FEMA estimates project costs byengaging qualified professionals to develop or review cost estimates, reviewingapplicant-provided information during the Scoping and Costing phase, ensuringcompliance with program requirements, and determining cost eligibility. ​ They develop or validate the Scope ofWork and cost estimate for each project, consider the percentage of workcompleted, and adjust funding based on actual eligible costs at projectcloseout. ​FEMA also transmits fixed-cost offers to applicants, obligates fixed-costamounts without adjusting for hidden damage, and adjusts for insurance proceedsbefore project closure. ​ They follow specific procedures outlined in the ProgramDelivery Guide for accurate and fair determination of project costs under thePublic Assistance Program.

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