATERIALS (GFM) OR EQUIPMENT (GFE) . 35CHAPTER 9 SUBCONTRACTED WORK . 369-19-1.19-1.29-1.39-2GENERAL . 36Parts of Work to be Subcontracted . 36Cost of Subcontracted Work . 36Construction Contractual Methods . 36USE OF QUOTATIONS . 37CHAPTER 10 OVERHEAD COSTS. L . 38Duplication of Overhead Costs. 38Previously Determined Overhead Rates. 38JOB OFFICE OVERHEAD . 38Mobilization and Preparatory Work . 39GENERAL HOME OFFICE OVERHEAD (G&A) . 39DURATION OF OVERHEAD ITEMS . 40SOURCES FOR PRICING . 40DISTRIBUTION OF OVERHEAD . 40CHAPTER 11 PROFIT . 4111-1 GENERAL . 4111-2 WEIGHTED GUIDELINES METHOD . 4111-2.1Weighted Guidelines Method . 4111-2.2Weighted Guideline Factors . 4111-2.3Separate Profit Calculation . 42CHAPTER 12 SURETY BONDS. 4912-112-212-2.112-2.212-2.312-312-412-4.1GENERAL . 49PURPOSE OF BONDS . 49Bid Bonds or Bid Guarantee . 49Payment Bonds . 49Performance Bonds . 49AMOUNT OF REQUIRED SURETY BONDS. 50RULES GOVERNING THE APPLICATION OF BOND RATES . 50Separate Contracts. 50ix