Federal Agency Update - A Public Real Estate Symposium. Procedures Guide for Right of Way Cost Estimation and Cost Management. Las Vegas, Nevada January 26, 2010. NCHRP 8- 49 (2).
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Procedures Guide for Right of Way Cost Estimation and Cost Management
Las Vegas, Nevada
January 26, 2010
Stuart AndersonTexas A&MKeith MolenaarUniv. ColoradoCliff SchexnayderDel E. Webb School of Const., Arizona State U.
This ROW Guidebook includes content from the accompanying project Research Report 132 and the Estimating Guide 574
NCHRP Web-Only Document 132Right of Way Methods and Tools to Control Project Cost Escalationhttp://onlinepubs.trb.org/onlinepubs/nchrp/nchrp_w132.pdf
Develop inclusive right-of-way cost estimation and cost estimation management procedures based on literature and current practice, that integrates with the cost estimate steps documented in
NCHRP Report 574
NCHRP Report 574
1. Literature review
2. On-site interviews
Six areas of interest that focused on different aspects of the cost estimation & estimate management process
SHAs and other organizations that acquire ROW
Central Office and Region/District perspectives
Ask questions relative to project development phase
Early flowchart feedback
Chp 1 Introduction
Chp 2 Integrated Estimating Process
Chp 3 Agency Process Overview
Chp 4 Conceptual ROW Estimating
Chp 5 Baseline ROW Estimating
Chp 6 Update ROW Estimating
Chp 7 ROW Cost Management
Chp 8 Conclusions
Appendix - Tools
Tools Appendix – provides detailed information on each of the tools discussed in the Procedures Guide.
Tool description is consistent with that used in NCHRP Report 574.
PrepareBaseline ROW Base Estimate
Baseline ROW Cost Estimate
Baseline ROW Risk/Contingency
Review Baseline ROW Estimate
Approval Baseline ROW Estimate
Update ROW Base Estimate
Update ROW Cost Estimate
Update ROW Risks/contingency
Review Updated ROW Estimate
Estimate in Budget
Approve Updated ROW Estimate
Final Design Phase
Generic methods include:
• B1 Budget Control
• C1 Communication
• E2 Estimate Review - External
• E3 Estimate Review - Internal
• I2 Identification of Risk
• R3 Risk Analysis
Analysis of Risk and Uncertainty
Analysis of uncertainty involves quantifying identified risks. Risk analysis is used to prioritize identified risks for mitigation, monitoring, and control purposes. Risk analysis can be extremely helpful for understanding project uncertainty and setting appropriate contingencies.
What Is It?
In the context of cost estimation, this tool quantifies project risk and uncertainty to provide a better understanding of contingency and the ultimate project cost.
Highway project delivery, particularly the estimation of right-of-way cost, is a complex task heavy with uncertainty.
What Does It Do?
This tool quantifies the effect of potential risks in terms of their consequences to cost and schedule.
Risk analysis can be used throughout the project development process.
Caltrans has documented a qualitative risk analysis procedure: Project Risk Management Handbook: Threats and Opportunities,May 2007
Conduct the risk analysis early in the project development process.
Project Risk Management Handbook: Threats and Opportunities, Caltrans,
Stick to the process ―a process that: