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creates a positive atmosphere in which the agency and publiccan express goals, questions, comments, and concerns. Not only does this allow for an exchange of information, but it also pro-duces an air of accountability. The plan needs to be developedand followed actively throughout project development.

When?

To be effective, the plan needs to be instituted in the earlieststages of project development. Communication plans may bestandard for all projects, but large, complex, and sensitive proj-ects require more extensive information exchanges than small,simple projects.

Examples

Some state highway agencies have public awareness plansthat include websites for larger projects. While this may bevery benecial, state highway agencies should also makeinformation available to the public regarding smaller, less

controversial projects. This does not have to be a high-costinitiative on all projects. Consider using local and regionalmedia, local schools, fairs, malls, focus groups, sponsorshipof teams in walk-a-thons or benet races, advisory groups,town hall meetings sponsored by local organizations, bill-boards, yers, logo design competitions, or appearances atlocal civic club meetings.

Virginia DOT (VDOT) has created a Dashboard website,shown in Figure C1.5, which provides a wide variety of infor-mation to the general public regarding VDOT operations. TheVDOT Dashboard site allows the public access to informationon the number of projects in each phase of development, real-time information on specic projects, and milestone account-ability of project development and engineering projectactivities. Information is transmitted using a traffic signalframework. The website enables the public to track any proj-ect. The website allows open communication between VDOTand the public and creates accountability to the public.

Resources

The VDOT Dashboard website: www.virginiadot.org.Scenario Planning: www.fhwa.dot.gov/planning/scenplan/

index.htm.Public Involvement Techniques for Transportation

Decision-Making: www.fhwa.dot.gov/reports/pittd/cover.htm.Bell, J. (1998). Public Involvement, Low Budget Can

Mean High Effectiveness, Proceedings: National Conference onTransportation Planning for Small and Medium-Sized Commu-nities, http://ntl.bts.gov/card_view.cfm?docid =703.

ODowd, Carol (1998). A Public Involvement Road Map,Proceedings: National Conference on Transportation Planning for Small and Medium-Sized Communities. http://ntl.bts.gov/card_view.cfm?docid =701.

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Figure C1.5. Virginia DOT Dashboard website.

(a) Homepage

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(b) Traffic signal information framework

(c) Project-specific information

Figure C1.5. (Continued).(continued on next page)

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Shoemaker, Lee, and Tom Schwetz (1998). Sustaining Pub-lic Involvement in Long Range Planning Using StakeholderBased Process: A Case Study from Eugene-Springeld, Ore-gon, Proceedings: National Conference on Transportation Plan-ning for Small and Medium-Sized Communities. http://ntl.bts.gov/card_view.cfm?docid =702.

C1.6 Simple Spreadsheet(Also See C2.4, D2.8)

Spreadsheets and checklists are excellent and simplemethods for ensuring that all components of project costhave been considered and accounted for in the estimate.

Spreadsheets and checklists, which identify the elementsand activities included in (and excluded from) the estimate,can effectively communicate project cost and the distribu-tion of that cost.

What Is It?

Spreadsheets are formatted standard lists of items that anestimator should consider when calculating the cost of a proj-ect. Because spreadsheets are usually straightforward docu-ments, they are very good tools in communicating estimatecompleteness and the allotment of costs to the different por-tions of work.

A-18

Engineerin g Dashbo ar d Project Det a ils

UPCs 4730 State Project # 0638073176

Summ a r y

Description RTE 638 - RECONSTRUCTION (DILLWYN,PRINCE EDWARD)

District Lynchb urg Residency DILLWYN

County PRINCEEDWARD Town

Road System Secondary Ro ute 0638

NextScheduledActivity

ApproveWillin gness Accomplishment Contract (1)

Project Stat us ACTIVITY DATES SET (15)

Comments

Map It

Six-YearProgram Details

Constr uctionDetails

Send Feedback

Print Page

0

Cont act Inform a tion

Mana ger/Desi gner Bruce Wooldrid ge Phone 434-856-8253

Contact WilliamLeatherwood Phone 434-947-2314

Schedu le

Baseline Ad Date 11/10/2009

Current Ad Date 11/10/2009

Actual Ad Date

PROJECTED TARGET DATEHAS NOT EXCEEDED ORIGINALTARGET DATE

Cost E stim a tes

Scoping Estimate $1,787,663

Current Estimate $1,343,100

Estimate Date 3/15/2005

Variance -25%

COST ESTIMATE VARIANCE IS-24.86%

(d ) Engineering-specific information

Figure C1.5. (Continued).

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Why?

A well-designed spreadsheet will clearly communicate the

total estimated cost of the project, as well as what is includedin the estimate and what the various categories of work areexpected to cost. A secondary objective is to guide organiza-tions toward improved estimation processes and practices.

What Does It Do?

The objective of a spreadsheet is to provide guidelines that(1) facilitate creation of a complete estimate and (2) support

the evaluation of cost and schedule credibility. Spreadsheetsserve to document estimate completeness in an easy-to-readformat, which facilitates project cost communication in auniform and structured manner.

When?

Different spreadsheet formats (with different levels of detail)are used in the course of project development as project scopeis quantied and additional information becomes available.However, spreadsheets should be designed so that major cate-gories can easily be expanded as project detail is better dened.

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Activities

Begin Date End Date

Activity Code Scheduled Actual Scheduled Actual

AUTHORIZE PE 12 05/16/1987 05/16/1987 05/18/1987 05/18/1987

SERP-NOTICE TOSTATE AGENCIES 18 04/01/2004 04/07/2004 07/30/2004 06/11/2004

SCOPE PROJECT 22 04/01/2004 04/01/2004 08/31/2004 06/11/2004

CONDUCT LOCATIONSURVEY 31S 03/16/2001 03/16/2001 11/30/2001 03/20/2002

PLANDESIGN/PRELIMINARYF.I.

36F 07/16/2004 07/16/2004 12/13/2004 12/13/2004

R/W&UT DATA-HEARING/PUBLIC INV 44 12/13/2004 12/13/2004 09/28/2007

APPROVE

WILLINGNESS47 10/07/2007 02/04/2008

FURNISH R/W&UTPLANS 51 02/04/2008 04/04/2008

NOTICE TOPROCEED/RW ACQUIS 60P 04/04/2008 04/19/2008

UTILITY RELOCATIONBY UTILITY 67U 04/14/2009 10/13/2009

ACQUIRE RIGHT OFWAY 69 04/19/2008 04/14/2009

APPROVEDCONSTRUCTIONPLANS

71 07/01/2009 10/13/2009

ADVERTISEPROJECT/BEGIN CN 80 10/20/2009 11/10/2009

Figure C1.5. (Continued).

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Table C1.6. Georgia DOT spreadsheets.

(a ) Conceptual estimate spreadsheet

Examples

The detail of an estimation spreadsheet will vary by projecttype and by the point in time when the estimate is being created.

In the earliest stages of project development, there is limitedproject denition and design knowledge. One state highway agencys early stage spreadsheet has only ve cost categories:

1. Grading and drainage2. Base and pavement3. Lump items4. Miscellaneous5. Engineering and construction

The sheet also requires calculation of a total cost and a totalcost per mile to provide transparency in comparing the costto similar projects, thereby assessing reasonableness. These

basic categories can be expanded as additional informationabout the project is developed.

Sheets from Georgia DOT spreadsheets are shown inTable C1.6.

TipsThe calculation of estimated costs during the early phases of

project planning usually employs parametric techniques basedon historical cost data. Therefore, to be truly effective, theagency must have cost databases for organizing and retaininginformation on completed projects.

ResourcesMichigan DOTs Road Cost Estimating Checklist can be

found at www.michigan.gov/documents/MDOT_0268_Road_Cost_Est_120543_7.pdf.

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C1.7 Year-of-Construction Costs(Also See E3.5)

Project cost estimates are created at a specic point in time.The estimated cost is typically based on prices as of the date onwhich the estimate is created, while construction is to occur atsome future date. Economic comparisons between options aremost commonly done in present values during planning andpreliminary engineering. However, estimates should be com-municated to project stakeholders in year-of-constructioncosts because that is what the project will actually cost when itis complete and that is the number that many stakeholders willuse to measure success. Therefore, for the estimate to reectactual construction cost, there must be an adjustment forination between the two points in time.

What Is It?

Year-of-construction cost is the estimated cost adjusted forthe difference in time between when the estimate is created andwhen the project is to be constructed. Year-of-construction

cost estimates take the time value of money into account.Project costs should be adjusted for ination or deation withrespect to time due to factors such as labor rates, material cost,and interest rates. Estimated cost is most commonly inated tothe expected midpoint of construction date.

Why?

Using year-of-construction cost will more accurately reectthe future project cost. Funds available for projects often donot increase with ination, but actual project costs do. Ina-

tion continually reduces the agencys capacity to preserve,maintain, and modernize the transportation system. While itis common to communicate a net present value for estimateswhen comparing projects or design options, it is not a goodidea to communicate the estimate to external parties in any-thing but year-of-construction costs.

What Does It Do?

State highway agencies can be prepared in advanced to eval-uate the construction cost for the project at its programmeddate. This tool improves estimate accuracy by identifyingthe effect of inflation on project cost. Implications for deci-sion making regarding transportation infrastructure based onbudget will be clear to the public, and concerns about strate-gic misrepresentation (or lying) will be dismissed. It denes anestimated cost made in current dollars in terms of cost at thetime of construction.

When?

Year-of-construction cost recognizes the cost escalationeffect of ination across the period of development and con-struction. Estimates should be communicated in year-of-construction costs from the earliest points in the projectdevelopment process. This is very important for projects hav-ing long development and/or construction periods.

Examples

The year-of-construction cost will vary depending onwhen the estimate is created and the year-of-construction

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Table C1.6. (Continued).

ESTIMATE SUMMARYA. Right of Way $2,454,000.00B. Reimb ursable Utilities $0.00C. Clearin g and Gr ubbing $416,000.00D. Earthwork $565,000.00E. Base and Paving $3,302,000.00F. Draina ge $255,000.00

G. Concrete Work $563,000.00H. Traffic Control $225,000.00I. Erosion Control $113,000.00J. Guardrail $20,000.00K. Signs, Stripin g, Signals, Li ghting $353,000.00L. Grassin g /Landscapin g $17,000.00M. Miscellaneo us $46,000.00

Roadway S ubtotal $5,875,000.00

N. Major Str uctures $200,000.00Constr uction Total $6,075,000.00

4 years of inflation at 5% $1,309,200.4710% En gineerin g and Contin gency $738,420.05

Constr uction Estimate S ubtotal $8,122,620.52Total Constr uction Estimate $8,123,000.00

(b) Summary conceptual estimate spreadsheet

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and economic variations caused by external factors, such asination. To calculate the year-of-construction cost, adjust-ments should be made from current dollar estimates by apply-ing a cumulative ination factor for the year of construction.MnDOT applies ination factors as developed by the Ofce of Investment Management and approved by the TransportationProgram Investment Committee.

Table C1.7, which is a MnDOT table, illustrates a consistentstandard to be applied in adjusting project estimates. Short-term ination rates are higher because they can be more vol-atile. Long-term rates are lower because the economic cyclesare expected to dampen the rates over time. The table has lim-ited life and must be updated on a periodic basis.

Similarly to other state highway agencies, the WashingtonState DOT maintains it own Construction Cost Index (CCI)that is applied to projects across the state. WSDOT also main-tains ination rates for right-of-way costs (R/W Cost Index)because these costs can increase at substantially higher ratesthan general construction ination depending upon the loca-tion of the parcels. WSDOT maintains these values internally,but the values can be obtained by contacting the WSDOTStrategic Planning and ProgrammingSystems Analysis andProgram Development Ofce.

The FHWA also tracks cost changes that can be used to pro- ject future ination on federal aid projects. This informa-tion can be found at www.fhwa.dot.gov/programadmin/pricetrends.htm.

Tips

Project costs estimates provided in the Statewide Trans-portation Improvement Plan (STIP) should be calculated in year-of-construction costs. Use discipline in communicating year-of-construction costs at each phase of the project devel-opment. Federally funded local projects may either be adjustedfor ination as described above or capped at a xed level of fed-eral funds.

Resources

FHWA price trends for federal aid highwy construction:www.fhwa.dot.gov/programadmin/pricetrends.htm.

Minnesota DOT (2002). Ten Year Highway Work Plan http://www.leg.state.mn.us/docs/2004/other/040069.pdf.

Washington State DOT Strategic Planning and Program-ming website: http://www.wsdot.wa.gov/planning.

C2 Computer Software(Also See C3, D2, V1)

Computer software provides state highway agencies the abil-ity to manage large data sets that support estimate develop-ment for all project types and across the range of projectcomplexity. Estimation programs with preloaded templates forcreating cost items help project teams dene the project scope,cost, and schedule. Computer software eases the task of track-ing project estimates through all phases of development andcan assist in estimate and schedule reviews. In the case of statehighway agencies, the most widely used estimation software isEstimator by InfoTech.

Project development and management are team efforts.Computers and software can be a part of the team. But thestate highway agency has to set high standards for the softwareif it is to be an effective member of the team.

C2.1 Agency Estimation Software(Also See C3.1, D2.2, P1.1)

Some state highway agencies have taken the initiative todevelop their own estimation software. This has been accom-plished using internal resources in many cases, but externalcontractors have also been employed in software development.A survey in 2002 found that 18 state highway agencies are usingsoftware programs that were developed within the agency.These are not commercially available and are used either as

A-22

Table C1.7. Inflation factors for current WP/SP to be consistent with02-04 STIP guidance.

STATE FISCAL YEAR

01 02 03 04 05 06 07 08 09 10

Current

WP/SP-- -- .06 .06 .0325 .0325 .0325 .03 .03 .03

FY 02-04

STIP-- .06 .06

1.06 1.1236 1.1978 1.274

1.27

1.312

1.31

1.351CUMULATIVE

1.12 1.16

1.160

1.20 1.24

1.237

1.35

WP/SP = work plan/strategic plan

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stand-alone systems or in conjunction with other software.These programs generally have limited capabilities and weredesigned to run on mainframe computer systems.

Additionally, many state highway agencies and individualestimators have not gone as far as developing software buthave created spreadsheet programs to support estimate devel-opment (see Sections C1.6 and C2.4).

What Is It?

The various software packages developed by state highway agencies are designed to address very explicit agency estimationapproaches and satisfy discrete agency objectives. Some agency software has been created for use exclusively during specicproject development phases (also see Section E3.1).

Why?

Due to the computers ability to handle large data sets andits calculation exibility, the estimator can easily adjust unitcosts or percentages to match each projects unique conditionsand can generate answers to specic agency questions. Many agency-developed estimation software programs are connectedto other management software that the agency employs.

What Does It Do?

Computer software allows the user to readily employ severaldifferent estimation databases for parametric or line-item esti-mation and for performing what-if analyses. The programstypically allow the user to draw prices from historical bid data,historical cost data, reference tables, or a collection of price der-ivations. All of the data used to generate an estimatesuch as

historical costs, crew wages, equipment and material costs,production rates, and assumptionscan be stored to providea sequential record of estimate development.

When?

To address very specic estimation requirements, customagency software may be the only solution. Agency softwarecan be very good in addressing distinctive requirementsimposed on any individual state highway agency; however,software development is tedious and costly, and continuingsupport is a critical issue. Agencies should rst look to com-mercially developed and supported software such as theAASHTO Trnsport, which has been developed specically tomeet the needs of state highway agency estimation.

Examples

North Carolina DOT approaches project estimation by building estimated cost from the bottom up currently uses aslightly modied commercial estimation program. This pro-gram is used by many contractors and was originally developed

to facilitate detailed estimation by a large contracting organi-zation. This program and similar ones of this type enable statehighway agencies to development estimates from the bottomup based on crew productivity, construction methods, andselected equipment.

Virginia DOT (VDOT) expanded an in-house-developedsoftware system that was initially created through the com-bined efforts of two districts. The VDOT Project Cost EstimateSystem (PCES) is currently being used during the middle stagesof project development (see Figure C2.1). Virginia is lookingto expand its use of the system to the earlier stages of projectdevelopment. The initial software system specically guidedthe estimator through decisions about the following:

Costs common to every project (i.e., the costs of every usual element averaged and factored according to geo-metric classication), such as stone, asphalt, grading, pipes,erosion control, pavement markings, and moderate shoul-der widening

Costs specic to each project that are typically overlooked,

such as crossovers, turn lanes, and curb and gutter Costs of unique or unusual items requiring a specic dollarinput determined by a specialist in a particular eld

That original template was modified to include thefollowing:

Data from the entire state rather than just a few districts Interstate projects Right-of-way Utilities Estimation curves and relationships based on a wider vari-

ety of projects

Construction engineering and inspection at a variable ratebased on project cost A wider range of bridge estimates

This software is not only an estimation tool, but also a man-agement tool in that a number of items must be checked off,dated, or entered before a project can continue to the next levelof development.

Tips

Many times, estimators spend more time with the tools they use to create the estimate (computers and software) than

studying and analyzing the project. It is important that agency-developed software be user friendly and structured so that it iseasy to input the required data into the system.

Resources

Kyte, C. A., M. A. Perfater, S. Haynes, and H. W. Lee (2004).Developing and Validating a Highway Construction Project CostEstimation Tool, Virginia Transportation Research Council,Charlottesville, Virginia, December 2004, VTRC 05-R1. Can

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be found at www.virginiadot.org/vtrc/main/online%5Freports/pdf/05-r1.pdf.

Barlist is a reinforcing steel quantity-estimating tool devel-oped at the Washington State DOT. It can be found at www.wsdot.wa.gov/eesc/bridge/software/index.cfm?fuseaction =download&software_id =45.

Trnsport is AASHTOs transportation software manage-

ment program. It is an integrated construction contractmanagement system that has been developed based on theexperience and needs of AASHTOs member agencies.

The New York State DOT (NYSDOT) and the New YorkState Thruway Authority (NYSTA) developed a website to sup-port their transition to the Trnsport system. This website canbe found at www.dot.state.ny.us/trns-port/index.html. TheAbout Trnsport page of the website describes how, in yearspast, the NYSDOT used the mainframe versions of TrnsportProposal and Estimates System (PES), Letting and Awards Sys-

tem (LAS), and Decision Support System (DSS), but as otheragencies moved from the mainframe to the client/server ver-sions, AASHTO decided to drop support of the mainframeversion:

NYSDOTs options were to run the mainframe system withoutvendor support (a risky proposition), replace Trns-port with a

new system, or migrate to the client/server version. The decisionwas made to migrate to the client/server version, and to implementadditional modules, to provide a more functional and integratedsystem which covers the full lifecycle of capital projects.

Similarly, the NYSTA had been using BIDLET, a Clipper-based estimation and bid management system developed inhouse. As stated in the same website,

As computer technology and operating systems have advancedBIDLET has required increasingly greater resources to maintain its

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Figure C2.1. Example of summary page available in VDOTs Project Cost Estimating System.

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[sic] operation. The decision was made to replace BIDLET with theclient/server version of Trns-port. The NYSDOT and the Thruway Authority investigated and have subsequently been working on a joint implementation of Trns-port to take advantage of the costsavings and efciencies that could be realized from utilizing asingle common installation.

C2.2 Commercial Estimation Software

(Also See C3.2, P1.2)In the case of state highway agencies, the most widely used

computer estimation software is Estimator by InfoTech.Estimator is a module of Trnsport. Trnsport is owned by InfoTech, Inc., and fully licensed by AASHTO under thatname. Using this software, state highway agencies can prepareparametric or item-level project cost estimates. Parametricestimates are based on project work types and their major costdrivers. Item-level estimates are derived from bid histories andcost-based estimation techniques. Cost-based estimates usematerial, equipment, and labor costs.

What Is It?

Estimation software systems are the computer programtools that assist the state highway agencies in developing theirproject estimates. Estimation software systems have preloadedtemplates that help the state highway agency project teamsdene the project scope, cost, and schedule. The software pro-vides a means to track project development, and it can assist inproject review. There are several very good commercial pro-grams available and being used by a large number of state high-way agencies.

Why?

By using commercial software, the state highway agency avoids responsibility for updating or modifying the estimationprograms as technology advances. Responsibility for matchingthe software with current protocols remains with the softwareprovider. Additionally, the software provider works with many agencies and estimators and, therefore, has a broad knowledgeof software issues.

What Does It Do?

Computers and estimation software enhance the ability of engineers to manage large data sets that are used in developingestimates for all types of projects. Denite advantages includethe following:

Ability to develop an unlimited number of estimatesmatched to project complexity and level of design, whetherfrom scratch, other current estimates, or historical backups

Ability to easily change, back up, and restore estimates Ability to draw from unlimited amounts of historical cost

data and/or labor and equipment rate tables

Ability to quickly copy entire estimates, individual ormultiple work (bid) items, and/or activities from previ-ous estimates

Ability to track all changes made to the estimate and whomade the change

When?

Commercial estimation software offers the most effectivemeans of preparing and managing estimates for medium tolarge projects involving multiple cost items. For very large, com-plex projects, computer software may be the only effective andefcient method for handling large amounts of information.

Examples

The Trnsport Estimator module is used by 22 state highway agencies (as of August 7, 2002). Historic bid price databases canbe created using Decision Support System module of the con-struction contract information historical database.

Another commercially available system that is used by sev-eral state highway agencies is Bid Tabs by Oman systems. Thissystem is used as a stand-alone system or in conjunction withTrnsport by seven state highway agencies (as of August 7,2002). Two other state highway agencies are in the process of testing this software (as of August 7, 2002).

One state highway agency (as of August 7, 2002) uses Heavy Construction Systems Specialists (HCSS) Heavy Bid, which isa program used by many contractors and was originally devel-oped to facilitate detailed estimation by a large contractingorganization.

One state highway agency (as of August 7, 2002) uses Auto-

CAD to perform quantity takeoff for project estimates by combining plan views of the project area with elevation infor-mation to get a three-dimensional view of the project.

Tips

The effectiveness of any computer software program isdirectly related to product support and training. When select-ing software, always ensure that product support will be avail-able and that training and training material will be provided.

Resources

For more information about Trnsport Estimator, contactthe AASHTOWare contractor: Info Tech, 5700 SW 34th Street,Suite 1235, Gainesville, FL 32608. Phone 352-381-4400; Fax352-381-4444; info@infotech.com; www.infotech.com.

Oman Systems, Inc., P.O. Box 50820, Nashville, TN 37205.Phone 800-541-0803; Fax 615-385-2507; www.omanco.com.

Heavy Construction Systems Specialists, Inc. (HCSS),6200 Savoy, Suite 1100, Houston, TX 77036. Phone 800-683-3196 or 713-270-4000; Fax 713-270-0185; www.hcss.com;info@hcss.com.

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C2.3 In-House Conceptual/ParametricEstimation Software

Parametric estimation methods are dened as estimationtechniques that rely on relationships between item character-istics and the associated item cost. Early estimates developedduring planning or during the initial stages of programmingand preliminary design are typically based on a limited deni-

tion of project scope. The usual approach used to address theseestimation difculties is reliance on some form of conceptualestimation methodology. Parametric models can be developedinternally by an organization for unique estimation needs, orthey can be obtained commercially. One key reason state high-way agencies develop their own parametric models is that they have specic estimation needs that cannot be achieved by usinga commercial parametric model.

What Is It?

A parametric cost estimate is one that uses cost estimation

relationships and associated mathematical algorithms (or logic)to establish the cost estimate for a project. Parametric estima-tion using statistical techniques can produce a range of proba-ble costs rather than a single deterministic cost. The method canbe applied to develop an estimate before design is complete.

Why?

During the early stages of project development, it is difcultto develop denitive cost numbers based on material quantitiesor specic work items, as these have not yet been dened. Con-ceptual estimation methodologies and parametric estimation

tools can bring speed, accuracy, and exibility to estimationprocesses that are often bogged down in unnecessary and really unknown project detail at this point in project development.

What Does It Do?

The cost of a project element is based on relevant inde-pendent variables, or cost drivers. Mathematical expressions,or formulas, are used to express the functional relationshipbetween the cost drivers and the elements of a project beingestimated. These techniques are often referred to as cost esti-mation relationships.

Parametric models are more complex than cost estimationrelationships. They can be used to prepare estimates for anentire project. Parametric models incorporate many equations,ground rules, assumptions, logic, and variables that describeand dene the particular situation being studied and estimated.Parametric models make extensive use of cost history databases.

In addition, organizations use parametric estimation tech-niques to develop estimates that serve as sanity checks on theprimary estimation methodology.

Because these estimates can be prepared based on only a lim-ited amount of denitive project information, they support thefollowing:

Scope development tasks Investigation of alternative design concepts Examination of alternative proposals for enhancements

and upgrades Identication of key design elements Recognition of key project parameters Prioritization of needs versus wants Disclosure of key assumptions

When?

Early in project development, it is usually not possible tocreate a bottom up estimate based on a fully developed scopeof work. Conceptual estimation is an excellent estimationmethodology that can provide reliable estimates based on lim-ited scope denition. Parametric estimation techniques canalso use validated change order request pricing.

Examples

Pennsylvania DOT (PennDOT) uses parametric values indetermining cost estimate at planning and early design stages.

The Washington State DOT (WSDOT) Urban PlanningOfce has developed a tool termed Planning Level Cost Esti-mation (PLCE). The PLCE tool is a parametric estimation toolcreated to help plan and budget for large improvement projects.The output of this tool is a range of total project costs, includ-ing preliminary engineering, right-of-way (if applicable), andconstruction. The tool focuses on major project elements andcreates costs for other minor elements using factors. This pro-gram is based on WSDOT data for large projects using recentcost data. The tool can reect regional differences. The outputneeds to be reviewed carefully by planners and other disciplines.The tool uses Microsoft Access as the database. Figure C2.3shows a owchart of the process, a typical screen capture for themainline add of two lanes, and a typical summary output.

Tips

All parametric estimation techniques, including cost esti-mation relationships (CERs) and complex models, requirecredible data before they can be used effectively. Data shouldbe collected and maintained in a manner that provides a com-plete audit trail with expenditure dates so that dollar-valuedcosts can be adjusted for ination. While there are many for-mats for collecting data, an example of one commonly used by state highway agencies would be the standard contract pay items. Technical noncost data that describe physical, perfor-mance, and engineering characteristics of a project must also

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A-27

USERINPUT

ESTIMATERANGE

STRUCTURE

BASEESTIMATE

UNCERTAINTYASSESSMENT

QUANTIY, AREADENSITY

TYPES

TYPES,SIZE

TYPES,SIZE

UTILITY, CE,TAX,

MAINLINEROW

ENVIRONMENT

INTERCHANGE

(a) Flowch a rt

Figure C2.3. WSDOTs Planning Level Cost Estimation tool.(continued on next page)

(b) Input for added lanes

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be collected. Once collected, data need to be adjusted for itemssuch as production rate, improvement curve, and ination.This is also referred to as the data normalization process.

CERs are analytical equations that relate various cost cate-gories (in either dollars or physical units) to cost drivers, orvariables. CERs can take numerous forms, ranging from infor-

mal rules of thumb to formal mathematical functions derivedfrom statistical analysis of empirical data. Developing a CERrequires a concerted effort to assemble and rene data. In deriv-ing a CER, assembling a credible database is especially impor-tant and, often, the most time-consuming activity.

Resources

The paper Parametric Estimating Methodology for TransitProject Planning, by Robert H. Harbuck, PE CCE, which is

part of the 2001 AACE International Transactions, provides anoverview for transit project applications. A copy can be foundon the Parsons Brinckerhoff website at: www.pbworld.com/library/technical _papers/pdf/46 _ParametricEstimating.pdf.

The Association for the Advancement of Cost Engineering(AACE International) Professional Practice Guide#6, Construc-

tion Cost Estimating, presents information on conceptual andparametric estimation.

NASA has a Parametric Cost Estimating Handbook. Thishandbook is intended to be used as a general guide for imple-menting and evaluating parametric-based estimation systemsand as the text material for a basic course in parametric esti-mation techniques. It can be found at http://cost.jsc.nasa.gov/PCEHHTML/pceh.html.

Washington State DOT, Urban Planning Ofce, Seattle,Washington.

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Figure C2.3. (Continued).

(c) Summary cost estimate generated

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C2.4 Simple Spreadsheet(Also See C1.6, D2.8)

An estimator or state highway agency typically creates sim-ple spreadsheets using Excel or some similar user-friendly computer software. They provide a rapid and easy means fororganizing numbers and making calculations (also see C1.6).These are really computer worksheets, but the name from the

old pencil-and-paper daysspreadsheetis retained.

What Is It?

Electronic spreadsheet programs offer the computing powerof the computer and text editing and formatting capabilities athigh speed and low cost. The electronic spreadsheet can storeboth the formulas and the computed values returned by theformulas and, therefore, provide great economies when thereare numerous repetitive calculations to be made.

Why? Electronic spreadsheet programs speed up estimate calcu-

lations and will automatically update all calculations whenvalues are changed. In the case of repetitive calculations, thereis only the need to formulate the mathematics once. The otheradvantage of using such spreadsheets is that everyone isalready familiar with how the software works, so training timeis almost nonexistent.

What Does It Do?

Simple electronic spreadsheets can generate documentsthat use text and number entries and that require performanceof calculations on the inserted values. Monte Carlo simulationcan also be added to spreadsheets for doing probabilistic esti-mation or risk analysis.

When?

Simple electronic spreadsheets can be developed to estimatesmall projects or they can be created to support other estima-tion programs. Spreadsheets are also excellent tools for sup-porting and documenting quantity takeoff work.

Examples

Virtually any estimation process can be successfully auto-mated with a well-designed Excel template. Spreadsheets areexcellent tools for calculating material areas, volumes, andsumming by type of material.

New Jersey DOT has posted on the Internet (www.state.nj.us/transportation/eng/CCEPM/) a preliminary estimatespreadsheet.

Tips

Computer spreadsheets such as Excel require less initialinvestment than commercial estimation software and tend tobe very exible. The list of included items on spreadsheets isoften not exhaustive, and space should be provided in each sec-tion of the spreadsheets to allow the entry of additional costitems that may be unique to a particular project.

Resources

Georgia DOT (GDOT) has posted on the Internet (www.dot.state.ga.us) the format for submitting scope and cost esti-mates for GDOT projects in the form of Excel workbooks toexpedite the review and approval process. Type GUIDELINESFOR SCOPE & COST ESTIMATE WORKBOOKS in thesearch box on the home page.

There are also commercial estimation programs that haveseamless integration with Microsoft Excel. See Hard DollarConstruction Estimating Software at www.harddollar.com/software/Take-Off-Analysis.asp.

C3 Conceptual Estimation

During the earliest stages of project development, prior toany design work, there is limited information about the proj-ect. However, there is the need to establish the approximatecost in order to evaluate options and to make choices betweentransportation needs and feasibility. Because there is very lit-tle project denition at this point in time, conceptual esti-mates usually rely on parametric techniques to extrapolatefrom past experience the economic impact cost of futureprojects. These techniques are applied using custom cost esti-mation relationships or commercially available tools.

Such estimates are normally prepared prior to the NationalEnvironmental Policy Act (NEPA) decision document. Theaccuracy of these estimates is directly related to the specicity of project denition. These techniques are used to determinethe approximate cost of the project. In some cases, the esti-mated dollar amount is expressed as a range; this is a very goodpractice.

C3.1 Agency Estimation Software(Also See C2.1, D2.2, P1.1)

Based on schematic information, the intent of a conceptualestimate is to provide a realistic cost assessment so that decisionmakers can judge the relative merits of the project. The usualapproach to doing that is reliance on some form of parametricestimation approach. Parametric estimation methods aredened as estimation techniques that rely on relationshipsbetween item characteristics and the associated item cost. Onekey reason state highway agencies develop their own paramet-ric models is that they have specic estimation needs that can-not be achieved by using a commercial parametric model.

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What Is It?

A parametric cost estimate is one that uses cost estimationrelationships and associated mathematical algorithms (or logic)to establish the cost estimate for a project. Parametric estima-tion using statistical techniques and historical databases canproduce a range of probable costs rather than a single deter-ministic cost. The method can be applied to develop an estimate

before design is complete. The conceptual estimation tech-niques with 1% to 15% project denition can produce a proj-ect estimate with an accuracy range of +40/20% to +120/60%according to the Association for the Advancement of Cost Engi-neering International (AACE).

Why?

During the early stages of project development, it is difcultto develop denitive cost numbers based on material quanti-ties or specic work items, as these have not yet been dened.Computer-driven conceptual estimation tools can bring speed,

accuracy, and flexibility to estimation processes. They arealso applicable for projects of an emergency nature that mustbe completed rapidly and for which there is limited scopedenition.

What Does It Do?

When the only denitive information about a project isgeneral parameters such as location, length, and maybe thenumber of roadway lanes an estimate can be derived from aweighting of historical cost records from previous projects.

The technique uses cost estimation relationships to build

the cost of individual parts of the project and parametric mod-els to prepare estimates for an entire project. Parametric mod-els incorporate many equations, ground rules, assumptions,logic, and variables that describe and dene the particular sit-uation being studied and estimated. Parametric models makeextensive use of cost history databases.

When?

Early in project development, it is usually not possible to cre-ate a bottom up estimate, as a fully developed scope of work is yet to be created. Conceptual estimation is an excellent costingmethodology that can provide reliable estimates based on alimited denition of project scope.

Conceptual estimation techniques can also be used to pricevalidated change order requests.

Examples

Penn DOT uses parametric values in determining the costestimate at the planning and early design stage.

Tips

All parametric estimation techniques, including cost esti-mation relationships and complex models, require credibledata before they can be used effectively. Data should be col-lected and maintained in a manner that provides a completeaudit trail with expenditure dates so that dollar-valued costscan be adjusted for ination. While there are many formats for

collecting data, an example of one commonly used by statehighway agencies would be the standard pay items. Technicalnoncost data that describe physical, performance, and engi-neering characteristics of a project must also be collected. Oncecollected, data need to be adjusted for items such as productionrate, improvement curve, and ination. This is also referred toas the data normalization process.

Cost estimation relationships are analytical equations thatrelate various cost categories (either in dollars or physicalunits) to cost drivers, or variables. They are created in a steppedprocess involving development of a unit cost by a weighting of historical data to which appropriate corrective adjustments are

applied.Ination/deation adjustment. The unit cost must be

adjusted for the time difference between the historical proj-ects and the estimated project. Various indexes of economictrends are available to support a correction. See the Engineer-ing News Recordquarterly construction indexes.

Location adjustment. The historical cost data are only reli-able for the specic locations of the encompassed projects.Consequently, the relative difference in the cost of materials,equipment, and labor between locations of past projects andthe current project requires an adjustment in unit cost.

Project size adjustment. Project size can affect cost; there-fore, in developing a cost estimation relationship, size of thehistorical projects compared with the estimated projects mustbe factored in.

Unit cost adjustments. The cost of certain items (e.g., spe-cic hardware) is independent of project size; as a result, it isnecessary that the estimator have a clear understanding of theproposed project scope.

In deriving a cost estimation relationship, assembling acredible database is especially important and, often, the mosttime-consuming activity.

Resources

The paper Parametric Estimating Methodology for TransitProject Planning, by Robert H. Harbuck, which is part of the 2001 AACE International Transactions, provides an overviewfor transit project applications. A copy can be found on theParsons Brinckerhoff website at www.pbworld.com/library/technical_papers/pdf/46_ParametricEstimating.pdf.

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The Association for the Advancement of Cost Engineerings(AACE Internationals) Professional Practice Guide #6: Con-struction Cost Estimating presents information on conceptualand parametric estimation.

NASA has a Parametric Cost Estimating Handbook. Thishandbook is intended to be used as a general guide for imple-menting and evaluating parametric-based estimation systemsand as the text material for a basic course in parametric esti-mation techniques. It can be found at http://cost.jsc.nasa.gov/PCEHHTML/pceh.html.

C3.2 Commercial Estimation Software(Also See C2.2, P1.2)

The intent of a conceptual estimate is to provide a realistic cost assessment so that decision makers can judge the relativemerits of the project. These estimates are generally based only on schematic information. The usual approach to address suchan estimation situation is reliance on some form of conceptualestimation. These are estimation techniques that rely on rela-tionships between item characteristics and the associated itemcost. Writing good software is extremely time intensive andrequires a qualied staff of professional programmers who arealso knowledgeable about the task the software is to perform.These two reasons cause many agencies to use commercialestimation software that has been validated and documentedbefore release.

What Is It?

A conceptual cost estimation software system, whether it isa commercial product or agency-developed product, uses costestimation relationships and associated mathematical algo-

rithms (or logic) to establish the cost estimate for a project.These statistical techniques, together with historical databases,can produce a range of probable project costs. The methodcan be applied to develop an estimate before design is com-plete. Table C3.2 is from the Association for the Advancementof Cost Engineering (AACE) International. The table providesa sense of the accuracy that can be achieved using a conceptualestimation methodology in relation to the amount of projectdenition. During early project development, scope denitionand design will be limited. Under the AACE Internationalmatrix, early estimates would be either Class 5 or 4.

Why?

During the early stages of project development, it is difcultto develop denitive project cost numbers based on materialquantities or specic work items, as these have not yet beendened. Computer-driven conceptual estimation tools canbring speed, accuracy, and exibility to estimation processes.Because development and maintenance of individual or spe-

cialized software packages can be expensive and requires spe-cial talents, it is often more economical to use commercially available software, which spreads the product cost over a largeruser base.

In the case of conceptual estimation, commercial softwareproviders often also have extensive databases that can be pro-vided with the product.

What Does It Do?

When the only denitive information about a project aregeneral parameters such as location, length, and maybe thenumber of roadway lanes, an estimate can be derived from aweighting of historical cost records from previous projects.

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Table C3.2. AACE International generic cost estimate classicationmatrix.

PrimaryCharacteristic

Secondary Characteristic

EstimateClass

Level of ProjectDefinition

Expressed as % of completedefinition

End UsageTypical purpose of

estimate

MethodologyTypical estimating

method

Expected AccuracyRange

Typical +/ range

Class 5 0% to 2% Screening orFeasibility

Stochastic orJudgment

+40/ 20 to +200/ 100

Class 4 1% to 15% Concept Study orFeasibility

Primarily Stochastic +30/ 15 to +120/ 60

Class 3 10% to 40% Budget,Authorization, or

Control

Mixed, but PrimarilyStochastic

+20/ 10 to +60/ 30

Class 2 30% to 70% Control or Bid/ Tender

PrimarilyDeterministic

+10/-5 to +30/-15

Class 1 50% to 100% Check Estimate orBid/Tender

Deterministic +10/-5

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The technique uses cost estimation relationships to buildthe cost of individual parts of the project and parametricmodels to prepare estimates for an entire project. Parametricmodels incorporate many equations, ground rules, assump-tions, logic, and variables that describe and dene the partic-ular situation being studied and estimated. Parametric modelsmake extensive use of cost history databases.

When?

Early in project development, it is usually not possible to cre-ate a bottom-up estimate, as there is no fully developed scopeof work. Conceptual estimation is an excellent costing method-ology that can provide reliable estimates based on a limited def-inition of project scope.

Conceptual estimation techniques can also be used to pricevalidated change order requests.

Examples

Trnsport cost estimation relationships is a job and programcost estimation and planning tool that provides a highly pro-ductive environment to prepare parametric, cost-based, andbid-based job cost estimates.

Tips

The estimator is the key to any estimation process and mustknow the software being used, its capabilities, and its limita-tions. To become procient at any task, training is required.This is especially true with estimation software. Training will

greatly enhance the prociency and efciency of estimatorsusing any software.One of the greatest benets of computer estimation is the

storage and retrieval of historical data. All parametric estima-tion techniques, including cost estimation relationships andcomplex models, require credible data before they can be usedeffectively. Data should be collected and maintained in a man-ner that provides a complete audit trail with expenditure datesso that dollar-valued costs can be adjusted for ination. Whilethere are many formats for collecting data, an example of onecommonly used by state highway agencies would be the stan-dard pay items. Technical noncost data that describe physical,

performance, and engineering characteristics of a project mustalso be collected. Once collected, data need to be adjusted foritems such as production rate, improvement curve, and ina-tion. This is also referred to as the data normalization process.

Cost estimation relationships are analytical equations thatrelate various cost categories (in either dollars or physicalunits) to cost drivers, or variables. Cost estimation relation-ships are created in a stepped process involving developmentof a unit cost by a weighting of historical data to which appro-priate corrective adjustments are applied.

Ination/deation adjustment. The unit cost must beadjusted for the time difference between the historical proj-ects and the estimated project. Various indexes of economictrends are available to support a correction. See the Engineer-ing News Recordquarterly construction indexes.

Location adjustment. The historical cost data are only reli-able for the specic locations of the encompassed projects.

Consequently, the relative difference in the cost of materials,equipment, and labor between locations of past projects andthe current project requires an adjustment in unit cost.

Project size adjustment. Project size can affect cost; there-fore, in developing a cost estimation relationship, size of thehistorical projects compared with the estimated projects mustbe factored in.

Unit cost adjustments. The cost of certain items (e.g., spe-cic hardware) is independent of project size; as a result, it isnecessary that the estimator have a clear understanding of the

proposed project scope.In deriving a cost estimation relationship, assembling acredible database is especially important and, often, the mosttime-consuming activity.

Resources

The paper Parametric Estimating Methodology for TransitProject Planning, by Robert H. Harbuck, which is part of the 2001 AACE International Transactions, provides an overviewfor transit project applications. A copy can be found on theParsons Brinckerhoff website at www.pbworld.com/library/

technical_papers/pdf/46_ParametricEstimating.pdf.The Association for the Advancement of Cost EngineeringInternationals (AACE Internationals) Professional PracticeGuide #6: Construction Cost Estimating presents informationon conceptual and parametric estimation.

NASA has a Parametric Cost Estimating Handbook. Thishandbook is intended to be used as a general guide for imple-menting and evaluating parametric-based estimation systemsand as the text material for a basic course in parametric estima-tion techniques. It can be found at http://www1.jsc.nasa.gov/bu2/PCEHHTML/pceh.htm.

AASHTOWare is AASHTOs transportation software solu-

tions. See http://aashtoware.org/?siteid =28.

C3.3 Cost/Parameter Using Similar Projects

This tool is based on the concept of using the cost of proj-ects that are similar to the project being estimated as thebasis for developing the estimate. The similar project has aknown cost and scope. The similar project cost is convertedinto some reasonable cost parameter, such as dollars percenterline-mile or dollars per square foot of decking and is

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used in conjunction with an order-of-magnitude quantity parameter of the project being estimated, such as centerline-miles, to provide a basis for approximating the total cost of the facility.

What Is It?

Early in program (or project) development, there is very lim-ited scope denition as to how a transportation need should beaddressed. Because there are often similarities between a currentneed and a recently programmed, designed, or completed proj-ect, the cost basis for estimating the future program area (a proj-ect or groups of projects) is the relationship to the similarproject for which there are cost data. The cost of the similarproject is often expressed in terms of a cost per mile.

Why?

The purpose of this tool is to rapidly assess the approximatecosts for addressing a transportation need or needs.

What Does It Do?

This tool provides an easy way to quickly approximate theorder-of-magnitude cost of a potential transportation pro-gram (project or groups of projects). The concept is based onidentifying an existing project that is almost identical in scopeto the project that is being estimated. The tool relies on his-torical cost data. The historical data have to be modied to tany differences in scope, location, and other project charac-teristics that might exist between the similar project and thenew project or program area.

When?

This tool is used for preparing conceptual estimates duringthe planning phase of program (or project) development.

Examples

Several state highway agencies use historical cost data fromsimilar projects to generate cost-per-mile factors for long-range planning estimates. One transportation agency identi-es similar type projects within the state that are in theprogramming phase and uses the current average cost-per-mile estimates from those projects to prepare the conceptualestimates for its planning phase projects. The cost-per-miledata could be obtained from a single programmed project orfrom a number of similar programmed projects. The key tothis estimation practice is using similar projects that have amore dened scope than the project in the long-range plan-ning phase. The planning engineers in the respective districtsprovide the estimators with the current cost-per-mile estimatefor the programmed projects, which were created using para-

metric and line-item historical bid-based estimation tools.Thus, the conceptual estimates reect all project cost ele-ments, including costs for design, utilities, construction, andright-of-way. If the project includes structures, the estimatorattempts to separate and remove the structure cost in the pro-gramming phase estimates and then estimates the currentprojects structures separately. Other state highway agenciesdevelop lane-mile factors in a similar manner as the onedescribe here, but they use costs for projects that have already been let instead of projects still in the programming phase.

Tips

Applying this tool requires the user to match basic scopeitems to projects that are deemed similar in scope to the trans-portation program or project being estimated. The user mustensure that all scope items are covered in relation to the similarproject. If there is not a perfect match, appropriate adjustmentsin cost should be made. For example, if the similar project hasfewer structures than the transportation need being estimated,an appropriate adjustment in the cost estimate should be madeto account for fewer structures. There may also be location dif-ferences that must be accounted for when using costs of similarprojects. Costs should be adjusted to include future dollarsthat is, the time at which the transportation need is likely tobecome a project with a construction target date.

This tool is useful for developing quick estimates for a pro-gram or project provided that the level of scope similarity is verhigh. The cost of the similar project should include all ele-ments, including preliminary design costs, right-of-way, util-ity adjustments, contract administration, and construction. If one of these elements is not in the scope of the new trans-portation need, then the cost for this element must be deletedfrom the similar estimate. Alternatively, cost for elementscould be added to adjust for differences between a similarproject and a new transportation need. Contingencies shouldbe included to cover uncertainties in the cost estimate. Simplespreadsheets can be used to summarize cost estimation ele-ments when using this tool.

Resources

The data for the Wisconsin DOT method of calculating con-struction costs for a roadway improvement project based oncontrolling cost items (these are the certain bid items thatcomprise the majority of total construction costs) can befound at www.dot.wisconsin.gov/localgov/highways/docs/district-controlling.pdf.

C3.4 Cost/Parameter Using Typical Sections

This tool is based on the concept of using typical sections/components representing common types of facilities andhistorical cost data to derive key cost parameters. These cost

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parameters, such as dollars per centerline-mile or dollars persquare foot of decking, are used in conjunction with grossquantities to provide a basis for approximating the partial costof a facility.

What Is It?

Early in program (or project) development, very limited

scope denition is available for solving a potential transporta-tion need. The proposed facilities are often described in termsof a parameter such as a centerline-mile of roadway improve-ment, the number of lanes, and the type of construction (newor reconstruction) or number of bridges. For example, typical-pavement-type sections are used as the basis for estimatingpavement construction cost for a given or standard pavementlength and thickness or for a typical shoulder width. Historicalcost data are provided in terms of cost factors (e.g., dollars percenterline-mile) and percentages for certain scope categories.Historical data reect average costs and are not necessarily spe-cic to any one area within a state.

Why?

The purpose of this tool is to develop approximate capitalcosts for a transportation need or needs so that estimates of funds required for long-range programs can be determined.

What Does It Do?

This tool is easy to use and provides a quick approximationof the magnitude of the cost for addressing a transportationneed or correcting a deciency. The concept is based on iden-

tifying those cost elements that are likely to be a substantialportion of a projects capital cost. The tool relies on historicaldata for developing standardized or typical congurations thatrepresent types of transportation facilities.

When?

This tool is used for preparing a transportation program(or project) conceptual estimate during the planning phase of program (or project) development.

Examples

One unique approach to applying cost-per-mile factors isdeveloping typical project sections (e.g., pavement sections andtype) that correspond with lane-mile cost factors. Using thisapproach, one state highway agency created an estimationhandbook that has sketches of typical roadway sections that areused to generate conceptual estimates. At the planning stage,the pavement thickness, materials, and lane widths are typicalvalues. Depending on the projects standard characteristics, theestimator chooses the corresponding project from the hand-

book. Then, the estimator selects the appropriate cost chartthat best ts the anticipated project structure. Cost is still indollars per lane-mile but it reects a typical structural sectionthat is identied early in project development. The typicalsketches also aid the estimator in deciding on the additionalproject elements that will be required. This process providesthe base construction cost; therefore, the preliminary engi-neering, civil engineering, inspection, and right-of-way costsare added to this lane-mile cost. The right-of-way is factoredinto the estimate as a percentage of the estimated construc-tion cost, and the engineering costs are based on historicalratios of engineering to construction cost. The engineeringcost includes preliminary engineering, construction engineer-ing inspection, right-of-way support, and related overheadcosts. The factors in this state highway agency handbook rep-resent present day costs that must be inated to the projectsmidpoint of construction. This planning manual has inationfactors that are applied to the planning estimates. The sum of the calculated elements determines the long-range planningestimates total amount.

This estimation method provides the state highway agency with a consistent and transparent approach to estimating thecost of transportation needs. Consistency of approach con-tinues as the project is further developed because the statehighway agency uses an estimation methodology that buildsupon the lane-mile typical section at each project develop-ment phase. The difference between the estimates in eachphase is the incorporated level of project detail. Furthermore,estimate development is documented by the systematicpreparation of narratives. The approach also has standardproject cost components that must be considered for inclu-sion in the estimate; this helps the estimators avoid the prob-lem of cost-item omission.

Two state highway agencies reported using lane-mile costfactors with typical sections for their planning estimates, buttheir methods were not consistently used within the state high-way agency as the procedure previously described. One statehighway agency uses three spreadsheet templates specically for its central, northern, and southern regions. The templatescategorize typical projects into rural or urban location and intonew or widening projects. The number of roadway travel lanesand the median type is used to further dene each typical sec-tion. The spreadsheet templates have columns associated withcosts for grading and drainage, base aggregate and pavement,lump-sum items (e.g., pavement markings and signs), miscel-laneous items, engineering and contingency, total project cost,and total cost per mile. The length of the proposed project isentered into the template, and costs for each typical sectionlisted are calculated. This template provides the state highway agency with different design alternatives along with an estimatefor each design so that designs can be compared.

Another state highway agency has a cost sheet that lists sim-ilar project types and associated cost-per-mile factors. The

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cost sheet separates projects into rural and urban with projecttypes listed by the number of roadway travel lanes. From thecost sheet, the estimator chooses the thickness of the pave-ment and the median type. The cost sheet also renes costnumbers based on work type (reconstruction or new con-struction). Furthermore, the sheet provides information forestimating the cost of miscellaneous improvements, such assignaling. Percentages of the total project cost are used to esti-mate right-of-way and utility cost. This state highway agency is in the process of rening its estimation software to includethe computerization of planning estimate preparation.

Two illustrations of typical cost data that support this toolare shown here. The rst illustration (Table C3.4-1) relates tobridge costs and shows typical structural sections. The secondillustration (Table C3.4-2) shows typical costs for roadway sections, bridge types, and other relevant costs such as right-of-way and construction engineering.

Tips

Applying this tool requires the user to match basic scopeitems to typical congurations and/or sections representingdifferent types of transportation need solutions. The user alsomust ensure that all scope items are covered and that the data-base provides sufcient information to estimate all pertinentscope elements for the proposed solution, such as right-of-way,preliminary engineering, and utility relocation. If necessary,costs should be adjusted to include future dollars, adjusted totime-of-construction dollars. Cost adjustments may also benecessary when the scope is different form that used to makethe estimate or unique conditions exist. Simple spreadsheetscan be used to make calculations and summarize cost estima-tion elements.

Resources

Florida DOT Ofce of Planning Policy (March 2003). Pol-icy Analysis and Program Evaluation, 2002 TransportationCosts.

Caltrans Division of Engineering Services, Structure OfceEngineer (2003). Comparative Bridge Costs. http://www.dot.ca.gov/hq/esc/estimates.

The Wisconsin statewide average costs per mile for variousroadway improvement projects based upon the states classi-cation such as a resurfacing, pavement replacement, recondi-tioning or reconstruction project can be found at www.dot.wisconsin.gov/localgov/highways/docs/statewide-costpermile.pdf.

C3.5 Trnsport (Also See D2.9, P1.5)

Trnsport is the AASHTO-sponsored transportation agency management software. It is a robust transportation program

management system. It uses the most current informationsystems technology and is based on the experience and needsof AASHTOs member agencies.

Trnsport capabilities encompass the full functionality of aconstruction contract management system. It is an integratedsystem consisting of 11 modular components, which can beused individually or in combinations as appropriate. Eachmodule (see Figure C3.5) addresses the needs of the highway agency at a particular milestone in the construction contract-ing life cycle, representing three functional areas: precon-struction, construction, and decision support.

What Is It?

The Cost Estimation System (CES) is the primary Trnsportmodule, and, as shown in the estimation workow schematic,it is most appropriately used in the conceptual estimation stage.It provides a highly productive environment for preparation of parametric, cost-based, and bid-based project cost estimates.

The CES module, when used in a conceptual estimation con-text, estimates the cost of parameters involved in the breakdownof a project. A parameter could be general characteristics suchas project type, length, and location, or more specic informa-tion such as quantities and prices of major items. Parametricestimation uses three statistical modeling techniques: (1) proj-ect breakdown estimation, which determines the major costdrivers, called major items, for the breakdown; (2) major itemquantity estimation, which determines appropriate quantitiesof major items; and (3) major item price estimation. Adjust-ment of any of the calculated values to better reect estimatorknowledge of the project is possible, and CES will recalculate the

estimate by using the rened data. A very popular calculatingapproach among state highway agencies is the lane-mile historiccost averages, which is an inbuilt feature of this module backedby the Bid Data Analysis and Decision Support System (BAMS/DSS) historic database feature of Trnsport.

Why?

At the conceptual estimation stage, it is an ordinary practicefor state highway agencies to use lane-mile costs to estimate aproject. The lane-mile cost parameter is a built-in feature of theTrnsport CES module. The CES module, however, empha-

sizes an item-level-quantity-based approach as opposed toestimating at a project level using a cost-per-lane-mile param-eter. This approach may improve early estimate accuracy.Developing quantities early may enable continuous trackingand control by initiating quantity estimates at the outset. Toefciently perform these functions, a comprehensive projectbreakdown schematic is necessary, along with the ability tocorrelate them to historical databases. The CES module of Trnsport can be used to accomplish this correlation.

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Table C3.4-1. Comparative bridge cost data.

S IMPLE CONTINUOU S

RC S LAB 0.06 0.045 5-13 800 - 1, 200

RC T-BEAM 0.07 0.065 12-18 850 - 1, 400

RC BOX 0.06 0.055 15-37 950 - 1, 450

CIP/P S S LAB0.03 0.03 12-20 950 - 1, 300

CIP/P S BOX 0.045 0.04 30-76 800 - 1, 200

PC/P S S LAB0.03

(+75m m AC)0.03

(+75m m AC)6-15 1,300 - 1, 950

PC/P S0.06

(+75m m AC)0.055

(+75m m AC)9-37 1,100 - 1, 800

BULB T GIRDER 0.05 0.045 27-44 1,100 - 2, 100

PC/P S I 0.055 0.05 15-37 1,300 - 1, 700

PC/P S BOX 0.06 0.045 37-61 1,500 - 2, 700

S TRUCT S TEELI-GIRDER

0.045 0.04 18-91 1,625 - 2, 300

NO FAL S EWORKREQUIRED

NO FALS EWORKREQUIRED

NOTE: Remov a l of a box girder s tru ctu re co s ts from $160 - $215 per s qua re meter.

COSTS INCLUDE 10% MOBILIZATION AND 25% CONTINGENCY

THE S E ARE THEMOS T COMMONTYPE S ANDACCOUNT FORABOUT 80% OF

BRIDGE S ONCALIFORNIA S TATEHIGHWAY S .

S TRUCTURAL S ECTION

(S TR. DEPTH/MAX S PAN) CO S T RANGE($ / M2)

REMARK S

JANUARY 2003

Fa ctor s for Lower End of Price R a nge F a ctor s for Higher End of Price R a nge

S hort S pa ns , Low S tru ctu re Height, No Environment a l Con s tra ints ,La rge Project s , No Ae s thetic I ssu e s , Dry Condition s , No Bridge S kew

Long S pa ns , High S tru ctu re Height,Environment a l Con s tra ints , S ma llProject, Ae s thetic I ssu e s , WetCondition s (cofferd a ms req u ired),S kewed Bridge s

Urba n Loc a tionS e a t Abu tmentS pre a d Footing

No S ta ge Con s tru ction

Remote Loc a tionCa ntilever Ab u tment

Pile Footing2 S ta ge Con s tru ction

Widening s Le ss Tha n 5M

Fa ctor s Tha t Will Incre as e the Price Over the High End of the Price R a nge

S tru ctu re s With More Th a n 2 Con s tru ction S ta ge sUniq u e Su bs tru ctu re Con s tru ction

COMMONS PAN RANGE

(meter s )

The following t a bu la r da ta give s s ome general guidelines for s tru ctu re type s election a nd its rela tive co s t. The s e co s ts s ho u ldbe us ed j us t for preliminary estimates u ntil more det a iled inform a tion is developed.The s e co s ts reflect the bridge costs only a nd do not inclu de item s su ch as : bridge remov a l, a ppro a ch s la bs , s lope p a ving,s ou ndw a lls or ret a ining wa lls .

The following f a ctor s must be t a ken into a cco u nt when determining a price within the co s t ra nge:

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Table C3.4-1. (Continued).

S IMPLE CONTINUOUS

RC S LAB

RC T-BEAM

RC BOX

CIP/PS

S

LABCIP/P S BOX

0.06

0.07

0.06

0.03

0.045

PC/P S S LAB 0.03

(+3" A C) 0.03

(+3" AC)

PC/P S 0.06

(+3" AC)0.055

(+3" A C)

BULB T GIRDER

PC/P S I

PC/P S BOX

S TRUCT S TEELI-GIRDER

0.05

0.055

0.06

0.045

0.045

0.065

0.055

0.03

0.04

0.045

0.05

0.045

0.04

16-44

40-60

50-120

40-65

100-150

20-50

30-120

9 0-145

50-120

120-200

60-300

75-110

80-130

9 0-135

80-100

75-110

120-180

100-170

100-200

120-160

140-250

150-215

NO FAL S EWORKREQUIRED

NO FAL S EWORKREQUIRED

NOTE: Remov a l of a box girder s tru ctu re co s ts from $15 - $20 per s qua re foot.

COSTS INCLUDE 10% MOBILIZATION AND 25% CONTINGENCY

THES E ARE THE MO S TCOMMON TYPE S ANDACCOUNT FOR ABOUT

80% OF BRIDGES

ONCALIFORNIA S TATEHIGHWAYS .

S TRUCTURAL S ECTION

(S TR. DEPTH/MAX S PAN) COMMONS PAN RANGE

(feet)

CO S T RANGE($ / FT2)

REMARKS

JANUARY 2003

Fa ctor s for Lower End of Price R a nge F a ctor s for Higher End of Price R a nge

S hort S pa ns , Low S tru ctu re Height, No Environment a l Con s tra ints ,La rge Project s , No Ae s thetic I ssu e s , Dry Condition s , No Bridge S kew

Long S pa ns , High S tru ctu re Height,Environment a l Con s tra ints , S ma llProject, Ae s thetic I ssu e s , WetCondition s (cofferd a ms req u ired),S kewed Bridge s

Urba n Loc a tionS e a t Abu tmentS pre a d Footing

No S ta ge Con s tru ction

Remote Loc a tionCa ntilever Ab u tment

Pile Footing2 S ta ge Con s tru ction

Widening s Less Tha n 15 ft.

Fa ctor s Tha t Will Increas e the Price Over the High End of the Price R a nge

S tru ctu re s With More Th a n 2 Con s tru ction S ta ge sUniqu e Su bs tru ctu re Con s tru ction

The following t a bu la r da ta give s s ome general guidelines for s tru ctu re type s election a nd its rela tive co s t. The s e co s ts s ho u ldbe us ed j us t for preliminary estimates u ntil more det a iled inform a tion is developed.The s e co s ts reflect the bridge costs only a nd do not inclu de item s su ch as : bridge remov a l, a ppro a ch s la bs , s lope p a ving,s ou ndw a lls or ret a ining wa lls .

The following f a ctor s must be t a ken into a cco u nt when determining a price within the co s t ra nge:

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What Does It Do?

The CES module of Trnsport provides a full range of costestimation capabilities from conceptual estimation to the engi-neers nal estimate required for nal approval. Estimators canmigrate their work through each stage of estimation, splittingand combining projects as required, moving smoothly fromeach stage of estimation. This tool allows import of data fromother design software, such as computer-aided design anddrafting (CADD).

The parametric estimation capability of CES is, however, of particular interest for this application. The CES module createsestimates using item-based historical prices from the BAMS/DSS module. It permits the creation of estimates fromscratch or by importing older project estimates from exist-ing Trnsport modules that may have similar parameters, suchas project type, length, and location, or more specic informa-tion such as quantities and prices of major items. Estimates arecreated and categorized on a project-by-project basis using an

item-based approach. Predened line items that are built intothe program are directly linked to historical databases. Themodule also permits customization for unique items. It alsofacilitates the listing and tracking of sources of funding on eachproject. Item pricing can be based upon equipment and labor,previous bid and regression analysis, references to similar proj-ects, and ad hoc. As items are added, CES automatically calcu-lates and updates the estimate based on the pricing methodchosen. This computer-based tool allows customization toimprove accuracy and also generates an array of reports to helpdocument and track project costs.

When?

This tool can be used in the planning phase of projectdevelopment to create early estimates based on major projectparameters and other factors. In this way, CES can be an ef-cient tool for quickly estimating project costs for purposes of long-range planning.

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Table C3.4-2. Highway cost per centerline-mile.

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Examples

In years past, the NYSDOT used the mainframe versions of Trnsport PES, LAS, and DSS, but as agencies moved from themainframe to the client/server versions, AASHTO decidedto drop support of the mainframe version. NYSDOT thenmigrated to the client/server version.

Tips

This tool can be used at all stages of estimation, bridgingeasily from one Trnsport module to another module that hasbeen developed to be used at different stages of project devel-opment. These features help improve accuracy and handle

more complex circumstances. Thus, the user can start withthe planning estimate developed in CES and then move toestimation in the other project phases.

The estimator should check the output of the CES model toensure that the estimate is consistent with estimated costs usingother agency historical data. The estimator must ensure that allproject costs are covered, such as right-of-way and preliminary engineering. These costs may not be generated by CES.

Additional information can be found using the followingwebsite dot.state.ny.us/trns-port/about.html.

Resources

The Technology Implementation Company, in Gainesville,Florida. See website addresses www.infotech.com and www.cloverleaf.net.

AASHTOWare, the transportation software system of AASHTO. See website at www.aashtoware.org.

C4 Consistency

The estimate is the beginning and the foundation of theentire project cost control process. All project estimates shouldbe developed and treated as permanent documents that func-tion as a basis for business decisions. Therefore, an estimate

must be in a form that can be understood, checked, veried,and corrected. There must be consistency of presentationwithin an individual estimate and consistency across all esti-mates prepared by an agency. Consistency is an important fea-ture of all estimates, but its impact on performance increaseswith project complexity. The consistent presentation of statehighway agency estimates supports avoidance of duplications,omissions, and errors within an estimate and strengthens theestimate review processes. Successful estimation improvementis not so much about computers and data per se, as it is about

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Table C3.4-2. (Continued).

(continued on next page)

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creating an organizational culture and climate that supportstate highway agency estimators and the estimation process.

C4.1 Cradle-to-Grave Estimators

When the same estimator or estimation team is assigned toa project from programming through plans, specications,and estimates (PS&E), the retention of historical knowledgeabout cost drivers and why decisions were made is more eas-ily maintained and considered during later phases of project

development.

What Is It?

Under the cradle-to-grave concept, the same estimator isresponsible for the estimate during all phases of project devel-opment. As a project moves through its development stages, asingle estimator or estimation team is responsible for develop-ing and updating the estimate. There is no over-the-wall

(i.e., team to team) passage of scope, schedule, and estimationresponsibility as the project passes from one development stageto another.

Why?

When project development is a stepped process with stageresponsibility passing from one team to another (i.e., over-the-wall deliverables) there is always the possibility that criticalknowledge will be lost during a hand-off between teams. Oneapproach used to avoid this problem of lost project knowledgeis the reliance on a dedicated team to move the project throughall development phases. This approach would also place esti-mation responsibility with the same person or persons duringall of the projects development stages.

What Does It Do?

The use of cradle-to-grave estimators improves the knowl-edge base of the estimator or estimation team concerning all

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Table C3.4-2. (Continued).

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Table C3.4-2. (Continued).

Figure C3.5. Estimation workow and functional areas where Trnsport models assist.

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project details. With this approach, estimators gain knowledgeabout the reasons for revisions, the existence of constraints, therequired coordinate with other schedules, and the regulatory procedures that affect the project. When estimators possesssuch knowledge, estimate quality is improved because there isa better understanding about external cost drivers.

When? The use of cradle-to-grave estimators can be very benecial

in the case of projects that will be impacted extensively by third-party agreements, utility conicts, coordination issues, andscheduling uncertainty. Even with simple and straightforwardprojects, the use of cradle-to-grave estimators will work, but