S02 - ATTACHMENT 3 - EHRM North Chicago-100 Cost Narrative.pdf

Opinion of Probable Cost Narrative EHRM Infrastructure Upgrades Page 1 of 3 VA Healthcare System, Chicago, IL VA PN – 556-21-701 Spur PN – 2113

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 2Q22 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.

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. However, they will not be able to work on all areas of the facility at once but will be staged. The assumption is there will be no stop work orders and the contractor will be able to freely move to the next phase upon completion of the previous phase. They will work in multiple shifts in order to accomplish the construction timeframe given.

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 7 months. However, due to the volatile construction market, this could take longer as lead times for equipment have increased dramatically.

3. INCLUSIONS

A. This estimate of probable cost includes all items within documents and makes some assumptions for items not completely identified/sized. Spur is attempting to create a holistic estimate.

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.

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 2Q22 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 2022 Base Chicago, IL 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

EHRM Infrastructure Upgrades Page 2 of 3 was added to the division total at the bottom of each division for subcontractor mark-up

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

C. Cost adjustment factors are 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 Chicago, IL where applicable.

2. Seismic Factor – 1% - Chicago is not particularly high seismic activity.

3. Design Stage Contingency Factor – 0%

4. Premium Time Required – 10% - Factor used to account for work outside of normal working hours and/or to complete project within time frame allowed.

5. Commissioning – 3% - Cost for commissioning of mechanical, electrical and telecommunications equipment.

6. Difficulty Factor – 2% - 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 – 2% - This factor is included for work proximity/access in and around site.

8. Sub-Contractor OH&P – 10% - Typical subcontractor cost mark-up. This is calculated on Labor, Material and Equipment Totals.

9. General Contractor Overhead and Profit – 6% - Project of this size ranges from 4% to 8% depending on market conditions and level of difficulty.

8. DIVISION 1 – GENERAL CONDITIONS

A. Personnel and Schedule

1. We assumed (3) full time on-site Construction Superintendents, (3) full time on-site Assistant Superintendents, a (1) full-time on-site Safety Manager (different from Construction Manager), and a full time on-site Project Manager.

2. Critical Lead Times – At this time, almost every item is in demand and short supply. General Contractor and subcontractors will need to be expeditious in procuring of all required materials.

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. New CMU partitions where stated on plans

12. DIVISION 5 – STEEL

A. New structural supports as required

13. DIVISION 6 – WOODS, PLASTICS AND COMPOSITES

A. ¾” Treated Plywood for TR rooms

14. DIVISION 7 – THERMAL AND MOISTURE PROTECTION

A. New fireproofing of penetrations in TR rooms as required

15. DIVISION 8 – OPENINGS

A. New doors, frames and hardware as required

16. DIVISION 9 – FINISHES

A. Framing, Drywall and Ceilings

1. Interior Framing – for new partitions.

EHRM Infrastructure Upgrades Page 3 of 3

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. New room signage

B. Fire Extinguishers for each TR room

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. New Sprinkler System as required.

23. DIVISION 22 – PLUMBING

A. Demolition of bathroom fixtures

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

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

C. New Fiber Optic concrete duct bank and Manhole(s).

D. New Electrical concrete duct bank and handhole(s).

E. Paving restoration from trenching for new duct bank.

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

DEDUCTIVE ALTERNATE (NONE AT THIS TIME)

END OPINION OF PROBABLE COST NARRATIVE