Purpose and Goal

Definitions: Normal procedural definitions within the Department remain unchanged. The following definitions are for the purpose of this MOG only:

1. Project Termini: Initially established by the originating office. This is the functional termini of a project as opposed to the physical termini which may be adjusted giving consideration to constraints of terrain, the roadway system, and details of design.

2. Character of Project: Initially established by the originating office, includes the number of lanes, corridor traffic, original assessment as to new location versus widening, and bypassing versus going through towns. Revised as necessary by environment and design as a project develops.

3. Project Concept: An extension of the character of a project, which is determined after detailed study by the assigned office or by the Office of Environment/Location. The concept will establish the various alternates as well as the number of lanes, median widths (if any), preliminary pavement types (i.e. asphalt or concrete), structures to be replaced, structures to be retained, structures to be widened, new structures, traffic handling during construction, precise termini and other factors affecting the functional and physical characteristics of the proposed project and the cost (utility, right-of-way, and construction).

4. Initial Programmed Cost Estimates: The initial project cost estimates are developed when the project is submitted for inclusion in the CWP or LR program. These cost estimates are developed by a number of sources: Districts, Office of Planning, Metropolitan Planning Organizations (MPO), Traffic Operations, Traffic Safety and Design, and Office of Maintenance and will be the estimate which is used by the Commissioner and the Board when making decisions as to whether or not to place a project in the CWP.

The Office of Financial Management shall be responsible for applying inflation factors to estimates based on programmed year and current inflation index. Cost Estimates prepared by Project Managers shall be in today’s dollars.

For cost increase greater than 50% for a project with the STIP cost under $1,000,000 and for cost increases greater than 20% or $1 million (whichever is greater) for projects costing over $1,000,000 the Project Manager shall notify Office of Planning and request a STIP amendment for the cost increase.

The Director of Preconstruction may authorize sufficient state funded preliminary engineering to carry the project through project concept approval before a project is added to the CWP. Preconstruction will proceed to develop the project concept. These studies shall include costs since cost is and must continue to be a factor in concept selection. These costs, while necessary to concept establishment and to support the validity of the selected concept, must be reviewed by Engineering Services before being used for project programming.

Cost Estimates at PDP Milestones: Project cost estimates shall be updated at the following PDP milestones:

Initial Project Cost Estimate
The initial project cost estimate will be developed using standard software to be determined by the Department. The source developing the initial project cost estimate shall visit the project site prior to completing the project cost estimate for Right of Way, Utilities and Construction. The initial Preliminary Engineering (PE) Cost should be a percentage of the construction cost estimate as determined by the Office of Financial Management. The project sources are required to provide basis and justification for the cost estimate.

The basis and justification for the cost estimate developed by the project sources should be submitted with the proposed project either through the Project Nomination Review Committee (PNRC) or other established process, when it is added to the Construction Work Program and should be included in the project file maintained by the Office of Financial Management (OFM).

Projects in Concept Development Phase
The Project Manager shall perform a field visit prior to completing the preliminary cost estimate for the concept report. As noted in the PDP the Project Manager is encouraged to review the project location with the Area Engineer. The construction cost estimate shall be updated based on information gathered from the field visit and conceptual studies. In addition, the Project Manager shall request updated cost estimates from the Offices of Right of Way and Utilities.

The detail estimate software (DETEST) should be the software used to develop the preliminary cost estimate. When the concept is submitted for approval, the Office of Engineering Services shall review the project cost estimate.

PFPR Cost Estimate
A project cost estimate is required as part of the package for a PFPR inspection. The construction cost estimate is more refined at this point. Improved earthwork, drainage, staging and erosion control quantities are available. A copy of this estimate shall be sent to the Office of Financial Management for placement in TPro.

Right of Way Plans Approval Cost Estimate
The Office of Right of Way develops a right of way cost estimate based on the approved right of way plans. This estimate is used for right of way authorization. The Office of Right of Way is requested to send a copy of this estimate to the Project Manager.

Utility Relocation Plans Cost Estimate
The Utilities Office updates utility cost estimates as utility relocation plans are submitted.

FFPR Cost Estimate
A project cost estimate is required as part of the package for a FFPR inspection. The construction cost estimate is more refined at this point. The construction cost estimate shall be based on project quantities. More accurate information is known on the projects final signing and marking plans, staging, utilities, right of way, bridge, earthwork and paving quantities. A copy of this estimate shall be sent to the Office of Financial Management for placement in TPro.

Final Engineer’s Construction Cost Estimate
Final Engineer’s Construction cost estimate is submitted with the final plans. The detail estimate software (DETEST) will be the standard software used for all projects.

The Project Manager is required to track project cost estimate changes through TPro Cost estimate change screens.

Annual Update Cost Estimate
Depending on the project’s funding years, several or no annual cost estimates may be required. Annual updates are not required for projects, in which, the PE is not authorized and all phases in LR. For projects where all phases are not in LR, or where active PE is underway updates are required as described below.

The Project Manager shall submit updated project cost estimates for right of way, utility, and construction cost of the project annually and at any time there is a 10% or greater cost increase or decrease to the Office of Engineering Services. A copy of this estimate shall also be sent to the Office of Financial Management for placement in TPro. Once PE is authorized the Project Manager will annually review project expenditures and request an increase if necessary. For projects in which PE is not authorized OFM will adjust the PE cost estimate as the construction cost estimate changes. For those projects needing only increases for inflation, the Office of Financial Management shall apply inflationary increases.

Annual Updates for:

Projects with PE not Authorized (One or more project phases in STIP)
Project Manager shall gather information from the project file located in OFM and review previous and current STIP dates.

Between the Approved Concept and PFPR
Project Manager shall review previous cost estimate along with previous and current STIP dates. Request updated cost estimates from the Office of Right of Way and Utilities. Construction cost estimate shall be based on current plans.

Between PFPR and FFPR
Project Manager shall review previous cost estimate along with previous and current STIP dates. Request updated cost estimates from the Offices of Right of Way and Utilities. Construction cost estimate shall be based on current plans. The PE estimate shall also be reviewed and the necessary changes requested.

Between FFPR and Letting
Project Manager shall review previous cost estimate along with previous and current STIP dates. Construction cost estimate shall be based on current plans. The PE estimate shall also be reviewed and the necessary changes requested.

Effective Date of policy: The contents of this policy are effective immediately and shall apply to all projects in progress.

• added to Manual of Guidance: 10/22/85
• revised and added to TOPPS: 06/05/01
• revised: 09/15/04
• reviewed: 09/28/05

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