ENGINEERING – HOME OFFICE MH (1)
Total engineering design, including construction services such as estimating, scheduling, expediting, etc., project general management, design allowance, and fee are included as a part of home office cost and as such are considered under this section. Manhour range tables listing manhour ranges for single and duplicate pieces of equipment are included to establish the total home office manhours required. After total manhours are established, they are to be spread, on a percentage basis, to the various personnel disciplines, as outlined in the following manhour spread percentage table.
Simply by multiplying the established discipline manhours by your established discipline rates a total labor man-hour and dollar cost is obtained. Other cost such as blueprints, reproductions, computer use, miscellaneous expenses, travel expenses, telephone, telex, postage, and burdens and benefits are to be established as a percent of the total labor dollars in accordance with the following percentage spread table for these items. After the total labor and material dollars are established, the estimator need only apply a cost for design allowance and fee for a complete home office engineering design cost.
Source: John S. Page - Conceptual Cost Estimating Manual, 2nd Edition
