Transportation Project

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Transportation Project

• COST ESTIMATING

9/29/2009
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Overview

• Current Performance
• Reasons for Poor Estimates
• Improving Cost Estimates

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Current Performance
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Current Performance05/06 FY Bid Activity Report
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Reasons for Poor Estimates

• Not Updated, Old and Out of Date
• Based on Historic, Not Forecasted Information
• Prepared by Staff With Limited Estimating
  Expertise
• Based Upon Low Quality or High Risk Plans and
  Specifications
• Not Tailored to Project Construction Schedule
• Prepared Without Quality Control/Assurance
• Constrained by Programmed Funding Level

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Improving Cost Estimates

• Issue Estimates Not Updated, Old and Out of Date
• Short Term
• Required Updated Fund Requests on Nov. Dec.
  Votes for Projects with Large AC and PCC
  Quantities
• Requiring Updated Estimates before Fund Vote if
  over 90 Days
• Evaluating Voted but not Bid Opened Projects over
  5 Million

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Improving Cost Estimates

• Issue Estimates Based on Historic, Not
  Forecasted Information
• Short Term
• Performed Independent Estimate (including Working
  Day Schedule) on Five Large Projects
• Long Term
• Deploy Forecasting Tools
• Provide Industry Trend Information to Estimators

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Improving Cost Estimates

• Issue Estimates Prepared by Staff With Limited
  Estimating Expertise
• Short Term
• Established an Estimating Support Branch in
  Office Engineer
• Committing Resources Specifically for Estimating
• Long Term
• Enhance Estimating Practices
• Deploy Forecasting Tools and Provide Training

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Improving Cost Estimates

• Issue Estimates Based Upon Low Quality or High
  Risk Plans and Specifications
• Continue Emphasis on Providing Quality Plans and
  Specifications

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Improving Cost Estimates

• Issue Estimates Not Tailored to Project
  Construction Schedule
• Short Term
• Made Detailed Working Day Schedule an RTL
  Constraint
• Long Term
• Ensure Constructability Review Includes Focus on
  Schedule and Effect on Estimate

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Improving Cost Estimates

• Issue Estimates Prepared Without Quality
  Control/Assurance
• Short Term
• Emphasized District Quality Control/Assurance
• Requiring Certification by District Management of
  Estimates
• Long Term
• Enhance Estimating Practices
• Ensure Quality Control/Assurance on Estimates

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Improving Cost Estimates

• Estimates Constrained by Programmed Funding Level
• Short Term
• Requiring Certification by District Management of
  Estimates
• Reinforced Value of Annual Cost Estimate Updates
• Long Term
• Ensure Good Cost Estimates throughout Project
  Development Process with Stakeholder Buy-In

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