---
kind: "section"
citation: "25 C.F.R. § 1000.1420"
title: "25"
number: "1000.1420"
heading: "What costs may be included in the budget for a construction project or program?"
url: "https://uscodex.org/cfr/25/1000.1420"
---

# §1000.1420. What costs may be included in the budget for a construction project or program?

- (a) A Tribe/Consortium may include costs allowed by applicable provisions of [subpart E](/cfr/25/subpartE.md) of [2 CFR part 200](/cfr/2/part200.md), and costs allowed under 25 U.S.C. [5367](/usc/25/5367.md), [25](/usc/25/25.md) U.S.C. 5325 and [25 U.S.C. 5324(m)](/usc/25/5324.md?p=m). The cost incurred will vary depending on which phase of the construction process the Tribe/Consortium is conducting and type of construction project agreement that will be used.
- (b) Regardless of whether a construction project agreement or funding agreement that includes a construction project is fixed priced or cost-reimbursement, budgets may include costs or fees associated with the following:
  - (1) Construction project proposal preparation;
  - (2) Conducting community meetings to develop project documents;
  - (3) Architects, engineers, and other consultants to prepare project planning documents, to develop project plans and specifications, and to assist in oversight of the design during construction;
  - (4) Real property lease or acquisition;
  - (5) Development of project surveys including topographical surveys, site boundary descriptions, geotechnical surveys, archeological surveys, and NEPA compliance;
  - (6) Project management, superintendence, safety, and inspection;
  - (7) Travel, including local travel incurred as a direct result of conducting the construction project agreement and remote travel in conjunction with the project;
  - (8) Consultants, such as demographic consultants, planning consultants, attorneys, accountants, and personnel who provide services, to include construction management services;
  - (9) Project site development;
  - (10) Project construction cost;
  - (11) General, administrative overhead, and indirect costs;
  - (12) Securing and installing moveable equipment, telecommunications and data processing equipment, furnishings, including works of art, and special purpose equipment when part of a construction contract;
  - (12) Other costs directly related to performing the construction project;
  - (13) Project Contingency;
    - (i) **A cost-reimbursement project agreement budgets contingency as a broad category.** Project contingency remaining at the end of the project is considered savings.
    - (ii) **Fixed-price agreements budget project contingency in the lump sum price or unit price.**
- (c) In the case of a fixed-price project agreement, a reasonable profit determined by taking into consideration the relevant risks and local market conditions.

## Notes

### Authority

Authority: 25 U.S.C. 5373

### Source

Source: 89 FR 100245, Dec. 11, 2024, unless otherwise noted.