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" . PROJECT COSTS . The projected costs provided in this report are based on actual unit bid prices for similar projects, adjusted for differences in job conditions and scope of work. Costs are expressed in terms of prevailing prices in November, 1981. As shown in tables II, 12 and 13, these costs have been escalated to provide an opinion of costs that would occur during the future construction. It is anticipated that construction of Alternate A would occur in 1982, but construction of alternates Band C would largely be deferred until 1983. Costs were assumed to escalate with inflation at ten percent per year. Although the projections of inflation are speculative, the escalated costs provide a good indication of expected construction costs one and two years hence. For alternates Band C, ten percent has been added to the pro- jected construction costs for engineering, surveying, contract adminis- tration, and construction review. It was considered that much of the cost under Alternate A would be related to work requiring little or no engineering. Specifically, care of water and access road construc- tion would be performed by methods chosen by the contractor and little engineering effort would be required. Therefore, only five percent was projected for engineering costs under Alternate A. TWenty-five percent was added to the projected costs for contin- gencies. Since the opinions of probable costs set forth in this report are preliminary, it is expected that actual costs will vary. A contin- gency on the order of 25 percent is commonly used in feasibility cost estimates as an allowance for unknown conditions that may increase construction costs. The opinion of probable construction cost for Alternate A is shown in Table 11. The total cost including engineering, contingencies and cost escalation to 1982 would be about $360,000. Most of the cost would be related to repair of the outlet works gates. Substantial costs . -49-