Final Report for NCHRP Report 574: Guidance for Cost Estimation and Management for Highway Projects During Planning, Programming, and Preconstruction (2006) / Chapter Skim
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Pages 40-62
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32 CHAPTER 3 CRITICAL REVIEW OF THE STATE OF PRACTICE The main goal of Task 2 is to review current practices in the area of cost estimation practice and cost estimation management. Numerous unique or innovative approaches to cost estimation practice and cost estimation management are described.
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33 A discussion of current practices follows. This discussion is organized into categories of: 1)
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34 When interviewing DOTs, the distinction between programming and advanced planning/preliminary design was not always clear. Further, the estimation procedures employed by the DOTs were in these two phases were similar.
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35 Cost-per-Mile Spreadsheet Templates Two DOTs reported using lane-mile cost factors with typical sections for their planning estimates, but their methods were not as consistently used within the DOT as the procedure previously described. One of the DOTs uses three Excel spreadsheet templates specifically for its central, northern, and southern regions.
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36 responsible for generating estimates for their project elements. Most projects are informally compared to similar existing projects to check for consistency.
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37 the project's complexity. The DOT focuses on the major cost drivers and attempts to develop a precise estimate for those items.
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38 an estimate. This DOT allows the public access to the system's project information creating transparency for the DOT.
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39 and depth. The project LWD factor is the sum of the volumes (LWD factors)
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40 Many DOTs have established environmental assessment as a project milestone. Therefore, an estimator must consider any environmental or cultural issues that can affect the cost of the project.
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41 program and prepare conceptual to detailed estimates. Within PES, the DOT can use multiple funding units and differing percentages for engineering and contingency.
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42 regression models. The regression models take into account specific criteria such as quantity, season, market area, and date.
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43 fact that unknowns can impact scope and costs will help in managing project expectations. The unknown elements of a project estimate can be communicated as cost ranges rather than as point values.
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44 roadways are minor roadway relocations, and most complex projects for roadways are new highways. The five other project elements have similar lists.
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45 Communication between Departments within the DOT - Communication between internal DOT departments is imperative throughout project development given the complexity and number of people involved in even the simplest project. One DOT mentioned that communications must be open between all departments, and all departments must be active in the project development process, even during the earliest stage of the development phase.
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46 Estimation Checklist Some DOTs use estimation checklists to ensure an estimate includes important items that frequently occur in projects. Checklist can help prevent the failure to include project items that might be needed, but are not yet designed at the time the estimate is completed.
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47 solutions and developing recommendations for improvements, one DOT has shown an increase in constructability, a minimization of ROW and/or environmental impacts, and a compression of construction schedules. Another DOT requires VE of all highway projects greater than $25 million.
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48 State Estimation Department Numerous DOTs develop their project estimates at the central office. Locating estimation knowledge in one location provides the estimators with the ability to focus solely on estimation and maintenance of the cost databases that support estimate preparation.
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49 Table 3.2. Cost Containment Form used by One DOT Cost Containment Table District: Program Yr: County: Project: Short Title: Cost Containment Milestone Estimate Cost Breakdown Program Amount (PMC approved amount)
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50 d. Project Scope e.
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51 by DOTs does not necessarily address all portions of the estimate preparation. One DOT mentioned that there is formal training for ROW estimators, while there is no formal training for the personnel that estimate the remainder of the project.
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52 cost estimation practice and cost estimation management systems in place that address all factors causing cost escalation that Departments must address in establishing and managing the cost of their projects. Contingency and Uncertainty Contingency is typically applied to DOT cost estimates but its application must still be considered a deficiency.
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53 plans are being recommended on major projects. Cost containment tables are being used to identify when a project's scope has grown, but these tables may not indicate growth until significant growth has occurred.
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54 Communication The DOTs also lack coordination and communication between the disciplines participating in the development of the project's scope and estimate. The supporting groups, who feed information into the primary estimate, do not play an active role in the project's development until the project reaches the preliminary design phase.
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