33 Miss. Code R. § 2-3-B
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% |
33 Miss. Code. R. § 2-3-B