Cost Engineering Assignment AASHTO Essay

Part – A: Article Summary:


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The U.S railway companies introduced documented public presentation step in the late 19Thursdaycentury. Performance step has been used by the province main road bureaus ( STA ) to measure public and private main road building undertakings due to the increasing demands, complexness, defined financess and enlargement of the transit system. State main road bureaus are required to supervise the public presentation step of their undertaking by the 2009 Act of American Recovery and reinvestment and Federal transit fund. In order to better the truth of cost estimating, public presentation step has been used in the main road building undertakings. The truth of the command, gauging, consequence of competition, and eventuality sums are the chief classs of public presentation step. ( Christofer M. Harper et Al. 2013 ) In order to supervise the public presentation of the building undertakings a figure of comprehensive model, methodological analysis has been developed and implemented by the oil and gas industry, European states, and Singapore. The U.S main road industry is besides developing and bettering the usage of public presentation step in order to increase their efficiency of the undertaking.

Performance step represents the relation between the overall undertakings advancement and organisational aims. The statewide transit betterment program ( STIP ) is a papers which provides the inside informations of the building undertakings which are proposed to go on in 4-5 old ages. Planning, initial design, concluding design, advertise & A ; command, and building are the five phases of the building undertaking in which estimations are besides developed at each phase of the undertaking. As the building of main road undertakings normally takes long continuance their concluding undertaking cost will be more than the initial undertaking costs, therefore Cost estimations are evaluated at different phases of the undertaking utilizing public presentation step in order to avoid cost escalation, cost overproductions of the estimation and better command truth. It is one of the ways to command escalation of the cost and design alterations by tracking differences in the specific cost estimation and by placing the ground what led to escalation. ( Jennifer S. Shane et Al. 2009 )


The quality, truth, seasonableness of the overall undertaking can be achieved by the effectual public presentation step. Hence there is a demand to understand how to utilize the public presentation measuring plan efficaciously. The overall public presentation of the STA can be improved by making strategic ends and public presentation aims. Thus the basic public presentation measuring is given by theAASHTO planin which strategic ends and aims should be analyzed and linked in order to acquire accurate information. The stairss involved are as follows: ( Christofer M. Harper et Al. 2013 )

  1. The public presentation in cardinal plan and services countries are evaluated by finding and taking steps.
  2. The consequences of the public presentation prosodies should be tracked, monitored, and reported.
  3. The public presentation and chances which are influenced by cardinal public presentation indexs must be identified.
  4. Proper resources need to be allocated to act upon the betterment of consequences
  5. The consequences of the public presentation prosodies need to be continuously tracked, reported, and monitored.
  6. When the public presentation and status alterations, steps need to be refined once more.

Therefore by reiterating these stairss it allows the bureaus to make up one’s mind whether it achieves its public presentation end and aim. The rates, clip, marks, discrepancies, distribution are some of the cardinal public presentation indexs, in which the negative and positive part of KPI are identified and analyzed.

Using this methodological analysis for main road cost estimating:( Christofer M. Harper et Al. 2013 )

The demand of peculiar cost gauging public presentation step for STAs has been addressed in this research.

  1. In order to specify public presentation step and its plans, literature must be reviewed.
  2. By utilizing content analysis common cost gauging public presentation step must be collected.
  3. Harmonizing to the content analysis of obtained informations, the cost gauging public presentation must be categorized.
  4. The types and common public presentation step informations must be validated with the industry questionnaire and interviews
  5. The quality of the cost estimating of undertakings which is tracked by the comprehensive and categorical list of public presentation step must be synthesized.

Therefore by using this methodological analysis inside informations on public presentation steps, particularly in cost estimating has been collected by 52 STAs which included research on STAs web site, diaries from AASHTO, TRB, FHWA, etc. The gathered information is so analyzed and synthesized to obtain the common public presentation step for gauging main road undertakings. It is observed that 25 STAs are utilizing or be aftering to utilize the public presentation measuring plan for cost estimating of main road undertakings. To obtain more informations and support from the experts, a questionnaire and interview procedure has been developed by the research workers which required information on the countries of general context, types, monitoring and lessons learned of cost gauging public presentation steps. Then the questionnaire is distributed to 25 STAs in which merely 10 were able to finish. An interview was so conducted for a period 2 hebdomads, in which it was found that specific cost estimating public presentation step is eventually used by merely 7 provinces. The other 3 provinces have involvement in developing specific public presentation step for cost estimating but do non hold presently.

Therefore the existent public presentation steps for cost estimating and types are defined with the aid of questionnaire and interviews. The truth of the STIP development phase estimation and agency’s concluding estimation are monitored by the usage of three cost gauging public presentation step. The effects of public presentation steps for command are monitored by four competitions and eventually three public presentation steps are used for appraisal procedure and eventuality sum.


In the field of cost technology, this research has done a important part to better the truth of cost estimating. Basically, the cardinal findings of this research is to better the truth of the main road cost estimating by increasing the truth of command, appraisal, competition effects and eventuality which are the chief constituents of public presentation step. These constituents are identified, synthesized and analyzed.

Offering Accuracy:

In order to obtain a stamp for any building undertaking, command has to be performed by the organisation to STAs, so the estimation for command has to be appropriate. The agency’s so compare the estimation received from the organisations with its ain estimation made during planning and design phase or besides with the lowest of three commands. The public presentation step of the command truth is obtained by supervising the comparing of contractor’s low command and STAs command and in most of the instances it based on per centum ( Christofer M. Harper et Al. 2013 ) .

Estimating truth:

It is fundamentally the comparing of initial estimation which is prepared during be aftering & A ; design phase and with the present cost estimation. Any alterations in the design or planning will impact the undertaking estimation. The comparing can be even spread between any phases of the undertaking. Without the truth of the undertaking estimation, it will ensue in increased cost, agenda alterations and the quality of the undertaking and its net income will be affected ( Pramen P. Shrestha & A ; and Nirajan Mani 2014 ) . Performance step of gauging truth is obtained by supervising the initial STIP estimation and concluding estimation from which the dollar per centum differences can be identified.

Competition effects:

Harmonizing to ( Christofer M. Harper et Al. 2013 ) , monitoring of the figure of commands received to execute a undertaking is known as public presentation step of competition effects. Number of offers received for a peculiar undertaking determines competition for the work. With the increasing figure of bidders the command sum lessenings. The proprietor can restrain the standards with range and budget of the undertaking with the increasing competition. Thus the result of the competition consequence would be the better command monetary values.

Estimating procedure:

Harmonizing to ( Christofer M. Harper et Al. 2013 ) , the public presentation step of the gauging procedure is the clip required by the STA calculator to finish estimations at assorted degrees during a undertaking. Sing the handiness of resource, the calculator has to complete the estimation at specified clip without impacting the truth of the estimation. By supervising the mean clip required to finish an estimation the direction can make up one’s mind clip required to make the same range of work at different phases of the undertaking development.

Eventuality sum:

( Peter E. D. Love et Al. 2014 ) argues that, the finding of cost eventuality in a undertaking is the chief job, because inaccurate estimation will non be able to suit existent cost overproduction in the undertaking. It is the sum which is normally added to any building undertaking estimation to cover the unexpected cost that occurs due to uncertainnesss or any other grounds such as hold, design alterations etc. The public presentation step of the eventuality sum allows the STA to apportion appropriate sum required for the undertaking depending on the size and type of the undertaking. Normally these sums are estimated utilizing experts judgements and certain guidelines. Tracking the eventuality sum will hold an impact on the undertakings concluding budget and collected informations can be besides used to mention for future undertakings.

Part – B:

Relevance of the work in the field of Cost Engineering:

This work is really relevant to the field of cost technology, as it increases the truth of the cost appraisal which is really of import constituent to finish the undertaking successfully. Performance step significantly paths and proctors each activity in the undertaking to better the truth and efficiency. Planning, budgeting, and programming of the undertaking becomes hard without accurate estimation. Harmonizing to ( Pramen P. Shrestha & A ; and Nirajan Mani 2014 ) , any mistakes in the design or program will hold a negative impact on the agenda and undertaking cost. In U.S. about 50 % of the big substructure undertakings overrun the existent undertaking cost ( Jennifer S. Shane et Al. 2009 ) . The cost escalation, cost overproductions, eventuality factors are the chief job in the building industry. ( cost overproduction ) In public and private building undertaking cost overproduction will impact the efficiency, profitableness of the undertaking and will hold negative impact on the overall undertaking. In order to develop a undertaking budget, the undertaking director faces several challenges to gauge and be after the undertaking budget. The quality of the undertaking will be affected when the eventuality sum is non estimated expeditiously. ( Jr. , Cook & A ; White 2010 ) Argued that, increase in eventuality sum will take to increase in undertaking cost and deficient eventuality sum will impact the undertaking during uncertainnesss. Hence the factors which influence the cost overproductions and cost escalations must be identified and analyzed. Thus this research involves and highlights the usage of public presentation step which is one of the ways to command the cost and better truth of the estimation. Performance step for cost estimating helps the calculators and direction to understand and analyse the factors which led to increase cost. Thus the truth of the main road undertaking estimation can be increased by increasing the truth of command, gauging, competition effects, gauging procedure and eventuality sum.


The obtained consequence by this methodological analysis can be applied to any cost gauging company to increase the truth of gauging procedure. Thus the truth of main road cost gauging for any organisation can be improved by utilizing the public presentation step when compared with their old estimation. The truth of the estimation is obtained by synthesising, categorising, formalizing the present public presentation step of the cost estimation. It besides had a important consequence on bettering the efficiency of contractors command, continuance of the estimation, eventuality sum. It helps the calculator to better overall gauging procedure with the truth of estimation obtained due to public presentation step. The escalation of the undertaking cost will impact the quality of the undertaking. Certain agency’s green goods estimation based on the less information and high eventuality sum which will ensue in the rejection of the command. By supervising the public presentation step on STIP phase helps in bring forthing better estimation, by understanding the truth of the plan. Estimating techniques such as systems, hazard based and historical unit monetary value gauging are by and large used at the STIP degree which includes the overall and peculiar undertaking cost in the STIP. The footing of fixing STIP estimations are the degree of range and quality of design which are evaluated by the public presentation step for STIP during the design and development procedure. Any alterations in the range of the work or design will impact the undertaking construction and its estimation. By comparing the norm of the commands with the STIP, truth of the command can be improved and besides can understand the mistakes caused by the possible issues. The future appraisal method can be improved by understanding the truth of the present STIP estimations. The concluding undertaking design and specification papers are with the calculator who is developing the concluding estimation in the instance of design-bid-build undertakings and the public presentation step is monitored in the concluding estimation and low command ( Christofer M. Harper et Al. 2013 ) .

( Christofer M. Harper et Al. 2013 ) explained that, during the building procedure there are three common public presentation steps are used which are, by comparing the initial undertaking cost estimation which is 4 old ages from get downing of the undertaking and 60 % of design estimation, from which the per centum difference between them can be obtained ; by comparing the initial and concluding undertaking cost estimation during the major alterations in the planning procedure, their differences in estimation can be found and eventually it helps to understand the comparing between the concluding undertaking cost estimation and low command which is done when more design and range are known. Thus the just market monetary value can be predicted by the bureau from PS & A ; E estimation due to its deepness of inside informations and information known.


For atleast 50 % of the STIP undertakings, it is necessary that concluding Plan, Specification & A ; Estimate ( PS & A ; E ) must be within +10 % of the lowest command and the grade of truth should be achieved within a limited period of clip, else there would be a diminution in the dependance of the concluding PS & A ; E estimation ( Christofer M. Harper et Al. 2013 ) . In order to measure the quality of concluding PS & A ; E estimates many STAs usage this public presentation step as a mark and few STAs used really rigorous rating step in finding the determination. In order to look into the response from contractors bid few STA used +­­ or – 7 % mark and when the lowest command autumn within the 7 % scope, the award is recommended for concluding PS & A ; E estimation and when it falls outside the scope, fluctuation in design and range mistakes are identified and analyzed. Similarly the guideline is adjusted to -15 to +5 % ranges which make the STA to have more commands which are less than concluding estimation. The award is recommended when the commands falls between -15 to +5 % , if non the differences are identified and analyzed.

The comparing of the low command with the PS & A ; E estimation are the most common public presentation step presently used by the STAs. By comparing assorted other factors affecting the public presentation step, the quality of the concluding estimation can be evaluated. The alterations in the range of the undertaking can be identified by comparing the concluding estimation and concluding cost. By utilizing the norm of the low commands to compare with the PS & A ; E estimation, just market value can be evaluated.

Evaluation of Competition procedure and eventuality:

The truth of the STAs estimation during the assorted phases of building development is compared with its lowest command and concluding undertaking cost which are evaluated by the public presentation step of the common cost estimating. Based on the figure of commands received by the bureau, it helps the calculator to understand competition of the market. Using this information public presentation step on the competition effects can be monitored and analyzed. Thus the estimations can be adjusted by the calculator harmonizing to the competition effects.

The public presentation step of the appraisal procedure is applied to STA to track and supervise the continuance which is required by the calculator and is evaluated in three phases. ( Christofer M. Harper et Al. 2013 ) By comparing the mean continuance spent at any phase of the building development procedure to finish an estimation ; based on the size of work, the mean clip spent to finish an estimation at any phase of the building development procedure ; and eventually the relation between the truth and clip spent to finish an estimation plays a major function when comparing with another estimation.

Harmonizing to ( Jr. , Cook & A ; White 2010 ) Eventuality sum is by and large added to the base cost and it is the chief constituent of the estimations. Tracking and supervising the public presentation step of the eventuality sum helps the STAs to understand process and techniques to measure the estimation for puting up the eventuality sum depending on assorted factors. They are, based on the entire undertaking cost an mean per centum of eventuality is used per undertaking, which is by and large high at the early design phase and lessening in the ulterior design phases ; based on the type and complexness of the undertaking, per centum of eventuality is added to the entire cost of the undertaking which is high at the initial phase of the undertaking and lessenings in the ulterior building development phase ( Christofer M. Harper et Al. 2013 ) .

Example and Potential Usefulness:

This paper discussed the methodological analysis and model used to better the truth of the estimation by public presentation step plan which is considered as possible utility of this article as it increases the efficiency and profitableness of the organisation. Hence this method is used in the Washington State Department of Transportation to compare the concluding engineer’s estimation with low commands per month and with low command with mean figure of bidders. It is besides used to compare the average command monetary values for digging work based on the figure of bidders in Texas Department of Transportation ( Christofer M. Harper et Al. 2013 ) .

In order to critically measure this research, there is a demand for rating on how these public presentation steps improve the truth of estimation because the cost estimation public presentation step does non supply any inside informations of the development and execution of model construction. Hence this tool is non used by many of the bureaus. Further research and instance surveies will do it more utile, as it will better the apprehension of this model so that it can be used as an efficient cost gauging tool by most of the STAs and organisations.


Cost appraisal utilizing public presentation step is a powerful tool to better the quality and truth of the main road estimations of STA. The consequences of this survey are specifically synthesized for the public presentation step of cost estimating. The public presentation step tool for cost estimating usage cardinal public presentation indexs to place and analyse the negative component of the estimation and therefore the consequences are used for cost estimating of main road undertakings of STAs across U.S. Overall this research work is really utile in understanding the basic spending in developing an accurate estimation for any building undertaking, as it discuss the chief factors which will impact the quality and range of the undertaking.


Bassioni, H, PA, AHT 2004, ‘Performance Measurement in Construction. ‘ ,Journal of Management in Engineering, vol 20, no. 2, pp. 42-50.

Christofer M. Harper, AMA, Keith R. Molenaar, MA, Stuart Anderson, MA & A ; and Cliff Schexnayder, DMA 2013, ‘Synthesis of Performance Measures for Highway Cost Estimating ‘ ,Journal of Management in Engineering.

Jennifer S. Shane, AMA, Keith R. Molenaar, MA, Stuart Anderson, MA & A ; and Cliff Schexnayder, DMA 2009, ‘Construction Project Cost Escalation Factors ‘ ,Journal of Management in Engineering, vol 25, no. 4, pp. 221-229.

Jr. , AET, Cook, JJ & A ; White, AED 2010, ‘Estimation of Cost Contingency for Air Force Construction Projects ‘ ,Journal of Construction Engineering and Management, vol 136, no. 11, pp. 1181-1188.

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Pramen P. Shrestha, MA & A ; and Nirajan Mani, AA 2014, ‘Impact of Design Cost on Project Performance of Design-Bid-Build Road Projects ‘ ,Journal of Management in Engineering.


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