Economics and Financing

Improving Practice in Cost Estimation of Road Projects

Publication no: AP-R388-11
ISBN: 978-1-921709-92-0
Published: 14 September 2011

PDF (free) Download

This document is provided for the benefit of transport planners and managers. It reviews and summarises the Best Practice Cost Estimation Standard (BPCES) developed by Evans and Peck and is applicable to any transport project for which Australian government funding is sought

1. INTRODUCTION
- 1.1. Evans and Peck Methodology
- 1.2. Scope of the Concise Guide
2. CONCISE GUIDE TO THE BEST PRACTICE COST ESTIMATION STANDARD (BPCES)
- 2.1. Where and When is the ‘Standard’ put into use
- 2.2. Project Checklists
- 2.3. Attributes of a Best Practice Cost Estimation Standard
- 2.4. General Attributes
- 2.5. Specific Attributes – Project Scope Definition Structure
- 2.6. Specific Attributes – Estimation Structure and Presentation
  - 2.6.1. Structure of Cost Estimation Process
  - 2.6.2. Presentation of Cost Estimates
- 2.7. Specific Attributes – Estimate Preparation (1)
  - 2.7.1. Project Scope Definition and the Base Estimate
- 2.8. Specific Attributes – Estimate Preparation (2)
  - 2.8.1. Contingency Allowance, Cash Flow and Escalation Factors
  - 2.8.2. Risk Assessment
  - 2.8.3. Commentary on P50 Versus P90 Cost Estimation Methods
- 2.9. Specific Attributes – Review and Approval
- 2.10. Specific Attributes – Change Management
3. EMPIRICAL APPLICATION OF BPCES
- 3.1. Project Example
- 3.2. P50 Versus P90 Cost Estimation
- 3.3. Empirical Application
  - 3.3.1. Risk Explorer
  - 3.3.2. Base Estimate (plus Contingency Allowance)
  - 3.3.3. Cash Flow and Escalation
  - 3.3.4. Budgeting vs. Economic Evaluation
4. SUMMARY OF THE PROPOSED ‘STANDARD’
5. CONCLUDING REMARKS
REFERENCES