Procedures Guide for Right-of-Way Cost Estimation and Cost Management (2009) / Chapter Skim
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Pages 67-79
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From page 67... ...
In the case of a moderately complex project or a project of limited extent, the time duration, between when ROW acquisition must begin and the letting date, would probably be much shorter than that required for a complex project because fewer parcels are required. Before the start of appraisal and acquisition, the Updated ROW Cost Estimates are prepared periodically as project design progresses.
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From page 68... ...
Figure 6.1 shows the cost estimating and cost estimate management steps for updating the ROW cost estimate and then comparing the Updated ROW Cost Estimate with the Baseline ROW Cost Estimate. A decision point is shown on Figure 6.1 after the review estimate step because the comparison of the updated estimate versus the baseline cost may require action, especially when there is a significant increase in estimated cost over the baseline estimate or budget.
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From page 69... ...
YES NO Update ROW Estimate Basis Review current ROW plans and compare to previous requirements Identify changes Update ROW Estimate file Update ROW Risks & Contingency Review risks Update risks as necessary Update contingency value Document update to risk and contingency Input from Environmental, Utilities, Railroad Update ROW Base Estimate Review updated estimate basis to understand changes Document observations of field visit to confirm modifications Review changes to existing estimate assumptions/limitations Calculate total area of land for each parcel Revise cost basis to update estimate for each element Convert cost basis to update estimate for each element Update estimate documentations include uncertain items Summarize all estimate elements for updated total ROW cost Real Estate Appreciation Rate Land Market Values Field Visit by Estimator (Improvements, Damages, Existing Conditions, etc.) Condemnation Rate Historical Data -Removal of Improvements -Relocation Assistance -Support Costs Future Development (Community Planning)
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From page 70... ...
Tools Project ROW Cost Estimate File, Tool D4.1, will support this process step. This file should be created in the planning phase and then modified during programming to support the Baseline ROW Cost Estimate.
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From page 71... ...
The information contained in the file is used by the ROW estimator to modify the cost projections for the various elements of the base estimate. As shown in Figure 6.1, several critical inputs are needed to support the development of a cost basis for each element that composes the updated ROW cost estimate.
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From page 72... ...
The ROW Cost Estimate File should be populated with changes noted and additional information beyond what is included in the Cost Estimating System. 72 Procedures Guide for Right-of-Way Cost Estimation and Cost Management
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From page 73... ...
Update ROW Risks and Contingency After updating the ROW base estimate, the ROW risks and contingency element must also be updated to obtain an accurate total Updated ROW Cost Estimate. As the project progresses through preliminary design, risks will be either resolved or remain; therefore, the contingency Update ROW Cost Estimate 73
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From page 74... ...
Depending on project complexity, the ROW Cost Estimate File should contain a list of red flag items or a formal risk register from when the Baseline ROW Cost Estimate was prepared. However, the ROW estimator cannot rely solely on the red flag list or the risk register.
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From page 75... ...
The revised red flag items or risk charter should be documented in the ROW Cost Estimate File. The revised contingency should be combined with the base estimate to complete the Updated ROW Cost Estimate.
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From page 76... ...
If the updated estimate is greater then the baseline estimate, management must consider the causes of the cost increase and if the requirement for increased funds is acceptable or whether changes should be made to reduce project cost. Inputs Reviewers need a copy of the Updated ROW Cost Estimate and the ROW Cost Estimate File with the supporting documentation.
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From page 77... ...
Approve and Communicate Updated ROW Cost Estimate Budget control is critical to managing project costs as the design proceeds and there is increased pressure to expand the scope of a project. An authorized officer of SHA management must approved all cost estimates and certify that the project manager proceed with any change to scope that has affected cost.
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From page 78... ...
When the changes cause the total estimated ROW cost to exceed the amount of ROW funding (existing approved baseline estimate) by an amount greater than some nominal amount (Missouri DOT uses the annual inflation factor)
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From page 79... ...
Estimate inputs from disciplines, third parties, and driven by project requirements have to be communicated without ambiguity. Outputs The output of the approval step is an Updated ROW Cost Estimate.
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