Right-of-Way Methods and Tools to Control Project Cost Escalation (2009)

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APPENDIX D ROW FLOWCHART HANDOUT (August 15, 2007 version) 98

Thank you for participating in the NCHRP 8-49 (Phase II) Research Project concerning procedures, methods, and tools to account cost escalation related to Right-of-Way. The main objective of NCHRP Project 8-49(II) is to: Develop an all-inclusive set of ROW cost estimation and cost estimate management procedures based upon literature and current SHA practice, which integrates cost estimate steps documented in NCHRP Report 574 to support the right-of-way process. To date, the research team has completed all nine interviews in all. This includes seven State highway agencies and two local public agencies. Following these interviews process flowcharts were created to synthesize ROW practices of these agencies. The flowcharts document the process steps, inputs, and outputs related to the ROW process throughout the project development process. As defined by Phase I of NCHRP Project 8-49, the project development process consists of: Planning, Programming, Preliminary Design, Final Design, and Construction. Since Phase I established this general project timeline, the process flowcharts have been developed relative to these phases. These phases are outlined in Table 1, below. Table 1: Development Phases and Activities (Anderson and Blaschke 20041; NCHRP 8-49, Phase I) Development Phases Typical Activities Planning Purpose and need; improvement or requirement studies; environmental considerations; right of way considerations; public involvement/participation; interagency conditions. Programming Environmental analysis; schematic development; public hearings; right of way impact; project economic feasibility and funding authorization. Preliminary Design Right of way development; environmental clearance; design criteria and parameters; surveys/utility locations/drainage; preliminary plans such as alternative selections; geometric alignments; bridge layouts. Final Design Right of way acquisitions; PS&E development – final pavement and bridge design, traffic control plans, utility drawings, hydraulics studies/drainage design, final cost estimates. Five flowcharts have been developed which are attached below. The first outlines the process at the agency level. The following four diagrams document the ROW process at the four stages of project development shown above. Table 2 quickly outlines the ROW processes that occur during each of the phases. 99

Table 2: Development Phases and Purpose of each of the process flowcharts Flowchart Development Phases Purpose Agency Level ROW Process All Phases Display the overall ROW cost estimation and cost management process at the Agency Level Conceptual ROW Cost Estimating Planning Estimate a ROW cost 10-20 years from the start of construction for planning purposes. Baseline ROW Cost Estimating Programming Establish the Baseline ROW Cost Estimate Update ROW Cost Estimating Preliminary Design Update the Baseline ROW Cost Estimate per changes/revisions since last cost estimate ROW Cost Management Final Design Manage appraised values and actual acquisition costs versus the Update ROW Cost Estimate It is the intention of the research team to continue to develop these process flowcharts through validation and revisions by input provided by officials of each of the acquiring agencies interviewed. The research team would like to complete this through the method of a conference call which will last 30 to 45 minutes. Please review the enclosed ROW process flowcharts and be prepared to provide input on these flowcharts. Thank you, once again, for your time and contribution to this research. 100

STIP Transportation Need Authorized Program Conceptual ROW Estimating ROW Cost Management Update ROW Estimate Baseline ROW Cost Estimating Scope w/ROW need Order of Magnitude ROW $ ROW Scope (rough idea of ROW requirements) Baseline ROW Cost Estimate ROW Scope (Prelim. Parcels) Final ROW Cost Estimate ROW Appraisals ROW Cost Updates Needs: Potential Projects w/ROW Authorized Projects w/ROW Projects w/ROW ROW Acquired Agency Level ROW Cost Estimating and Cost Estimate Management Process 101

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PROGRAMMING ROW Project Development: Define ROW Scope: Identify ROW area and/or rough parcels needed (impacted) Document ROW Scope on rough conceptual plan or aerial photo Determine ROW Estimate Basis Calculate total area / parcel areas Determine %urban & %rural, at minimum Document observations of field visit to include improvements and damages Document location, existing conditions, assumptions, and limitations Prepare Base ROW Estimate Develop cost basis Apply ROW requirements Adjust for improvements, damages, etc. Approve & Release ROW Cost Estimate Prepare Estimate Summary Obtain management approval Release to project team Determine ROW Risk & Set Contingency Evaluate risk Assess impact Incorporate into estimate Document risk analysis basis and assign confidence score to estimate Review ROW Cost Estimate Determine Level of Review Review estimate basis & assumptions Verify completeness and Cost Data Baseline ROW Cost Estimate Authorized Program ROW Scope (ROW required) To Preliminary Design Field Visit by Estimator Risk Analysis Input from Environmental, Utilities, Railroad Historical Data - Removal of Improvements - Relocation Assistance - Support Costs Cost Estimate System (e.g. VDOT’s PCES; CalTrans’ Cost Data Sheet) Land Market Values Inflation Rate Improvements, Damages, Condemnations, Utilities Scope Construction Baseline ROW Cost Estimating (PRELIMINARY DRAFT)Preliminary Cost Estimate Map (w/ approximate ROW boundaries and rough parcels) Input from Field Visit 103

Update ROW Estimate Basis Compare new ROW scope to ROW scope from Programming Identify changes in ROW requirements Document observations of field visit to include improvements and damages Document all changes and new assumptions & limitations Update Base ROW Cost Estimate Revise cost basis Apply cost basis to changes Determine updated ROW Estimate Approve & Release Updated Cost Estimate Prepare Estimate reconciliation Obtain management approval Release to project team Update ROW Risk & Contingency Review risks Update as necessary Revise contingency $ Document risk analysis basis and assign confidence score to estimate Review Updated ROW Cost Estimate Review changes Document changes Provide updated ROW estimate Updated ROW Estimate ROW Scope – Preliminary Plans Final ROW Cost Estimate To Final Design STIP Risk Analysis Field Visit by estimator Cost Estimate Map (w/boundaries, parcels, areas) Cost Estimate System (e.g. VDOT’s PCES; CalTrans’ Cost Data Sheet) Land Market Values Inflation Rate Improvements, Damages, Condemnations, Utilities PRELIMINARY DESIGN ROW Project Development: Refine ROW Scope per preliminary plans and refined overall Project Scope Develop preliminary ROW plan Input from Field Visit Update ROW Cost Estimate (PRELIMINARY DRAFT) 104

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