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A-1 APPENDIX A INTERVIEW INSTRUMENT
A-2 MEMORANDUM January 18, 2007 TO: Survey Participant FROM: Stu Anderson Principal Investigator SUBJECT: NCHRP 8-49 Interview Questionnaire Thank you for participating in the NCHRP 8-49 Research Project concerning procedures for cost estimation and management for highway projects during planning, programming, and preconstruction. We have enclosed some brief background information about the research project along with the questionnaire we plan to discuss with you during our phone interview. A research team member will call you on the day (insert day/month) and time (insert time) agreed upon to conduct the interview. Please review the questionnaire prior to the interview to become acquainted with the nature of the questions that we will be discussing. If you would like any additional information, you may visit our website at http://construction.colorado.edu/nchrp8- 49/Desktop.aspx. If you have any questions, please contact me by telephone at 979-845-2407 or by email at s-anderson5@tamu.edu.
A-3 Background The Texas Transportation Institute (TTI) is conducting an NCHRP project (8-49) entitled âProcedures for Estimating and Management for Highway Projects During Planning, Programming, and Preconstruction.â The research team consists of Dr. Stuart Anderson (Principal Investigator), Dr. Keith Molenaar (Co-Principal Investigator), Dr. Cliff Schexnayder (Consultant), as well as an industry review and implementation team. This project focuses on the cost escalation problem that every state highway agency, transit agency, and metropolitan planning organization faces. This problem is manifested in cost management approaches and cost estimate processes that often do not promote consistency and accuracy of costs over the project development process. The transportation industry problem of accurately estimating project cost will be addressed by accomplishing the following main objective: Develop a guidebook on highway cost estimating management and project cost estimating procedures aimed at achieving greater consistency and accuracy between long-range transportation planning, priority programming, and preconstruction estimates. Because the study scope requires the research team to consider estimating procedures and management methods during various phases of project development, we have developed an interview instrument that addresses the following general issue areas: 1. How conceptual estimates are prepared for long range-planning and priority programming; 2. How advanced planning/preliminary design estimates are prepared; 3. Procedures for preparing engineerâs estimates; and 4. Methods for managing cost estimates between project development phases. The task will focus on two separate but interrelated areas: 1) cost estimation management; and 2) cost estimation procedures. The team will assemble âstate of practiceâ estimating information by project development phase so that the final guidelines will present tools to develop, track (manage), and document realistic cost estimates during each phase of a project. For the purpose of this research project, we have defined the different project phases shown in Figure 1 and further described in Table 1. Instructions We have enclosed a questionnaire with sections relevant to the first four project phases and types of cost estimates typically prepared in these project phases (see Figure 1). This survey will be conducted via telephone and based on a short interview questionnaire. A NCHRP 8-49 project member will contact you to set up an interview time. During the interview, all persons representing your state agency may be present for a group interview, or each person can be interviewed individually. The telephone interview will last approximately 30 minutes to an hour depending on the number of individuals involved in the discussion. The questionnaire to be discussed has been attached for review prior to the telephone interview. Please note that not all the questions will apply to every individual. The research team would also appreciate receiving any supplemental information regarding the DOTâs estimating methods and tools such as computer programs and guidelines.
A-4 ⢠For further information regarding this project please visit our website at http://construction.colorado.edu/nchrp8-49/Desktop.aspx Table 1. Project Development Stages and Activities PROJECT DEVELOPMENT PROCESS PHASES TYPICAL ACTIVITIES Planning Purpose and need; improvement or requirement studies; environmental considerations; interagency coordination Programming Environmental determination; schematic development; public hearings; ROW plan; project funding authorization Advanced Planning/ Preliminary Design ROW development; environmental clearance; design criteria and parameters; surveys/utility locations/drainage; preliminary schematics such as alternative selections; geometric alignments; bridge layouts Final Design ROW acquisition; PS&E development â pavement and bridge design, traffic control plans, utility drawings, hydraulic studies/drainage design, final cost estimates Letting Prepare contract documents; advertise for bid; pre-bid conference; receive and analyze bids Award Determine lowest responsive bidder; initiate contract Construction Mobilization; inspection and materials testing; contract administration; traffic control, bridge, pavement, drainage construction Figure 1 â Typical Project Development Phases for Highway Projects Advanced Planning/ Preliminary Design Final Design Planning Programming Construction Award Letting Transportation Improvement Needs Pre-Construction Phases Source: NCHRP Synthesis 33-09 âStatewide Highway Letting Program Managementâ Stuart D. Anderson and Byron C. Blaschke January 2004 ESTIMATE TYPE Conceptual Conceptual Preliminary Design â Parametric, Others Detailed Engineerâs Estimate
A-5 Conceptual Estimates (Long-Range Planning): Contact: Estimate Preparation 1. Describe policies, procedures, techniques, and/or standards used in preparing long range planning conceptual estimates? If these policies, procedures, techniques, and/or standards are formally documented (written), can you provide us with a copy or a website location where we can obtain a copy? 2. How do you insure that conceptual estimates reflect all elements of project scope (e.g., related to design, construction administration, construction, right of way, environmental, etc.) as defined at the time conceptual estimates are prepared? 3. What types of historical data do you use as a basis for preparing conceptual estimates? How is this data adjusted for time (schedule), location, and other project specific conditions? 4. How are contingency amounts incorporated into the estimate? Are contingency amounts based on total estimated cost, identified project risks, or some other variables? Estimate Reviews 5. Is there a formal estimate review within the DOT? Estimate Communication 6. Is there a systematic program that is used to standardize estimating procedures and train those responsible for assembling the estimates? 7. Who approves the long range planning conceptual estimate? Once approved, is the planning conceptual estimate communicated to executive management and/or the public as a point estimate (one number) or as a range of values with an indication of reliability? Cost Estimating Management 8. Are there established cost-reporting mechanisms to control changes resulting from project scope development and schedule after long range planning conceptual cost estimates are prepared? If so, please describe these mechanisms.
A-6 Conceptual Estimates (Programming): Contact: Estimate Preparation 1. Describe policies, procedures, techniques, and/or standards used in preparing programming conceptual estimates? If these policies, procedures, techniques, and/or standards are formally documented (written), can you provide us with a copy or a website location where we can obtain a copy? 2. How do you insure that conceptual estimates reflect all elements of project scope (e.g., related to design, construction administration, construction, right of way, environmental, etc.) as defined at the time conceptual estimates are prepared? 3. What types of historical data do you use as a basis for preparing conceptual estimates? How is this data adjusted for time (schedule), location, and other project specific conditions? 4. How are contingency amounts incorporated into the estimate? Are contingency amounts based on total estimated cost, identified project risks, or some other variables? Estimate Reviews 5. Is there a formal estimate review within the DOT? If yes, go to 5a. If no, go to 5b. 5a. Is there a set of formalized and institutionalized procedures for conducting such reviews? What are the milestones for these reviews? What personnel outside of those responsible for preparing the estimate are involved in the review? 5b. How does your DOT verify an estimate? 6. Does project value or project complexity trigger additional reviews? If so, what are these trigger values?
A-7 Conceptual Estimate (Programming): Estimate Communication 7. Is there a systematic program that is used to standardize estimating procedures and train those responsible for assembling the estimates? 8. What formal mechanisms are used for capturing and transferring knowledge about cost estimating techniques? 9. Who approves the programming conceptual estimate? Once approved, is the programming conceptual estimate communicated to executive management and/or the public as a point estimate (one number) or as a range of values with an indication of reliability? Cost Estimating Management 10. Are cost differences between long range planning conceptual cost estimates and programming conceptual cost estimates reconciled? If so, how is reconciliation performed? 11. Are there established cost-reporting mechanisms to control changes resulting from project scope development and schedule after programming conceptual cost estimates prepared? If so, please describe these mechanisms. 12. What triggers an update of an estimate during the long-range planning and programming process? Are estimates updated on a periodic basis, when design major changes occur, or through some other triggering mechanism?
A-8 Preliminary Design Estimates (Advanced Planning/Prelim Design): Contact: Estimate Preparation 1. Describe policies, procedures, techniques, and/or standards used in preparing advanced planning/preliminary design estimates? If these policies, procedures, techniques, and/or standards are formally documented (written) can you provide us with a copy or a website location where we can obtain a copy? 2. How frequent are estimates prepared (or updated) during advanced planning/preliminary design estimates? What is the percent design completion when each of these estimates is prepared? What triggers the update of an estimate (i.e. a set periodic basis, when design changes occur, or through some other triggering mechanism)? 3. How do you insure that advanced planning/preliminary design estimates reflect all elements of project scope (e.g., related to design, construction administration, construction, right of way, environmental, etc.) as defined at the time advanced planning/preliminary design estimates are prepared? 4. What types of historical data do you use as a basis for preparing advanced planning/preliminary design estimates? How is this data adjusted for time (schedule), location, and other project specific conditions? 5. How are contingency amounts incorporated into the estimate? Are contingency amounts based on total estimated cost, identified project risks, or some other variables? 6. Who approves the advanced planning/preliminary design estimates? Once approved, is the advanced planning/preliminary design estimates communicated to executive management and/or the public as a point estimate (one number) or as a range of values with an indication of reliability? Estimate Reviews 7. Is there a formal estimate review within the DOT? If so, go to 7a. If no, got to 7b. 7a. Is there a set of formalized and institutionalized procedures for conducting such reviews? What personnel outside of those responsible for preparing the estimate are involved in the review? 7b. How does your DOT verify an estimate? 8. Does project value or project complexity trigger additional reviews? If so, what are these trigger values?
A-9 Preliminary Design Estimates (Advanced Planning/Prelim Design): Cost Estimating Management 9. Are there established cost-reporting mechanisms to control changes resulting from project design development and schedule after advanced planning/preliminary design estimates are prepared? If so, please describe these mechanisms. 10. Is there a reporting system for managing changes that provides traceable and visibility for all changes? 11. Is there an established reporting system that provides the necessary data to each level of management to track the cost, schedule, and scope of a project? 12. Are cost changes between different advanced planning estimates/preliminary design estimates reconciled, as these estimates are prepared? If so, how is reconciliation performed?
A-10 Engineerâs Estimate (at Final Design (PS&E Completion)): Contact: Estimate Preparation 1. Describe policies, procedures, techniques, and/or standards used in preparing the Engineerâs estimate? If these policies, procedures, techniques, and/or standards are formally documented (written) can you provide us with a copy or a website location where we can obtain a copy? 2. How do you insure that the Engineerâs estimate reflects all elements of project scope (e.g., related to construction administration and construction) as defined at the time the Engineerâs estimate is prepared? 3. What types of historical data do you use as a basis for preparing the Engineerâs estimate? How is this data adjusted for time (schedule), location, and other project specific conditions 4. How are contingency amounts incorporated into the estimate? Are contingency amounts based on total estimated cost, identified project risks, or some other variables? Estimate Reviews 5. Is there a formal estimate review within the DOT? If yes, go to 5a. If no, go to 5b. 5a. Is there a set of formalized and institutionalized procedures for conducting such reviews? 5b. How does your DOT verify an estimate? 6. Does project value or project complexity trigger additional reviews? If so, what are these trigger values? Cost Estimating Management 7. Are cost differences between advanced planning/preliminary design estimate and the Engineerâs estimate reconciled? If so, how is reconciliation performed?
