ROAD CONSTRUCTION COSTS Key Concepts Types of Main

ROAD CONSTRUCTION COSTS Key Concepts

Types of Main Road Works • Routine Maintenance Works are day-to-day running repairs, • e. g. Potholes, depressions, crack sealing etc. • Periodic Maintenance Works are planned, • e. g. resurfacing works - expected to be undertaken every 10 years or so • Rehabilitation or Up-gradation Works • Undertaken when the pavement is not providing an appropriate level of service • Determined by roughness, distress and maintenance costs

Interrelationships

Cost Estimation Inputs • Pavement • Traffic (current and future), existing condition, design life, type of pavement • Bridges and other Cross Drainage Structures • Structural design or rehabilitation requirements • Type of the structure, life of the structure • Hydrology • Ancillary works • Road Signs, Pavement markings etc. • Pedestrian facilities Road side drainage • Lighting etc. • Environmental & Social Impact Management Measures • E. g. Land Acquisition

Typical preparation for a Major Work Data collection Designing Estimation • • • Surveying Pavement Condition Assessments Soil and Material Testing Traffic Drainage and Hydrological Studies • • Pavement Design Structural Design of Bridges Identification of material sources Environmental and Social Assessment • • Quantify Takeoff Estimating Unit rates for the items. Finalize time for construction Usually ends with Economic justification of the investments

Remember : Triple Constraint

Possible Reasons for Cost Variance • Size of the Project • Location of the Project • Construction Time • Heterogeneous Specifications • Market Competition • Reliability of Funding • Oversight/Governance • Procurement and Contract Management Procedures • Tax Structure (Exemptions) • Contracting Methodology

Possible Source of Cost Estimates • Detailed Design Reports • Historical Unit Rates • Road Agency’s Database of Major Contracts

Cost per KM for Recent Road Contracts 25 -180 Km 10 -25 Km Size does matter!! <10 Km

Cost Per Km & Source of Funding Bank Funded GOL Stable Funding helps!! ADB

Cost Per Km & Procurement Method ICB LIB NCB Sole Sourced

Cost Per Km & Contracting Methodology DBOMT DBT INPUT Performance Contracts Perform!!

Questions?