3.3.3 Project Planning Estimate

To request adequate funding for a project, a planning level cost estimate should be developed during project scoping. At the planning stage of project development, many project details are unknown. Estimating techniques that are used to develop a planning/programming estimate include:

Parametric Estimating
(scalable estimation);

Typical sections on a per mile basis

Bridges on a dollars per square foot basis

Analogous Estimating
(similar projects); and

Historical bids based
(base estimate + allowances + contingency)

Table 3-1: Suggested Levels of Risk Management for Project Rigor
Risk Management Techniques	Type of Risk Evaluation	Suggested Tool	Project Rigor
Risk Management Techniques	Type of Risk Evaluation	Suggested Tool	Low	Medium	High
Project Team Informal Risk Assessment	Qualitative	Risk Register Spreadsheet	●
Project Team Informal Risk Assessment	Qualitative/ Quantitative	Risk Register Spreadsheet 3 Point Estimating		●
Formal Risk Workshop	Qualitative/ Quantitative	Risk Register Spreadsheet 3 Point Estimating/Monte Carlo Analysis		●	●
FHWA CSRA Major Projects > $500M	Qualitative/ Quantitative	Risk Register Spreadsheet Monte Carlo Analysis			●

Example Simple Risk Register (click in image to see full-size image)

TxDOT’s Construction Cost Estimating Guidance (CCEG) and spreadsheet tool provides a method to develop the planning/programming level cost estimate and update a project’s construction cost throughout the project life cycle using
risk-based contingency
calculations

In addition to the construction cost, ROW costs (see

Section 6.3.2

) are estimated and entered into TxC during project scoping. It is important for this information to be correct so that the project and funding data will be correct in FIN PeopleSoft project information.

Texas Accessibility Management Enterprise System (TAMES) includes an ADA remediation cost estimating tool to work with identified ADA barriers (i.e., physical elements that prevent access for a person with a disability) to project cost in improvements for inclusion in project planning.

Reasonable and accurate cost estimating, and regularly scheduled updates of these costs helps maintain public confidence and trust throughout the life of a project. When a project cost estimate escalates, it impacts the funding for other needed projects. The District should document the reasons for rising estimated costs in the CCEG spreadsheet.

3.3 Project Scoping