(PUBLIC REVIEW DRAFT) 137R-25: Owners Costs: Definition and Considerations for Estimating

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  • 1.  (PUBLIC REVIEW DRAFT) 137R-25: Owner's Costs: Definition and Considerations for Estimating

    Posted 02-17-2025 06:01 PM

    (PUBLIC REVIEW DRAFT) 137R-25: Owner's Costs: Definition and Considerations for Estimating

    Please provide your comments in the "REVIEWER" columns of the Excel file and then post the file back in this thread.

    This draft RP is open for review and comment until April 3, 2025.

    PLEASE NOTE! This RP proposes new definitions for the following terms:

    • OWNER'S COSTS 
    • OWNER PROJECT MANAGEMENT TEAM (PMT) 

     



    ------------------------------
    Christian Heller
    Director of Technical Guidance
    AACE International
    cheller@aacei.org
    ------------------------------

    Attachment(s)

    pdf
    PRD_137R-25.pdf   380 KB 1 version
    xlsx
    PRD_137R-25_Comment Log.xlsx   98 KB 1 version


  • 2.  RE: (PUBLIC REVIEW DRAFT) 137R-25: Owner's Costs: Definition and Considerations for Estimating

    Posted 17 days ago

    Posted on behalf of Peter Jackson

    Hi all, apologies as I'm not able to edit the xls comment log.  Three brief comments below: 

    Has consideration been given to the creation of a scope (responsibility) delineation document that becomes part of the project execution and contracting plan? This documents clear responsibility for what is intended to be performed by the Owner vs a Contractor.  As such, it can provide a clear basis for the owner cost estimate. (related to 2.4.1)

     

    For staffing (2.4.3), I recommend identifying the need for sourcing assumptions for the Owner PMT.  Many companies do this with only internal staff, but others are a blend or potentially primarily outsourced.  When outsourced, owners may choose different accounting treatments (e.g., capitalize external costs, expense internal staff) and so it can have a material impact to the total owner cost. 

      

    In the Appendix Cost Accounts, one potential item I did not recognize is tax consulting or tax advisory services. In certain industries, owner's hire 3rd party advisory services to assist with property tax favorable asset categorization, which can look different than typical book accounting.  Often this is performed to reduce asset life used for depreciation in a legal way, but more aggressively with knowledge of detailed tax laws.   It could fall under special studies or tax.

    Thank you for the opportunity to comment"



    ------------------------------
    Christian Heller
    Director of Technical Guidance
    AACE International
    cheller@aacei.org
    ------------------------------

    Original Message


  • 3.  RE: (PUBLIC REVIEW DRAFT) 137R-25: Owner's Costs: Definition and Considerations for Estimating

    Posted 17 days ago

    Posted on behalf of Mirela Tsagkari

    Hi,

    I would consider the following items, as well, depending on Owner's accounting rules.

    Some are already mentioned in RP 16R-90.

    Permitting/ Insurance,
    Custom duties,
    Land purchase
    Utilities consumption during construction activities
    Maintenance material,
    Consumables for pre-commissioning & commissioning

    Qualification Management (for GMP Facilities)
    Initial Catalyst & Chemicals,
    Working Capital,
    Taxes,
    Finance & legal fees

    Pre-paid royalties,

    Risk Contingency is also an Owner's item despite it being partially estimated by the Contractor.



    ------------------------------
    Christian Heller
    Director of Technical Guidance
    AACE International
    cheller@aacei.org
    ------------------------------

    Original Message


  • 4.  RE: (PUBLIC REVIEW DRAFT) 137R-25: Owner's Costs: Definition and Considerations for Estimating

    Posted 17 days ago

    Posted on behalf of Loy Kuo

    Other than by cost types, there should a basic recognition of the owner organization's underlying enterprise and tax accounting and reporting systems.

     Identify and group out compensation package to internal employees versus expensing out to external entities (all others instead of paying through the prime contractor or design-builder).   

    For the compensation package to the internal employee, remember to calculate add a fringe-and-benefits multiplier to the direct wage.  Then calculate add the owner organization's overhead multiplier to the it.

    What may become highly subjective is assigning a dollar figure to the organization's balance sheet for the goodwill value generated, or lost, from delivering the project.



    ------------------------------
    Christian Heller
    Director of Technical Guidance
    AACE International
    cheller@aacei.org
    ------------------------------

    Original Message


  • 5.  RE: (PUBLIC REVIEW DRAFT) 137R-25: Owner's Costs: Definition and Considerations for Estimating

    Posted 17 days ago

    Posted on behalf of Kul Uppal

    This is Kul B. Uppal - What typical Owners cost not including Equipment and Materials.



    ------------------------------
    Christian Heller
    Director of Technical Guidance
    AACE International
    cheller@aacei.org
    ------------------------------

    Original Message


  • 6.  RE: (PUBLIC REVIEW DRAFT) 137R-25: Owner's Costs: Definition and Considerations for Estimating

    Posted 14 days ago

    In reviewing the owner's cost, cost accounts, there should be a few categories and sub categories that would help owners and estimators set a pin and review for actual costs:

    Under Project Administration - Authority Having Jurisdiction (AHJ) Support, Project Management Support (Staffing Support / Agency Support / Preconstruction Support), Contract Set Aside Management (Small Business, HUB Zone, etc - may also be under the Procurements and Contracts Category), LEED Documentation / Low Impact Development, and Owner Controlled Insurance Program (OCIP) Administrator 

    Procurement and Contracts (Supply Chain), Purchasing should have Owner Furnished Contractor Installed (OFCI), Owner Furnished Owner Installed (OFOI), Contractor Furnish Owner Install (CFOI), Contractor Furnished Contractor Installed (CFCI), and Fixtures, Fittings, and Equipment (FF&E)

    Under Project Control - Construction Management Agency Pre-construction Services (CMA), 

    Under Pre-Production/Operations Costs/Start-up and Commissioning - 3rd Party Commissioning Agent, OFCI Coordination, Backfill Support, Moving Support, Punchlist, Training Coordination, Warranty Repair Tracking, and Final Reconciled Estimate for Record.

    Hope these help



    ------------------------------
    Corey Coleman
    Senior Estimator
    AECOM
    Sacramento
    corey.coleman@aecom.com
    ------------------------------

    Original Message


  • 7.  RE: (PUBLIC REVIEW DRAFT) 137R-25: Owner's Costs: Definition and Considerations for Estimating

    Posted 13 days ago

    I agree with categories above.  Additional background: 3rd Party commissioning (Cx) is essential, and may be categorized as a Quality Assurance process.  Generally 3-5% of overall budget.  A common misconception is Cx is a single activity during activation, but it is a Quality focused process beginning at RFP stage and continuing to Operations phase and post-acceptance. Complex projects with multiple trade contractors can benefit most from the Communicate, Document, Verify (CDV) mantra of the Cx process.



    ------------------------------
    Russ Gentile
    Sr. eMobility Developer
    ABM eMobility, LLC
    Park Ridge
    russell.gentile@abm.com
    ------------------------------

    Original Message


  • 8.  RE: (PUBLIC REVIEW DRAFT) 137R-25: Owner's Costs: Definition and Considerations for Estimating

    Posted 13 days ago
      |   view attached

    Attached is Illustrative Only Cx Process Map showing involvement from conceptual design through acceptance.



    ------------------------------
    Russ Gentile
    Sr. eMobility Developer
    ABM eMobility, LLC
    Park Ridge
    russell.gentile@abm.com
    ------------------------------

    Attachment(s)

    pdf
    Cx Process Workflow Mar2025.pdf   109 KB 1 version
    Original Message


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