TUNNEL COST ESTIMATING
RICHARD REDMOND PE
AECOM
VICE PRESIDENT / PROGRAM MANAGER
WMATA GALLERY PLACE PROJECT
Resume – 39 Years
15 Years Heavy / Civil / Tunnel Contractor Perini Corporation
Kiewit Construction Co
Schiavone Construction
MacLean Grove
24 Years Program Manager / Construction Manager
Program Manager $ 1.5 Billion San Francisco Central Subway
Construction Manager $ 750 Million NYCT Second Ave 72 St Station Mining
Construction Manager $ 1.1 Billion NYCT 7 Subway Extension
GOALS OF TODAY’S WORKSHOP
Look into an ENHANCED approach tocurrent techniques of creating anEngineer’s Estimating
Cost Estimating as Seen “ through theeyes of the Contractor ”
Understand the way a Contractor pricesa project.
No (2) projects are the same
Current ThinkingThe Engineer’s Estimate
Engineer’s Estimate is Many Times Based on “ Like Work ” – but from other Cities or Countries
Engineer’s Estimate is Based on Recent Project Bid Numbers
Engineer’s Estimate is Prepared Separately from Project Schedule Calculation
WE WILL HAVE DIFFERENCES
Our Estimate, if Prepared inSimilar Fashion to theContractor should Produce:
Less Variance in Pricing
We “ want to come in 2nd orin the middle of the pack ”,when the bids are opened
Good Basis of Comparisonfor Evaluating ContractorChanges or Claims
TODAY is Bid Opening Day
Project Cost Drivers
Scope of the Work Site Constraints Community Mitigation Union Agreements Number of Qualified
Bidders Owners Terms and
Conditions
Types of Estimates
Budget Estimate Conceptual Design
Estimate Preliminary Engineering
Estimate Final Design Estimate
CONTRACTOR’S ESTIMATE
BUDGET ESTIMATE
Estimate developed withoutthe benefit of a design
Based on Initial Studies and“ Hi Level “ Drawings
It’s a starting point, but it isUSUALLY GOSPEL – NEVERCHANGES
Typical tunnel projects in thearea have been costing $ X/ mile
Conceptual Estimate
Some plans / schemes developed Some project issues / constraints encountered Some Constructability defined
Calculate Quantities From Sketches
We are very familiar with what’s typically designed in the Industry
3 ft thick slurry walls and guide walls
utility relocations
support of excavation
cast in place concrete
piping
mechanical and electrical
Preliminary Engineering Estimate
Project Packaging Plan Derived Construction Sequences Become Defined Engineering developed to “ Build-able Level”
Preliminary EngineeringPackaging / Phasing Plan
Phase 1 - 96th to 62nd
Phase 2 - 125th to 96th
Phase 3 - 62nd to HoustonPhase 4 - Houston to Hanover
DESIGN IS DONEFinal Design Estimate
We think we have engineered everything We have dictated sometimes Unrealistic
Terms & Conditions We may not have shared the risk We say all unknowns are his, “ field
conditions ”
We wonder why we get high bids
Overall Project Cost Contractor / Owner Estimate
Contractor OwnerLabor
ProductivityPermanent Materials
SuppliesConstruction Equipment
General ConditionsContractor’s Margin
Design CostConstruction Administration
Change OrdersForce Account
PropertyOCIP
Utility FeeArtAFI
Contractor EstimateUnderlying Principles
Identify Project Constraints and Restrictions
Based on Constructability and Phasing of the work
Identify all Cost categories
Estimates prepared by people familiar with Contracting practices and have bid similar projects
Contractors Cost items
Labor Contractor Construction Material Equipment Permanent Materials Subcontractor Contractors Indirect Costs Margin Insurance
Construction Schedule Duration =Production Rates
Contractors Estimate
Develop “ crews ” with real wage rates, production rates, material and equipment costs to generate “ unit prices ” specific to this project.
Estimate built up using materials, construction procedures, productivity, and mark ups, not unit prices from a “ Means, Dodge ”
How Do We Develop Pricing
Labor “ Loaded Labor rates ” are
calculated using the latest Union Agreements – Davis Bacon Act
Identify Trades to Type of Work, who’s jurisdiction ?
Payroll taxes and Workmans Comp
How Do We Develop Pricing
Material
Recent Quotations from Suppliers or Manufacturers
Permanent Materials
STS – Small Tools and Supplies
How Do We Develop Pricing
Equipment
Cost Reference Guide “ Company Owned Equipment ”
Outside Rental Rates, quotes
Equipment costs include Operating Expenses
How Do We Develop Pricing
Subcontractors
Specialty Work
Not by the GC generally
Hard Pricing from Subs reduce GC’s Cost Exposure
Means and Methods
Develop our Own Construction Sequencing
Develop Production Rates
Develop Temporary Works
Identify Which Trades Perform Which Work
Using HCSS Software
Most Contractors use This Software
Build Crews – Labor, Equip, Materials
Define Production Rates
Calculate Labor rates from Union Agreements, Davis Bacon Act
Cost Estimate Based on Means and Methods of Constructing the Work
HCSS Data Base
Data Base of ; Craft Labor Rates Equipment Rental Rates Permanent material Costs Consumable Costs or ST&S
Produce Construction Crews, Production Rates = Unit Prices
Direct’s, Indirect’s, General Conditions
Direct Costs – work performed by Trades Labor,Equip,ST&S,Subs, Perm Material
Indirect Costs ( Fixed and Variable ) Proj Mgr Superintendent Office Trailers Temporary Facilities Temporary Construction Bonds Safety Equipment
Insurance
Workers Comp
Professional Liability
General Liability
Excess Liability
His own Equipment Insurance
Deductibles
Contractor Margin
Increase cost of Labor Materials Supply Contractors Risk
Management Productivity Owner Risk Sharing Typically a % of Direct
Labor
Calculating the Unit Price
Unit prices are calculated based upon the following:
Labor crews with expected production rates
Equipment costs, rental rates, operating costs
ST&S Material – contractor supplies like form lumber, oxygen & Acetylene, not incorporated in the work
Permanent material – material incorporated in the work
Subcontractors – specialty work quotations, not typically performed by the General Contractor.
Project Contingency
Follow the FTA Guidelines on Most Projects Identify the Risk, _Perform a Risk Assessment
Allowance for Indeterminates (AFI) 25% for Conceptual Design Estimate 15% at end of Preliminary Design 2% at the end of Final Design
Additional Work Orders 0 % to 5 % of Construction Cost
OWNERS - Track Record on Projects What is Your Experience to Date
Recap on Estimating
An Enhanced Approach Tailored to the Specific Project Closely Mirror’s a Contractor’s Estimate Less Variance at Bid Opening Verify’s Contractor Bid Verify’s Contractor Schedule
Thanks !