AASHTO Technical Committee on Cost Estimating AASHTO Subcommittee on Design Annual Meeting July 20,...

AASHTOTechnical Committee on

Cost Estimating

AASHTO Subcommittee on Design

Annual MeetingJuly 20, 2009

Lesly Tribelhorn, Chair, TCCE

Objectives

• Present TCCE Activities

• Introduce Cost Estimating Guidance

• Demonstrate Website

• Introduce FHWA/AASHTO Survey

• Discuss Future Opportunities

TCCE Presentation

• Brief History/Who We Are

• Goals

• Cost Estimating Guidance

• Research

• Website

• AASHTO/FHWA Survey

• Challenges and Opportunities

Brief History

• Formed in 2003 as a Task Force• Charge: focal point for cost estimating• Meet annually in conjunction with

Transportation Estimators Association (TEA)

• Helped developed FHWA guidance and training

• Bi-monthly phone conferences

TCCE – Who are we?

• 17 State DOT Cost Estimators

• Four members per region plus chair

• 10 of the original Task Force members

• FHWA (secretary)

• AASHTO liaison

TCCE – Who are we?

• Cost Estimators from:– Planning– Design– Contract Administration– Materials– Construction

TCCE Goals

• Create AASHTO position on best practices for developing estimates

• Prepare written policies and guidelines

• Review relevant research

• Minimize duplicative efforts

• Maintain peer review contact list

• Provide up-to-date web resources

Cost Estimating Guidance

• Using current research and syntheses

• Relying on TCCE member expertise

• Began with 3 chapters

• Revised draft version:– 4 complete chapters– Definitions– Outlines for future/developing work

Cost Estimating Guidance

CH 1: Introduction/Cost Estimating BasicsCH 2: Parametric EstimatesCH 3: Risk Based (Probabilistic) EstimatingCH 4: Estimating Using Historical Bid PricesCH 5: Cost Based Estimating CH 6: Inflation ForecastingCH 7: Bidding Strategies for Cost ControlCH 8: Evaluation of Contractor BidsCH 9: Performance Measures and TrackingDEFINITIONS

Cost Estimating Guidance

CH 1: Introduction/Cost Estimating Basics (Conceptual)CH 2: Parametric Estimates (In progress)CH 3: Risk Based (Probabilistic) EstimatingCH 4: Estimating Using Historical Bid PricesCH 5: Cost Based Estimating CH 6: Inflation Forecasting (In progress)CH 7: Bidding Strategies for Cost Control (In progress)CH 8: Evaluation of Contractor BidsCH 9: Performance Measures and Tracking (Outline)DEFINITIONS

Research

• Participate on research panels

• Review new reports

• Propose new cost estimating research

• Co-sponsor research proposals with other Technical Committees

Research

• Panel members on:NCHRP 8-49: Procedures for Cost Estimation and

Management for Highway Projects During Planning, Programming, and Preconstruction

NCHRP 20-7, Task 274: Price Indexing in Transportation Construction Contracts

NCHRP 20-7, Task 278: Production of the new AASHTO Practical Guide to Estimating

Research

• Review of recent national work:NCHRP 20-7, Project Cost Estimating: A Synthesis

of Highway Practice

NCHRP Report 574, Guidance for Cost Estimation and Management for Highway Projects During Planning, Programming, and Preconstruction

Research

• Review of state agency projects:FHWA/MT-08-007/8189: Highway Project Cost

Estimating (Montana DOT)

Mn/DOT Cost Estimating Process Improvement & Organizational Integration – Phase I (Minnesota DOT)

Highway Cost Estimating (Nevada DOT)

Research and Reports

FHWA/MT-08-007/8189: Highway Project Cost Estimating and Management

TRB 25-25, Task 39: Improving Project Environmental Cost Estimates

NCHRP 8-60: Guidebook on Risk Analysis Tools and Management Practices to Control Transportation Project Costs

GAO Cost Estimating and Assessment Guide

Website

• AASHTO SCOD homepage– Technical Committees

• Cost Estimating http://design.transportation.org/?siteid=59&pageid=756

• Cost Estimating Clearinghouse– Guidance– Research links– State DOT links (coming soon)– State Contacts (coming soon)

AASHTO/FHWA Survey

• Summer 2009

• For States and FHWA offices

• Questions developed jointly

• Assist with TCCE direction and goals

• Opportunity to update state contacts list

Challenges

• Volunteer time

• Travel restrictions

• Communication with other TC’s

• Subject of cost estimating under scrutiny

Opportunities

• Active group

• Networking annually with TEA

• Teleconferencing

• Newly approved research project

• Estimating gaining attention and importance

• New research

Conclusion

• Hard working, intellectual group

• Goals align with AASHTO needs

• Draft guidance available on web

• Guidance publication anticipated 2010

• Web-based resources for estimators

• Continually up to date with research

Questions?

Contact Information

• Lesly Tribelhorn, TCCE Chair

Montana Department of Transportation

(406) 444-6242 ltribelhorn@mt.gov• Dave Kent, TCCE Vice Chair

New York State Dept. of Transportation

(518) 457-0520 dkent@dot.state.ny.us • Jim McDonnell, AASHTO

(202) 624-5448 jimm@aashto.org