Proposal for MEP engineering services dated May 6, 1992

NYC 9/11 Public Portal Document

V. Scope of Services / Approach TKLP

This project is being designed against a fixed project budget. The mechanical and electrical systems of this building urill be one of the largest cost elements itt the construction budget. We want both high quality systems that require minimal maintenance with maximum lifetime and reasonable low capital costs that do not become “'budget busters" or require changes, and compromises in later value engineering sessions. How do you propose to "get it right" the first time? Where there is a fixed budget, an agreement must exist between user, client, and engineer as to what commodities they want to buy for that budget. These commodities are made up of equipment cost, costs of systems, automation of systems, and quality of systems as well as redundancy and alternate paths within the system. TKLP has developed a matrix of costs from the most simple data center to the most sophisticated data center. As the matrix is orga­ nized to the right, the data center becomes more and more reliable with redundancy, on-line maintenance, etc. One of the first issues that we would deal with with the user group is to balance the levels of reliability, the sophistication of systems, the amount of automation, etc., with our client and user with the budget. We would then develop project guidelines in terms of systems that are mutually agreed to and historically would fall within the project budget. We would then monitor the design in terms of this base documentation to control the cost of the budget. This is how we would get it right the first time.

The Kling-Lindquist Partnership, Inc., (TKLP) has a fully-staffed project controls department. This department is made up of estimators with construction experience who perform all con­ struction cost estimates provided by this firm.

Opinion of Cost TKLP maintains a computerized record of the historical construction costs of our past projects. These costs can be sorted by discipline, by project type, and by system used. The geographical area, bid date, and pertinent subject area breakdowns are stored with each project. This infor­ mation is used when preparing an opinion of costs and is adjusted for escalation and geographical area correction based on the Engineering News Record, Richardson's Estimating Service, Mean's, and Marshall and Swift Valuation Services.

The estimate is then adjusted to accommodate a predominance or minimal proportion of ex­ pensive or less expensive functional areas. The absence or addition of any known system or item with a major cost impact is estimated and used to adjust the overall estimate.

TKLP's BOD is their cost control document and is reconciled with the budget. Budget "bust­ ers" wiU not comform to the BOD and are brought to management's attention to deal with them.

Forest City Tech Place Associates for Full Engineering Services 05/06/92 IP237] V-9

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