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Sample of Construction of a New Facility Budget Narrative

Organization Name: Family Medical Center (FMC)
Project Type: Construction of a New Facility
Project Name: FMC New Facility
Total CPF/CDS Funding Request = $490,000
Total Project Cost = $8,302,100

Our proposed Community Project Funding/Congressionally Directed Spending (CPF/CDS) project will construct a new, 3-story building on an existing site.

The building will provide:

  • examination rooms
  • Waiting area,
  • Records rooms
  • Patient services
  • Provider offices
  • Special purpose room
  • Restrooms
  • Healthcare support function areas
  • Communications
  • Mechanical spaces.

The building will comply with all accessibility requirements of the Americans with Disabilities Act and local building codes.

Additionally, we’ll install an FMC sign at the entrance of the facility, and purchase moveable medical and office equipment.

The building will result in a larger and better organized facility, well-suited to deliver patient services.

The FMC project cost is $8,302,100. With this application, we request $490,000 to support the construction and equipment cost. For the balance of $7,812,100 we’ll use a loan backed by HRSA’s loan guarantee program.

If you don’t approve the loan guarantee program application, we’ll use $4,500,000 of program income. In addition, we’ll use venture capital financing from local investors for the $3,312,100, in which we have already received letters of support.

We anticipate the project will begin within 30 days of award. We’ll complete and occupy it by August 2025.

 

Allowable Costs—CPF/CDS

Unallowable Costs

Line 1— Administrative and legal expenses

$23,600 for a portion of FMC’s staff/project manager (work related to the construction project)

$39,500 for environmental analysis and costs associated with evaluation of the environmental effects of proposed activities and producing an Environmental Statement to the local authorities

Total administrative cost: $63,100

  

Line 2—Land, structures, right- of-way, appraisals, etc.

FMC owns the land. We don’t need more land for this project.

  

Line 3—Relocation expenses and payments

Although this project requires temporary relocation, we don’t anticipate any costs.

  

Line 4— Architectural and engineering fees

Covers:

  • Mechanical and electrical design
  • Bid renovation/construction documents (plans and specifications)
  • Help during the construction bidding (answer contractor questions)

Total architectural and engineering fees: $739,000

  

Line 5—Other architectural and engineering fees

Don’t anticipate any

  

Line 6—Project inspection fees

Includes:

  • Local department of building construction inspections
  • Shop drawing and submittal review
  • Contractor payment certification
  • Final construction inspection
  • Project close out
  • Fees for topographic survey
  • Soil/foundation investigation

Total: $23,437

  

Line 7—Site work

Includes:

  • Tree removal
  • Grading
  • Earthwork
  • Exterior improvements
  • Seeding of disturbed areas
  • Connection to underground utilities

Total: $375,000

  

Line 8—Demolition and removal

None

 

Line 9— Alteration/ Renovation (Construction)

$6,067,563 is the total construction cost to build the new building on the existing site. The total square footage is 17,358 square feet on three levels.

The master format divisions costs are:

$540,012 total general requirements
General (Cover the full scope of the project work)

  • Safety
  • Operations and storage areas
  • Use of utilities
  • Environmental controls

$4,963,266 total facility construction

  • Concrete (e.g., Footings)
  • Masonry (e.g., concrete block and brick work)
  • Metals (e.g., steel framing)
  • Wood, plastics, and composites (e.g., house framing)
  • Thermal and moisture protection (e.g., insulation and water barriers)
  • Openings (e.g., doors, windows, and louvers)
  • Finishes
  • Building specialties
  • Installed equipment

$345,852 total facility services

  • Fire suppression
  • Plumbing
  • Heating ventilating and air conditioning
  • Integrated automation
  • Electrical
  • Communications
  • Electronic safety and security

$169,891 total process equipment

  • Water and wastewater equipment
  • Electrical power generation

$48,542 total other project costs

  • Exterior business sign
  • Special purpose room

$6,067,563 Grand total construction cost

$10,000 is an allowance for a wall mural in the waiting room.

Line 10— Equipment

$96,000

  • 24 exam tables for the exam rooms at $2,000 each (24 x $2,000 = $48,000)
  • 12 beds with wheels height adjustment at $4,000 each (12 x $4,000=$48,000) for the isolation rooms

$38,750 for office equipment:

  • 7 desks at $1,000 ($7,000)
  • 7 computers (4GB RAM, 160 GB HD, 22" monitor, Intel Core Duo 2 Processor) at $2,500 each ($17,500) for each of the new exam rooms
  • 114 chairs at $125 each (i.e., 100 chairs for the waiting room and 14 chairs for the offices) ($14,250)

$569,250 of clinical equipment.
See equipment list for other equipment purchased.

Total = $704,000

  

Line 11— Miscellaneous

Don’t anticipate any

  

Line 12—SUBTOTAL

(Allowable and Unallowable Costs)

$7,972,100 total allowable costs
(Sum of Lines 1 through 11)

$10,000 total unallowable costs
(Sum of Lines 1 through 11)

Line 13— Contingencies

$320,000, which is less than 5% of the sum of Lines, 7, 8, and 9

  

Line 14— SUBTOTAL

$8,292,100 total allowable costs
(Sum of Lines 12 and 13)

$10,000 total unallowable costs
(Sum of Lines 12 and 13)

Line 15—Project (program) income

Not Applicable

  

Line 16—TOTAL PROJECT COSTS

(Allowable and Unallowable)

$8,302,100

(Sum of allowable and unallowable costs from Line 14 above)

  

Line 17— GRANT funding requested

(Note: round to the nearest whole dollar amount)

$2,000,000

  

SEE APPENDIX B: Allowable and Unallowable Costs in the guidance documents.

Date Last Reviewed: