Right-of-Way Methods and Tools to Control Project Cost Escalation (2009) / Chapter Skim
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Pages 11-27
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CHAPTER 2 STATE OF PRACTICE This chapter discusses the methodology and findings of Tasks 1 and 2 of the research effort. The purpose of Task 1 was to complete a comprehensive literature review relative to right-of-way cost estimating while Task 2 involved examining and documenting successful right-of-way cost estimation and cost management practices.
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The literature review concentrated on documenting and comparing factors and variables that impact right-of-way cost estimating such as project type, property value prior to the project, anticipation of future land use change, timeline, information available at the time of the estimate, and type of acquisition. Information related to the right-of-way cost estimation and cost management processes and tools in the literature were surveyed.
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(Cambridge Systematics, 2006)
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boundaries at this point are not well defined. Furthermore, there may be multiple project alternatives being considered during the planning stage of project development.
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negotiate settlements; and 3) the use of quick settlements in lieu of allowing the property owner a long period of time to consider the offer (FHWA Office of Real Estate Services, 2006)
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literature review. In particular, the literature review findings identified problem areas that needed to be addressed through the interviews.
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Interview Participants The seven SHAs interviewed included: California, Florida, Georgia, Minnesota, Washington State, Wisconsin, and Virginia. These SHAs were selected based upon input provided in Phase I of NCHRP Project 8-49.
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Table 2. Agency interview participants Highway Agency Interview Participants California Senior ROW Agent – Headquarters Office Senior ROW Agent – Headquarters Office Senior ROW Agent – North Region Senior ROW Agent – North Region Senior ROW Agent – District 3 ROW Manager – South Region Senior ROW Agent – South Region Associate ROW Agent – South Region ROW Agent – South Region ROW Estimator – South Region ROW Estimator – South Region Georgia Appraisal & Review Manager Manager, ROW Cost Estimates Florida Manager, Appraisal & Appraisal Review Director, Office of Right of way Deputy State Manager, Appraisal & Cost Estimating State Cost Estimating Administrator District One Cost Estimates Administrator (Bartow/Lakeland)
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participants a chance to review the protocol and prepare for the interview. Interviews were set up in two to three hour blocks to allow ample time to cover the entire process from the first planning estimate to the activities required during final design.
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and procedures that supported their right-of-way cost estimation and cost estimate management processes. STATE OF PRACTICE CHARACTERISTICS Critical issues relating to right-of-way estimating were identified during the interviews as those most difficult to estimate or issues that may have a significant impact (good or bad)
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condemnations is heavily dependent on state laws and social factors that exist in a particular local. Damages Damages due to partial takings of a property were indicated by agencies to be one of the most difficult aspects of right-of-way estimating.
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Scope Definition and Estimating Tools Determining a project's right-of-way requirements early in the development process is problematic, particularly during the Planning phase (e.g., 10 to 20 years out from the estimated construction letting year)
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The following subsections discuss the current and general state of practice relative to each of the project development phases. Current practices are discussed in a general manner that outlines the overall state of practice in the SHAs interviewed.
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General Right-of-Way Cost Estimating Practices during Planning During planning, right-of-way estimates in many SHAs are usually based on percentages of construction costs. Historical right-of-way costs from general databases or right-ofway cost from comparable projects may also be used to produce this early estimate.
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apply a set dollar amount based on recent historical costs and depending on the type of displacement (business, residential owners, or residential tenants)
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General Right-of-Way Practices during Final Design Final right-of-way plans are released during the final design phase and appraisals begin followed by acquisition. No further cost estimates are prepared.
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interviews conducted with SHAs. The interviews with seven SHAs together with agencies in the Cities of Chicago and Phoenix resulted in the identification of critical issues related to cost escalation and the overall state of right-of-way estimating practice.
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