BHSE Sample Minor Alteration and Renovation Budget Justification

BHSE Location: Health Center Site, 123 Main Street, City, State, Zip Code

Total BHSE Minor A/R Funding Request: $100,000

Total Funding from Other Sources (State Grant and Private Contributions): $35,000

Total Project Cost: $135,000

For our minor A/R project, we propose converting an existing storage space and removing a wall to create a counseling space for mental health services. It will also include minor cosmetic work, including new tile flooring and new carpet in the counseling space. We will repaint the spaces, and replace the lighting with more energy efficient lighting throughout the 1,000 SF space.

In addition, we will purchase clinical and non-clinical equipment. We expect to begin renovation activities within 60 days of obtaining all local approvals. We expect to complete the work no more than 3 months after it begins.

Sample minor A/R budget justification

Line Item	Allowable Costs	Unallowable Costs
Line 1 - Administrative and Legal Expenses	$6,000 to pay administrative staff costs directly related to this project.
Line 2 - Land, Structures, Right-of-Way, Appraisals
Line 3 - Relocation Expenses and Payments		$500 to move existing clinic equipment and furniture to completed spaces.
Line 4 - Architectural and Engineering Fees	$5,000 for the architectural and engineering fees, which will cover the following: mechanical and electrical design; bid construction documents (plans and specifications); and assistance during the construction bidding (answer questions presented by the contractors).
Line 5 - Other Architectural and Engineering Fees
Line 6 - Project Inspection Fees	$3,500 for project inspection fees. The inspections will be conducted in accordance with the local Department of Public Works standards and building codes.
Line 7 - Site Work	$3,000 for the purchase of a large exterior sign to install on the building next to the entrance door. No construction site work (work outside of the building) is allowed or anticipated.
Line 8 - Demolition and Removal	$4,000 for removal and disposal of interior partitions and materials in the interior of the existing building.	$1,000 for abatement of asbestos insulation on existing steam pipes in ceiling.
Line 9 - Alteration and Renovation	$45,000 to renovate 1,000 square feet of existing space. This renovation cost is derived from the following cost breakdown: structural ($8,000), architectural ($16,000), mechanical ($8,500), and electrical ($12,500). The structural cost of $8,000 includes metal studs and floor walls. The architectural cost of $16,000 is comprised of the following: concrete work; masonry glass units; metals (aluminum railings and handrails); woods and plastic (cabinets & casework, shelving, table counter tops); doors and windows (metal windows, aluminum doors and frames, high moisture frames, wood doors, door hardware, exterior window shutters, pass and observation window, glazing-laminate exterior); and finishes (ceiling suspension, gypsum board (wall partitions) on metal framing, ceramic tiles, plaster on CMU, acoustical ceiling, resilient flooring, resilient wall base and accessories, and painting). The mechanical cost of $8,500 covers the following: water and piping systems (plumbing fixtures and equipment - water closet, sinks, electric water heater, funnel drain); cold water, hot water, water storage tank, and piping insulation; oxygen piping lines and accessories; and fire protection system (fire sprinkler system-steel piping, sprinkler heads, steel hose, and inspector test valve). The electrical cost of $12,500 includes the following: lighting system (PVC conduit, EMT conduit, lighting fixtures and wiring, light switches and lighting control, wall outlets, and wiring); communication system (PVC conduit, EMT, computer data networking system (outlet, conduit and CAT 5E cabling), telephone outlet, CA TV outlet, PA intercom system (conduit and wiring), security alarm conduit system); and fire sprinkler system (fire alarm cable, fire alarm heat detector, fire alarm control panel).
Line 10 - Equipment	$65,000 for moveable equipment items. $40,000 for clinical equipment; $25,000 for non-clinical items. See itemized equipment list for additional information.
Line 11 - SUBTOTAL	$131,500
Line 12 - Contingencies	$2,000, which is less than 5% of Lines 7, 8, and 9.
Line 13 - SUBTOTAL	$133,500	$1,500
Line 14 - TOTAL PROJECT COSTS	$135,000 (Sum of allowable and unallowable costs from Line 13 - SUBTOTAL)
Line 15 - BHSE One-Time Funds	$100,000

Sample allowable and unallowable costs

The table lists sample allowable and unallowable costs for a proposed minor A/R project.

The total federal and non-federal cost of your minor A/R project must be less than $1,000,000, excluding the cost of moveable equipment.

Refer to the cost principles in 45 CFR Part 75 for details on allowable costs.

Fixed equipment includes items that require you to modify the facility for its satisfactory installation or removal. Include them in the construction contract: for example, ductwork, generators, fume hoods, sinks, fixed shelving, built-in sterilizers, built-in refrigerators, and wiring or cabling inside walls or above ceilings.

Moveable equipment is a non-expendable item with a useful life of more than one year and a unit cost of $5,000 (or equal to the applicant’s capitalization threshold) or more.

Cost Categories	Allowable Costs	Unallowable Costs
Administrative and Legal Expenses	Administrative and legal expenses should be less than 10% of total project costs Salary and consultant fees that are directly related to the administration of the technical aspects of the proposed project Costs associated with the evaluation of the environmental and historic preservation effects of the proposed project, obtaining public input, producing the necessary studies, analysis, and resultant reports, as well as compliance with other environmental and historic preservation laws Bid advertising	Costs of groundbreaking and dedication ceremonies and items such as plaques Costs related to other sources of project financing Costs for preparing grant applications
Relocation	Costs to move and store furnishings temporarily during renovations	The cost of moving furnishings back into the renovated areas
Architectural and Engineering Fees	Fees associated with architectural and engineering professional services including, but not limited to, preparation of bid documents and inspections Associated expenses for preparation of specifications and reproduction of design documents Costs incurred no more than 90 days before award for architect’s fees and consultant’s fees necessary to the planning and design of the project, if the project is approved and funded and the costs comply with federal procurement requirements (when applicable) Sustainable design services, such as LEED, including commissioning Costs associated with the preparation of the Environmental Assessment and SHPO consultation	Architectural and engineering fees for work that is not within the scope of the approved project Elaborate or extravagant designs or projects that are above the known local costs for comparable buildings Costs of abandoned designs (i.e., costs associated with a design that will not be used) Costs for work not directly related to the project
Project Inspection Fees	Clerk-of-the-works, inspection fees, structural certification, etc., to be provided by architectural engineering firm or applicant’s staff	Fees not directly related to the project
Site Work	Minor alteration at entrances and adjacent sidewalks as required for ADA compliance	Fees not directly related to the project Exterior building work such as paving, retaining walls, foundations, etc. Landscaping costs
Demolition and Removal	Costs of demolition or removal of structures for improvements such as wall finishings and fixtures (reduce the costs on this line by the amount of expected proceeds from the sale of salvage)	Costs not directly related to the project Hazardous materials remediation/abatement Demolition and removal of debris that will not result in a usable structure
Alteration and Renovation	Costs of acquisition and installation of fixed equipment necessary for the functioning of the facility Costs for remodeling and alteration of an existing building that will be used for the project Special features for seismic code requirements (use nationally recognized codes adopted by authorities having jurisdiction) Bid guarantees and performance and payment bonds Costs of pollution-control equipment for the facility’s boilers, incinerators, wastewater treatment, etc., which may be required by local, state, or federal regulations (the facility must meet requirements of both current and future pollution abatement regulations as described in currently approved pollution plans)	Abandoned projects Relocation of utilities that are off site and off-site improvements Prorated cost of existing central utility plant and distribution systems, which serve the proposed facility Interior and exterior decorating fees and purchases (e.g., artwork, sculpture) Elaborate or extravagant materials that are above the known local costs for comparable buildings Fixed equipment if it is not part of the construction contract Bonus payments to contractors
Equipment	Moveable equipment that is pertinent to the project (include details on Equipment List form)	Donated equipment Leased equipment Luxury furniture Vehicles for transportation
Contingencies	Contingencies are limited to 5% of the A/R, Site Work, and Demolition/Removal Lines The contingency does not include moveable equipment costs	Contingency costs above the allowable percentage

Date Last Reviewed:

April 2024