2 preliminary pre-design & design prior to bid letting for funding allocation and bid...
TRANSCRIPT
Estimating Processes and SystemsEstimating Processes and Systems
An overview of how cost estimates are developed from concept to concrete including
procedural requirements for updating cost estimates and preparing estimates in the LRE
and DQE systems.
Presented by:
Cheri SylvesterProgram Management OfficeJuly 21, 2015
An overview of how cost estimates are developed from concept to concrete including
procedural requirements for updating cost estimates and preparing estimates in the LRE
and DQE systems.
Presented by:
Cheri SylvesterProgram Management OfficeJuly 21, 2015
Types of Estimates
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Preliminary Pre-Design & Design Prior to Bid Letting For funding allocation
and bid comparison
Final Construction Post Award For contractor payout
Types of Estimates
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Preliminary Pre-Design & Design Prior to Bid Letting For funding allocation
and bid comparison
Pre-Design LRE
Design DQE
• Authorization Estimate
• Official Estimate
PS&E
Phase II
Bid Letting
Scope Estimate
Phase 1 Phase III
Phase IVFinal Plans
Planning through Contract Award
Design PhasesPre-Design Contract Procurement& Bid Review
Authorization/Advertisement
BidReviews
Award
Long Range Estimates system
Pre-Design; conceptual estimate: used to establish funding levels for the project
Generates pay items and quantities you can EXPECT to have, based on project characteristics (typical sections, length, etc.)
Design Quantities and Estimates system
Design estimate: used to develop the Department’s Official Estimate for bid comparison purposes
Contains KNOWN pay items and quantities, based on complete (or nearly complete) plans.
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Estimating Systems
Estimating Systems Timeline
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PS&E
Phase II
Bid Letting
Scope Estimate
Phase 1 Phase III
Phase IVFinal Plans
Construction
Planning through Contract Award
Design PhasesPre-Design Contract Procurement& Bid Review
Authorization/Advertisement
BidReviews
Award
LRE Estimates
LRE uses characteristics of typical section models, applied to a length of roadway, to generate anticipated pay items, quantities, and unit prices.
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The quality of anLRE estimate depends on a
well-defined Scope of Work and current/accurate unit prices.
Estimating Considerations
District Estimator determines unit prices based on: Pay Item Quantity Project Location Contract Duration Material Cost and availability Labor Cost Equipment Cost Contractor Competition
Recent bid prices on similar items arealso taken into consideration
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Estimating Systems Timeline
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PS&E
Phase II
Bid Letting
Scope Estimate
Phase 1 Phase III
Phase IVFinal Plans
Construction
Planning through Contract Award
Design PhasesPre-Design Contract Procurement& Bid Review
Authorization/Advertisement
BidReviews
Award
DQE Estimates
At 60% - 90% plans, the Designer determines the pay items and quantities comprised in the scope of the project
District Estimator determines unit prices for each pay item
Both bid-based and cost-based estimating techniques are used
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Estimates and Applying Inflation
Estimates are based onPresent Day Cost (PDC)
Work Program Office appliesinflation factors for projects that are scheduled for future years
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Timeline for Estimate Reviews
11
Annual Work Program Review
PS&E
Phase II
Bid Letting
Scope Estimate
Phase 1 Phase III
Phase IVFinal Plans
Planning through Contract Award
Design PhasesPre-Design Contract Procurement& Bid Review
Authorization/Advertisement
BidReviews
Award
AnnualWork Program Review
Goal: To ensure that appropriate funds are budgeted for each year in the 5 Year Work Program
Review Criteria: Estimates must be in LRE or DQE Quantifiable and include all scope Within tolerance of Work Program Updated every 6 months
Review Schedule: August through November “Exceptions List” completed after each review
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Summary of Estimates Processes
Develop/revise LRE estimate:• Pre-Design• Phase 1 (30% Plans)• Phase 2 (60% Plans)
Develop/revise DQE estimate:• Phase 3 (90% Plans)• Phase 4 (100% Plans)
Develop/finalize AuthorizationEstimate:• FHWA authorization of funds• Advertisement for bids• Work Program Amount (for encumbrance)
Develop Official Estimate
Perform post-bid analysis Present findings to Awards Committee13
Prepare forBid
Letting Processe
s
Review annually for Work Program
Conduct Post Bid Reviews
Estimating Systems Timeline14
Questions / DiscussionQuestions / Discussion
PS&E
Phase II
Bid Letting
Scope Estimate
Phase 1 Phase III
Phase IVFinal Plans
Construction
Planning through Contract Award
Design PhasesPre-Design Contract Procurement& Bid Review
Authorization/Advertisement
BidReviews
Award