Mississippi Administrative Code › Title 33 - Public Health - Local Governments And Rural Water Systems Improvements Board › Part 2 - Drinking Water Systems Improvements Revolving Loan Fund Program Regulations › Chapter 3 - Project Requirements › Appendix 33-2-3-B - Recommended Allowances for Facilities Planning, Design and Construction Phase Professional Services

Current through June 25, 2024
A. Recommended Allowances for Facilities Planning and
				  Design.
The recommended allowance for facilities planning and design
				  will be determined using Table 1 of this Appendix. This table is not intended
				  to be used to determine the consulting engineer's actual compensation for
				  facilities planning and design services. Compensation for these services should
				  be based upon the nature, scope, and complexity of the services required for
				  the project.
Table 1 includes a recommended range for engineering costs
				  during facilities planning and design, which the loan applicant/recipient
				  should consider while evaluating the engineer's proposal. If the engineer's
				  proposal exceeds the normal range the loan applicant/recipient should consider
				  requiring the engineer to justify why the project is more difficult than
				  normal. The actual compensation justified for a particular project may be more
				  or less than the suggested range of the allowance for these services shown in
				  Table 1.
If the consulting engineer and loan applicant/recipient
				  determine that the maximum recommended allowance calculated using Table 1 of
				  this Appendix does not adequately reflect the nature, scope, and complexity of
				  the services required for the project, the consulting engineer may submit a
				  detailed cost proposal, in such format as required by the Department,
				  justifying a compensation amount greater than Table 1 recommends. If, in the
				  Department's opinion the detailed cost proposal justifies such, the Department
				  will approve an allowance for facilities planning and design greater than those
				  recommended in Table 1. The decision of the Department in this matter will be
				  final.
Projects for which the loan applicant/recipient must acquire
				  easements or real property in accordance with the Uniform Relocation Assistance
				  and Real Property Acquisition Policies Act may receive an additional 1% above
				  the recommended maximum percentages shown in Table 1 for planning and design
				  allowances. Also, projects for which a value engineering study is conducted may
				  receive an additional 3% above the recommended maximum percentages shown in
				  Table 1 for the planning and design allowance.
B. Recommended Allowance for Construction Phase Professional
				  Services.
The Allowance for Construction Phase Professional Services
				  includes costs for engineering services during bidding, construction, and
				  post-construction phases, observation during construction, loan administration
				  (payment processing, MBE/WBE DBE compliance, etc.), and other services (i.e.
				  legal, audit, etc.) that are associated with the construction of the DWSIRLF
				  project. The recommended allowance for construction phase professional services
				  will be determined using Table 2 of this Appendix.
This table is not intended to be used to determine the
				  actual compensation for construction phase professional services. Compensation
				  for these professional services should be based upon the nature, scope, and
				  complexity of the services required for the project.
Table 2 separates the Total Recommended Allowance for
				  Construction Phase Professional Services shown in the far right hand column
				  into three types of services: engineering, loan administration, and other
				  services and provides suggested ranges for each of these services depending
				  upon the complexity of the project. The loan applicant/recipient should
				  consider these recommended ranges when evaluating proposals for these services.
				  If the proposals exceed the normal ranges for any of these services the loan
				  applicant/recipient should consider requiring the professional to justify why
				  the project is more difficult than normal. The actual compensation justified
				  for a particular project may be more or less than the suggested range of the
				  allowance for these services shown in Table 2.
If the consulting engineer and loan applicant/recipient
				  determine that the maximum recommended allowance calculated using Table 2 of
				  this Appendix does not adequately reflect the nature, scope, and complexity of
				  the services required for the project, the consulting engineer may submit a
				  detailed cost proposal, in such format as required by the Department,
				  justifying a compensation amount greater than Table 2 recommends. If in the
				  Department's opinion the detailed cost proposal justifies such, the Department
				  will approve an allowance for construction phase professional services greater
				  than those recommended in Table 2. The decision of the Department in this
				  matter will be final.
Although Table 2 shows engineering and loan administration
				  as separate costs, the loan applicant/recipient is not required by these
				  regulations to contract for these services separately. The loan
				  applicant/recipient may wish to have the consulting engineer provide both
				  scopes of services, and under such an arrangement, the engineer's contract
				  should not exceed the total of the suggested ranges for both services.
C. General Guidance for Use of the Allowance Tables in this
				  Appendix.
The estimated and final allowances will be determined in
				  accordance with this Appendix.
All allowance percentages will be calculated to four decimal
				  places using linear interpolation. The allowance amount is computed by applying
				  the resulting total allowance percentage to the initial allowable building
				  cost, which is the initial award amount of all prime contracts for
				  construction, equipment, supplies, and testing of the project.
The estimated allowances are to be based on the estimate of
				  the initial allowable building cost from the facilities plan. The final
				  allowances will be determined one time only for each project, based on the
				  initial allowable as-bid cost, and will not be adjusted for subsequent cost
				  increases or decreases.
Following execution of the loan agreement, the loan
				  recipient may request and receive payment for the facilities planning and
				  design allowance and the allowance for construction phase professional
				  services, in accordance with the procedures described in Rule
				  3.9.1.5 (1), (3) and (4) of these
				  regulations. Advances of allowances will not be provided.
Table 1 Recommended Allowances for Facilities Planning and
				  Design
Allowable Building Cost
Allowances as a Percentage of Building Cost Based
							 Upon the Difficulty of the Project
Normal to Difficult
$50,000 or less
11.7500% to 13.2000%
$100,000
10.7500% to 12.2000%
$150,000
10.0700% to 11.2519%
$200,000
9.4000% to 10.5000%
$300,000
8.7000% to 9.8042%
$400,000
8.3000% to 9.6312%
$500,000
8.0000% to 9.4417%
$600,000
7.8000% to 9.1467%
$700,000
7.7000% to 9.0297%
$800,000
7.5000% to 8.8089%
$900,000
7.4000% to 8.7472%
$1,000,000
7.2500% to 8.5673%
$1,100,000
7.1030% to 8.3911%
$1,200,000
6.9600% to 8.2185%
$1,300,000
6.8200% to 8.0495%
$1,400,000
6.6800% to 7.8840%
$1,500,000 or greater
6.5400% to 7.7219%
Table 2
Recommended Allowances for Construction Phase Professional
				  Services
Allowances as a Percentage of Building Cost Based Upon the
				  Difficulty of the Project
Estimated Building Cost
Engineering Services Normal to Difficult
Loan Administration Normal to Difficult
Other Services Normal to Difficult
Total Allowance for Professional Services Normal to
							 Difficult
$50,000 or less
6.4400% to 11.7250%
2.0700% to 3.7688%
0.6900% to 1.2563%
9.2000% to 16.7500%
$100,000
5.7400% to 11.725%
1.8450% to 3.7688%
0.6150% to 1.2563%
8.2000% to 16.7500%
$150,000
5.2850% to 11.725%
1.6988% to 3.7688%
0.5663% to 1.2563%
7.5500% to 16.7500%
$200,000
4.8300% to 9.9400%
1.5525% to 3.1950%
0.5175% to 1.0650%
6.9000% to 14.2000%
$300,000
4.4100% to 8.1690%
1.4175% to 2.6258%
0.4725% to 0.8753%
6.3000% to 11.6700%
$400,000
4.0600% to 7.2800%
1.3050% to 2.3400%
0.4350% to 0.7800%
5.8000% to 10.4000%
$500,000
3.8150% to 6.5800%
1.2263% to 2.1150%
0.4088% to 0.7050%
5.4500% to 09.4000%
$600,000
3.5700% to 5.9500%
1.1475% to 1.9125%
0.3825% to 0.6375%
5.1000% to 08.5000%
$700,000
3.4300% to 5.4600%
1.1025% to 1.7550%
0.3675% to 0.5850%
4.9000% to 07.8000%
$800,000
3.2900% to 5.0400%
1.0575% to 1.6200%
0.3525% to 0.5400%
4.7000% to 07.2000%
$900,000
3.2200% to 4.6690%
1.0350% to 1.5008%
0.3450% to 0.5003%
4.6000% to 06.6700%
$1,000,000
3.1500% to 4.4800%
1.0125% to 1.4400%
0.3375% to 0.4800%
4.5000% to 06.4000%
$1,100,000
3.0815% to 4.2986%
0.9905% to 1.3817%
0.3302% to 0.4606%
4.4022% to 06.1409%
$1,200,000
3.0146% to 4.1246%
0.9690% to 1.3258%
0.3230% to 0.4419%
4.3066% to 5.8923%
$1,300,000
2.9492% to 3.9577%
0.9479% to 1.2721%
0.3160% to 0.4240%
4.2131% to 5.6538%
$1,400,000
2.8852% to 3.7975%
0.9274% to 1.2206%
0.3091% to 0.4069%
4.1217% to 5.4250%
$1,500,000 or greater
2.8226% to 3.6438%
0.9073% to 1.1712%
0.3024% to 0.3904%
4.0323% to 5.2054%