LABOR COST: Davis Bacon prevailing wage rates and RS Means rates will be compared for Kansa City. Also, Non-union rate will be considered for this project location.

EQUIPMENT COST: For USACE project we will do the estimate in MACECS MII which will require us to use Region V equipment cost for this project location.

MATERIAL COST: Current quarter Material cost is calculated by escalating the MACECS MII cost database to current date. Also, local vendor and supplier quotes are obtained for major cost items (80-20 rule) such as concrete, steel, lumber or any specialty item which assures that any local cost impact is considered in the estimate.

AREA COST FACTOR: RS Means City Cost Index (CCI) will be used to calculate the material price for project location. For this project current quarter (2022-Q1) RS Means CCI for Kansa City is 95.7% for Material and 98.8% for Installation. Which shows that the Kansa City material cost is 4.3% lower than the national average and Labor cost is 1.2% lower than the national average.

PRODUCTIVITY IMPACT: Due the secure location of the project site, we consider labor productivity loss. This is loss of work time due to site access, base entrance, or security clearance. This loss is considered between 30 mins to 60 mins of time out of the 8 hrs. work shift.

MARKET STUDY: Estimating in current the construction market, which is highly volatile, labor shortages, inflation, supply chain issues make it necessary to be aware of local market conditions. We will be connecting with the local sub-contractors and supplier to have better understating of the market and make sound consideration for the project upon the market review.

REMOTNESS FACTOR: Project with remote location comes with an added cost of construction. With respect to this project, we do not see any remote condition, all the common material and labor we see coming from Kansa City which has enough resources to complete this project construction.

ANNUAL ESCALATION: Depending on the project schedule and construction start date we will calculate the annual escalation with an understanding of overall market conditions on national and local/project location level. We use ENR Building Cost Index as reference point for our annual escalation percentage and need compare with other indices such as USACE, NAVFAC, DCD, etc.

MISCELLANEOUS: Job office overhead will be estimated in detail as per this project requirements. Additionally temporary space or swing area for the current offices and staff will be taken into consideration as required by the project scope. Project Markups will be factored based on local competition and conditions. We make sure to account that in our estimate with the help of our detailed market analysis. Our Internal Quality Control plan to review estimate helps us provide more clean and accurate construction cost for the project. This has allowed the A/E teams to better design to the project scope and has given the owner more confidence in their project budgeting.