Attachment 11 EHRM Ft Wayne Bid Documents Narrative.pdf

Opinion of Probable Cost Narrative EHRM Infrastructure Upgrades Page 1 of 4 VA Healthcare System, Ft. Wayne, IN VA PN – 610A4-21-701 Spur PN – 1791.10

OPINION OF PROBABLE COST

1. OVERVIEW

A. The attached Opinion of Probable Cost (OPC) should not be considered exact, nor be utilized for financing. This opinion of probable cost is based on RS Means 1Q21 cost data, historic data, certain assumptions and plans available from designers and consultants. Actual construction bids may vary significantly from this opinion of probable cost due to timing of construction, changed conditions, labor rate changes, final design details or other factors beyond the control of Spur design. An inflation factor may need to be added to this opinion of probable cost to compensate for market conditions at the time of bid.

B. Items that increased over the course of this project that were not originally accounted for as part of the original Construction Cost Limitation.

1. Labor- With this project’s short construction timeline multiple shifts of skilled workers will be needed. Workforces are struggling to fill job openings. Contractor might have to bring in skilled labor from outside areas to complete this project. This project also will require Premium Time in order to complete the project within the proposed construction schedule.

2. Materials- Overall building material prices have steadily increased since 2020 according to attached Associated General Contractors PDF. Areas we are seeing the greatest increase are Metal Studs, Electrical Wiring, Electrical Conduits, Telecommunication Wiring, Telecommunication Equipment, HVAC Equipment.

3. Changes in Design- VA updating and modifying Design Standards in the form of Design alerts changes the design thus also changing the cost of Construction. Design Alerts 2,3,4 & 5 were all issues after project had started.

2. CONSTRUCTION SCHEDULE AND PHASING

A. Contractor Mobilization

1. It is assumed that a single mobilization is required. The contractor is expected to be able to work continuously throughout the construction time frame.

B. Area Available for Work

1. The client estimates that the job site and surrounding areas will be available at all times for the General Contractor.

C. Site hygiene/construction dust

1. This jobsite will be cleaned by the GC on a daily basis. All ICRA requirements will be met per the Construction Documents.

D. Noise Levels

1. The required work will have some significant noise at times. This is expected to last for a total of 30 days.

E. Construction Time Frame

1. The estimated time for actual construction activities is about 8 months. However, due to the volatile construction market, this could take longer as lead times for equipment have increased dramatically.

3. INCLUSIONS

A. The current cost estimate includes all items that are on the drawings and assumes several items that are anticipated to be on the future drawings.

4. EXCLUSIONS

A. None at the time of this estimate.

5. ASSUMPTIONS

A. The whole site will be given to the GC at the start of construction and coordination of work in each space will take place between the GC and COR.

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6. SCOPE OF WORK ESTIMATED

A. The scope of work estimated is as described in the engineering and architectural design documents, specifications and design narrative.

7. METHOD OF OPC DERIVATION

A. The OPC was derived using 1Q21 RS Means National Average cost data for Division 1-33 work where available and by obtaining manufacturer pricing for items not included in RS Means. A current database was also a source of pricing. If the RS Means Online database was used, they included overhead and profit and the 2021 Base Ft. Wayne, IN multipliers were used for each respective division. If local quotes were used for materials and labor was calculated from the current Davis-Bacon decision a 10% OHP was added to the division total at the bottom of each division for subcontractor mark-up

B. Revit and Bluebeam were used to generate material counts for fittings, piping, fixtures, ductwork, equipment, etc. All modeled items are included in the cost estimate.

C. Cost adjustment factors were then applied to account for local cost variations, overtime requirements, work difficulty, contractor scheduling and management challenges and overhead and profit. The cost adjustment factors are as follows:

1. Material, Labor, and Equipment factors – taken from RS Means for Ft. Wayne, IN where applicable.

Our estimating team engaged with local contractors to get the most up to date labor costs for the area.

2. Seismic Factor – 1% - Ft. Wayne is not in a zone of particularly high seismic activity.

3. Design Stage Contingency Factor – 1% - This gives us a small allowance for future changes. (such as electrical service upgrades)

4. Premium Time Required – 6% - Factor used to account for work outside of normal working hours.

5. Commissioning – 5% - Cost for commissioning of mechanical, electrical and telecommunications equipment.

6. Difficulty Factor – 5% - Factor to account for difficulty in performing work in tight or constricted spaces. Consideration was given to each respective discipline to account for the height of the building.

7. Location Factor – 1% - This factor was added due to the market research and based off recently bid projects.

8. Sub-Contractor OH&P – 10% - Typical contractor cost mark-up.

9. General Contractor Overhead and Profit – 6% - Project of this size ranges from 6% to 15% depending on market conditions and level of difficulty.

8. DIVISION 1 – GENERAL CONDITIONS

A. Personnel and Schedule

1. We assumed a full-time on-site Construction Manager/QC, a part-time Safety Manager (different from Construction Manager), and a half time Project Manager.

2. We assumed a project construction schedule of approximately 8-months.

3. Critical Lead Times – At this time no known lead-time issues.

9. DIVISION 2 – EXISTING CONDITIONS

A. Demolition – The estimate includes the cost for demo in rooms as indicated on plans as well as abatement costs. Exterior demolition of paving, sidewalks for trenching of new Fiber Optic cable.

10. DIVISION 3 – CONCRETE

A. New sidewalks and paving where locations were removed for new FO cable.

11. DIVISION 4 – MASONRY

A. Not Applicable

12. DIVISION 5 – STEEL

A. Not Applicable

13. DIVISION 6 – WOODS, PLASTICS AND COMPOSITES

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A. ¾” Treated Plywood for IT

14. DIVISION 7 – THERMAL AND MOISTURE PROTECTION

A. Not Applicable

15. DIVISION 8 – OPENINGS

A. New 45min rated doors

B. New Door Hardware (incl. card readers)

16. DIVISION 9 – FINISHES

A. Framing, Drywall and Ceilings

1. Interior Framing – for new partitions.

2. Drywall – for new partitions.

3. Flooring – New anti-static flooring in TA rooms.

4. Paint – new paint finishes inside TA rooms.

17. DIVISION 10 – SPECIALTIES

A. Not Applicable.

18. DIVISION 11 – EQUIPMENT

A. N/A

19. DIVISION 12 – FURNISHINGS

A. N/A.

20. DIVISION 13 – SPECIAL CONSTRUCTION

A. N/A

21. DIVISION 14 – CONVEYING EQUIPMENT

A. N/A

22. DIVISION 21 – FIRE SUPPRESSION

A. Cost is included to add, remove and adjust heads as needed in new Server room and IT closets.

23. DIVISION 22 – PLUMBING

A. See Design Narrative

24. DIVISION 23 – HVAC

A. See Design Narrative

25. DIVISION 26 – ELECTRICAL

A. See Design Narrative

26. DIVISION 27 – COMMUNICATIONS

A. See Design Narrative

27. DIVISION 28 – ELECTRONIC SAFETY AND SECURITY

A. See Design Narrative

28. DIVISION 31,32 AND 33

A. Erosion Control and Termite Control.

B. Excavation and backfill/final grade/compaction for new sidewalks and ramps.

C. New Fiber Optic concrete duct bank and Manhole.

D. New Electrical concrete duct bank and handhole.

E. Paving restoration from trenching for new duct bank.

F. Sod/Irrigation restoration from trenching for new duct bank.

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DEDUCTIVE ALTERNATE

1. DA #1 – BASE BID EXCEPT OMIT REMOVAL OF EXISTING ABANDONED FIBER LINE.

2. DA #2 – DEDUCT ROOM 210C DEMOLITION AND NEW CONSTRUCTION.

END OPINION OF PROBABLE COST NARRATIVE