Construction Projects

Construction Projects. All construction projects shall be designed and constructed with the objective of maximizing cost containment, protecting the environment, and conserving energy. Each proposal involving construction shall be accompanied by a cost estimate and, where applicable, schematic drawings. Space allocations shall conform to applicable local, state, or minimum standards. The cost per square foot shall be calculated based on the total project cost, minus the cost of land and non-fixed equipment, using the following formulas: New Construction/Renovation (Prorated Project): Cost per sq. ft. (New Construction) = A+C+D+(E+F+G(A%)) ÷ New Construction Sq. Ft.; Cost per sq. ft. (Renovation) = B+(E+F+G(B%)) ÷ Renovation Sq. Ft. New Construction Only: Cost per Sq. Ft. = (A+C+D+E+F+G) ÷ Total Sq. Ft. Renovation Only: Cost per Sq. Ft. = (B+C+E+F+G) ÷ Total Sq. Ft. Where: A = New Construction; B = Renovation; C = Fixed Equipment; D = Site Preparation; E = Fees; F = Contingency; G = Capitalized Page 63 — Mississippi State Department of Health Interest; A% = percentage of sq. ft. for new construction; B% = percentage of sq. ft. for renovation. Any cost overrun on a construction or renovation project that locates cost in or above the upper one-fourth range for U.S. construction or renovation cost shall require additional documentation. Construction cost overrun requests shall be with nationally recognized construction cost data, including RS Means or comparable industry references or other bona fide reference.