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Abstract Number: 8306
Abstract Title: DEVELOPMENT OF AN “IN-HOUSE” CIP COST DATABASE AND
ESTIMATION TOOL USING HISTORICAL INFORMATION FROM PAST PROJECTS
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Presentation Summary:
Title of Abstract
DEVELOPMENT OF AN “IN-HOUSE” CIP COST DATABASE
AND ESTIMATION TOOL USING HISTORICAL INFORMATION
FROM PAST PROJECTS
Subject
Joint W/WW - Infrastructure Financing
Joint W/WW - Utility Management
Abstract Summary
Developing a cost database from “in-house” projects along with a
compatible estimating model leads to better accuracy and allows
effective management of a Capital Improvement Program. This
paper presents basic steps found essential in developing a
reliable construction cost database and estimating methodology
using historical information from the government entity.
Abstract Body
Texas is experiencing rapid population growth making about 1/3
of the total growth in the U.S. population between 2019 and
2020. This rate of growth implies increased demands in water
and wastewater infrastructure and service capacity. Therefore,
effective planning, development, and management of water and
wastewater facilities are vital to sustaining the fast rate
projections and need of water resources without negatively
affecting the environment and quality of life of the population.
Among the major challenges faced by water districts and
government entities is their ability to accurately forecast costs
used in the planning of a Capital Improvement Program (CIP).
The financial information obtained from inaccurate budget
estimates has negative effects on the decision-making process of
a CIP. For example, under-estimated budgets often cause
postponing projects for the future to acquire additional funds
and/or constructing projects without achieving their objectives
due to the lack of sufficient funds. Conversely, over-estimating
funds needed for a project unnecessarily delay the start of other
projects when unreal expenses restrict an efficient budget
allocation for other planned CIP projects. These issues may
compromise the ability to provide adequate water/wastewater
infrastructure for supplying the rapid increase in demand that
Texas is experiencing and for improving the condition of the
existing aged infrastructure system.
To address some of the many challenges associated with
estimating and managing costs during all phases of the program
development, this paper proposes establishing a sound and
structured historical cost database for design and construction by
creating an “in-house” cost database and developing a
compatible model to facilitate the estimating process. While
regional costs collected from external sources are helpful to
establish cost trends, the ‘in-house” cost estimates based on
actual bids focus on costs associated with the “in-house”
technical specifications. Recommended guidelines will be
provided for processing historical cost data into the actual “inhouse” cost database. In addition, the building process of the
cost-estimating model will be outlined.
The performance of this suggested approach is tested by
applying the “in-house” cost estimation tool produced by the
water district’s staff to a set of projects and comparing the
resulting cost against the actual contract price. Other estimates
obtained during the design phase are also used for performance
comparison. In addition, the degree of accuracy obtained will be
evaluated for conformity with the typical ranges defined by the
Association for the Advancement of Cost Engineering (AACE)
International Recommended Practice for “Cost Estimate
Classification System”. The results obtained from the “in-house”
cost estimation model should demonstrate an improved accuracy,
credibility, and consistency in cost estimation needed for the
successful delivery of projects and program management.
In order to obtain TCEQ
N/A
operator training
accreditation for the
session, explain how your
paper relates to
operations of a water or
wastewater plant and
assists an operator in
performance of his/her
duties?
Should Texas Water 2022 Yes
be converted to a "Virtual
Conference" out of health
and safety concerns,
would you still be willing
to present this material
virtually?
If not selected for a
Yes
Technical Session, would
you like this abstract to
be considered for a
Poster Presentation?
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