CHAPTER II!t, SECTION 3

Estimating functions performed for Operation CASTLE entailed such activities as: (1)
the preparation of preliminary estimates which
reflected the total cost of anticipated construction, engineering, camp operations, maintenance.
support services and roll-up services; (2) original estimates, prepared after engineering design
was authorized and formally submitted to .the
Field Manager; and (3) current estimates, which
included the cost of any and ail changes that
deviated from the preliminary design.
The
estimated construction cust, when approved, became the official cost used to determine the
Contractor's fee for approved construction.

other Departments. These important departmental functions included such activities as
Contract Administration, Budget and Accounting, Industrial Relations, Procurement, and
Engineering at both the Home Office and in the
field.
All cost estimates prepared during Operation CASTLE followed an established pattern,
which delatted ol seyrezated the relevant elements as foliuws:
t. The items of direct labor, direct material, equipment usage, and batch and
aggregate plant production were considered as direct costs and were estimated for cach job on the basis of similar work in the Zone of the Intenor.
te

progress engineer, anda one property records
engineer. This group was supervised by a Principal Engineer working directly under the HEN
Resident Engineer's supervision.

When authorized changes in design occurred after release of the current estimate, a
revised current estimate was issued which included the cost of any additions or deletions
from the original design. This estimate superseded the previously issued current cost estimate in its entirety. Special studies were also
prepared to supply general information or comparative data for the proper determination of
design, manpower requirements, or construction
schedules.
A copyof all estimates was supplied to the
Jobsite for use and reference in reporting progress, aad for preparing monthly completion
estimates where it was found that the latest
current cost estimate deviated from the field
estimate ‘‘to complete” by ten per cent. This
information was included in each monthly cost
statement of work in progress.
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Data originated or assembled by Estima. teem

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Type of Estimate
Cost studies

Budget forecasts
Preliminary Cost Estimates
Original Cost Estimates
Current Cost Estimates
Total - All Types

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In accordance with previous experience
at the Pacific Proving Ground, other
expenses were estimated as follows:
a. Indirect as 65° of combined direct
labor and direct material.
b. Operations as $4.50 per man-hour of
the estimated direct labor.
c. Ficld Engineering as 4.75 of total
estimated construction cast of cach
project.
d. Engineering design as 4.006 of total
estimated construction cust of each
project.

The following compilation, which totals
2173 estimates, represents approximately 300°more than the number of approved estimates
incorporated into the Contract. This over-all
total was due principally to the fact that many
estimates required complete processing through
the preliminary and original estimate nhases
prior to the preparation of approved current

estimates.

various

Number of
Estimates

Gross
Dollar Value

Net
_ Dollar Value

110

8 17,089,295

$ 17,089,295

2,173

3166.757,689

$155,623,183

82
99
741
1,141

An “Estimated Operations Scheduie,” reflecting the scheduling of engineering. procurement and construcion for each item of authorized construction, was issued and reviewed pe-

riodically by the Manager, Construction-Oper-

ations Division, his staff, and the Project Engineer. This provided the means for coordinating
the work of the various Departments involved.

43,000,000
35.669,940
23,290,854
47,707.600

43,600,000
30,792,964
21,285,104
43,505,820

Immediately following the review and issuance
of this schedule, a complete catalogue of Scientific Stations was issued which provided a brief
description of the construction involved, site locations, and User requirements, and served to
coordinate the User’s needs with Jobsite construction.

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