PART 1: OVERVIEW
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Construction cost factors can also support new construction cost estimates. As with sustainment cost calculations, such
estimates are most reliable at the programmatic level, and lose accuracy when applied to specific facilities or projects. These
calculations can be useful for DoD and Service-level modeling of:
Re-stationing and Regionalization
Joint facilities studies
Determining rates of re-capitalization
Describing the magnitude of a facility inventory in a common unit of measure
Selection of Construction Cost Factors
As with sustainment cost factors, a hierarchy was established for groups of cost factor sources. Where more than one cost
factor source was available within Source 1, a selection was based upon engineering judgment and approved by consensus of
the FSM Working Group.
Construction Cost Factor Source Hierarchy
Source 1
Easily-accessed and widely applicable data. Cost factors in this category were taken directly from the DoD Tri-Service Committee on
Cost Engineering (mandatory within the DoD for applicable construction); Service-specific cost guidance (USACE, USAF);
commercial cost-estimating guidelines (e.g., M&S or Whitestone); or other Government-published cost guidance (e.g. Fairfax County
(Virginia) Park Authority).
Source 2
Unpublished government or trade association average cost data (e.g. CEAC).
Source 3
Unpublished project-specific data, derived from Service project documents (e.g. DD Forms 1391), or by calculating costs from
reported plant replacement value and inventory.
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