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From page 22... ... These cost estimates are also often used in benefit-cost analysis for ranking projects and including them in the 25-year planning horizon. Key inputs into the cost estimation practice and cost estimation management processes are, where applicable, project scope and type, major project parameters, project complexity based on location, and anticipated size. Read the entire page →
From page 23... ... Estimate LONGRANGE PLAN PL AN N IN G (Recycle Loop) COST ESTIMATION PRACTICE AND COST ESTIMATION MANAGEMENT Transportation Need Development Phase Input from Disciplines Input from Third Parties Input Step Database Document Milestone Ph as e Legend To Project Development ProcessROW = right-of-way RES = real estate services Needs/Deficiencies Read the entire page →
From page 24... ... As seen in Table 5.1, the management, scope and schedule, offprism issues, and risk strategies address a large number of cost escalation factors. These strategies can and should be applied in the early stages of planning and continued throughout the project development process. Read the entire page →
From page 25... ... Planning phase management strategy: Methods and tools. MANAGEMENT STRATEGY Manage the estimation process and costs through all stages of project development Cost Estimation Management Cost Estimation Practice Budget Control B1.1 Budget by Corridor B1.2 Constrained Budget B1.3 Standardized Estimation and CostManagement Procedures B1.4 Summary of Key Scope Items (Original/ Previous/Current) Read the entire page →
From page 26... ... Because cost estimates used during the planning process can have such significant implications to the rest of the proposed investment program, it is important that the different organizations involved with planning, as well as units within these organizations, effectively communicate with each other during the cost estimation process. Because it is the policy boards and commissions of the transportation agencies that most often approve investment programs, it is important that the underlying uncertainties associated with the cost estimates be conveyed to these officials as well. Read the entire page →
From page 27... ... Project Complexity By defining and recognizing project complexity, a proper contingency estimate can be developed. Also, over time, lessons can be learned for different levels of project complexity that will be useful for future project cost estimation. Read the entire page →
From page 28... ... Planning phase scope and schedule strategy: Methods and tools. SCOPE AND SCHEDULE STRATEGY Formulate definitive processes for controlling project scope and schedule changes Cost Estimation Management Cost Estimation Practice Buffers B2.1 Board Approvals B2.2 Constrained Budget B2.3 Management Approvals Communication C1.1 Communication of Importance C1.2 Communication of Uncertainty Computer Software C2.1 Agency Estimation Software C2.3 In-House Conceptual/Parametric Estimation Software C2.4 Simple Spreadsheet Read the entire page →
From page 29... ... OFF-PRISM STRATEGY Use proactive methods for engaging external participants and assessing the macroenvironmental conditions that can influence project costs Cost Estimation Management Cost Estimation Practice Communication Identifying Off-Prism Issues C1.4 Definitive Management Plan I3.2 Percentage of Total Project Cost C1.5 Proactive Conveyance of Information to the Public Read the entire page →
From page 30... ... Project Complexity A structured risk identification effort should be instituted by the agency for all types of projects. Comprehensive quantitative risk assessments should be made on complex projects, 30 RISK STRATEGY Identify risks, quantify their impact on cost, and take actions to mitigate the impact of risks as the project scope is developed Cost Estimation Management Cost Estimation Practice Identification of Risk Risk Analysis I2.1 Red Flag Items R3.1 Analysis of Risk and Uncertainty R3.2 Contingency -- Identified R3.4 Estimate Ranges R3.5 Programmatic Cost Risk Analysis Right-of-Way R2.2 Advanced Purchase (Right-of-Way Preservation) Read the entire page →
From page 31... ... As described in Chapters 6 and 7 of this Guidebook, risk analysis must be continued throughout the entire project development process. Read the entire page →
From page 32... ... The risk strategy should include an evaluation of the impact that project delivery and procurement methods have on cost. Additionally, any project delivery or procurement decisions made during planning must remain consistent throughout the latter phases of project development, or their impact must be accounted for in the state highway agency's cost estimation management systems. Read the entire page →
From page 33... ... DOCUMENT QUALITY STRATEGY Promote cost estimate accuracy and consistency through improved project documents Cost Estimation Management Cost Estimation Practice Computer Software Document Estimate Basis and Assumptions C2.1 Agency Estimation Software D4.1 Project Estimation File C2.4 Simple Spreadsheet Identifying Off-Prism Issues I3.1 Environment Assessment I3.2 Percentage of Total Project Cost Read the entire page →
From page 34... ... The importance of valid cost estimates in environmental documentation, and any other documents concerning off-prism issues, must not be overlooked. The identification of off-prism issues, particularly in the environmental area, can greatly increase the accuracy of cost estimates and assist in cost estimation management. Read the entire page →
From page 35... ... ESTIMATE QUALITY STRATEGY Use qualified personnel and uniform approaches to achieve improved estimate consistency and accuracy Cost Estimation Management Cost Estimation Practice Computer Software Conceptual Estimation C2.1 Agency Estimation Software C3.3 Cost/Parameter Using Similar Projects C2.3 In-House Conceptual/Parametric Estimation Software C3.4 Cost/Parameter Using Typical Sections C2.4 Simple Spreadsheet C3.5 Trns•port Estimate Review -- External E2.1 Expert Team Estimate Review -- Internal E3.3 In-House/Peer Project Scoping P2.1 Estimation Checklist P2.2 Scoping Document Right-of-Way R2.1 Acres for Interchange R2.2 Advanced Purchase (Right-of-Way Preservation) R2.4 Relocation Costs R2.5 Right-of-Way Estimator Training Read the entire page →
From page 36... ... Project Complexity Projects of all levels of complexity will benefit from project scoping efforts, even in the earliest stages of project development. Larger, more complex projects will, however, greatly benefit from the project scoping effort. Read the entire page →
From page 37... ... INTEGRITY STRATEGY Ensure that checks and balances are in place to maintain estimate accuracy and to minimize the impact of outside pressures that can cause optimistic biases in estimates Cost Estimation Management Cost Estimation Practice Computer Software C2.1 Agency Estimation Software C2.4 Simple Spreadsheet Read the entire page →
From page 38... ... B1.5 Variance Reports on Cost and Schedule Buffers B2.1 Board Approvals B2.2 Constrained Budget B2.3 Management Approvals Communication C1.1 Communication of Importance C1.2 Communication of Uncertainty C1.4 Definitive Management Plan C1.5 Proactive Conveyance of Information to the Public C1.6 Simple Spreadsheet C1.7 Year-of-Construction Costs Computer Software C2.1 Agency Estimation Software C2.3 In-House Conceptual/Parametric Estimation Software C2.4 Simple Spreadsheet Conceptual Estimation C3.3 Cost/Parameter Using Similar Projects C3.4 Cost/Parameter Using Typical Sections C3.5 Trns•port Consistency C4.5 Major Project Estimation Guidance C4.6 Standardized Estimation and Cost Management Procedures Delivery and Procurement Method D1.1 Contract Packaging D1.2 Delivery Decision Support Document Estimate Basis and Assumptions D4.1 Project Estimation File Estimate Review -- External E2.1 Expert Team Estimate Review -- Internal E3.3 In-House/Peer Identification of Risk I2.1 Red Flag Items Identifying Off-Prism Issues I3.1 Environmental Assessment I3.2 Percentage of Total Project Cost Project Scoping P2.1 Estimation Checklist P2.2 Scoping Document Recognition of Project Complexity R1.1 Complexity Definitions Right-of-Way R2.1 Acres for Interchange R2.2 Advanced Purchase (Right-of-Way Preservation) R2.4 Relocation Costs R2.5 Right-of-Way Estimator Training Risk Analysis R3.1 Analysis of Risk and Uncertainty R3.2 Contingency -- Identified R3.4 Estimate Ranges R3.5 Programmatic Cost Risk Analysis Read the entire page →

From page 22...

... These cost estimates are also often used in benefit-cost analysis for ranking projects and including them in the 25-year planning horizon. Key inputs into the cost estimation practice and cost estimation management processes are, where applicable, project scope and type, major project parameters, project complexity based on location, and anticipated size.