The way project sponsors spend money, typically by putting their project under contract for construction. For the PRP program approval of PS&E by the FLH division engineer constitutes obligation of funds. Funding programs often require project sponsors to obligate funds in a timely manner or lose the funds.
O&M Costs - Operation and Maintenance Costs
O&M Manuals - Operation and Maintenance Manuals
Operation and Maintenance (O&M) Costs
Funds for day-to-day costs of running transportation systems. For transit, costs include fuel, salaries and replacement parts; for roads, operating costs involve maintaining pavement, filling potholes and paying workers' salaries.
Permits required to operate part or all of a facility. Operational Permits are issued to the Park. Generally, the Park is responsible for acquiring any operational permits during the design process. However, operational permits should be discussed and acquired by the most appropriate party. Operational Permits are usually linked closely to design and needs to be closely coordinated with the Park. Examples of typical Operational Permits include stationary air source permits, waste water discharge permits, etc.
A bid item or series of bid items that may be added to the contract during the award phase or after award (within a time frame specified in the contract). This may take the form of new work or alternative materials from those covered in the base bid.
Based on definitions from the AIA Handbook and the CSI Manual of Practice, an outline specification is an itemized list, using brief, concise statements, of significant materials, systems, and equipment and their criteria and levels of quality. Also, any criteria having a special cost impact would be indicated.
Overhead & Profit
Overhead is the cost that a contractor has for staying in business. A general contractor has expenses not directly related to the construction of a project, but vital to the contractor's business operations. These include fixed overhead (Federal and State Unemployment costs, Social Security Tax, Builder's Risk Insurance and Public Liability Costs) and variable overhead (Worker's Compensation Insurance, Main Office Overhead, etc.).
Profit is the just reward for the effort and risk a contractor undertakes to produce a project. The amount varies depending on the size of the job and yearly in a contractor's annual billing. Typically, construction contractors take more profit on a smaller job and consideration should be given to the fact that the installing contractor(s) (sub-contractors) will also charge both overhead and profit on a project.