AASHTOTechnical Committee on

Cost Estimating

AASHTO Subcommittee on Design

Annual MeetingJuly 20, 2009

Lesly Tribelhorn, Chair, TCCE

Objectives

• Present TCCE Activities

• Introduce Cost Estimating Guidance

• Demonstrate Website

• Introduce FHWA/AASHTO Survey

• Discuss Future Opportunities

TCCE Presentation

• Brief History/Who We Are

• Goals

• Cost Estimating Guidance

• Research

• Website

• AASHTO/FHWA Survey

• Challenges and Opportunities

Brief History

• Formed in 2003 as a Task Force• Charge: focal point for cost estimating• Meet annually in conjunction with

Transportation Estimators Association (TEA)

• Helped developed FHWA guidance and training

• Bi-monthly phone conferences

TCCE – Who are we?

• 17 State DOT Cost Estimators

• Four members per region plus chair

• 10 of the original Task Force members

• FHWA (secretary)

• AASHTO liaison

TCCE – Who are we?

• Cost Estimators from:– Planning– Design– Contract Administration– Materials– Construction

TCCE Goals

• Create AASHTO position on best practices for developing estimates

• Prepare written policies and guidelines

• Review relevant research

• Minimize duplicative efforts

• Maintain peer review contact list

• Provide up-to-date web resources

Cost Estimating Guidance

• Using current research and syntheses

• Relying on TCCE member expertise

• Began with 3 chapters

• Revised draft version:– 4 complete chapters– Definitions– Outlines for future/developing work

Cost Estimating Guidance

CH 1: Introduction/Cost Estimating BasicsCH 2: Parametric EstimatesCH 3: Risk Based (Probabilistic) EstimatingCH 4: Estimating Using Historical Bid PricesCH 5: Cost Based Estimating CH 6: Inflation ForecastingCH 7: Bidding Strategies for Cost ControlCH 8: Evaluation of Contractor BidsCH 9: Performance Measures and TrackingDEFINITIONS

Cost Estimating Guidance

CH 1: Introduction/Cost Estimating Basics (Conceptual)CH 2: Parametric Estimates (In progress)CH 3: Risk Based (Probabilistic) EstimatingCH 4: Estimating Using Historical Bid PricesCH 5: Cost Based Estimating CH 6: Inflation Forecasting (In progress)CH 7: Bidding Strategies for Cost Control (In progress)CH 8: Evaluation of Contractor BidsCH 9: Performance Measures and Tracking (Outline)DEFINITIONS

Research

• Participate on research panels

• Review new reports

• Propose new cost estimating research

• Co-sponsor research proposals with other Technical Committees

Research

• Panel members on:NCHRP 8-49: Procedures for Cost Estimation and

Management for Highway Projects During Planning, Programming, and Preconstruction

NCHRP 20-7, Task 274: Price Indexing in Transportation Construction Contracts

NCHRP 20-7, Task 278: Production of the new AASHTO Practical Guide to Estimating

Research

• Review of recent national work:NCHRP 20-7, Project Cost Estimating: A Synthesis

of Highway Practice

NCHRP Report 574, Guidance for Cost Estimation and Management for Highway Projects During Planning, Programming, and Preconstruction

Research

• Review of state agency projects:FHWA/MT-08-007/8189: Highway Project Cost

Estimating (Montana DOT)

Mn/DOT Cost Estimating Process Improvement & Organizational Integration – Phase I (Minnesota DOT)

Highway Cost Estimating (Nevada DOT)

Research and Reports

FHWA/MT-08-007/8189: Highway Project Cost Estimating and Management

TRB 25-25, Task 39: Improving Project Environmental Cost Estimates

NCHRP 8-60: Guidebook on Risk Analysis Tools and Management Practices to Control Transportation Project Costs

GAO Cost Estimating and Assessment Guide

Website

• AASHTO SCOD homepage– Technical Committees

• Cost Estimating http://design.transportation.org/?siteid=59&pageid=756

• Cost Estimating Clearinghouse– Guidance– Research links– State DOT links (coming soon)– State Contacts (coming soon)

AASHTO/FHWA Survey

• Summer 2009

• For States and FHWA offices

• Questions developed jointly

• Assist with TCCE direction and goals

• Opportunity to update state contacts list

Challenges

• Volunteer time

• Travel restrictions

• Communication with other TC’s

• Subject of cost estimating under scrutiny

Opportunities

• Active group

• Networking annually with TEA

• Teleconferencing

• Newly approved research project

• Estimating gaining attention and importance

• New research

Conclusion

• Hard working, intellectual group

• Goals align with AASHTO needs

• Draft guidance available on web

• Guidance publication anticipated 2010

• Web-based resources for estimators

• Continually up to date with research

Questions?

Contact Information

• Lesly Tribelhorn, TCCE Chair

Montana Department of Transportation

(406) 444-6242 ltribelhorn@mt.gov• Dave Kent, TCCE Vice Chair

New York State Dept. of Transportation

(518) 457-0520 dkent@dot.state.ny.us • Jim McDonnell, AASHTO

(202) 624-5448 jimm@aashto.org