Final Report for NCHRP Report 574: Guidance for Cost Estimation and Management for Highway Projects During Planning, Programming, and Preconstruction (2006)

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78 CHAPTER 5 INTERIM REPORT Chapter 5 covers both Task 4, Prepare Preliminary Outline of Guidebook and Task 5, Prepare Interim Report. The main goal of Task 4 was the development of an annotated outline for a Guidebook on highway cost estimation practice and project cost estimation management. The main goal of Task 5 was to prepare an Interim Report and deliver this report to the Panel for review and discussion of the work plan to complete the project. The basic focus of these two tasks, including inputs and outputs, is shown in Figure 5.1. Figure 5.1. Preliminary Report Outline and Interim Report Inputs and Outputs INTRODUCTION At this stage in the development of the research, the research team recommended one Guidebook that covers both cost estimation practice and cost estimation management. This recommendation was the result of conducting interviews with the potential users of this research. Both areas must be linked together to adequately address the fundamental objective of the Guidebook, that is, accurate and consistent estimates from the initial planning estimate to the engineer’s estimate at final design. Thus, the proposed Guidebook structure, layout, and content were based on eight chapters. An overview of the proposed Guidebook table of contents is shown in Figure 5.2. The first three chapters would “set the stage” for a detailed description of the recommended strategies, methods, and tools to be used in practice. These first three chapters would provide an overview of the guide and present the strategies, methods, and tools that would be detailed in the later chapters. Chapter’s 4 through 6 would describe methods and tools corresponding to Long- range Planning, Programming and Advanced Planning/Preliminary Design, and Final Design. Chapters 4 through 6 would also discuss the impact of project complexity in relation to cost estimation practice and cost estimation management. Chapter 7 would discuss implementation issues and how a DOT might integrate the Guidebook content into current and future DOT practices. The final chapter, Chapter 8, would provide a path forward. Appendices will be used as appropriate to provide additional information to users. Each chapter of the Guidebook described in the table of contents, Figure 5.2, was annotated to provide additional insights into its proposed structure, format and content. A brief summary of key issues the research team needed to consider when developing the Guidebook materials was also presented.

79 COST ESTIMATION PRACTICES AND COST ESTIMATION MANAGEMENT: A GUIDEBOOK FOR TRANSPORTATION PROJECTS Figure 5.2. Guidebook Table of Contents (Preliminary) Table of Contents Summary Chapter 1 – Introduction Background Guidebook Layout How to Use Guidebook Chapter 2 – Issues and Strategies Issues Strategies Chapter 3 – Guideline Framework Introduction Recommended Strategies, Methods, and Tools Chapter 4 – Long-Range Planning Introduction Methods and Tools Cost Estimation Practice Cost Estimation Management Chapter 5 – Programming and Advanced Planning/Preliminary Design Introduction Methods and Tools Cost Estimation Practice Cost Estimation Management Chapter 6 – Final Design Introduction Methods and Tools Cost Estimation Practice Cost Estimation Management Chapter 7 – Implementation Introduction Barriers Staffing Culture Use Chapter 8 – Path Forward Summary Challenges Appendices Glossary of Terms R f

80 INTERIM REPORT RESULTS The Interim Report covered the first five tasks of the research and included Chapters 1 through 4 of this final report. The Interim Report also included the proposed Guidebook table of contents, as shown in Figure 5.2, plus a Phase II work plan to accomplish Tasks 6 through 10. This information was presented for review to the NCHRP. The key action items from this review were as follows: • The literature review on the planning area would be enhanced to the extent possible. • The Guidebook tone would provide examples and suggest practices rather than direct actions. • The Guidebook would speak to upper management who creates policy on cost estimation practice and cost estimation management within the department. The research team would not develop detailed “how to” procedures manual for cost estimation and cost management, as this type of effort was considered beyond the scope of a Guidebook. The Guidebook would enable a State Highway Agency to develop detailed procedures manuals. • A chapter providing an agency overview of cost estimation practice and cost estimation management would be added to the table of contents. This created a new Chapter 2 which moved the original contents by one chapter further down. The inclusion of the new chapter and the modified table of contents is discussed in the next chapter of this report. • Items to include in the Guidebook based on specific Panel comments are the Caltrans three point strategy under the methods and tools, an agencywide perspective in the Guidebook as a separate chapter (between proposed Chapter’s 2 and 3 as shown in the Interim Report, Figure 5.2) and the scope development process. • Revise Phase II plan to develop a preliminary draft report under Task 8 that would be the basis of the industry review under Task 7. This revised plan has altered the focus of Task’s 6, 7, and 8 and timing of these tasks. The team believed ranking of the strategies, methods, and tools as proposed in Task 7 is not as critical as originally thought. The team now believes that industry input on the format and level of detail in the presentation of Guidebook material is more important than input for the ranking of items for filtering purposes. To that end, the team proposed to produce a draft Guidebook earlier than originally planned in order to present it to industry for review and comment. This step will ensure that the Guidebook can be immediately applied by state highway agencies (SHAs) and suggested changes can be made within the environment of current practices. CONCLUSIONS The Interim Report including the Phase II revised work plan was approved by the NCHRP. The directives from the NCHRP set the path forward for Phase II. The next chapter provides a detailed discussion of the development of the Guidebook including the industry critiquing process followed to confirm the Guidebook structure, layout, and content.