FDOT Estimating Systems Support Manager Cost Estimate Management, Cost Trends and Long Range Estimates for Turnpike Enterprise / FICE Estimates Training Dale Stanley FDOT Estimating Systems Support Manager (850) 414-4197 SC 994-4197 dale.stanley@dot.state.fl.us

Topics Part 1: Part 2: Cost Estimate Management Cost Trends Communication Part 2: Estimating Systems LRE Update

Cost Estimate Management and Cost Trends Part 1 Cost Estimate Management and Cost Trends

Cost Estimate Management Means controlling scope of work and design parameters to stay within the construction cost budget Cost Estimates Task Team: “The Project Scope of Work should be well defined early in project development. Significant scope changes should be approved by upper management.”

Cost Estimate Management There may be times when changes are necessary, but cost management involves knowing the cost impact of these changes. We can’t expect to add work to a project without increasing the cost!

Cost Estimate Management Cost Estimates Task Team: “Estimates should NEVER be artificially constrained to stay within budget.”

Updating Budget Estimates In many cases, cost estimates are not updated frequently enough to reflect the latest scope of work until Phase III plans, when the pay items and quantities are available. Cost Estimates Task Team: “Estimates should be updated at every project phase and at least every six months, whether or not final quantities are available.”

Updating Budget Estimates Performance and Quality measures are based on the estimates at: Initial entry into the Work Program Scope development Phase 2, 30% Plans stage Official Estimate Estimates MUST be updated at each of these milestones !!

Communication

Communication Cost Estimate Task Team: “The Districts should foster a culture that requires a close working relationship between project consultants, project managers and estimators to ensure the project features are accurately reflected in the estimate.”

What Happens When the Estimator Isn’t Informed?

What Happens When the Estimator Isn’t Informed?

Consequences of Bad Estimates What happens if we underestimate? Projects may have to be moved out. Related activities (R/W, Utilities) will be affected. What happens if we overestimate? Production limits are not achieved. Public lack of confidence – we could have done more with the money we had.

Recent Cost Trends

Recent Cost Trends (Annual Averages) Asphalt Jan-Dec 2003 $53.93/ton Jan-Dec 2005 $77.66/ton Concrete (Structural) Jan-Dec 2003 $549.82/CY Jan-Dec 2005 $761.71/CY Steel (Reinforcing) Jan-Dec 2003 $.52/LB Jan-Dec 2005 $0.91/LB 44.0% 38.5% 75.0% Figures based on Weighted Averages

Rising Asphalt Costs by Quarter $85.38 $51.60 +20.1%

Rising Concrete Costs by Quarter $490.02 $1,045.14 +64.2%

Rising Steel Costs by Quarter $1.28 $0.53 +48.8%

Causes for Major Cost Increases Construction market saturation: “Hot” Market, both public and private sector Labor and equipment shortages, due to hurricane recovery efforts Material shortages Fuel cost increases Project requirements: Hours of operation Night work Delayed start

Estimating Systems and LRE Update Part 2 Estimating Systems and LRE Update

Estimating Systems Long Range Estimates (LRE) TRNS*PORT Budget, 5-Year Work Program Conceptual, prior to 60% Plans FDOT developed – “First in the Nation” TRNS*PORT Quantities based on complete Design Department’s Official Estimate AASHTO owned – developed by Infotech

Systems Interaction Budget $$ Pay Item Definitions Project Data & Prices Project Data Pay Items, Quantities & Unit Prices LAS TRNS*PORT CES

LRE Price Update

Price Update Process Update occurs each month Uses 1 year of bid history Uses all bidders New prices will appear on newly created projects Existing projects must be “refreshed” for new prices Blocked projects and locked pay item prices are not affected by price refresh.

Price Refresh Utilities available to LRE Coordinators Refresh Project Prices - allows individual, unblocked projects to be refreshed Mass Refresh of Project Prices – allows all unblocked projects within a District to be refreshed Mass Refresh of Selected Pay Items – allows selected pay item prices to be refreshed on all unblocked projects within a District.

Lock Price Features available to LRE Coordinators Reset and/or Lock default county prices on individual pay items Lock individual pay item prices within a project

Reset / Lock Default Prices Feature This price should be reset

Lock Project Prices Feature

Consultant Designers and Pricing Pricing LRE projects is usually done by the District Estimates Office, but each District has its own policy regarding pricing requirements. Make sure you know what your District requires!

Upcoming Enhancements

Interchange Models Default models will be available for several basic interchange designs (i.e., Compressed Diamond, Rural Diamond, Partial Cloverleaf, Semi-Directional, etc.) Model Selection will be from the sequence selection screen:

Interchange Model Selection DRAFT Subject to Change

Also In-Work: Change spec year to 2004 New Utility to copy a sequence from within the project New Field – “Quantities Complete in Trns*Port”

Intranet  Internet Next on the priority list - expected release in May No more VPN!! You will be notified when the permanent web address is known

Modifications Tracking Tab on the Main Version view will list: Date and time of change Userid Type of change (code, drills down to details) Net change in primary version cost

Architectural Component Provide site work details – Earthwork, Drainage, Electrical, Concrete, Hardscape, Utilities, Paving, Signing, Safety, Landscaping Choose building type from selection list – Administration, Rest Area, Weigh Station, Toll Plaza, Utility, Parking, ITS Provide Building details – SF, costs for concrete, masonry, metals, wood & plastics, doors & windows, finishes, etc., and cost-per SF will be calculated

Links to Typical Section Sketches

Other Pending Enhancements ITS as a subcomponent of Signalization Revise bridge types to match Trns*Port Updated pay items and fields for grassing, finished soil layer, rumble strips, etc. Many other minor enhancements

Our goal is to make the LRE system as easy and effective as possible for you! Use the Feedback button!!

Training Conducted in Districts, upon request One full-day session You must have an active userID PDH credits are now available Contact your District LRE Coordinator for information on upcoming classes.

District Estimates Coordinators D1 – Steve Walls D2 – W.C. Cobb D3 – Jess Bruner D4 – Gene Lipscomb D5 – Jonathan Linforth / Ed Kestory D6 – Ruben Rivero D7 – Jason Spilak TP – Don Brackins CO – Dale Stanley / Tyrone Ware