---
kind: "section"
citation: "40 C.F.R. § 35.2205"
title: "40"
number: "35.2205"
heading: "Maximum allowable project cost."
url: "https://uscodex.org/cfr/40/35.2205"
---

# §35.2205. Maximum allowable project cost.

- (a) **Grants awarded on or after the effective date of this regulation.** Except as provided in [paragraph (c)](#c) of this section, for Step 2 + 3 or Step 3 grants awarded on or after the effective date of this regulation, the maximum allowable project cost will be the sum of:
  - (1) **The allowable cost of the following—**
    - (i) The initial award amount of all project subagreements between the grantee and its contractors;
    - (ii) The initial amounts approved for force account work to be performed on the project;
    - (iii) The purchase price of eligible real property; and
    - (iv) The initial amount approved for project costs not included under [paragraphs (a)(1)(i) through (a)(1)(iii)](#a-1-i..a-1-iii) of this section, excluding any amounts approved for an allowance under [§ 35.2025](/cfr/40/35.2025.md) and for contingencies; and
  - (2) Five percent of the sum of the amounts included under [paragraphs (a)(1)(i) through (a)(1)(iv)](#a-1-i..a-1-iv) of this section.
- (b) **Grants awarded before the effective date of the regulation.** Except as provided in [paragraph (c)](#c) of this section, for Step 2 + 3 or Step 3 grants awarded before the effective date of this regulation, the maximum allowable increase in the cost for work covered by each subagreement finally advertised or, where there will be no advertisement, each subagreement awarded on or after the effective date of this regulation will be five percent of the initial award amount of the subagreement.
- (c) **Differing site conditions.** In determining whether the maximum allowable project cost or increase in subagreement cost will be exceeded, costs of equitable adjustments for differing site conditions will be exempt, provided the requirements of [40 CFR part 35](/cfr/40/part35.md), [subpart I](/cfr/40/subpartI.md), appendix A, paragraph A.1.g. and all other applicable laws and regulations have been met.

## Notes

### Amendments

[50 FR 46649, Nov. 12, 1985]

### Authority

Authority: Secs. 101(e), 109(b), 201 through 205, 207, 208(d), 210 through 212, 215 through 219, 304(d)(3), 313, 501, 502, 511 and 516(b) of the Clean Water Act, as amended, 33 U.S.C. 1251 et seq.

### Source

Source: 49 FR 6234, Feb. 17, 1984, unless otherwise noted.

### Authority

Authority: 42 U.S.C. 7401 et seq.; 33 U.S.C. 1251 et seq.; 42 U.S.C. 300f et seq.; 42 U.S.C. 6901 et seq.; 7 U.S.C. 136 et seq.; 15 U.S.C. 2601 et seq.; 42 U.S.C. 13101 et seq.; Pub. L. 104-134, 110 Stat. 1321, 1321-299 (1996); Pub. L. 105-65, 111 Stat. 1344, 1373 (1997), 2 CFR 200.

### Amendments

[50 FR 46649, Nov. 12, 1985]