N.J. Admin. Code § 7:22-5.12

Current through Register Vol. 56, No. 16, August 19, 2024

Section 7:22-5.12 - Allowance for planning and design

(a) For projects whose sponsor does not seek reimbursement of actual planning and design costs, this section provides the method the Department and the Trust will use to determine both the estimated and final allowance under N.J.A.C. 7:22-3.34 and 4.34, planning and design. The Fund or Trust loan agreement will include an estimate of the allowance.

(b) The Fund or Trust share of the allowance may be up to 100 percent of the allowance and shall be based upon the percentage of the Fund or Trust share of the low bid building cost. An increase in the planning and/or design allowance will not be made for increased building costs to address differing site conditions.

(c) The allowance is not intended to reimburse the recipient for costs actually incurred for planning or design. Rather, the allowance is intended to assist in defraying those costs. Under this procedure, questions of equity (that is, reimbursement on a dollar-for-dollar basis) will not be appropriate.

(d) The estimated and final allowance will be determined in accordance with this section and Table 1 below. In the event that the recipient received a Federal grant, Sewage Infrastructure Improvement Act funding, Pinelands funding, or Safe Drinking Water Act funding for facilities planning, the amount of the allowance is computed by subtracting the amount of the other State or Federal funding for facilities planning from the appropriate allowance computed using Table 1.

(e) The initial allowable building cost is the initial allowable cost of erecting, altering, remodeling, improving, or extending environmental infrastructure facilities, whether accomplished through subagreement or force account. Specifically, the initial allowable building cost is 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;

3. The purchase price of eligible real property.

(f) The estimated allowance is to be based on the estimate of the initial allowable building cost.

(g) The final allowance will be determined one time only for each project, based on the initial allowable building cost, and will not be adjusted for subsequent cost increases or decreases.

(h) The recipient may request payment of 50 percent of the Fund or Trust share of the estimated allowance immediately after the Fund or Trust loan award. Final payment of the Fund or Trust share of the allowance may be requested in the first disbursement after the recipient has awarded all prime subagreements for building the project, received the Assistant Director's or the Trust's approval, as appropriate, for force account work, and completed the acquisition of all eligible real property.

(i) The allowance does not include architect or engineering services provided during the building of the project, for example, reviewing bids, checking shop drawings, reviewing change orders, making periodic visits to job sites, etc. Architect or engineering services during the building of the project are allowable costs subject to this regulation and the Local Public Contracts Law (N.J.S.A. 40A:11-1 et seq.) or other applicable procurement method authorized under State law.

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N.J. Admin. Code § 7:22-5.12

Amended by R.1992 d.42, effective 1/21/1992.
See: 23 New Jersey Register 3282(a), 24 New Jersey Register 246(a).
Final figure in Table 1 corrected.
Amended by R.1993 d.242, effective 6/7/1993.
See: 24 New Jersey Register 4310(b), 25 New Jersey Register 2271(a).
Amended to reflect that no adjustment will be made since the planning and design effort required to address differing site conditions is not as extensive as the effort required to complete the initial planning and design activities for the project.
Amended by R.1995 d.494, effective 9/5/1995.
See: 27 New Jersey Register 1536(a), 27 New Jersey Register 3403(a).
Amended by R.1997 d.346, effective 8/18/1997.
See: 29 New Jersey Register 2207(a), 29 New Jersey Register 3723(a).
In (a), inserted "For projects for which ... 10.5, respectively,".
Amended by R.1998 d.407, effective 8/3/1998.
See: 30 New Jersey Register 1144(a), 30 New Jersey Register 2863(a).
In (e), substituted "environmental infrastructure" for "wastewater treatment" in the introductory paragraph; and in (i), substituted "other applicable procurement method authorized under State law" for "the New Jersey Wastewater Treatment Privatization Act (N.J.S.A. 58:27-1 et seq.)".
Amended by R.2006 d.22, effective 1/3/2006.
See: 37 New Jersey Register 2645(a), 38 New Jersey Register 139(a).
Rewrote (a) and (d); rewrote Table 1; deleted Table 2.