2 Preliminary  Pre-Design & Design  Prior to Bid Letting  For funding allocation and bid comparison Final  Construction  Post Award  For contractor payout

3 Preliminary  Pre-Design & Design  Prior to Bid Letting  For funding allocation and bid comparison Pre-Design  LRE Design  DQE Authorization Estimate Official Estimate

 Long Range Estimates system  Pre-Design; conceptual estimate: used to establish funding levels for the project  Generates pay items and quantities you can EXPECT to have, based on project characteristics (typical sections, length, etc.)  Design Quantities and Estimates system  Design estimate: used to develop the Department’s Official Estimate for bid comparison purposes  Contains KNOWN pay items and quantities, based on complete (or nearly complete) plans. 4

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 LRE uses characteristics of typical section models, applied to a length of roadway, to generate anticipated pay items, quantities, and unit prices. 6

 District Estimator determines unit prices based on:  Pay Item Quantity  Project Location  Contract Duration  Material Cost and availability  Labor Cost  Equipment Cost  Contractor Competition  Recent bid prices on similar items are also taken into consideration 7

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 At 60% - 90% plans, the Designer determines the pay items and quantities comprised in the scope of the project  District Estimator determines unit prices for each pay item  Both bid-based and cost-based estimating techniques are used 9

 Estimates are based on Present Day Cost (PDC)  Work Program Office applies inflation factors for projects that are scheduled for future years 10

11 Annual Work Program Review

 Goal: To ensure that appropriate funds are budgeted for each year in the 5 Year Work Program  Review Criteria:  Estimates must be in LRE or DQE  Quantifiable and include all scope  Within tolerance of Work Program  Updated every 6 months  Review Schedule:  August through November  “Exceptions List” completed after each review 12

 Develop/revise LRE estimate: Pre-Design Phase 1 (30% Plans) Phase 2 (60% Plans)  Develop/revise DQE estimate: Phase 3 (90% Plans) Phase 4 (100% Plans)  Develop/finalize Authorization Estimate: FHWA authorization of funds Advertisement for bids Work Program Amount (for encumbrance)  Develop Official Estimate  Perform post-bid analysis  Present findings to Awards Committee 13

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