Appendix K -- Anacostia Capital Cost Methodology Report · PDF fileEnvironmental Assessment and Section 106 and 4(f) Evaluations ... clearing and grubbing, rough grading, excavation,

APPENDIX K

Capital Costs Methodology Report

September 2013

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Capital Cost Estimating Methodology Report September 2013

Anacostia Streetcar Phase 2

Environmental Assessment and Section 106 and 4(f) Evaluations


Capital Cost Estimating Report

Table of Contents

1.0 Information ................................................................................................................. 5

1.1 Introduction .................................................................................................................................. 5

1.2 Purpose and Goal .......................................................................................................................... 5

2.0 Description of Project .................................................................................................. 6

3.0 Standard Cost Categories (SCC) .................................................................................... 8

3.1 FTA Category 10 – Guideway and Track Elements........................................................................ 8

3.2 FTA Category 20 – Stations, Stops, Terminals, and Intermodal .................................................... 9

3.3 FTA Category 30 – Support Facilities, Yards, Shops, and Administrative ..................................... 9

Buildings .................................................................................................................................................... 9

3.4 FTA Category 40 – Sitework and Special Conditions ..................................................................... 9

3.5 FTA Category 50 – Systems ........................................................................................................... 9

3.6 FTA Category 60 – Right of Way, Land, and Existing Improvements .......................................... 10

3.7 FTA Category 70 – Vehicles ......................................................................................................... 10

3.8 FTA Category 80 – Professional Services .................................................................................... 10

3.9 FTA Category 90 – Unallocated Contingency .............................................................................. 10

3.10 Finance Charges .............................................................................................................................. 11

4.0 Capital Cost Estimating Methodology ........................................................................ 11

4.1 Estimate Structure .......................................................................................................................... 11

4.2 Basis of Estimate ......................................................................................................................... 11

4.3 Types of Costs (Unit Prices) ......................................................................................................... 12

4.3.1 Historical Bid Price Method ................................................................................................ 13

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4.3.2 Time and Material Price (Crew Price) Method ................................................................... 13

4.3.3 Miscellaneous Estimate Types ............................................................................................ 14

4.4 Software ...................................................................................................................................... 15

4.5 Engineering Design Phase Cost Estimate Types .......................................................................... 15

4.5.1 Preliminary Engineering Design Phase Cost Estimate......................................................... 15

4.5.2 Advanced Engineering Design Phase Cost Estimate ........................................................... 15

4.5.3 Detailed Breakdown of Quantity Items for Design Phases ................................................. 16

4.6 Quantity Takeoff ......................................................................................................................... 16

4.7 Undefined Scope of Work Factor ................................................................................................ 16

4.8 Contingency ................................................................................................................................ 17

4.8.1 Allocated Contingency ........................................................................................................ 17

4.8.2 Unallocated Contingency .................................................................................................... 17

4.9 Estimate Reconciliation ............................................................................................................... 18

4.10 Escalation .................................................................................................................................... 18

4.11 Right-of-Way Cost ....................................................................................................................... 18

4.12 Soft Cost ...................................................................................................................................... 20

4.13 Estimate Review and Approval ................................................................................................... 20

4.14 Miscellaneous ............................................................................................................................. 21

APPENDIX A ........................................................................................................................ 23

QUANTITY TAKEOFF PROCEDURES ........................................................................... 23

A.1 General ....................................................................................................................... 23

A.2 Quantity Takeoff Procedures ....................................................................................... 23

A.2.1 General Considerations ............................................................................................................... 23

A.2.2 Forms .......................................................................................................................................... 23

A.2.3 Takeoff Methods ......................................................................................................................... 25

A.2.4 Quantity Rounding ...................................................................................................................... 26

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A.2.5 Miscellaneous ............................................................................................................................. 27

APPENDIX B ......................................................................................................................... 28

SAMPLE CURRENT FTA SCC SPREADSHEET ........................................................... 28

APPENDIX C ......................................................................................................................... 33

EXAMPLE WORKSHEET ................................................................................................ 33

List of Tables

Table 1: Allocated Contingency Percentages for Planning Estimates ......................................................... 18

Table 2: Unallocated Contingency Percentages for Estimates ................................................................... 18

List of Figures

Figure 1: Project Development Stages .......................................................................................................... 4

Figure 2: Project Study Area ......................................................................................................................... 6

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1.0 Information

1.1 Introduction

This report summarizes the methodology that will be used to develop the capital cost estimates for the

Anacostia Streetcar Project (Project) administered by the District Department of Transportation (DDOT).

This document is organized as follows:

� Section 2 – Description of Project;

� Section 3 - sets out the Federal Transit Administration (FTA) capital cost categories used for unit

costing;

� Section 4 - describes the methodology used to prepare the cost estimates;

� Appendix A - provides the procedures to be utilized for quantity takeoff;

� Appendix B - provides a sample FTA SCC (Standard Cost Category) Spreadsheet; and

� Appendix C - is the unit cost database.

1.2 Purpose and Goal

The purpose of this cost methodology report is to provide written guidance for the production of

consistent and technically sound capital cost estimates. It should be noted this report is a living

document, and that cost estimates prepared based on this methodology will be developed which are

appropriate to the stage of project development and current conditions in the Washington DC

development market and the project area. The major development stages defined by FTA and modified

for this project include:

Figure 1: Project Development Stages

Development

Stage

Engineering Design Completion

0% 10% 20% 30% 65% 90% 100%

System Planning

A A/EA

PE & Adv PE Design /EA

Final Design

Construction

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These development stages represent the different degrees of project definition and thus the level of

engineering design completed. They will be used throughout this document to indicate different

applications of the various estimating policies or procedures. Because of the variability, the decision on

what is the most appropriate estimating procedure to apply at any given point will be made based on

the actual levels of project engineering and project definition at that time. The goal is to prepare project

estimates in a consistent and uniform manner, organized and standardized in methods and format to

facilitate cost estimate review and checking. Project estimates will be prepared to meet the latest

revised application and submission requirements for the FTA’s Standard Cost Categories. For

information on the current FTA guidelines go to:

http://www.fta.dot.gov/planning/planning_environment_5221.html

2.0 Description of Project

The DC Streetcar program is a central part of the District Department of Transportation’s (DDOT)

commitment to improve quality of life in the District by effectively providing neighborhood access and

transportation choice, connecting the Metro stations and facilitating economic development and

neighborhood sustainability in the selected corridors.

In 2010, the District Department of Transportation (DDOT) requested that the Federal Transit

Administration (FTA) consider initiating the National Environmental Policy Act (NEPA) review process for

the Anacostia Initial Line Phase 2 Extension Project. The proposed project is a fixed guideway transit line

that includes electrically powered streetcar vehicles operating along tracks located within the existing

street and travel lanes. The project would connect the Anacostia Metrorail Station and the Downtown

Anacostia business and Historic District.

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Figure 2: Project Study Area

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3.0 Standard Cost Categories (SCC)

All major transit investments pursuing federal funding through the FTA grant programs must organize

project costs according to the agency’s Standard Cost Categories structure. The most recent FTA capital

costing format will be used for providing totals for each category. as required for New Starts Projects.

Both the “bottom up (deterministic)” and “top down (stochastic)” approaches will be used for these

estimates. The “bottom up” approach totals the cost of each component of a category. The “Top Down”

approach provides an order of magnitude cost based on data from projects that are similar in nature,

where the cost is divided by a unit of measure and applied as a unit cost. The estimate data will be

included as backup within the capital cost estimate. The FTA Main Worksheet includes the following

categories:

� Category 10: Guideway and Track Elements

� Category 20: Stations, Stops, Terminals and Intermodal

� Category 30: Support Facilities: Yards, Shops, and Administrative Buildings

� Category 40: Sitework and Special Conditions

� Category 50: Systems

� Category 60: Right of Way, Land, and Existing Improvements

� Category 70: Vehicles

� Category 80: Professional Services

� Category 90: Unallocated Contingency

� Category 100: Finance Charges

3.1 FTA Category 10 – Guideway and Track Elements

Guideway and track elements consist of portions of the transit system constructed within the transit

right-of-way. Category 10 includes a guideway within a dedicated/exclusive right-of-way or in mixed

traffic; required cut and fill; underground tunnels and aerial structures; embedded track; direct fixation

track; ballasted track; necessary removal of asphalt, earth excavation, backfill, drilling, mining, finished

grading, and retaining walls; and other work needed for guideway or track construction. The unit of

measure will be route miles, regardless of width, and double track unless otherwise noted.

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3.2 FTA Category 20 – Stations, Stops, Terminals, and Intermodal

Category 20 consists of any cost associated with the stations either above or below ground including:

grading, excavation, ventilation structures and equipment, station power and lighting, platforms,

canopies, finishes, equipment, ticket vending machines, landscaping, mechanical and electrical

components, access control, security, artwork, station furnishings (benches, trash receptacles, etc.) and

signage.

3.3 FTA Category 30 – Support Facilities, Yards, Shops, and Administrative

Buildings Category 30 is comprised of vehicle storage and maintenance buildings; track for storage of vehicles;

office support areas; major shop equipment and bus maintenance facilities; costs associated with

clearing and grubbing, rough grading, excavation, construction of building structures, drainage facilities,

roadways, asphalt pathways, lighting, mechanical and electrical components, landscaping, access

control, safety and security, fueling stations; and other items necessary for construction and operation

of a storage and maintenance facility.

3.4 FTA Category 40 – Sitework and Special Conditions

Included within Category 40 are all of the materials and labor required for construction of the

transitway; environmental mitigation and hazardous material/soil contamination removal; required

wetland, historical/archeological and park mitigation; sidewalks, public art and bike facilities; fencing;

site lighting and signage; as well as any costs associated with mobilization, traffic mitigation and

temporary construction. Examples of sitework includes the costs for clearing, grubbing, earthwork,

utility relocations (private and public), hazardous material mitigation, wetland mitigation, construction

of retaining or MSE walls, roadways, curb and gutter, drainage facilities, streetscape improvements

landscaping, and the installation of erosion control measures and maintenance of traffic devices not

otherwise include in the other categories.

Note: Pending verification, private utilities required to relocate at their own expense will not be included

in the cost estimate.

3.5 FTA Category 50 – Systems

Category 50 includes costs associated with communications, train control, train signals, traffic signals,

crossing protection, traction power substations, and the catenary power distribution system.

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3.6 FTA Category 60 – Right of Way, Land, and Existing Improvements

Category 60 includes the costs for parcel impacts, including purchase, easements, relocations real estate

fees, and professional services associated with parcels needed for the transit and highway

improvements. Professional services can include administration, real estate and relocation consultants,

legal counsel, court expenses, insurance, etc.

3.7 FTA Category 70 – Vehicles

Category 70 includes the cost of streetcar transit vehicles.

3.8 FTA Category 80 – Professional Services

Under professional services Category 80, FTA stipulates eight sub-categories. These represent

expenditures related to project engineering; project and construction management; insurance; legal

matters (such as permit review fees and surveys); testing and inspections; and technology-related

training of personnel.

The costs allowed for each professional service subcategory will be estimated using a percentage based

on historical averages for projects of this type. The right-of-way and vehicle procurement costs are not

factored in when calculating professional services. Costs will be calculated individually for each

professional service sub-category, and not cumulatively.

The eight professional services sub-categories include:

� Preliminary Engineering/Advanced Engineering;

� Final Design;

� Project Management for Design and construction;

� Construction Administration and Management;

� Professional Liability and other Non-Construction Insurance;

� Legal, Permits, Review Fees by other agencies, cities, etc.;

� Surveys, Testing, Investigation, and Inspection; and,

� Start up.

3.9 FTA Category 90 – Unallocated Contingency

Category 90 provides a standard unallocated contingency to account for any items or issues potentially

not considered.

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3.10 Finance Charges

Category 100 includes finance charges expected to be paid by the project sponsor/grantee prior to

either the completion of the project or the fulfillment of the funding commitment, whichever occurs

later in time. Finance charges incurred after the later of these two dates will not be included in the total

project cost.

The finance charges will be derived from the project’s financial plan, based on the analysis of the

sources and uses of the funds. The amount and type of debt financing required and revenues available

determine the finance charges. By year, the finance charges will be calculated in year of expenditure

(YOE) dollars.

4.0 Capital Cost Estimating Methodology

4.1 Estimate Structure

All estimates will be prepared in a standard estimating format, appropriate for the stage of project

development. The following format will be used to assemble an estimate:

� Letter of transmittal;

� Basis of estimate;

� Details of estimate;

� Estimate summary;

� Quantity takeoff; and,

� Estimate reconciliation or variance report (if a previous estimate exists).

4.2 Basis of Estimate

The Basis of the Estimate provides specific information related to the development of the estimate that

includes:

� Scope of the Estimate – provides a brief written description of what the estimate covers.

� Drawings – references the engineering drawings or sketches on which the estimate is based,

drawing set titles or description and publication date should be listed.

� Specifications – the specification (if any) on which the estimate is based.

� Estimate format – a description of the data base used and the report formats.

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� Quantities – indicates how quantities were developed and calculated, as well as limitations.

� Labor and burden – indicates what the labor and burden costs include and the effective date of

the labor rates, and discusses unusual burdens such as premium pay for overtime.

� Materials – indicates sources of materials pricing.

� Sales tax – if included, indicates the percentage used.

� Equipment – indicates sources of material pricing.

� Subcontracts – indicates what costs are included in subcontact work.

� Contingency – indicates how the contingencies were calculated (if different from the

recommended percentages).

� Escalation – indicates present-day cost or the date-of-expenditure cost when escalated,

including the rate of escalation and method of calculation.

� Construction Schedule – indicates start and finish dates, sequence of activities if pertinent to the

estimate, and a cash flow based on the estimate.

� Cost Exclusions – provides a list of any items not included in the estimate that may become a

Project expense.

� Estimate Discussions/Comments – identifies any items that can affect either cost or schedule,

and that have not been covered in any of the above paragraphs. It also lists observations,

recommendations, or unusual features of the project, from the estimator’s perspective.

4.3 Types of Costs (Unit Prices)

There two methods commonly used for estimating unit prices:

� Historical Bid Price Method as a basis for establishing unit prices for a proposed project, based

on past unit price bids for similar work adjusted for time and project location using a recognized

construction cost index.

� Time and Material, also know as Crew Price, Method of development for unit prices based on

nationally recognized productivity, local labor and equipment rates from a similar or same

database; and material or subcontract costs from the same data base or as obtained by the

estimating team for the project.

These methods can be used either individually or in combination. For the 30 percent preliminary

engineering estimates, the Time and Material or Crew Time Method begins to replace historical bid

prices for those items that can be quantified based on actual preliminary designs or appropriate

assumptions which can significantly contribute to the project’s total cost. In some cases, neither the

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Historical Bid Price method and Time and Material Method will accurately portray the cost, in which

case, a specialized cost method will be utilized.

4.3.1 Historical Bid Price Method

Preparing capital cost estimates using historical bid prices is one of the simplest and most widely used

methods. When using this method, a number of considerations will be taken into account and factors

applied as needed:

� Adjust any bid prices where the date is older than 12 months from the current date by using an

escalation factor as described in Section 4.10.

� Adjust bid prices to reflect conditions of the project, such as type of terrain, geographical

location, soil, traffic and other related factors, and economic conditions. These adjustments are

typically based on the experience and judgment of the estimator. For location factor

adjustments, the City Cost Index published by RS Means will be used.

� Ensure that the scope of work in the historical unit price is substantially similar to the work on

this project.

There are two primary sources for historical bid prices that will be used, and they can be broadly

grouped into civil/structural and systems. The civil/structural items will be taken from the District of

Columbia historical bid prices. The systems group typically represents items that are unique to transit

construction projects and include items like trackwork, traction power, train control, fare collection, etc.

Unit prices for items in this category will be taken from a database of historical bid prices from other

transit projects around the United States and then adjusted by escalation and location factors.

4.3.2 Time and Material Price (Crew Price) Method

This method allows a unit price to be developed that can better reflect current pricing levels based on

local factors and conditions. It is also easier to make adjustments for changes in market conditions,

which might affect productivity or the cost of labor or materials. One of the advantages of using an

estimating program based on a nationally recognized database, is that the input and analysis of the data

necessary to calculate the unit price for any given construction activity is an integral part of the

software. The following steps are required in order to develop a unit price using this method:

� Analyze the proposed construction,

� Develop quantities for work design or based on appropriate assumptions,

� Estimate productivity rates based on past experience or a recognized database,

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� Obtain materials prices using available sources and local vendors of a recognized database,

� Determine labor and equipment rates from local sources or a recognized database,

� Add subcontractor mark ups for work typically subcontracted,

� Calculate direct unit price using the above factors, and

� Add general contractors' mark ups to include overhead and profit for the total unit price.

The following sources will be used to obtain basic cost data that will be input into the database

estimating program in order to develop any needed construction unit prices:

� Labor rates – Davis Bacon Wage Determination for the District of Columbia or rates from

the recognized database adjusted for the geographic area,

� Equipment rates – RS Means and/or Corp of Engineers Construction Equipment Ownership and

Operating Expense Schedule, and

� Material prices Material and supply prices for locally available material will be obtained from

local supplier quotes, if possible. Secondary sources of material cost data may be taken from R.

S. Means, Engineering News-Report (ENR) or other published resource.

4.3.3 Miscellaneous Estimate Types

There are a number of special estimate types that are sometimes required during the project

development process. The methodology used to develop the costs associated with these estimates is

again a function of the level of engineering design available when the estimate request is developed.

These estimate types include:

� A Fair Price Cost Estimate is developed from information pertaining to a specific project or

contract unit that is already under fabrication, installation or construction. It may be used as the

basis for negotiations with the contractor or as a comparison to estimates submitted by the

contractor reflecting changes in the scope of the original contract (change orders or claims) to

assure that the quoted price is fair and equitable. It is normally used during the construction

phase;

� A Life Cycle Cost Estimate is appropriate when there is a desire to compare two or more

alternative design choices where initial capital cost comparisons only could lead to the

erroneous selection of the most cost effective solution. This estimate takes into account the

annual costs (O&M) related to each alternative as well as the initial capital cost. It is normally

used during the design phase; and,

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� Design or Trade-off Studies are generally design phase support estimates and can be developed

by either parametric or deterministic methods. These estimates are looking at differential costs

and not the total cost of each option under study. Care has to be taken to set boundaries for

each option that are consistent so that "apple and oranges" comparisons are not made.

Differential costs will be expressed in dollars and not as a percentage difference.

4.4 Software

There are a number of choices that can be made in the selection of software to be used for developing

and preparing capital cost estimates. These choices include standard spreadsheet software like

Microsoft Excel, or commercially produced database estimating programs such as Timberline that

contains a cost database developed from both historical and current pricing. All costs are kept up to

date to reflect the most current market conditions. Cost estimates will be developed in both Timberline

Extended using the most current RS Means database and Microsoft Excel. Reports will be generated in

Microsoft Excel with supporting sub-reports from both Excel and Timberline.

4.5 Engineering Design Phase Cost Estimate Types

The type of cost estimate that will be used for any given project development stage will be dependent

on the level of engineering design that has been completed. The decision on which estimate type is

appropriate for a particular project or portion of the project will be based on the estimator's experience

and judgment considering the level of engineering design completed at the time the estimate is

requested. The two major estimate stages to be used for the corridor/segments are defined as follows:

4.5.1 Preliminary Engineering Design Phase Cost Estimate

At the typical Preliminary Engineering Design Phase, the Conceptual Design based cost estimate will be

refined to include more detailed cost estimating of the work for items such as demolition of existing

structures and roads, stormwater drainage, refined structural items (bridges and retaining walls), utility

relocations, waterline relocations, sewer line relocations, systems integration, grading and drainage for

stations, utilities for stations, electrical/mechanical and fire protection for parking decks. The

preliminary engineering design phase cost estimate will be a mix of historical unit price and crew price

methods based on the design detail of particular elements. Based on past projects of this type, the ratio

of historical unit price to crew price will range from 50/50 to 30/70 respectively.

4.5.2 Advanced Engineering Design Phase Cost Estimate

At the Advanced Engineering Design Phase, the typical Preliminary Design based cost estimate will be

refined to include more detailed quantifying of work and development of more unit costs based on the

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crew price method. This will include the following additional items not found in the Conceptual Design

based cost estimate and Preliminary Design based cost estimate, erosion control items. At this stage the

majority of the unit costs will be developed using the crew price method and detailed quantities will also

be available for the majority of the work. Historical unit prices will only be used when sufficient detail is

not provided on the plans or sufficient information does not permit appropriate assumptions to be

made for the development of quantities. Based on past projects of this type, the ratio of historical unit

price to crew price method will range from 30/70 to 10/90 respectively.

4.5.3 Detailed Breakdown of Quantity Items for Design Phases

Appendix C provides an example of the items that will be calculated for the Preliminary and Advanced

Engineering Design Phases. Spread sheets will be developed for each corridor/segment estimate. The

items shown may not include all items necessary to cover the cost estimate for the design phase, but

serves as a base to begin developing the items that will included in the cost estimates.

4.6 Quantity Takeoff

A recommended method and procedure for quantity takeoffs is provided in Appendix A for reference.

4.7 Undefined Scope of Work Factor

At the different stages of engineering design in which a cost estimate is developed, an undefined scope

of work percentage factor will be applied to account for items that are not individually addressed in the

design documents and therefore have not been anticipated in the cost estimate. The undefined scope of

work factor is added to the estimate to cover design details, work normally a part of this type of project,

uncertainty in the information used to develop quantities, and the appropriateness of the historical unit

pricing used. This factor excludes: 1) major scope changes such as changes in end product

specifications, capacities, building sizes, and location of the asset or project; 2) extraordinary events

such as major strikes and natural disasters; 3) management reserves; and, 4) escalation and currency

effects. Using this definition the following percentages will be applied at the corresponding engineering

design phases:

� Preliminary Engineering Design Phase - The preliminary engineering design phase will be a

refinement of the Conceptual Design phase, but still will not include quantities for all items.

Therefore, a 20% undefined scope factor will be used.

� Advanced Preliminary Engineering Design Phase - The Advanced engineering design will have

most quantity items included and will have the most refined quantity estimate for this portion

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of the project. A 15% undefined scope factor will be used to account for further detailed plans

developed during the final phase of the project.

4.8 Contingency

Contingencies typically included in an estimate as an allowance for lack of information incorporated in a

particular design phase. As noted above, we have accounted for the anticipated direct cost related to

limited design details with the Undefined Scope of Work Factor defined in paragraph 4.7. Contingency

allowances are used to account for those items of work (and their corresponding costs) which may not

be readily apparent or cannot be quantified at the current level of design, such as major project scope

changes, a potential project change resulting from public/political issues, environmental or technical

requirements, or risk associated with right-of-way. For the purposes of this estimating program,

contingency will be assigned into two major categories – allocated and unallocated. The allocated and

unallocated contingencies will be applied in the appropriate FTA category, and will not necessarily be

the same for all of them.

4.8.1 Allocated Contingency

Allocated contingency will be used for projects where the engineering design level is determined to be

less than preliminary engineering completed, such as Conceptual Design. Because the level of project

information is incomplete for individual scopes of work and the risk associated with this lack of

information for items described in paragraph 4.8, a contingency allowance in the range of 10% to 50%,

will be allocated based on the FTA construction or procurement cost categories. The exact percentage

selected for each cost category will be based on professional judgment and experience related to the

cost variability typically seen for items of work within a particular cost category. The percentages shown

in Table 1 are the values that will normally be used; however, slightly higher or lower values may be

used if a project specific condition warrants.

4.8.2 Unallocated Contingency

Unallocated contingency is the second category to be used. The reasons for applying this contingency

are similar to those for allocated contingency, primarily as an allowance for unknowns and risk related

to the level of engineering design completed. Once a project reaches the engineering design level of 30

percent or greater, there is generally sufficient details that a single contingency can be added to the

overall project which is not allocated to any of the cost categories. The percentages shown in Table 2

are the values that will normally be used.

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4.9 Estimate Reconciliation

Reconciliation of differences identified by a variance analysis will be made between the current cost

estimate and the previous cost estimate. The goal of this reconciliation will be to document any

significant changes that have occurred. Significant changes will be identified in the reconciliation under

one of three categories that best reflects the cause for the change: Quantity, Unit Price, or Scope. These

changes will be referenced to specific estimate items and will include the item ID, along with a brief

written description of the change.

4.10 Escalation

All estimates will be prepared in Base Year dollars, and the Base Year will be the same as the current

calendar year. All unit costs should be updated quarterly, normally six weeks after the end of the

preceding quarter. There are two situations where it is sometimes necessary to make use of escalation

factors. The first case involves taking a cost with a base year that is older than the current base by one

or more years. In this situation, actual historical construction cost index values can be used to calculate

the escalation factor from the period in question to the present. The second case involves taking a

current base year cost and projecting it into a future base year. In this situation, the escalation factor

would be calculated using the most recent ten year moving average using RS Means Quarterly CCIs for

the geographic location nearest to the project. The methodology used will be based on a statistical

calculation of the annual average construction cost change over the ten years preceding the data date

using the RS Means CCI. Then the calculated annual average change will be used to forecast construction

to the midpoint of the anticipated construction period for the project.

4.11 Right-of-Way Cost

The Consultant will identify the parcels needed as right-of-way for the project, including

recommendations regarding complete or partial acquisition. DDOT will add the right-of-way costs to the

rest of the capital cost estimate for review.

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Table 1: Allocated Contingency Percentages for Planning Estimates

FTA

Category No. Description

Allocated Contingency Percentage

10 Guideway and Track Elements

� Guideway Elements (except underground) 25

� Guideway Elements (underground) 35

� Track Elements 20

20 Stations, Stops, Terminals, and Intermodal 20

30 Support Facilities: Yard, Shops and Admin Buildings 20

40

Sitework and Special Conditions

� Demolition, Clearing, Earthwork 25

� Site Utilities, Utility Relocation 30

� Hazardous materials, contaminated soil removal/mitigation, ground water

treatment 30

� Environmental mitigation, e.g. wetlands, historic / archaeological, parks 30

� Site structures including retaining walls, sound walls 25

� Pedestrian/bike access and accommodation, landscaping 25

� Automobile, bus, van access including roads, Parking lots 25

50 Systems 20

60 Right-of-way, Land, Existing Improvements 50

70 Vehicles 10

Table 2: Unallocated Contingency Percentages for Estimates

Estimate Type Description Unallocated Contingency Percentage

Planning � System Planning 15

� Alternative Analysis 10

Design

� Preliminary Engineering 20

� Final Design 15

� Construction 10

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4.12 Soft Cost

Soft cost add-ons will be included to represent the costs of engineering, project and construction

management and administration, insurance, permits and fees, training/startup/testing and any force

account work. These add on costs will be calculated as a percentage of construction costs only

(excluding vehicle procurement and right-of-way costs) and are itemized below the construction cost

subtotal. The percentages will be applied individually and not cumulatively. For DDOT estimate

development at the Preliminary Engineering Phase, the following soft cost percentages have been

selected based on historical averages for projects of this type:

� Preliminary Engineering Actual Cost

� Engineering Design 6%

� Project Mgmt., Agency/PMC 5%

� Construction Management 8%

� Insurance 2%

� Legal, Permits, Review Fees 3%

� Surveys, Testing, Inspection 3%

� Agency Force Account Work 3%

As the project becomes better defined through continued design, these percentages should be adjusted.

4.13 Estimate Review and Approval

Prior to the acceptance of any capital cost estimate that is being submitted as fulfillment for a stated

contract deliverable, draft copies of the estimate, along with all relevant back up, will be provided to

DDOT for its review. Written review comments will be provided to the engineering consultant.

Depending on the nature of the review comments, the engineering consultant can either:

� Accept the comment and adjust the cost estimate accordingly,

� Accept the comment with exceptions and adjust the cost estimate accordingly, or

� Disagree with the comment and provide a response.

If there are any items where there is significant disagreement, then an estimate review meeting will be

organized with all participants to address any of the comments not agreed to by both parties. The goal

of the meeting will be to resolve the disagreement in the best interest of the project so the cost

estimate is finalized. All estimates will be considered drafts until reviewed and approved by DDOT staff.

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Once an estimate is approved, record copies will be provided to DDOT. In addition, approval from DDOT

will be required prior to the release of any estimate to anyone.

4.14 Miscellaneous

Information not falling in any of the above categories and deemed important for the development of the

capital cost estimate will be included in the basis of estimate. Typically, such information could consist

of:

� Record of site visits,

� Information received during the preparation of other estimates but judged to have bearing on

the current task,

� Documents that served as the basis for certain assumptions,

� Reference articles from newspapers and magazines,

� Documentation of unusual factors having influence on the final cost, and

� Cost references other than the ones previously established for cost estimating by the project

team.

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APPENDICES

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APPENDIX A QUANTITY TAKEOFF PROCEDURES

A.1 General

Quantity takeoffs, when properly done for each item of work, form the basis for estimating the

construction costs, construction durations and schedule, manpower requirements, etc. The process of

preparing a quantity takeoff also provides a good opportunity to identify drawing discrepancies,

constructability concerns, incomplete or missing details and potential construction interface conflicts.

A.2 Quantity Takeoff Procedures

A.2.1 General Considerations

The quality and quantity of design information that is available to prepare quantity takeoffs is directly

proportional to the level of completeness of the design itself. The preferred method for determining the

quantity of a particular construction activity is by direct measurement and calculation from a set of

engineering drawings. In the early design stage, the amount of information available to perform

quantity calculations can be limited and sometimes quantity allowances or assumptions are employed.

Any allowances and assumptions that are used to calculate quantities must be documented and will be

based on professional experience and judgment. As the design progresses, these assumptions will be

replaced with actual design data and the quantity takeoffs refined. At each of these stages, allowances,

assumptions, sources, locations, calculations, etc. will be documented so that the resulting quantities

can be reviewed, checked and compared with quantities used in previous estimates. Quantity takeoffs

will be prepared in a consistent format, using an approved WBS coding structure and in units that allow

direct input in the database estimating software without additional conversion or summarization.

A.2.2 Forms

The attached Quantity Sheet will be used for documenting all quantity takeoffs. If any CAD program or

other software is used to calculate and/or summarize quantities for a given item of work, a Quantity

Sheet form will still be used as a cover sheet to the data sheets prepared by the computerized method

and copies of sheets provided. Each area of the Quantity Sheet is identified and described below.

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Project – The project or contract name normally used to identify any submittals or deliverables

Prepared By – The person performing the quantity takeoff

WBS Code – Each item of work or construction activity will have a WBS Code in order to identify it in the

database estimating program. The Specification Number list will follow the general CSI format.

Checked By – The name of the person who is responsible for reviewing the quantities for completeness

and accuracy

Item Description – A general description of the item being estimated. The item description will

generally follow the pattern of the WBS code being used.

Date/Sheet Number – The date that the takeoff was begun. Use sequential numbering of the sheets to

assist in organizing the takeoff.

Drawing Number (Dwg. No.) – The drawing number of the plan, profile, cross sections, detail sheet(s),

etc. on which the item of work being taken off is located. For items that appear on multiple drawings,

list the drawing number that was primarily used for preparing the takeoff.

Description – A more detailed description of the item of work being estimated. This description will

include details such as size, material type, detail reference number, etc. The intent is to provide enough

description to aid in the assigning of unit costs during the estimating process.

Unit – The unit of measure being used to quantify the item of work. All quantities for this Project will be

in English units of measure. The following table describes the units anticipated to be used:

TYPE UNIT DESCRIPTION

Count Ea., As, Da Each, Assembly, Day

Linear lf, mi Linear feet, Mile

Area sf, sy, ac Square feet, Square yard, Acre

Volume cf, cy, gal Cubic feet, Cubic yard, gallon

Weight lb, tn Pound, Ton

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Number/Length/Width/Height or Depth – This area is used to record dimensions for the item of work

being taken off. This information is helpful during the review process.

Quantity – The resulting quantity calculated for a single item of work identified on that line.

Total Quantity – The summation of several quantities for a single item of work. Subtotals can be made

by drawing number, takeoff sheet, etc.; however, a grand total for each item of work will be computed

to represent the total quantity for that item for a single project.

A.2.3 Takeoff Methods

The methods used to perform quantity takeoffs are typically intuitive based on the unit of measure that

the quantity will be expressed in. For example, an area unit of measure will require a length and width

measurement for an item of work while a volume unit of measure will require a length, width, and

depth measurement for an item of work. What is not always intuitive in the process is what unit of

measure should be used for a particular item of work. This question is normally answered as the design

process progresses and the measurement and payment sections of the specifications are drafted and

completed. Another issue relates to defining what constitutes an item of work. There are two major

categories that items of work can fall. The first are items of work that involve primarily a single

construction activity. Examples include excavation, grading, curb and gutter, etc. The second category

involves multiple construction activities. Examples include trackwork (install ballast, cross ties, rail

fasteners, weld and install rail, etc.), utility pipeline (trench excavation, bedding, install pipeline,

backfill), and cast¬in¬place concrete (formwork, reinforcing, placing concrete, and finishing). For items

of work that fall into this second category, the quantity takeoff should reflect the primary unit definition

for the item; however, all construction activities and quantity relationship of any secondary items to the

primary item should be documented. The following general rules should be used in the selection of the

unit of measure for items of work:

� Count Unit of Measure – Items of work that can be described as a stand alone unit can be

quantified by this method. Examples include barricades, pole foundations, track turnouts,

manholes, valves, etc.

� Linear Unit of Measure – Items of work where the primary dimension of length defines the item

can be quantified by this method. Examples include barrier walls, piling, trackwork, curb and

gutter, utility pipelines, fencing, etc. Also, document the quantity relationship of any secondary

items that are a part of the primary item. For example, trackwork would be quantified by a

linear measure, but it should include information based on the design data about how many

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cubic yards of ballast per linear measure of trackwork, how may ties per linear measure of

trackwork, etc.

� Area Unit of Measure – Items of work that can are defined primarily by a flat surface that is of a

uniform thickness can be quantified by this method. Examples include clearing and grubbing,

finished grading, sheet piling, sound wall, sidewalk, paving, etc. Asphalt paving can be quantified

both by area, when it is of a uniform thickness, and by weight when the thickness varies.

� Volume Unit of Measure – Items of work that have irregular shapes or are otherwise difficult to

define by simple dimensions can be quantified by this method. Examples include excavation,

embankment, aggregate backfill, riprap, cast in place concrete, etc. In the case of cast¬in¬place

concrete, all secondary item quantities like formwork area, special inserts, finishing areas, or

other special work should be included.

� Weight Unit of Measure – Items of work typically related to steel construction can be quantified

by this method. Examples include reinforcing steel, structural steel framing, etc. Weight unit of

measure is sometimes used for items of work involving aggregate, ballast or asphalt materials

that are placed in an irregular shape.

A.2.4 Quantity Rounding

Reasons for rounding quantities are:

� Keeps the estimate from appearing more accurate than it can actually be; and,

� Judgments in the measurement and calculation of quantities from a set of drawings are

inherently subjective.

Total quantities will be rounded by adjusting the calculated quantities, usually upward. Rounding will be

on total quantities only, never on partial quantities or subtotals. Quantities greater than 1,000 will be

rounded to no more than three significant figures. The significant figures are those figures that begin

with the leftmost figure and extend to the last figure to the right that is not zero. For example, 5,050 and

1,620,000 both have three significant figures. Quantities less than 1,000 should be rounded to no more

than two significant figures. Decimal quantities should be avoided; however, it is not always possible to

eliminate the decimal for small quantities. For example, a total quantity of 1.5 cy (cubic yard) cannot be

rounded up to 2 cy or down to 1 cy without having the estimated quantity more than 25 percent off of

the calculated quantity. In general, decimal quantities less than 5 should be rounded to one decimal

place. Volumetric or weight quantities of 5 or greater can be rounded to the nearest whole number. It is

possible to avoid the use of decimal quantities by changing the unit of measure. For example, use 500 lb

of commercial fertilizer instead of 0.25 ton.

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A.2.5 Miscellaneous

Any questions arising during the quantity takeoff process, which are not addressed by these procedures,

will be directed to the appropriate Technical Lead

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APPENDIX B SAMPLE CURRENT FTA SCC SPREADSHEET

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APPENDIX C EXAMPLE WORKSHEET

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