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Document Code No.: FES 9-1 (AEP)
Department/Issuing Agency: Executive Administration/Facilities Management Division
Effective Date: July 3, 1992
Approved: /s/ Tim Hill
Type of Action: New

Signed document (PDF, 4.45 MB)


1.0 SUBJECT TITLE: Facilities Renovation Projects - Estimating and Billing Process

2.0 PURPOSE:

    2.1 To explain the policies and procedures for the estimating and billing processes for the Building Improvement and Modification Program.

3.0 ORGANIZATIONS AFFECTED:

    All King County departments, offices and agencies.

4.0 REFERENCES:

    4.1 May, 1991 County Auditor Report, "Carpentry Shop Audit Report."

    4.2 1988 Council motion number 7243 which establishes criteria for the management of the Division of Facilities Management's capital projects.

    4.3 King County Code 2.16.090, Section F which specifies that the Facilities Management Division is to administer and maintain in good general condition all facilities assigned to the division.

5.0 DEFINITIONS:

    5.1 "BIM" means those billable jobs performed as part of the Building Improvement and Modification Program administered by the Facilities Management Division.

    5.2 "Full cost method" means the process of billing agencies for work performed by calculating all labor, material and overhead charges incurred in the performance of a particular BIM job.

    5.3 "Direct cost" means all salaries and wages of workers directly involved on BIM jobs.

    5.4 "Overhead indirect cost" means such costs as a portion of supervisory and administrative support salaries, a portion of central services costs, fringe benefits for full-time and temporary help employees and an adjustment for paid time off for full-time employees. The overhead rate used is an experience rate.

    5.5 "Cost estimate" means the Facilities Management Plant Services Section's best projection of the total cost of labor hours, overhead and materials required to perform a client-requested service.

    5.6 "Regular estimating process" means a detailed cost estimate based upon the scope of work as outlined by the client agency.

    5.7 "Fast track estimating process" means an abbreviated order of magnitude cost projection or the waiving by the client agency altogether of the estimating process if job timing or other requirements require quick turnaround.

6.0 POLICIES:

    6.1 Facilities Management Plant Services Section shall provide renovation services to other County agencies and shall charge for such services.

    6.2 Facilities Management Plant Services Section shall provide free of charge cost estimates to all client agencies when the initial scope of work appears to indicate a total job cost of over $10,000 and to any client who requests an estimate. The cost estimate is not a bid.

    6.3 Facilities Management and the client agency shall agree upon a scope of work prior to the beginning of a project. Any changes, additions or deletions to the established scope of work shall be reviewed and approved jointly by Facilities and by the client agency. The scope of work and any subsequent changes shall be documented in writing.

    6.4 The Facilities Management Division shall bill for and recover from the client agency all actual costs of a job including overhead costs. For jobs in excess of $10,000, monthly progress billing will be sent to the client.

    6.5 The client agency shall be responsible for reimbursing the Facilities Management Division for all actual costs during the same calendar year in which the costs were incurred.

    6.6 In the preparation of bills, the Facilities Management Division shall use the overhead charge rate as established annually by the Office of Financial Management in the billing rate plan.

7.0 PROCEDURES:

    7.1 See Section 9.7 for a copy of standard operating process currently in use.

8.0 RESPONSIBILITIES:

    8.1 The Client Agency requesting work shall be responsible for providing a written description of the work requested by submitting their request on the appropriate Work Order Request form to the Work Order Desk in Facilities Management. If the project appears to Facilities Plant Services to be over the required estimating threshold of $10,000, the client agency shall elect the regular or fast-track method of estimating.

    8.2 Throughout the life of the job, the Client Agency shall be responsible for clarifying in writing to Facilities Management Plant Services all requested changes, additions and deletions to the initial scope of work. This information shall be submitted on the appropriate Scope Change Request Form.

    8.3 The Client Agency shall be responsible for reimbursing Facilities Management Division for the total actual (direct and overhead) costs of the job in the calendar year in which the costs were incurred.

    8.4 The Facilities Management Division, Plant Services Section shall be responsible for providing client agencies with either regular or fast track estimates for all requested jobs which initial scopes of work appear to be over $10,000, unless as part of the fast track estimating process the client agency waives the need for the estimate.

    8.5 The Facilities Management Division, Fiscal Section, shall be responsible for documenting and calculating all job costs for billable jobs and for preparing job billings in accordance with the standards set forth in the County Audit Report dated May 24, 1991 regarding job costing and overhead.

9.0 APPENDICES:

    These appendices are available from the Facilities Management Division:
    9.1 Sample Work Order Request Form

    9.2 Sample Estimate Memorandum

    9.3 Sample Scope Change Request Form

    9.4 May, 1991 County Auditor Report, "Carpentry Shop Audit"

    9.5 Council Motion 7243

    9.6 King County Code 2.16.090, Section F

    9.7 Standard operating process for requesting work from Facilities Management