Tetra Tech, Inc

D.3 – Supplemental Material
Construction Cost Estimating Control
Provided below is Tetra Tech’s history and experience with construction cost estimating control. Our experience
with value engineering will be valuable during the review of alternatives and in development of the capital
improvement program.
Construction cost estimates are submitted during preparation of the preliminary design report, preliminary design,
and final design. Typically, a contingency is included during the design report and preliminary design stages, as
the understanding of final requirements such as pipe size or equipment size may not have been determined at
that point. Preparation of thorough and complete construction drawings and specifications are used to update
conceptual construction costs identified during the planning phase. In the event that cost estimates exceed the
City's budget to such a point that completion of any phase of the project is in jeopardy, we will evaluate the
design through “value engineering” methods to identify changes necessary to bring the cost within budget. If
value engineering determines the project design is the most cost effective means of obtaining the desired results
of the City, justification will be provided to support an increase to the project budget. However, every effort is
made to adhere to the project budget.
Using a Value Engineering approach is required to arrive at the best possible operational system for any project.
Our value engineering team leader firmly believes that the value engineering (VE) team approach that matches
individual talents and capabilities to specific job requirements and tasks is the best way to analyze project
efficiency and cost effectiveness.
The VE team members all have construction experience directly related to the needs of the City of Pompano
Beach. The VE team further consists of members that have years of general contracting and construction
management experience. This experience allows the VE team the option of comparative construction cost
estimating based on a wide array of technologies that have been implemented by these particular team members
in conjunction with team members that have years of process experience. This results in recommendations that
include the least possible construction costs without jeopardizing the needs of the citizens within the jurisdiction
of the City or regulatory requirements.
The VE team utilizes a breakdown of major construction categories and their respective percentage of total cost
for selective processes. By carefully examining the breakdown data, we are able to reveal the relative importance
of various disciplines in the design of particular facilities. These facts are carefully considered in determining the
constructability of projects by construction team members noting that high cost categories offer the greatest
potential for cost savings. The VE team members have substantial construction experience. We have found that
this experience stimulates VE recommendations directly related to the project's "constructability."
In the unlikely event that construction bids exceed the final construction budget by more than 10 percent, we will
review the bid, as well as the design, to determine reasons as to why construction costs are higher than
anticipated. For unit price work, contractor’s costs can be compared to those costs obtained by Tetra Tech from
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