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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C-1 APPENDIX C EXAMPLE INTERVIEW DOCUMENTATION

C-2 EXAMPLE 1 Kentucky Transportation Cabinet June 14-17, 2004 Attending Kentucky Transportation Cabinet (KTC) Texas Transportation Institute Documentation Provided • Link to the department’s external website http://www.kytc.state.ky.us/ Interview Summary Strengths of DOT • The Kentucky Transportation Cabinet considers similar projects and terrain when developing their conceptual estimates. • KTC has project identification forms that are used to document information about the project including changes. • The Cabinet has started a Project Manager’s Academy to train the preconstruction engineers and project managers in cost estimating. • For preliminary design estimates, KTC established trigger values for projects that exceed their budget. Weaknesses of DOT • Accountability is an issue the Kentucky Transportation Cabinet has during the conceptual estimating. • A major problem for Kentucky is the change of project scope and failing to make the proper adjustment in cost. • Problems with the estimates arise because the estimates are not always routinely updated or updated with the right attention to inflation and other issues; as a result, the project usually ends up being underestimated. • The Kentucky Transportation Cabinet does not have formal estimating procedures or reviews for most of their estimates. Their long-range planning estimates rely on the estimator’s experience. • The Cabinet applies a range of contingency (0-50%) for the different estimates depending on their confidence with the estimate and not on a formal analysis. Overview of Project Development Phases Kentucky has 12 districts and 9 MPOs. Most of the conceptual estimates are part of the unscheduled needs list, which is updated on a two-year cycle. The Kentucky Transportation Cabinet has a six-year program that is updated every two years, and the first two years are funded. Kentucky has four levels of estimating, levels A, B, C, and D. At the initial concept of the project, the estimate is a level D. When a project reaches about 40% design completion, an estimate for each of the alternatives being considered is prepared, which is a B or C level estimate depending on the amount of information. When 60-80% of the design is complete, another B or C level estimate is produced. When the plans are 90% complete and the final plans are reviewed, a level A estimate is created.

C-3 EXAMPLE 2 New York State Department of Transportation July 15, 2004 Attending New York State Department of Transportation University of Colorado Documents Provided flowchart.pdf This is a chart showing the process of project development in the New York State Department of Transportation. NYSDOTHDM21-5.pdf This is the section of the New York State Department of Transportation Highway Design Manual pertaining to estimating procedures in all project development phases. TRNS PORT at NYSDOT (http://dot.state.ny.us/trns-port/index.html) This link provides information regarding the use of the AASHTO software Trans Port by the New York State Department of Transportation. Also provided by NYSDOT are written responses to the State-of-Practice Survey. These responses are provided within this document and are in all uppercase letters. Interview Summary Strengths of Estimating System Region Estimating System • Projects are estimated at the local level which allows for the people doing the estimating to be in tune with the local project and political climate. Same Estimator Throughout Project Life • The person that prepares the first estimate also prepares the estimates throughout the project life. This allows the person to become knowledgeable about all projects detail. Problems Identified by NYSDOT Preliminary Estimating • Estimating at this level is difficult and not always accurate. NYSDOT is starting to phase in Trans Port to help make estimating at the early phases easier. • General guidelines are provided for early estimates in the design manual, however, methodologies vary throughout the state. There is a need to standardize some aspects. • There needs to be better early exploration of combining projects as sometimes projects that have gone through the system separately end up being combined into one project at the time of letting. Tracking System • Projects are tracked by the current system, but this is only on paper. The tracking system needs to be updated and refined.

C-4 • There is a need to ensure that projects are tracked throughout project development, from early estimates through letting. The current system is fine as long as there are funds available, but when funds become tight, projects are cut, highlighting problems in the system. Overview of Project Development Process The process is similar to the process described by the NCHRP 8-49 Figure 1. The first conceptual estimate is at the Initial Project Proposal, when the job is put on the program. There is a preliminary estimate when the project is first put on the program and it is developed from there. Following this, there are estimates done at the Advanced Planning/Preliminary Design stage, Design approval, Final Design and then at the PS&E phase. The first estimate that is recorded is when the project is put on the 5 year program. See schematic of process- flowchrt.pdf. The highway design manual provides guidance for estimates in all phases. Many of the answers are similar for the questions.