Procedures Guide for Right-of-Way Cost Estimation and Cost Management (2009) / Chapter Skim
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Pages 14-22
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From page 14... ...
Similarly, cost estimate management techniques will vary depending on the level of project scope definition, organization of the project team, and cost detail presented in the estimate. An understanding of project development phases is necessary to discuss the rationale behind a structured ROW cost estimating and cost estimating management approach.
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From page 15... ...
The preparation of costs estimates at various times throughout preliminary design validates project cost against design detail and scope changes. Any later estimate indicating cost growth above the baseline triggers cost management procedures to bring the project cost back in line with programmed amounts (e.g., value engineering studies, creation of a new revised baseline with additional funding, consideration of design alternatives that mitigate ROW cost.)
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From page 16... ...
so as to correspond to the ROW cost estimating practices discussed in detail in Chapters 3 through 6. Illustrations of the ROW cost estimation process steps in the introductory sections of the chapters that follow present and discuss more specific items for each project development phase: Chapter 4, "Conceptual ROW Cost Estimation" for the planning phase; Chapter 5, "Baseline ROW Cost Estimate" for the programming phase; and Chapter 6, "Update ROW Cost Estimate" for the preliminary design phase.
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From page 17... ...
Integrated Estimating Process 17 Cost Estimating Step Description Determine estimate basis Document project type and scope including scope documents; drawings that are available (defining percent engineering and design completion) ; project design parameters; project complexity; ROW requirements unique project location characteristics; and disciplines required to prepare the cost estimate.
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From page 18... ...
SHA leadership must advance an estimation management strategy that fosters and supports estimate accuracy and consistency through all phases of project development. The highest levels of SHA leadership are responsible for publicly explaining how the project development process works and, most 18 Procedures Guide for Right-of-Way Cost Estimation and Cost Management Cost Estimate Management Step Description Obtain appropriate approvals Obtain management authorization to proceed by review of current project scope and estimate basis; securing of approvals from appropriate management levels; approval of current estimate, including any changes from previous estimate; approval of ROW estimate; and release of estimate for its intended purpose and use.
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From page 19... ...
Apparently, SHAs base their estimation practices solely on the experience of the personnel in charge of preparing estimates, usually the section head. Agencies must approach estimate development in the same manner as design and construction -- with documented processes to guide cost estimation practice and cost estimation management throughout project development.
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From page 20... ...
Therefore, the requestor receiving the estimate, usually the project manager, must decide when in the future the ROW purchase will take place and use the appropriate inflated cost. The project manager is assumed to have better insight concerning the project time line and is consequently the appropriate individual for selecting the ROW cost to be used in the total project estimate.
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From page 21... ...
Communication is very important in the case of early estimates, and management must make all users aware of an estimate's precision and its limits of accuracy. These management actions, the use of conceptual estimating techniques, and proper communication of estimate uncertainty can significantly improve proper use of early ROW cost estimates.
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From page 22... ...
communicating the importance and accuracy of each estimate with internal and external stakeholders. This Guide presents a strategic approach to implementing ROW cost estimating and estimate management that will help agency management understand the importance of its role in producing accurate ROW cost estimates.
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