Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

Suggested citation:

Innis, P.S. 2011. Overview of cost estimating for abandoned mine lands and hazardous materials cleanup projects. 

Tech Note 441. Bureau of Land Management, National Operations Center, Denver, CO.

Production services provided by:

Bureau of Land Management

National Operations Center

Information and Publishing Services Section

P.O. Box 25047

Denver, CO 80225

BLM/OC/ST-11/005+1325
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

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Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials 

Cleanup Projects

Pamela S. Innis

Bureau of Land Management

Former Environmental Engineer

National Operations Center

Denver, Colorado

October 2011
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

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Acknowledgments

BLM environmental engineer Suzanne Buntrock and BLM 

construction cost estimator John Treacy conducted the final 

review of this technical note. 

Contents

Abstract . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ii

Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1

Why Cost Estimates are Necessary . . . . . . . . . . . . . . . . . . . 2

Estimating Terminology . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Methods of Estimating . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Developing Cost Estimates . . . . . . . . . . . . . . . . . . . . . . . 10

Estimate Classification for Environmental Projects . . . . . . . . 17

Summary . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

References . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 20

Abstract

This publication provides information on the procedures and 

activities associated with cost estimating for environmental 

response projects. Costs estimates are used to help define the 

magnitude of the project and accuracy of the total expense, 

depending on the stage of a project. This publication is intended 

to assist environmental professionals with determining the 

level of accuracy and detail required for each project estimate. 

The goals of this reference are to provide an understanding 

of the need for cost estimates, to improve the consistency 

of cost estimates developed in support of abandoned mine 

lands and hazardous materials site evaluations and remedy 

selections, and to establish classifications that define the level 

of confidence in the estimate at various stages within a cleanup 

project. Four different cost estimating methods are described 

for consideration. Utilization of this guidance will assist the 

environmental professional in developing a reproducible 

estimate appropriate for the phase of a project.
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Introduction

A cost estimate can be defined as an evaluation 

of the expected costs to the government for the 

performance of an activity, either a service or 

construction task, or for the acquisition of an item. 

Cost estimating is the process of assembling and 

projecting the costs for the work to be performed 

on a project and should take all expected costs 

into consideration for any part of a project.

Since many factors can contribute to cost overrun, 

the typical project often overruns its original cost 

estimate. Overruns are common on government 

and commercial projects, even when changes 

in the design and varying field conditions are 

taken into account. The risk for potential overrun 

is increased due to the probability of unforeseen 

conditions whose costs exceed the estimated 

allocated contingency. In addition, contractor 

production rates are generally lower, while their 

indirect costs and risk/profit factors are higher 

than government estimates.

The purpose of this guidance is to provide 

information on the procedures and activities 

associated with cost estimating environmental 

response projects, such as abandoned mine lands 

and hazardous materials cleanup. Cost estimates 

are used to help define the magnitude and 

accuracy, depending on the stage of a project. 

This guidance is intended to assist environmental 

professionals with determining the level of 

accuracy and detail required for each project 

estimate.

The goals of this reference are to provide an 

understanding of the need for cost estimates, 

to improve the consistency of cost estimates 

developed in support of abandoned mine lands 

and hazardous materials site evaluations and 

remedy selections, and to establish classifications 

that define the level of confidence in the 

estimate at various stages within a cleanup 

project. Utilization of this guidance will assist 

the environmental professional in developing a 

reproducible estimate appropriate for the phase 

of a project.

In order to address the risk associated with the 

development of cost estimates for environmental 

cleanup projects, it has become necessary to 

provide a current reference within the Bureau 

of Land Management (BLM) for developing 

and documenting cost estimates. General 

classifications within this document can provide a 

range of confidence in the estimate. By following 

the basic principles of this guidance, the BLM 

will be able to apply a standard approach for risk 

analysis on environmental project life-cycle costs.
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Why Cost Estimates 

Are Necessary

Cost estimates are a part of our everyday life. 

When we take a car into a repair shop, we ask for 

an estimate. When we are planning to buy or build 

a house, we estimate how much we can afford for 

monthly payments. Similarly, cost estimates are 

developed within the government for a variety of 

reasons.

PROJECT PLANNING/BUDGETING

All projects within the federal government require 

cost estimates to plan and budget the activities 

efficiently. Several estimates may be prepared 

sequentially throughout the life of a given project 

based on the estimator’s confidence in the 

available information. A cost estimate will provide 

the basis for reserving funds for the contract as 

part of acquisition planning.

FEDERAL ACQUISITION REGULATIONS 

AND CONTRACTING

In accordance with the Federal Acquisition 

Regulation (FAR), an independent government 

cost estimate (IGCE) is a required element of a 

proper contract file for supplies or services over 

the simplified acquisition threshold ($100,000). 

The IGCE is the government’s estimate of the 

resources and projected cost of the resources 

a contractor will incur in the performance of 

a contract. Most importantly, a cost estimate 

is necessary in the BLM for all requirements 

submitted through contracting.

Federal Acquisition Regulation

Part 36 - Construction and 

Architect-Engineer Contracts 

36.203 Government estimate of 

construction costs.

(a) An independent Government estimate 

of construction costs shall be prepared and 

furnished to the contracting officer at the 

earliest practicable time for each proposed 

contract and for each contract modification 

anticipated to cost $100,000 or more. The 

contracting officer may require an estimate 

when the cost of required work is anticipated 

to be less than $100,000. The estimate shall 

be prepared in as much detail as though the 

Government were competing for award.

36.605 Government cost estimate for 

architect-engineer work. 

(a) An independent Government estimate of 

the cost of architect-engineer services shall 

be prepared and furnished to the contracting 

officer before commencing negotiations for 

each proposed contract or contract modification 

expected to exceed $100,000. The estimate 

shall be prepared on the basis of a detailed 

analysis of the required work as though the 

Government were submitting a proposal.

IGCEs are developed to provide an assessment 

of the probable cost of supplies or services being 

acquired to ensure the BLM has adequate funds 

and to aid in determining the reasonableness of 

a contractor’s proposed costs and understanding 

of the work. An IGCE consists of a breakdown of 

cost factors required for a contractor to complete 

a statement of work, including an estimate of 

technical staff labor categories, hours, and rates; 

direct material and supplies; subcontracting; 

consultant services; travel; indirect rates; and 

profit and fee. 

CONTRACTS

IGCEs can be a valuable tool when evaluating 

contractor bids for a government request for 

proposal (RFP) or request for quotation (RFQ). With 

a well-written statement of work (SOW) and a 

detailed government cost estimate, the evaluation 

panel can examine costs for each bid item and 

develop a defensible assessment of the bidder’s 

cost proposals. A well-constructed IGCE helps to 

ensure that the government receives the services 

requested at a fair and reasonable cost.
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IGCEs can also verify the contractor understands 

the SOW. If contract bids are of extreme variability, 

further clarification to the scope may be 

necessary. Differences may, however, be a result of 

differences in the contractor’s approach, quality of 

the proposal, or contract rates.

GOVERNMENT ACCOUNTABILITY 

OFFICE/OFFICE OF INSPECTOR 

GENERAL AUDITS

The Government Accountability Office (GAO) is 

the investigative arm of Congress and examines 

the use of public funds; evaluates federal 

programs and activities; and provides analyses, 

options, recommendations, and other assistance 

to help Congress make effective oversight, policy, 

and funding decisions.

The Office of Inspector General (OIG) is an 

independent office within the Department of the 

Interior (DOI) that helps the agency perform its 

functions/mission in a more efficient and costeffective manner. The OIG consists of auditors, 

program analysts, investigators, and others with 

extensive expertise. Per the Inspector General 

Act of 1978, as amended, the Inspector General’s 

mission is to:

•	 Conduct independent and objective audits,

investigations, and inspections;

•	 Prevent and detect waste, fraud, and abuse;

•	 Promote economy, effectiveness, and efficiency;

•	 Review pending legislation and regulation; and

•	 Keep the agency head and Congress fully and

currently informed. 

Although a part of the DOI, Congress provides 

the OIG with separate funding to ensure its 

independence.

CERCLA ALTERNATIVE EVALUATION

The evaluation of removal and remedial 

alternatives in the Comprehensive Environmental 

Response, Compensation, and Liability Act 

(CERCLA) process includes examining costs. 

During the early phases of these projects, 

information regarding cleanup options is 

highly conceptual and lacks detailed plans. This 

makes development of accurate cost estimates 

challenging.

NON-TIME CRITICAL REMOVAL 

ACTIONS

Code of Federal Regulations

Title 40 – Protection of Environment

40 CFR 300.415 Removal action.

(b)(4) Whenever a planning period of at least 

six months exists before on-site activities must 

be initiated, and the lead agency determines, 

based on a site evaluation, that a removal 

action is appropriate:

(i) The lead agency shall conduct an 

engineering evaluation/cost analysis (EE/CA) 

or its equivalent. The EE/CA is an analysis of 

removal alternatives for a site.

The Environmental Protection Agency guidance 

on removal actions (Environmental Protection 

Agency 1993) specifies cost items to consider 

in the evaluation of removal action alternatives. 

The following items should be considered in the 

removal cost evaluations:

Direct capital costs

•	 Construction costs

•	 Equipment and material costs

•	 Land and site acquisition costs

•	 Relocation expenses

•	 Transport and disposal costs

•	 Analytical costs

•	 Contingency allowances

•	 Treatment and operating costs

Indirect capital costs

•	 Engineering and design expenses

•	 Legal fees and license or permit costs

•	 Startup and shakedown costs
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criteria are factors with which tradeoffs between 

alternatives are assessed so that the best option 

can be chosen for the site. The last two criteria are 

the modifying criteria of state and community 

acceptance.

Costs for remedial alternatives should be of 

sufficient detail to provide an accurate comparison 

of the cleanup options. The costs of construction 

and any long-term costs to operate, maintain, 

and monitor the alternatives shall be considered 

when comparing remedial action alternatives. 

Costs that are grossly excessive in comparison 

to the overall effectiveness of an alternative may 

be considered to eliminate excessive costs as 

an option. Alternatives providing effectiveness 

and implementability similar to that of another 

alternative by employing a similar method of 

treatment or engineering control, but at a greater 

cost, may also be eliminated.

The types of costs that shall be assessed include 

the following:

(1)Capital costs, including both direct and indirect 

costs;

(2)Annual operation and maintenance costs; and

(3)Net present value of capital and operation and 

maintenance costs.

Accuracy of cost estimates at the engineering 

evaluation/cost analysis (EE/CA) and remedial 

investigation/feasibility study (RI/FS) alternative 

analysis stage in the CERCLA process is highly 

conceptual and can be anywhere from 30 percent 

lower to 50 percent higher than the actual 

cleanup cost (ACOE and EPA 2000). Relative 

knowledge of the site can influence the level of 

confidence in the estimates.

Annual post-removal site control

•	 Operational costs

•	 Maintenance costs

•	 Auxiliary materials and energy

•	 Disposal of residuals

•	 Monitoring costs

•	 Support costs

REMEDIAL ACTIONS

Code of Federal Regulations

Title 40 – Protection of Environment

40 CFR 300.430 Remedial investigation/

feasibility study and selection of remedy. 

(e)(7)(iii) Cost. The costs of construction and 

any long-term costs to operate and maintain 

the alternatives shall be considered. Costs 

that are grossly excessive compared to the 

overall effectiveness of alternatives may be 

considered as one of several factors used to 

eliminate alternatives. Alternatives providing 

effectiveness and implementability similar to 

that of another alternative by employing a 

similar method of treatment or engineering 

control, but at greater cost, may be eliminated.

The National Contingency Plan (NCP) sets forth 

nine criteria for selecting remedial actions. The 

two most important criteria are overall protection 

of human health and the environment and 

compliance with federal and state environmental 

laws. These are considered threshold criteria, and 

remedial action remedies selected for a site must 

meet the two threshold criteria.

Potential remedial actions are also evaluated 

according to the five primary balancing criteria: 

long-term effectiveness and permanence; 

toxicity, mobility, or volume of waste; short-term 

effectiveness; implementability; and cost. These 
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Estimating 

Terminology

The following terms are used when discussing 

cost estimates, and some of the terms may be 

used interchangeably.

Capital costs are the total expenditures required 

to implement a cleanup action.

Contingency is an amount added to an estimate 

to provide some measure for the uncertainty of 

the design completeness or to mitigate the cost 

impact of unforeseen conditions. Generally, the 

contingency factor should decrease as the design 

documents are refined and the site investigation 

progresses. The costs are generally expressed as 

a percentage of the total direct and indirect costs 

and can range from 0 to 10 percent (100 percent 

design and completed site investigation) to in 

excess of 50 percent for preliminary design and 

investigation.

The Davis-Bacon Act of 1931 is a United States 

federal law that established the requirement 

for paying prevailing wages on public works 

projects. The Wage and Hour Division of the U.S. 

Department of Labor determines prevailing wage 

rates to be paid on federally funded or assisted 

construction projects. It is the responsibility 

of the federal agency that funds Davis-Bacon 

covered construction projects to ensure that the 

associated wage rate determination is applied.

Direct construction costs are those costs directly 

associated with the project, including labor, 

material, equipment, and subcontractor costs, as 

well as design contingencies.

Direct labor charges are based on the total 

available man-hours per year (2,080 hours) and 

include costs for vacation, holidays, and sick leave. 

This is usually determined through published 

federal wage rate tables, which establish the 

minimum rate per hour and applicable fringe 

benefits in the geographic area of the proposed 

work.

Because the impact of inflation should be 

considered when developing your IGCE, 

escalation should be added to any cost estimate 

that includes work to be performed in the future. 

To forecast the out year(s) cost, appropriate 

escalation factors are applied to the cost 

elements to bring them up to realistic values. 

The Department of Labor Consumer Price Index 

(CPI) provides data and percentage of change 

in inflation/escalation factors and is available at 

www.bls.gov/cpi/. However, an average factor 

between 2 and 4 percent each year would 

generally be considered “reasonable.”

Labor burden includes payroll taxes, 

unemployment taxes and various forms of 

insurance, workmen’s compensation, and 

employee benefits. Labor burden factors are 

fairly consistent with the acquisition policies and 

regulations for service contracting; therefore, 

they may be consolidated to form one line 

item expressed as a percentage of total cost. 

For general estimating purposes, this can be 

expressed as 50 to 60 percent of the direct labor 

costs.

General and administrative (G&A)/overhead 

costs include any management, financial, or 

other expenses incurred for the overall operation 

of a business, such as utilities, compensation 

packages, employee training, jury duty, business 

taxes, liability and other business insurances, and 

legal costs, as well as noncontract specific leases, 

equipment, and supplies. These costs are distributed 

equally across all contracts, government and 

private sector. Although G&A costs will vary based 

on the type of contract, ownership of facilities, 

location of work site, etc., 15 percent is typical 

unless more specific information is available.

General conditions are field-related tasks 

incurred by the contractor in the performance 
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of the work and include, but are not necessarily 

limited to the following (unless otherwise broken 

out as a specific estimate line item cost): site 

administration and supervision, bonds, permits, 

travel, subsistence/per diem, vehicles, trailers/

furnishing/office equipment, sanitary and health 

facilities, temporary construction, security, safety, 

power, telephone, water, waste disposal, quality 

control/testing/inspections, and surveying. 

General conditions have a usual cost range 

expressed as 4 to 20 percent of the sum total 

of direct costs (dependent on the project size, 

location, complexity, and other variables).

Mobilization costs include the direct costs 

associated with the transport of equipment, 

material, and personnel and the setup/teardown 

of equipment and support facilities associated 

with the performance of construction contract 

work. Mobilization is usually identified as a 

separate line item in an estimate and is dependent 

upon site access/location and associated 

transportation costs. For preliminary estimates 

(unless more specific site information is available) 

this amount can be expressed as 10 percent of the 

sum total of direct costs. 

The FAR describes other direct costs (ODCs) as 

costs not previously identified as a direct material 

cost, direct labor cost, or indirect cost. Any 

materials used in direct support of the contract, 

such as vehicles, computers, office furniture, travel, 

lease of equipment, per diem, etc., should be 

included in other direct costs. ODCs can generally 

be estimated at 2 to 4 percent of the total labor 

costs.

A price estimate is an estimate that is generally 

used for supplies, equipment, and simple services 

that are routinely available on the open market at 

competitive prices. A price estimate is not broken 

down into cost elements and is generally based 

on catalog prices or market information.

A profit or fee is the dollar amount over and 

above any allowable costs paid to a contractor 

for performance. The purpose of both is to 

compensate the contractor for risks assumed 

during contract performance and to stimulate 

efficient contract performance. In the absence 

of other data, a reasonable percentage for profit 

on fixed price contracts is approximately 5 to 10 

percent for large businesses and 10 to 15 percent 

for small businesses, according to FAR 15.404-4 

(GSA, DOD, and NASA 2005).

Surety bonds are a guarantee that the principal/

contractor will perform the obligation specified 

in the bond. Under the Miller Act, payment and 

performance bonds are required for general 

contractors on all U.S. federal government 

construction projects when the contract 

price exceeds $100,000. A performance bond

guarantees the owner that the principal will 

complete the contract according to its terms 

including price and time. A payment bond

guarantees the owner that subcontractors and 

suppliers will be paid the monies that they are due 

from the principal.
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Methods of 

Estimating

Although government cost estimate 

documentation is a part of the government 

procurement cycle, there is no detailed guidance 

on how to prepare this estimate in statutes 

or regulations. Generally, the BLM project 

manager, engineer, or architecture-engineering 

contractor is responsible for developing the 

project cost estimate and keeping it up to date 

throughout the project development process. 

The project manager is responsible for reviewing 

and approving all project cost estimates. A 

government estimate should be developed 

independently and not based on a contractor’s 

cost/price estimate. The following paragraphs 

describe some methods for developing cost 

estimates.

PARAMETRIC ESTIMATES

A parametric cost model is a group of cost 

estimating relationships used together to estimate 

entire cost proposals or significant portions 

thereof in the early planning stages. Parametric 

estimates primarily use historical data from 

projects of similar scope. This type of estimate is 

used for planning or budgeting purposes and is 

generally considered a “ballpark” approach to a 

cost estimate.

ASSEMBLY ESTIMATES

An assembly estimate is generally done in the 

conceptual stage of a project. The estimator 

gathers information on presumed work elements 

and creates the project from these elements. 

This allows the estimator to compare various 

combinations of elements to accommodate 

budget. Assembly estimates are primarily used for 

planning and budgeting purposes.

UNIT PRICE ESTIMATES

In developing a unit price estimate, the project 

is divided into significant work elements. The 

estimate is then based on standard pricing 

guidelines for the elements.

Direct Labor Subcontracts

Project Planning $20,000

Community Relations $10,000

Sampling and Analysis $10,000 $50,000

Removal Action $45,000 $250,000

Closeout Report $20,000

Total Project Cost $405,000

Table 1. Example of a unit price estimate for an environmental 

project

DETAILED ESTIMATES

A detailed cost estimate is developed by 

separating the project into basic work elements 

and examining the total effort to complete 

the work. This can be done by creating a work 

breakdown structure (WBS), which displays and 

defines the product or service to be developed 

or produced by finite elements and relates the 

work scope elements to each other and to the end 

product(s). The framework of the WBS defines all 

contractual authorized work. From the WBS, time 

estimates are applied to each discipline or type 

of equipment, and a cost estimate is produced. 

Specific elements should be considered, such 

as labor, project-specific equipment, field 

supplies (protective equipment, trailers, vehicles, 

generators, etc.), graphics/reproduction services, 

subcontractor services, and travel. Direct and 

indirect costs, including overhead and G&A costs, 

can be included in labor charges or added near 

completion of the estimate. For service contracts, 

a WBS is developed in terms of disciplines and 

experience levels. For construction contracts, 

a WBS is developed in terms of disciplines and 

equipment.

Figure 1 shows an example of a WBS. The task in 

this example is to develop a work plan for a site 

investigation. The task itself is broken down into 

progressively smaller pieces until it is a collection 

of manageable subtasks, and then the subtasks 

are assigned disciplines.
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items that may not be reflected in 

the plans that are inherent to the 

contractor as a part of any project. 

To grasp a complete understanding 

of the work entailed, the estimator 

may consult with a project manager, 

engineer, field superintendent, or 

work crews. 

ESTIMATING SOFTWARE

Several estimating tools are available to aid in 

the development of a cost estimate for a project. 

A majority of the estimating software, however, 

applies to the building or heavy construction 

industry and not to environmental cleanup projects.

Remedial Action Cost Engineering and 

Requirements (RACER) software is used to model 

and estimate the cost of remediation work. RACER 

software helps to quickly and accurately estimate 

costs for all phases of environmental remediation 

projects—from site discovery through long-term 

monitoring.

The Department of Energy Office of 

Environmental Management partnered with 

other agencies and the private sector to develop 

the Environmental Cost Element Structure 

(ECES). ECES provides methods for organizing 

environmental costs, serves as a model for projectspecific WBSs, and tracks environmental project 

costs. ECES is commonly used for environmental 

restoration, waste management, and facility 

decommissioning and dismantling projects.

AMDTreat, developed by the Pennsylvania and 

West Virginia Departments of Environmental 

Protection and the Office of Surface Mining 

Reclamation and Enforcement, estimates abatement 

costs for acid mine drainage and can assist in 

estimating costs to decrease water pollution.

CostWorks is software made available through 

RSMeans for construction projects, primarily 

building construction.

Figure 1. Work breakdown structure example

The project cost estimate is prepared using 

industry standards and/or historical information 

and contains well-documented backup 

information on how the estimate was developed. 

The estimate will represent the costs at the time it 

is dated, and the estimate can be valid for at least 

2 years with escalation.

Table 2. Project cost estimate relating to the work breakdown 

structure in Figure 1

Cost Description Unit Cost

Task 1.4

Work Plan

Est. Units Cost

Direct Labor

Principal $100 1 $100

Project Manager $90 4 $360

Senior Engineer $75 10 $750

Project Engineer $60 20 $1,200

Project Geologist $55 40 $2,200

CAD/GIS $45 10 $450

Support Staff $40 10 $400

Total 95 $5,460

Cost estimates, in a sense, are never complete, 

and they have to be reviewed continually to 

remain current. A good estimate must begin with 

a complete understanding of the entire scope 

of the project’s work. Errors in the cost estimate 

can result from commonplace reasons, such as 

omitting subtasks, design details, or simply human 

error. When preparing a construction estimate, 

care must be taken to identify not only labor and 

material costs for items shown on the plans and 

specification, but there are also labor and cost 

Example - Task 1.4 - Site Work Plan

Develop work plan

Write the work plan

Project

Geologist

Project

Engineer

CAD/GIS

Senior

Engineer

Clerical

Review the work plan Edit/copy the work plan
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Micro-Computer Aided Cost Estimating System 

(MCACES) software is used for estimating 

construction costs. Generally, the user should 

possess indepth knowledge of construction 

practices to use this software.

Excel spreadsheets are used extensively 

in cost estimating since many estimating 

software packages are compatible with Excel. 

Unfortunately, most commercially available or 

government cost estimating software packages 

are not appropriate for estimating costs on 

abandoned mine and hazardous materials 

cleanup projects. However, some can be adapted 

to meet the requirements of BLM cleanup projects.

DATA RESOURCES

To produce an estimate, many cost data sources 

can be used. One of the most reliable methods 

of developing an estimate for a specific location 

is to contact local vendors or contractors, and 

ask them current market prices. This method is 

most commonly used when pricing materials or 

purchasing a specific item. Other data resources 

include published references such as RSMeans 

construction cost references, Richardson 

General Construction Estimating Standards, 

and manufacturer product price lists. Cleanup 

documentation or historical estimates from 

other IGCEs that apply directly to your site can be 

modified if they are available.

Preliminary cost information can be found at the 

Federal Remediation Technologies Roundtable 

Remediation Technologies Screening Matrix and 

Reference Guide, Version 4.0 website: www.frtr.

gov/matrix2/top_page.html. This website provides 

descriptive information on a multitude of available 

cleanup technologies and incorporates cost 

and performance data to the maximum extent 

available, focusing primarily on demonstrated 

technologies.
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Developing Cost 

Estimates

Cost estimates are essential for contracting, 

budgeting, and general project management. 

Quoting a general dollar figure for a project 

estimate is no longer acceptable. Estimates 

must include sufficient backup material and 

references to document the development of the 

final figure. Additionally, estimators must follow 

an orderly process and a consistent routine when 

completing an estimate, thereby minimizing 

errors and omissions. The cost estimator needs to 

research, compare, and above all, use professional 

judgment to prepare a quality cost estimate.

ENVIRONMENTAL PLANNING AND 

ENGINEERING SERVICES CONTRACTS 

Environmental planning and engineering services 

contracts are initiated at the site investigation 

phase. The scope of the work can include activities 

such as field sampling, document development, 

remedy selection, and design. 

To develop a cost estimate for an environmental 

planning contract, a scope of work is required. 

The more detail that is supplied in the scope of 

work regarding tasks to be performed, the more 

accurate the cost estimate can become. To yield 

the most accurate cost estimate, projects can be 

organized and comprehended by breaking them 

into progressively smaller pieces until they are 

a collection of manageable subtasks. The cost 

estimates for service contracts are best developed 

using a WBS. A list of the labor categories that 

will be required in each task or step is then 

developed (e.g., clerical, engineer, research 

scientists, etc.). In a “level of effort” acquisition, the 

desired categories of expertise and the required 

training and experience for each category should 

be identified in as much detail as possible. An 

example of a service contract cost estimate is 

provided on the following page.

When a subcontractor is involved in a project, the 

project costs include the subcontractor fees plus 

their profit and the prime contractor management 

fees plus their profit. If possible, contracting 

specific work directly, rather than through a prime 

contractor, may be more cost effective.
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

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Independent Government Cost Estimate 

Task 1.0 Task 2.0 Task 3.0 Task 4.0 Task 5.0

Project Management Health & Safety Plan

Sampling and Analysis 

Plan/Quality Assurance 

Project Plan Field Sampling

Site Investigation 

Report

Cost Description Unit Cost Total Units Total Cost Est. Units Cost Est. Units Cost Est. Units Cost Est. Units Cost Est. Units CostDirect LaborPrincipal/Program Manager $140.00 16 $2,240.00 16 $2,240.00 - - - - Project Manager $100.00 133 $13,300.00 80 $8,000.00 1 $100.00 12 $1,200.00 20 $2,000.00 20 $2,000.00 Senior Engineer $95.00 30 $2,850.00 - - - 30 $2,850.00 - Senior Geologist $95.00 130 $12,350.00 - - 20 $1,900.00 80 $7,600.00 30 $2,850.00 Industrial Hygienist $130.00 10 $1,300.00 - 10 $1,300.00 - - - Toxicologist (Human Health Risk) $129.00 20 $2,580.00 - - - - 20 $2,580.00 Ecological Risk Assessor $112.00 20 $2,240.00 - - - - 20 $2,240.00 Public Relations Specialist $109.00 0 - - - - - - Senior Chemist $125.00 0 - - - - - -Chemist $83.00 0 - - - - - - Biologist/Environmental Planner $73.00 0 - - - - - - Archaeologist II $89.00 0 - - - - - - Archaeologist I $65.00 0 - - - - - - Project Engineer $72.00 80 $5,760.00 - - - - 80 $5,760.00 Project Geologist $84.00 200 $16,800.00 - - 30 $2,520.00 140 $11,760.00 30 $2,520.00 Staff Geologist $63.00 180 $11,340.00 - - 40 $2,520.00 100 $6,300.00 40 $2,520.00 CAD/GIS $78.00 48 $3,744.00 - - 24 $1,872.00 - 24 $1,872.00 Field Technician II $53.00 0 - - - - - - Field Technician I $30.00 0 - - - - - - Support Staff $38.00 36 $1,368.00 20 $760.00 5 $190.00 4 $152.00 3 $114.00 4 $5,472.00 Subtotal- Direct Labor $75,872.00 116 $11,000.00 16 $1,590.00 130 $10,164.00 373 $30,624.00 268 $27,814.00 

Table 3. Service estimate example
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

12

Independent Government Cost Estimate (continued)

Task 1.0 Task 2.0 Task 3.0 Task 4.0 Task 5.0

Project Management Health & Safety Plan

Sampling and Analysis 

Plan/Quality Assurance 

Project Plan Field Sampling

Site Investigation 

Report

Cost Description Unit Cost Total Units Total Cost Est. Units Cost Est. Units Cost Est. Units Cost Est. Units Cost Est. Units Cost

Other Direct CostsMaterials (phone, fax, copies, etc.)* 0.03 $2,276.16 -Field Supplies $50.00 20 $1,000.00 20 $1,000 pH/EC/Temp Meter $30.00 0 - -XRF $500.00 0 - -Camera - Digital $25.00 20 $500.00 20 $500.00 Laptop $22.00 0 - -GPS - Professional Grade $35.00 20 $700.00 20 $700.00 Subcontractor ServicesDrilling $1,000.00 10 $10,000.00 10 $10,000.00 Test Pits $75.00 24 $1,800.00 24 $1,800.00 Well Abandonment $200.00 0 - -Mine Entry $10,000.00 1 $10,000.00 1 $10,000.00 Soil Testing 0 - -Laboratory Analysis $90,205.00 1 $90,205.00 -Subcontractor Handling Fee** 0.1 $11,200.50 Field Vehicle $65.00 10 $650.00 10 $650.00 Meals and Incidental Expenses $30.00 22 $660.00 22 $660.00 Lodging $95.00 22 $2,090.00 22 $2,090.00 Subtotal $206,953.66 Contingencies 0.1 $20,695.37 Total $227,649.03

* The Materials cost is 3 percent of the Subtotal - Direct Labor.

** The Subcontractor Handling Fee is 10 percent of the total of the Subcontractor Services.

Table 3. Service estimate example (continued)
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

13

DEVELOPING A CONSTRUCTION 

COST ESTIMATE 

When developing a construction cost estimate, 

estimators should compile and analyze data on 

all of the factors that can influence costs, such as 

materials, labor, location, and special machinery 

requirements. Allowances for wasted materials, 

inclement weather delays, and other factors that 

may increase costs must also be incorporated in 

the estimate. Again, projects may be organized 

and comprehended by breaking them into 

progressively smaller pieces until they are a 

collection of manageable subtasks.

If the construction project is still in the conceptual 

phase, engineering and design costs must be 

included. The subtotaled capital cost of each 

alternative needs to be multiplied by 10 to 15 

percent, depending on the complexity of the 

project, to estimate total capital costs including 

design.

For cleanup projects where the BLM will either 

hire or contract project management services, 

the estimated cost for this service should also 

be included. These costs include work such as 

inspection and quality assurance, as well as 

costs for the contract officer’s representative 

and the contracting officer’s time. This cost, 

whether performed by BLM staff, an architectureengineering contractor, or an interagency 

agreement, is approximately 15 to 20 percent of 

the total estimated construction cost.
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

14

Engineering Cost Estimate

Bid Item Description Units Quantity Unit Rate Estimated Cost

1 Mobilization, Demobilization, Bonding, and Insurance LS 1 $29,000.00 $29,000.00 estimate

2 Project Management LS 1 $65,000.00 $65,000.00 estimate

3 Site Preparation (including erosion control, clearing and grubbing, access ramps) LS 1 $30,000.00 $30,000.00 estimate

4 Site Security LS 1 $20,000.00 $20,000.00 estimate

5 Permitting and Documentation LS 1 $20,000.00 $20,000.00 estimate

7 Limestone

Limestone, Delivered Ton 1,710 $20.00 $34,200.00 quote

9 Waste Area 1 Removal

Excavate Tailings and Haul to Repository CY 4,200 $7.12 $29,904.00

Excavate Unimpacted Material - Backfill CY 580 $2.37 $1,374.60

Excavate Unimpacted Material - Mill Backfill CY 750 $7.12 $5,340.00

Place/Compact Backfill CY 580 $1.43 $829.40

Finish Grade Pond 2 SY 2,230 $0.15 $334.50

Revegetation AC 0.46 $827.00 $380.42

10 Central Waste Repository - Waste Area 2

Excavate Tailings and Regrade in Waste Area CY 40 $2.37 $94.80

Excavate Unimpacted Material - Backfill CY 15 $2.37 $35.55

Excavate Unimpacted Material - Cover CY 1,105 $2.37 $2,618.85

Place/Compact Waste from Area 1 CY 15,325 $1.43 $21,914.75

Grade Waste Material SY 4,170 $0.15 $625.50

Place Limestone Layer CY 456 $24.50 $11,172.00

Place 2’ Cover Material CY 2,800 $1.43 $4,004.00

Finish Grade SY 4,170 $0.15 $625.50

Install Geotextile SY 636 $2.55 $1,621.80 quote

1’ Riprap Cover CY 300 $51.00 $15,300.00

Revegetation AC 0.86 $827.00 $711.22

Construction of Engineered Channel LF 449 $11.72 $5,262.28

21 Placement of Limestone Cover on Waste Rock

Place High Visiblility Fencing LF 1,000 $0.80 $800.00

Placement of Limestone Cover on Waste Rock CY 17 $24.50 $416.50

23 Borrow Area

Excavate Backfill Material CY 3,600 $2.37 $8,532.00

Screen Material for Riprap CY 3,600 $1.72 $6,192.00

Grade Waste Material SY 2,760 $0.15 $414.00

Place Limestone CY 311 $24.50 $7,619.50

Place 2’ Cover Material CY 1,840 $1.43 $2,631.20

Finish Grade Borrow Area SY 2,760 $0.15 $414.00

Revegetation AC 0.57 $827.00 $471.39

Subtotal Estimated Cost $327,839.76

City Cost Index Adjustment LS -1 $23,604.46 -$23,604.46

Revised Subtotal Estimated Cost $304,235.30

Construction Surveying/Testing LS 1 $15,211.76 $15,211.76

Record Drawings LS 1 $10,000.00 $10,000.00

Contingencies LS 1 $45,635.29 $45,635.29

Total Estimated Cost $375,082.36

AC = acres CY = cubic yards LF = lineal feet LS = lump sum SY = square yards (Balboni 2006; Spencer 2006)

Table 4. Construction estimate example
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

15

PRESENT VALUE ANALYSIS

If the project is expected to last longer than 1 year, 

or if monitoring costs are included in the project 

cost estimate, a present value analysis should be 

conducted. This analysis helps to find the present 

value in “today’s dollars” of the future net cash 

flow of a project. To convert future dollars to 

present dollars, net present value analysis uses a 

number called a discount rate.

Present Value Basics

The present value (PV) of a future payment is 

calculated using the following equation:

where xt is the payment in year t (t = 0 for 

present or base year) and i is the discount rate. 

For example, suppose one needs to make a 

$1,000 payment in year 5. Using a discount rate 

of 5%, the present value would be:

Therefore, $783 would need to be set aside or 

invested in year 0, at a discount or interest rate 

of 5%, in order to have $1,000 in year 5.

For a stream or series of future payments, the 

total present value from 1 to n years would be 

calculated as:

If a $1,000 payment is needed for each of the 

next 5 years, then the total present value of these 

payments, at a discount rate of 5% would be:

Therefore, $4,329 would need to be set aside in 

year 0 to make a $1,000 payment in each of the 

next 5 years.

(ACOE and EPA 2000)

SENSITIVITY ANALYSIS

A sensitivity analysis is a method for analyzing the 

uncertainty of a cost estimate by changing input 

variables and noting variations in the outcome. 

The uncertainties should be evaluated in terms of 

the effects of specific variables on the overall cost 

estimate. Variation in waste quantities, fuel cost, 

labor rates, material availability, and other factors 

contribute to the uncertainty in an estimate.

ESTIMATE CONTINGENCIES

Contingency is an integral part of the total 

estimated costs of a project and has been 

defined as a specific provision for unforeseeable 

elements of cost within the defined project 

scope. Previous experience has shown that 

estimating contingency is particularly important 

for environmental projects where unforeseeable 

events that increase costs often occur. 

Contingencies are applied to cost estimates to 

adjust for these unforeseen circumstances. 

Factors influencing the contingency of an estimate 

include project or alternative complexity, market 

conditions (including fuel prices), availability 

of site specific information, and experience of 

the estimator. Project and operations estimates 

will always contain some amount of uncertainty 

and should be appropriately adjusted. However, 

inflating contingencies to account for significant 

schedule changes, congressional actions, 

unanticipated regulatory or public influence, and 

unprecedented force majeure should not be a 

standard practice.

BLM environmental projects consist of three 

main phases: site investigation, remedy selection, 

and site cleanup. The contingencies applied 

to government estimates may be affected by 

site conditions, but as a general rule, specific 

contingencies may be applied to each phase.

Generally, service contracts for field investigation, 

remedy selection, and design have a well-defined 

scope. Use of government or contractor estimates 

from projects of similar scope can increase 

PV = xt

(1 + i)t

xt

(1 + i)t

PV = = $783 $1,000

(1 + .05)5

= $4,329 $1,000

(1 + .05)t

PVtotal = St = n

t = 1

PVtotal = St = 5

t = 1
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

16

the level of confidence applied to the current 

estimate. Contingencies at this phase should 

generally be low, between 5 and 15 percent of the 

estimate. 

Construction estimates for environmental cleanup 

are not as definitive. During the initial alternative 

screening stage in the EE/CA or feasibility study, 

cost estimates should be focused on relative, 

rather than absolute, accuracy. As the alternatives 

are further defined, contingency may be applied 

to the alternatives, but this is not necessary. In 

addition, contingencies should be similar for all 

alternatives. To represent the alternative more 

accurately to the public and management, when 

the final alternative is selected in the EE/CA or 

proposed plan, contingency should be discussed 

and applied. At this stage, adding up to 50 percent 

to the alternative may be appropriate.

Environmental cleanup projects have inherent 

and unusual problems. Even sites that have been 

thoroughly investigated will likely have anomalies 

that result in cleanup cost variations. When the 

scope of the construction work is provided in a 

definitive design but the cleanup contract has not 

yet been awarded, a 10 to 25 percent contingency 

should be included within the government 

estimated cost. These contingencies can be easily 

justified when considering varying weather 

conditions, unexpected economic changes, and 

unexpected site conditions.

The reference “Engineering Instructions: 

Construction Cost Estimates,” developed by 

the U.S. Army Corps of Engineers, provides 

information on estimating costs for actions taken 

at hazardous, toxic, and radioactive waste sites 

(Army Corps of Engineers 1997). Table 13-3 in this 

reference specifically covers design contingencies 

for remedial action projects based on specific 

technologies. The contingencies range from 5 to 

55 percent, depending on the phase of design and 

the complexity of the technology.
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

17

Estimate 

Classification for 

Environmental 

Projects

Environmental projects carry a certain amount of 

risk when considering cost estimates. The purpose 

of the estimate classification guideline presented 

below is to provide a standard approach to 

determining relative error boundaries for BLM 

environmental project estimates and to improve 

the understanding of applying these error 

boundaries in the project life cycle. To quantify 

a relative risk analysis for environmental project 

estimates, classes of estimates have been developed 

with a range of relative error applied to each.

CLASSES

The following classes should be considered and 

applied to environmental project estimates based 

on the phase of the project.

Class Relative Error

Class A Estimate -10 to +15%

Class B Estimate -15 to +25%

Class C Estimate -30 to + 50% *

Class D Estimate -50 to +100%

Class E Estimate Undefined. The estimate

should be considered only 

preliminary at this phase.

* (ACOE and EPA 2000)

Class A Estimate. This estimate is based on a 

detailed and complete quantity takeoff from 

completed construction drawings, ready to 

advertise as a RFQ or RFP. These estimates reflect 

the highest level of accuracy an engineer/

architect can make of the expected construction 

costs for removal or remedial actions. A detailed 

cost estimate for a clearly defined scope should 

be developed by experienced individuals, or an 

engineer’s estimate should be provided with the 

final design for construction projects.

Class B Estimate. This estimate is based on actual 

design drawings that are under development, 

and the estimate should be of sufficient detail 

to demonstrate that the design will fulfill the 

functional and technical requirements of 

the projects. A design would be considered 

preliminary or conceptual, and a detailed cost 

estimate should be developed by experienced 

individuals at this point in the project.

Class C Estimate. This estimate is considered 

a conceptual-level cost estimate based on 

information provided during the removal site 

investigation or remedial investigation. These 

cost estimates are used for comparative analysis 

of alternatives in the EE/CA or feasibility study. 

Depending on the level of site information, 

a unit price or detailed cost estimate may be 

developed for the detailed analysis of the 

alternatives.

Class D Estimate. This estimate is based on 

tentative remedy possibilities. The project 

manager has a general idea of the scope of 

the work that will be needed for the project. 

At this point, only limited field work has been 

completed for the site, and an assembly or 

parametric estimate would be appropriate.

Class E Estimate. This estimate is conceptual, 

as the site has likely gone through the site 

verification process only. Field activities 

that provide information for development 

of estimates have not been completed. The 

estimator will likely rely on previous experience 

or similar projects, and the estimate at this point 

would be considered a parametric estimate.
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

18

Phase Discovery Verification Investigation Remedy Selection Design Construction Closeout

Activities/ 

Documents

Discovery 

Documentation

Site Verification 

Report, National 

Response Center 

Notification (if 

required)

Health and Safety 

Plan, Sampling 

and Analysis 

Plan, Preliminary 

Assessment/Site 

Investigation, 

Potentially 

Responsible Party 

Search, Natural 

Resource Damage 

Assessment 

Documentation, 

Administrative 

Record

Engineering 

Evaluation/Cost 

Analysis, Action 

Memorandum, 

Remedial 

Investigation/

Feasibility Study, 

Proposed Plan, 

Record of Decision, 

Value Engineering 

Report

Design Report, 

Specifications, 

Drawings

Proposal(s), 

Construction 

Deliverables

5-Year 

Review, 

Closeout 

Report

Estimate 

Confidence 

Class

E E D C B A A

RELATIONSHIP TO THE 

ENVIRONMENTAL AND DISPOSAL 

LIABILITIES REPORT

The Department of the Interior “Environmental and 

Disposal Liabilities Identification, Documentation 

and Reporting Handbook v2.0” defines liability as 

“a future outflow or other sacrifice of resources 

(e.g., costs) as a result of past events or transactions 

for which the Department is responsible” 

(Department of the Interior 2008). All sites where a 

release of CERCLA hazardous substances has been 

identified and verified should be considered for 

placement on the environmental and disposal 

liability (EDL) report if cleanup cannot be achieved 

under operation and maintenance funds within a 

calendar year. Additionally, abandoned mine land 

sites should be considered for placement on the EDL 

report when environmental hazards occur on the 

site and will not be addressed within a reasonable 

timeframe (usually 1 year or less) or when longterm monitoring of the remedy will be required.

One of the cost-related functions of the EDL report 

is to provide information on sites where the total 

cleanup costs are unknown and only an estimated 

cost of studies to evaluate possible removals or 

remedies is available. Estimate classes should be 

considered when both providing and reviewing 

the cost assigned to projects on the EDL report.

VALUE ENGINEERING

Value engineering (VE) is a systematic, creative 

study process conducted by engineers, scientists, 

and technicians to obtain optimum value for every 

dollar spent on a project. The significance of VE 

has been recognized by the Office of Management 

and Budget through its issuance of Circular A-131. 

This circular requires federal departments and 

agencies to use VE as a management tool, where 

appropriate, to reduce program and acquisition 

costs. The policy goes further to state that “Federal 

agencies shall use VE as a management tool, where 

appropriate, to ensure realistic budgets, identify 

and remove nonessential capital and operating 

costs, and improve and maintain optimum quality 

of program and acquisition functions.”

VE uses creative thinking to develop innovative 

ideas and emphasizes improving project quality, 

eliminating unnecessary cost, and reducing overall 

life-cycle cost. VE techniques can be applied 

at any stage of a project: planning, conceptual 

design, preliminary design, detailed design, bid 

documents, construction, or operations and 

maintenance. Specific to environmental cleanup 

projects, a VE study may be used to perform a 

preliminary evaluation of alternatives after the 

site inspection is complete. Once an EE/CA is 

complete, a VE study may be used to reconsider 

Table 5. CERCLA project planning/budgeting stages flow diagram
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

19

modifications to the preferred option or reevaluate several options. Finally, a VE study may 

be necessary after the decision has been made to 

optimize the design.

A VE study is a systematic multistage plan typically 

broken down into seven stages (Mandelbaum 

2006). Depending on the application, the number 

of steps can be reduced. According to Jay 

Mandelbaum’s “Value Engineering Handbook,” a 

typical VE study includes:

•	 Selection – Identify candidate projects for 

the VE study, and select specific projects to 

achieve maximum value, quality improvements, 

resource savings, and other benefits, such as 

a shorter construction schedule. Selecting VE 

study team members is an important part of this 

phase. If money is available, an independent 

third-party engineering consulting firm may be 

the best option at this point, as the disciplines 

available can accommodate multifaceted 

projects.

•	 Investigation – Acquire knowledge of the 

design to be studied; determine basic functions; 

and assess major functions, cost, and relative 

worth. Gather all types of information from the 

best sources possible. The team determines 

what they know about the project from readily 

available information and what they need to 

know in order to really define and solve the 

problem. In this phase of the VE study, identify 

the elements that have the greatest potential 

for value improvement. The investigation 

phase immediately brings to light the three 

fundamental concepts of VE (function, cost, and 

worth).

•	 Speculation – The team should brainstorm 

functions of design elements isolated by the 

investigation phase and develop a number of 

alternatives for each function. Brainstorming 

techniques force people to be creative and are 

applied to develop good alternatives to the 

current project design. Often, one idea triggers 

other ideas or thoughts through similar or 

like ideas, contiguous or adjoining ideas, or 

contrasting or opposite ideas. The VE study 

team should apply creativity to functional 

statements which it has selected from the cost/

worth estimates.

•	 Evaluation – List the advantages and 

disadvantages of each remaining alternative. If 

the disadvantages far outweigh the advantages 

of any alternative, the alternative should be 

dropped at this point. Each advantage and 

disadvantage should be described in general 

terms. The team can perform a weighted matrix 

analysis to determine which alternative is best 

based upon the relative importance of each of 

the desirable criteria that must be addressed. 

•	 Development – Once the team selects the 

best alternative, the alternative should be fully 

developed through sketches, cost estimates, 

validation of test data, and other technical 

work to determine if any assumptions made 

during the study are valid. The final step before 

presenting the team’s recommendations to 

management is to formulate an implementation 

plan which describes the process that the 

agency must follow to implement any 

recommendations. 

•	 Presentation – Present recommended 

alternatives to decisionmakers clearly and in 

sufficient detail for their consideration and 

potential approval. 

•	 Implementation – Ensure approved 

recommendations are rapidly and properly 

translated into action in order to achieve the 

savings of project improvements that were 

proposed.

The use of VE techniques can result in 

recommendations that add needed value; reduce 

initial, annual, and total life-cycle costs; confirm 

design criteria and decisions; and achieve a quality 

project.
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

20

Summary

An IGCE is required for every new acquisition 

that exceeds the simplified acquisition threshold. 

By developing a detailed statement of work, a 

project manager can evaluate the labor categories 

and level of effort needed, material/equipment 

requirements, and other costs needed to assist 

in creating a reasonable estimate. Recognizing 

contingency and error are an important part in 

providing estimates to the customer.

References

Army Corps of Engineers. 1997. Engineering 

Instructions: Construction Cost Estimates. EI 

01D010. Engineering Divisions, Directorate of 

Military Programs, Directorate of Civil Works, 

Washington, DC.

Army Corps of Engineers (ACOE) and 

Environmental Protection Agency (EPA). 2000. 

A Guide to Developing and Documenting Cost 

Estimates During the Feasibility Study. EPA 540-

R-00-002.

Balboni, B., ed. 2006. RSMeans Heavy Construction 

Cost Data. RSMeans Co., Houston, TX.

Code of Federal Regulations. 2009. National 

Oil and Hazardous Substances Pollution 

Contingency Plan. Title 40, Part 300.

Code of Federal Regulations. 2010. Federal 

Acquisition Regulations System. Title 48, Part 15.

Department of the Interior. 2008. Environmental 

and Disposal Liabilities Identification, 

Documentation and Reporting Handbook v2.0.

Environmental Protection Agency. 1988. Guidance 

for Conducting Remedial Investigations 

and Feasibility Studies under CERCLA. 

EPA/540/G-89/004. Office of Emergency and 

Remedial Response, Washington, DC.

Environmental Protection Agency. 1993. Guidance 

on Conducting Non-Time Critical Removal 

Actions under CERCLA. EPA540-R-93-057. 

Office of Solid Waste and Emergency Response, 

Washington, DC.

Environmental Protection Agency. 1996. The Role 

of Cost in the Superfund Remedy Selection 

Process. EPA 540/F-96/018. Office of Solid Waste 

and Emergency Response, Washington, DC.

General Services Administration (GSA), 

Department of Defense (DOD), and National 

Aeronautics and Space Administration (NASA). 

2005. Federal Acquisition Regulation 15.404-4.

Mandelbaum, J. 2006. Value Engineering 

Handbook. IDA Paper P-4114. Institute for 

Defense Analyses, Alexandria, VA.

Office of Management and Budget. 1993. Circular 

A-131. www.whitehouse.gov/omb/circulars_

a131/.

Rast, R.R. 1997. Environmental Remediation 

Estimating Methods. RSMeans Co.

Spencer, E., ed. 2006. RSMeans Site Work & 

Landscape Cost Data: 25th Annual Edition. 

RSMeans Co.
Overview of Cost Estimating for Abandoned Mine Lands and Hazardous Materials Cleanup Projects

NOTICE: The information provided in this reference is intended solely as guidance. It is not intended, nor can it be relied upon, to create any rights enforceable 

by any party in litigation with the United States. The BLM may decide to follow the guidance provided in this reference, or to act at variance with the guidance, 

based on an analysis of specific site circumstances.