01155409

Component

The current funding environment creates a critical need to ensure that project cost estimates are as accurate as possible. Thus, cost escalation has become a major concern in virtually every field of capital project development. On top of regular inflation, the volatility of the global oil market is tied directly to most construction related items (primarily asphalt), thereby causing shifts in cost by the rising and falling oil prices. Within the transportation sector, cost escalation has attracted attention at the federal, state, regional, and local government levels for highways, transit, and other modes. In the past five years, Georgia Department of Transportation (GDOT) has experienced significant cost overruns both at the engineering, right-of-way, utility relocation and construction project stages. Due to these overruns, the Department proactively developed new processes and procedures to assist estimating project costs at the planning-level. Reliable planning level project cost estimation is essential for successful project delivery. Since project costs are first estimated at the planning level, this initial estimate must be based on a sound process to ensure a reliable estimate is developed for decision-makers. The dependability of sound preliminary engineering, right-of-way, utility relocation, and construction planning level cost estimates is a major component in the development of a transportation program. If planning level projects costs are not adequately estimated at the planning stage, projects most likely will be delayed or even cancelled once a final cost is developed. The Georgia Department of Transportation Office of Planning and Wilbur Smith Associates led a team that developed a new planning level cost estimation process that created new tools, and processes and procedures that are outlined in a 266-page Cost Estimation Handbook. This innovative project was initiated by GDOT Office of Planning to ensure accurate planning level cost estimates are completed early in the project planning process and to provide decision-makers reliable information to prioritize and develop sound transportation programs. This ground breaking project can assist other state DOTs and metropolitan planning organizations (MPOs) to develop practices that will improve their planning level cost estimation process and stabilize their transportation programs.

01147878

10-1109

English

18p

2010

Transportation Research Board 89th Annual Meeting

DVD

Figures (8)

Construction projects; Cost estimating; Cost overruns; Financing; Planning and design; Planning methods; Project management; Right of way (Land); Systems analysis

Utility relocation

Georgia

Finance; Highways; Planning and Forecasting; I72: Traffic and Transport Planning

Transportation Research Board Annual Meeting 2010 Paper #10-1109

TRIS, TRB

Jan 25 2010 10:29AM