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Engineering Redesign Fee <br />• The reclamation plan as submitted is based on a planned life-of-mine operation. If mining should cease <br />before the planned date, some projects may need to be re-engineered or field engineered. To account <br />for these costs, Graph 1, OSMRE Handbook was used to estimate these fees. This was estimated at <br />4.25 percent of the contract amount (direct and indirect costsl. <br />Contractor's Profit and Overhead <br />Profit and overhead for the contractor was estimated using Graph 2, OSMRE Handbook. This was <br />estimated at 70 percent of the direct costs. <br />Reclamation Management Fee <br />This fee represents the cost for management of the entire project. Usually a firm specializing in <br />reclamation oversight performs this. This was estimated per Graph 3, OSMRE Handbook at 3.25 <br />percent of the direct costs. <br />Public Liability Insurance <br />• This insurance protects the Contractor against his legal liability to third persons for bodily injury and <br />property damage arising out of his own operations. This cost has been estimated at 1.55 percent of <br />the direct costs, <br />Contractor's Performance Bond <br />The performance bond guarantees the contract will be performed and the reclamation will be conducted <br />to the satisfaction of the Division. This cost has been estimated at 1.05 percent of the direct costs. <br />COST SUMMARY <br />The current bond estimate demonstrates that the entire permit area can be reclaimed for 59,707,373. <br />SCC has submitted a surety certificate raising the current reclamation bond to this amount. The bond <br />requirement will be adjusted as appropriate based on the DMG calculated estimate for PR-05. <br />• <br />PR-05 7 Revised 05/05 <br />