A Private Contractor’S Approach To Decommissioning Costs

Generic cost estimates are important in giving a general impression about the magnitude of the overall task of decommissioning. Site-specific cost estimates, however, are necessary for each individual power plant so that differences in design, site, and history will be reflected as accurately as possible. Thomas LaGuardia has more experience in preparing such estimates than anyone else in the U.S. In this chapter he gives an insider’s view of cost estimates which will be valuable to the utility operator who wants to know whether an estimate is adequate without being overinflated, to the regulator who is responsible to the citizens, and to the public who ultimately will pay the bills. He discusses various types of contracts such as fixed price, time and materials, cost-plus-fixed-fee, and utility-to-DOC fixed price, recommending the use of fixed-price contracts for subcontractors and a cost-plus-fixed or incentive fee for the primary contractor. He stresses the need for site-specific estimates.