Section 661.APPENDIX C   Procedures for Determination of Design Allowance

1.         General

This Appendix provides the method which will be used to determine the allowance for facilities design.  The grant agreement will include an estimate of the allowance.  The State share of the allowance is determined by applying the applicable grant percentage to the allowance.

2.         Definitions

(a)        Initial Allowable Building Cost – the allowable cost of the following:

(1)        the initial award amount of all prime subagreements for building the project.

(2)        the initial amounts approved for force account work performed in lieu of awarding a subagreement for building the project.

(b)        Estimated Design Allowance – the appropriate percentage from the table set forth in Section 4 multiplied by the estimated initial allowable building cost.

(c)        Final Design Allowance – the appropriate percentage from the table set forth in Section 4 multiplied by the initial allowable building cost.

3.         Procedures

(a)        The final design allowance will be determined one time only for the project, based upon the initial allowable building cost, and will not be adjusted for subsequent cost increases or decreases.  The allowance is not intended to reimburse the grantee for costs actually incurred for project design.  Rather, the allowance is intended to assist in defraying those costs.  Under this procedure, questions of equity will not be appropriate.

(b)        The allowance does not include architect or engineering services provided during the building of the project, e.g., reviewing bids, checking shop drawings, reviewing change orders, and on site inspections.  These costs are allowable subject to the requirements of 35 Ill. Adm. Code 661.

(c)        The grantee may request payment of 50 percent of the State share of the estimated design allowance immediately after grant award.  Final payment of the State share of the allowance may be requested in the first payment after the grantee has awarded all prime subagreements for building the project and received Agency approval for all force account work.  The final payment of the allowance will be the State share of the final design allowance less any previous payment of the allowance based upon the estimated initial building cost.

4.         Table

Note:  The allowance does not reimburse for costs incurred. Accordingly, the allowance Tables shall not be used to determine the compensation for design services.  The compensation for design services should be based upon the nature, scope and complexity of the services required by the community.

*Interpolate between values.