03-07: Attachment E - Cost Opinion Palm Park Cap Ex AW Temporary Easement Cost Implementation — original pdf

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Re: Palm Park Cap/Ex/AW Temporary Easement Cost Implementation Schedule Extension Cost Impact The cost impact of the proposed schedule extension will depend heavily on market conditions, contractor backlog, and bid competition at the time of procurement. If general contractors and subcontractors have available capacity and are aggressively pursuing work, they may absorb some or all of the extended duration within their bids. Conversely, if backlog remains strong, bidders are more likely to price the additional duration as a real cost exposure. Based on current conditions in the Austin market, the latter scenario appears more likely. For this project, we would expect general conditions and general requirements to be approximately $50,000 per month. A 3-to-4-month extension would therefore result in an estimated general contractor impact of $150,000 to $200,000. This cost is largely driven by extended site supervision, temporary facilities, project management, insurance, and the opportunity cost of keeping resources committed to this project rather than redeploying them elsewhere. Subcontractors will face a similar, though somewhat lower-overhead, exposure. Their extended duration costs may include supervision, project management, equipment, remobilization, and reduced labor efficiency. For planning purposes, we would carry subcontractor’s general conditions and requirements at a similar magnitude to the general contractor amount, or approximately $50,000 per month. A 3-to-4-month extension would therefore result in an estimated subcontractor impact of $150,000 to $200,000. Based on the above, the total estimated schedule extension impact is $300,000 to $400,000. Given the uncertainty around bid competition, backlog, and how individual contractors choose to price the extended duration, we recommend carrying this estimate with a +/- 20% range. This results in a potential upper exposure of approximately $480,000. Conclusion We recommend budgeting the schedule delay impact at $300,000 to $480,000. Blair Tennant Senior Principal | Vermeulens Construction Economists Vermeulen’s, Inc. Boston New York Toronto Atlanta Dallas Austin San Antonio Denver Los Angeles