Summary Cost Estimate Clause Samples
The Summary Cost Estimate clause outlines the provision of an overall projected cost for a project or service, typically presented in a condensed format. This estimate aggregates anticipated expenses such as materials, labor, and overhead, and is often used in the early stages of planning to give stakeholders a clear sense of the expected financial commitment. Its core practical function is to provide a transparent, high-level overview of costs, enabling informed decision-making and budget planning before more detailed estimates are developed.
Summary Cost Estimate. All costs shall be itemized on a “Summary Cost Estimate” sheet with separate categories for Man-Day Costs, Fringe and Overhead, FCCM (Facilities Capital Cost of Money), Net Fee, Out-Of-Pocket Expenses and a summary amount for each Sub-Consultant. A sample cost estimate summary form is located in the Consultant Services Website. The raw labor estimate is derived from negotiated man-hours multiplied by certified hourly rates identified by job classification for the staff assigned to the proposed project. The labor estimate is then multiplied by the overhead rate. Combining the raw labor computation and the overhead rate computation results in the loaded cost of labor from which the fixed fee is calculated. The labor estimate is also multiplied by the FCCM, the total of which is listed as a separate line item and is not used in the fixed fee calculation. The amount of fixed fee for the Consultant is negotiable and is added to the consultant’s cost estimate as a separate line item. Out-of-Pocket Expenses, that are not included within the company’s Overhead rate, shall be itemized to reveal quantities, unit costs and a cost summary for each item. Out-of-pocket expenses are listed at actual cost and added to the cost estimate without mark-up for profit. Costs for each sub-consultant should be listed with the sum of their costs added to the estimate of the prime consultant. Each sub-consultant should provide a separate itemized cost estimate using the same format as described above for the prime consultant.