Procedures Guide for Right-of-Way Cost Estimation and Cost Management (2009) / Chapter Skim
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Pages 35-48
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From page 35... ...
When real estate acquisition is required to support project scope development, ROW requirements are determined such that a conceptual estimate of ROW cost can be prepared. This conceptual ROW cost estimate provides an "order-of-magnitude" cost for planning purposes.
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Conceptual ROW cost estimates support SHA/MPO long-range plans. Figure 4.1 shows the CE/CM steps from Table 3.1 for preparing the Conceptual ROW Cost Estimate and then approving and communicating that estimate for incorporation in a longrange plan.
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Review Conceptual ROW Cost Estimate Review estimate basis and assumptions Verify completeness and cost data Review contingency amount based on identified risks Condemnation Rate Future Development (Community Planning) Approve and Communicate Conceptual ROW Cost Estimate Obtain management approval Authorize communication of the estimate Transportation Need Long Range Plan >20 years Modifications Figure 4.1.
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2. Document the requirements in a ROW Cost Estimate File.
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. Thus, the main output of this step is a project ROW Cost Estimate File.
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Inputs The first and most important input is the estimate basis as documented in the ROW Cost Estimate File (Tools D4.1 and R2.8)
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ROW cost index to capture expected real estate appreciation occurring between the time when the base cost estimate is prepared and when acquisition will occur. These data are often provided by an SHA financial division.
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Outputs Two main outputs are related to this step. The first, a Conceptual ROW Base Estimate, would be generated by the ROW Cost Estimate System tool.
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To avoid any "double counting" of contingency, the ROW estimator must ensure that no contingency is included the conceptual ROW base estimate and that the overall project estimate does not include a separate contingency value for ROW risk or uncertainty. The outcome of this step is to determine the risk associated with the conceptual ROW estimate and to fix a contingency that can be added to the conceptual ROW base estimate to create a total Conceptual ROW Cost Estimate (base estimate plus contingency)
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This list, perhaps the simplest form of risk identification and risk management, helps planning estimators understand the purpose of the contingency amount and helps managers to control scope growth effectively. ODOT includes identifying Red Flag Items in their comprehensive approach to ROW cost estimating.
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Review Conceptual ROW Cost Estimate Because Conceptual ROW Cost Estimates, prepared during the planning phase of project development, are based primarily on assumptions by the planning estimator based on experience, these estimates should only be developed by experienced estimators. Except for very routine Conceptual ROW Cost Estimation 45 Figure 4.4.
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From page 46... ...
. 46 Procedures Guide for Right-of-Way Cost Estimation and Cost Management
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Inputs The reviewed conceptual ROW cost estimate package, the cost estimate and its documentation are the input for obtaining an estimate approval. Process Step Description To control project cost and achieve accurate project estimates, agencies must have management structures that screen and control project scope, schedule, and cost.
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From page 48... ...
Outputs The approved Conceptual ROW Cost Estimate is transmitted to the program planners for inclusion in the total estimated project budget and eventually in long-range plans. Chapter Summary Conceptual ROW cost estimation during planning was the focus of this chapter.
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