Tools for Evaluation of Engineering Fees

1. Tools for Evaluation of Engineering Fees 14th Annual New Mexico Infrastructure Finance Conference

2. Factors Which Determine Engineering Costs • Scope of Work • Complexity of the Project • Size of the Project

3. Primary Components of the Scope of Work • Basic Services: Design, Bid Administration, Construction Administration, Periodic Construction Observation • Additional Services: Surveying/Mapping, Preliminary Engineering Reports, O&M, Environmental Documentation, Investigations, Permitting, Right-of-Way, Public Meetings, Full Time Construction Observation • Reimbursable Costs: Printing, Travel

4. Factors Affecting Complexity • Rehabilitation • Constricted Space • Rugged Terrain • Congested Areas • Physical Constraints • Unconventional • Multiple Disciplines • Specialized Expertise • Level of Detail Req’d • Number of Submittals • Public Sensitivity • High Level of Interaction with Owner/Agencies • Complex Funding • Environmental/Cultural Constraints • High Level of Citizens Involvement • Special Security Req’d

5. Guide for Evaluation of Design professional Fees Content Page Instructions 2 Estimation of Fees for Basic Services 2 Estimation of Fees for Resident Construction Representation 4 Fee Table for Basic Services 5 Fee Table for Resident Construction Representation 6 Description of Basic Services 7 Examples of Additional Services 8 Reimbursable Expenses 8 Determination of Project Complexity 9 Clarifications of Technical Factors Affecting Project Complexity 10 Clarifications of External Factors Affecting Project Complexity 11 Typical Costs for Additional Services 12

9. Preliminary Engineering ReportsNMED Construction Programs Bureau Standards • Recommended Standards for Water Facilities • Recommended Standards for Wastewater Facilities

10. Factors Which Determine Costs for a Preliminary Engineering Report (PER) • Scope of Work • Complexity

11. Primary Components of the Scope of Work • Prel. Engineering Report: Planning Area, Existing Facilities, Need for Project, Alternatives Considered, Proposed Project • Additional: Flow Measurements, Video Taping, Pump Tests, Geo-Hydrological Studies, Water Rights Investigation, Laboratory Testing, Detailed ROW Investigation, Extensive Public Involvement, Extensive Modeling, Leak Detection

12. Factors Which Increase the Complexity and/or Scope of PERs • Previous studies have not been completed in project area from which to draw data for PER. • Updated system mapping of system not available • Record drawings and specifications of recently completed construction projects not available. • Age, location, size and condition of existing facilities is unknown. • Customer usage has not been adequately measured. Use by customer category is unknown

13. Cont’d - Factors Which Increase the Complexity and/or Scope of PERs • Financial records are inadequate or not updated • Significant recent changes have occurred in the leadership, management, operation or maintenance staff • Procedures are not well established or not in compliance with regulatory requirements • Full-time staff is not available to provide necessary information to the engineer

14. Cont’d - Factors Which Increase the Complexity and/or Scope of PERs • A recent sanitary survey has not been performed by NMED • The number of alternatives evaluated • The number of system components involved in the alternatives • The complexity of alternatives • Complex site conditions such as corrosive soils, high water tables, limited access, etc.

15. Cont’d - Factors Which Increase the Complexity and/or Scope of PERs • Water and wastewater treatment facilities are more complex • Involvement of multiple entities • Geographic extent of facilities • Number of hook-ups • High level of interaction required with owner/s and public

16. Plan for Development of PER Fee Guide • ACEC/NM Committee is developing tool for evaluation of PER Fees in cooperation with the NMED Construction Programs Bureau • ACEC/NM Member firms will test Fee Guide by application to previously completed PERs • Modifications will be made to Fee Guide and reviewed by NMED. Changes will be made as needed • Guide will be distributed for use in evaluating the reasonableness of proposed PER fees.