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n u A REVISED SET OF BONDING CALCULATIONS ARE ENCLOSED WITH THE APPROPRIATE COST CHANGES A5 REQUESTED. THE ENTIRE SE~~TION 4.8 HAS BEEN REPRODUCED AND MAY BE SUBSTITUTED DIRECTL'f INTO THE PERMIT FOR THE EXISTING SECTION 4.8. C. Indirect Project Co=_ts In any construction project performed by independent contractors, appropriate overhead and profit amounts are included in the bid price. These amounts are usually estimated as a certair. percent of total direct reclamation costs. In terms of contractor's overhead costs charged to a state contracted construct•i•~n job, the Colorado Division of Purchasing requires the following items before letting t•he bid: 1. Comprehensive Public Liability and Property Damage Insurance (0.09% of direct costs); 2. Comprehensive Automobile ar.d Property Damage Insurance 10.08% of direct co=-ts); 3. Contractor's Performance Bona (0.8% of direct ccsts); and, 4. Job Superintendent (on job site at all times work is being performed!. • Other overhead expenses such as werkmer.'s cempensatier., employer=_ liability insurance, main cffice e;:pense, permits, etc., have already been accounted for in the labor •,+ages and hourly equipment costs used in the direct cost calculations. Costs for t•he above items 1 through 4 need to be included in the bona amount. The cost for a job superintendent should include an hourly labor rate plus t•he cost of a vehicle such as a small pick-up truck. An allowance for contractor's profit must also be included and is typically figured at 10°~ of total direct costs. The hourly rates for mobile equipment listed in the Blue Book are "intended as guidelines paralleling amounts an equipment owner should charge during rental or contractual periods to recover equipment-related costs". Profit and general company overhead are n_•t included in the rates. Under a performance bond forfeiture scenario, the Division would reed to contract with an engineering consulting firm t•o develop a complete set of bid specifications and a construction contract for the job. The estimated cost of this contract, as well as t•he administrative cost incurred by the Division in issuing the engineering services contract, must be included is the bond amount. The Division's funding agency, the Office of Surface Mining, requires that these charges be paid for out of forfeited bond monies. The 1986 Means Building Construction Cost Uata Publication indicates that engineering fees for similar types of work will • average 4.25 percent of the construction contract. Mired Land Reclamation Division (MLRD) administrative costs associated with issuing the engineering services contract are estimated at two man-months time or $5,400.00.