Engineering cost estimates are necessary steps made at various stages of proposed projects. These cost estimates are made for the purpose of defining and classifying right-of-way acquisition, plan preparation, and the construction of public improvements. A discussion of the type of estimate, the scope, and the degree of accuracy required will follow.
Class “C” and “B” estimates are made by the engineering design offices involved. The quantities, location, and nature of the project may be submitted informally by telephone to the (Utility and Estimating)1 Project Award and Control (PAC) Division. Other prices are available from the design divisions, bureaus, or other agencies directly concerned. The (Utility and Estimating)1 Project Award and Control (PAC) Division then determines the appropriate unit or lump sum bid prices and returns this information to the design office requesting these prices.
Class “A” estimates are usually made by the (Utility and Estimating)1 Project Award and Control (PAC) Division. The various classes of estimates are defined as follows:
E 241.1 Tentative Estimate (Class “C”)
The purpose of the Class “C” estimate is to provide a tentative estimate which is intended to show the order of magnitude only and is subject to major revision. This estimate is to be based on general knowledge of the project with regard to location, limits, width of improvement, width of right of way, and other known physical characteristics, due regard being given to previous experience with similar projects in the same area.
E 241.11 Capital Improvement Projects:
Class “C” estimates are not to be used for preliminary project cost estimates for capital improvement projects. Because of the importance of accuracy, estimates for these projects should be at least Class “B”. See Subsections E 238.2, Project Cost Estimates and E 241.2, Appropriation Estimate (Class "B”) below.
E 241.12 Assessment Act Projects:
Preliminary estimates used for processing petitions, work order requests, preliminary engineering reports, etc., on relatively simple projects will require Class “C” estimates. The more complex projects may require some investigation and preparation to the same degree required for Class “B” estimates. (See Subsections E 141.22 and E 811.2, Project Report and Council Action.)2
E 241.2 Appropriation Estimate (Class "B”)
The Class “B” estimate is intended to be used as the basis for fund appropriation, for other specific projects as directed by the Board of Public Works, and for urgent projects recommended for immediate financing. This estimate is to be based on specific, detailed knowledge of the project obtained by field investigations and preliminary planning. When requesting Class "B” estimates from other offices concerned, the Bureau of Engineering should furnish a sketch showing all basic information, including information as to additional right of way requirements, change of grade, location of private improvements which may interfere with the work, and anticipated requirements for storm drain, sewer, and slope easements. Bureau of Right of Way and Land estimates shall include cost of clearing right of way acquired. However, cost of relocating public utility facilities is to be estimated by the Bureau of Engineering.
E 241.21 Capital Improvement Projects:
A Class "B” estimate is required for all preliminary cost estimates that will be made for projects to be included in the Bureau’s Annual Tentative Capital Program.
E 241.22 Assessment Act Projects:
A Class “B” estimate should be made for any project to be improved under Assessment Act proceedings where public funds will be appropriated. Gross errors in the preliminary project cost estimates may result in the rejection of the proposed project, either by the Council or by the property owners, and the consequent unnecessary expenditure of City funds. Therefore, a Class "2S” estimate is suggested for any projects of a complex nature.
E 241.23 Permits
In compliance with the Municipal Code, projects done under permit, whether designed by the City or by a private engineer and checked by the City, require an estimate to be made by the City Engineer. The estimate should cover the cost of the portion of the design and/or plan checking to be done by the City. Also, estimates of the total construction cost including granting, streets, sewers, storm drains, etc., are required. The purpose of these estimates is to determine the amount of the plan checking fee and construction bond to be paid by the permittee. The fees should be realistically estimated to cover anticipated actual costs. Similarly, bond estimates should be high enough to ensure complete recovery in case of default.
The quantities and costs are arrived at from a preliminary project investigation and a thorough study of the preliminary construction plans. The accuracy of these types of estimates should at least approach the Class “B” level.
E 241.3 Final Estimate (Class “A”)
The Class “A” estimate is the final summation of estimated costs after completion of final plans by the Bureau of Engineering. The Class “A” estimate for construction is the final estimate based on completed plans. (If this estimate indicates that additional funds are required, a report should be made promptly to the Board of Public Works by the Bureau concerned. See Chapter E 800, Procedural Steps for Proposed Improvement, and Part C, Operations and Control, when this Part of the Manual is printed.)2
E 241.4 Average Engineering Costs
(Figures E 241.4A and E 241.4B show the construction cost estimates and the corresponding percentage costs of engineering and inspection for capital improvement, assessment act, and sewer offsite and bond issue projects. Figure E 241.4A storm drain, and structural projects by improvement and assessment act, which are located in both flat and hilly areas. Figure E 241.4B is for sewer projects constructed under bond issue funding, and for offsite tract improvements constructed by City contracts.)2
(Both figures give the median engineering cost of various sized projects and reflect data collected on those projects that were completed and accepted in 1966-67, 1967-68, and 1968-69 fiscal years. “B” Permits are not included. See Subsection E 241.41. No data were available for combination capital improvement and assessment act projects. These projects are treated as assessment act projects.)2
Design Costs include those charges made by the design Division or design section of the District for all design functions. Processing Costs include those charges made to a project by the non-design Divisions (Utility and Estimating, Opening and Widening, Administration, Coordinating, etc.). Survey Costs include all of the charges made by the Survey Division to a project. Total Engineering Costs are the sum of the three previous costs. Inspection Costs include those charges made to a project by the Bureau of Contract Administration and are not included in the total engineering costs.
It should be emphasized that the information in these figures is statistically derived and is not intended to supplant professional judgment on projects considered individually. They are primarily for use in financing and budgeting when many projects are being considered.
E 241.41 “B” Permit Projects
(Figure E 241.41, below, shows the charges in dollar amounts made by the City for processing permit projects. They give the median processing costs of various sized projects and reflect data collected on projects that were completed and accepted in the 1969-70 fiscal year. They include the average total of the survey, the administration, and the engineering costs for checking the plans, construction of the project, and acceptance of the project.)1
Per LAMC 62.110 - Class "B" Permit Fees, the fees charged by BOE to process a "B" Permit project shall be the actual cost of services provided by the City for issuance and oversight of the permit and permitted project, except for costs that may be incurred by a Proprietary Department subject to the provisions of Article VI of the Los Angeles City Charter, and except for the Street Damage Restoration Fee (LAMC 62.06 - Establishment of a Street Damage Restoration Fee). Standard Fees, at a minimum, are reviewed on an annual basis. The most current version of the City’s Standard Fee List is located at the BOE website under Permits (https://engineering.lacity.gov/permits).
Footnotes
- The text in parenthesis is from the legacy Street Design Manual text and has been superseded by the italicized text that follows.
- The text in parenthesis is from the legacy Street Design Manual text and is no longer in use.
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