IP-22-06

Background

Unit prices are used in calculating project cost estimates, security amounts and inspection fees for grading permits and public works agreements. The unit prices were last updated by the county on August 1, 2012.

Purpose

Over the past 10 plus years, there has been overall increase in the prices of goods and services in the economy. To reflect this increase and to better align with 2022 prices, there is a need to update unit prices used in the determining security amounts and inspection fees for grading permits and public works agreements.

Over the past 8 months or so, Inspections and Permits (I&P) has collaborated with the Department of Public Works and various local contractors on updating the costs; while, there is an overall agreement that the costs have gone up since the last update, these increases varied across the board. Engineering News Record (ENR) showed an increase of 68.5% from 2012 costs; local contractor costs showed increases anywhere from 98% to 200%; WSSC costs showed increases close to 300% (for utility costs only). I&P and DPW reviewed costs information from various sources including from local contractors, DPW utilities, storm drainage capital projects and Washington Suburban Sanitary Commission (WSSC) projects. Also, there was variability in how the costs were tabulated across various work units and categories.

Given the above and to address the need for updating costs, I&P has used Consumer Price Index (CPI) to update costs at this time – CPI shows an increase of 30% from 2012 to 2023. The CPI is produced by the Bureau of Labor Statistics and CPI is a measure of the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services. Based on additional discussions with the development community, a 12% increase from 2012 unit prices is proposed at this time.

Updated costs of unit prices can be found at Unit Price List. These new unit prices are to be used in determining security amounts and inspection fees for grading permits and public works agreements.

Timing and Applicability

The new unit prices will become effective March 01, 2023. All cost estimates not signed and approved by a County reviewer before March 01, 2023 must be revised to reflect the new unit prices. All updates, reductions or revisions to existing grading permits or agreements must use the new price list as of March 01, 2023 for those items that are being changed. Note that with the PWA package, one (1) copy of the itemized cost estimate approved within six (6) months of submittal should be provided.

This office has coordinated with DPW and local contractors on the updated costs and we greatly appreciate the collaborative effort. I&P plans to update unit prices on a regular basis and plans to work with all involved stakeholders on this process.

Instructions for Completing the Costs Estimate – Feb 2023

1. All proposed improvement items (road paving, storm drains, water mains, sewer main, etc.) are to be listed in the cost estimate.
2. If the item listed on the cost estimate is not listed on the unit price sheet, then an asterisk * is placed adjacent to the item and an explanation for the source of the cost is shown at the bottom of the sheet.
3. The quantity of each item on the cost estimate is verified by comparison to the quantity shown on the public drawings. For LS items, supporting information may be requested by the county reviewer.
4. The total cost for that item is verified by multiplying the unit cost by the quantity for that item. This sum should be rounded off to the closest dollar.
5. The cost estimate should be broken down by work units i.e. road work, water work, sewer work, storm drainage work, etc.
6. The subtotal cost for each category is verified by adding the cost for each item in that category. The total project cost is the sum of all subtotals. The surveying and mobilization costs are 10% of the project costs. The contingency cost are 20% of the project’s cost. After these costs are all added, a total cost estimate is generated and highlighted in bold.
7. The project’s name and the name of the engineering/design firm that prepared the estimate must be on the top of each cost estimate sheet.
8. Standardized unit pricing data for SPSC, RSC, outfall restoration and stream restoration type of practices is not available at this time. Estimates should be broken out separately for these practices by the project engineer and are reviewed on a project by project basis.
9. Contact Traffic Engineering at (410) 222-7331 for cost of street lights and signs.
10. Provide one (1) copy of the approved cost estimate prepared within six (6) months of PWA submittal.
11. The Professional Engineer’s original seal, signature and date must be on each cost estimate sheet.