---
kind: "section"
citation: "42 C.F.R. § 137.335"
title: "42"
number: "137.335"
heading: "What costs may be included in the budget for a construction agreement?"
url: "https://uscodex.org/cfr/42/137.335"
---

# §137.335. What costs may be included in the budget for a construction agreement?

- (a) A Self-Governance Tribe may include costs allowed by applicable OMB Circulars, and costs allowed under [sections 508(c)](/cfr/42/508.md?p=c) [[25 U.S.C. 458aaa-7(c)](/usc/25/458aaa-7.md?p=c)], 106 [[25 U.S.C. 450j-1](/usc/25/450j-1.md)] and 105 (m) of the Act [[25 U.S.C. 450j(m)](/usc/25/450j.md?p=m)]. The costs incurred will vary depending on which phase of the construction process the Self-Governance Tribe is conducting and type of construction project agreement that will be used.
- (b) Regardless of whether a construction project agreement is fixed price 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;
  - (13) Other costs directly related to performing the construction project agreement;
  - (14) **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. 458 et seq.

### Source

Source: 67 FR 35342, May 17, 2002, unless otherwise noted.