1. ROAD CONSTRUCTION COSTS Key Concepts

2. Types of Main Road Works Routine Maintenance Works are day-to-day running repairs, e.g. Potholes, depressions, crack sealing etc. Periodic Maintenance Works are planned, e.g. resurfacing works - expected to be undertaken every 10 years or so Rehabilitation or Up-gradation Works Undertaken when the pavement is not providing an appropriate level of service Determined by roughness, distress and maintenance costs

3. Interrelationships

4. Cost Estimation Inputs Pavement Traffic (current and future), existing condition, design life, type of pavement Bridges and other Cross Drainage Structures Structural design or rehabilitation requirements Type of the structure, life of the structure Hydrology Ancillary works Road Signs, Pavement markings etc. Pedestrian facilities Road side drainage Lighting etc. Environmental & Social Impact Management Measures E.g. Land Acquisition

5. Typical preparation for a Major Work Data collection Surveying Pavement Condition Assessments Soil and Material Testing Traffic Drainage and Hydrological Studies Designing Pavement Design Structural Design of Bridges Identification of material sources Environmental and Social Assessment Estimation Quantify Takeoff Estimating Unit rates for the items. Finalize time for construction Usually ends with Economic justification of the investments

6. Remember : Triple Constraint

7. Possible Reasons for Cost Variance Size of the Project Location of the Project Construction Time Heterogeneous Specifications Market Competition Reliability of Funding Oversight/Governance Procurement and Contract Management Procedures Tax Structure (Exemptions) Contracting Methodology

8. Possible Source of Cost Estimates Detailed Design Reports Historical Unit Rates Road Agency’s Database of Major Contracts

9. Cost per KM for Recent Road Contracts 25-180 Km 10-25 Km <10 Km Size does matter!!

10. Cost Per Km & Source of Funding Bank FundedADBGOL Stable Funding helps!!

11. Cost Per Km & Procurement Method ICB NCB Sole Sourced LIB

12. Cost Per Km & Contracting Methodology DBOMT DBT INPUT Performance Contracts Perform!!

13. Questions?