Relating Cost Growth from the Initial Estimate to Design Fee for Transportation Projects

Gransberg, Douglas D.; Puerto, Carla López del; Humphrey, Daniel C.

doi:10.1061/(asce)0733-9364(2007)133:6(404)

Cited by 46 publications

(43 citation statements)

References 10 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The relationship between the design fees and the construction quality of transportation projects were investigated by Gransberg et al (2007). These authors analyzed data from 31 Oklahoma Turnpike Authority projects, and developed a regression model, so that the project construction cost growth could be predicted using the design cost.…”

Section: Literature Reviewmentioning

confidence: 99%

See 1 more Smart Citation

Impact of Design Cost on Design Bid Build Project Performance

Shrestha¹,

Mani

2012

Construction Research Congress 2012

View full text Add to dashboard Cite

Some study show that the performance of DBB projects depend upon the quality of the design. If errors are minimized during the design phase, then, construction costs are reduced and schedule growth are minimized. Therefore it is necessary that owners focus more on the project's design phase in order to improve the construction project performance. Based on prior research, this study hypothesizes that there are relationships between design costs and construction project performance of DBB public projects. Data was collected and analyzed regarding design cost, construction award cost, final construction cost, and construction duration of a set of DBB public projects. The analysis showed that the design cost was significantly correlated with construction cost growth and schedule growth of the public projects under evaluation. In addition, the design cost was found to have a significant correlation with the final construction cost. Using, a regression model developed to predict the final construction cost of a road project, and also using the design cost as an input variable, the R-square value of this model was found to be 58.7%. This result indicates that when design costs are higher, project construction performance is better. INTRODUCTIONThe design-bid-build (DBB) project delivery method is used most often to construct public projects. In the DBB project delivery method, the design and construction works are performed in two phases. The first phase, the detail design; includes the design of drawings and specifications for the project, and is prepared by an engineer or a consulting firm. After completion of the detail design, the project owner puts out the bid and selects suitable a contractor on the basis of various selection criteria. The contractor then constructs the infrastructure according to the design plan and specifications. The owner has a direct relationship with both the designer and contractor; however, there is no contractual relationship between engineer and contractor. If there is an error in design or if any problem arises during the construction phase regarding design, the contractor proceeds with change orders. Therefore, in order to improve project performance, the owner needs to pay attention to the quality of design.In order to get quality construction, quality design is essential. If more change orders are issued during the construction phase due to design errors, then during the construction phase, both the cost and time increases in order to make the

show abstract

Section: Literature Reviewmentioning

confidence: 99%

“…Previous studies (Burati et al 1992;Bubshait 1998;Gransberg et al 2007) had just determined the relationship between design cost and cost growth. However this study had determined the significant relationship between design cost and construction schedule growth.…”

Section: Significance Of the Studymentioning

confidence: 99%

Impact of Design Cost on Design Bid Build Project Performance

Shrestha¹,

Mani

2012

Construction Research Congress 2012

View full text Add to dashboard Cite

show abstract

“…While detailed estimates are routinely developed to estimate material, labor and equipment costs during the construction phase, estimates of costs during the preconstruction phase are rarely performed. Gransberg et al, conducted a research study that analyzed the relationship between the amount paid in the design phase to develop plans and specifications with the difference in costs between the engineer's initial estimate of the project and the actual construction final costs [6] . The difference between these amounts is called "cost growth from the initial estimate" (CGIE).…”

Section: Introductionmentioning

confidence: 99%

“…This research study [6] calculated the design fees as a percentage of construction cost and the CGIE as a percentage of the contract cost based on data from 31 projects worth $90 million from the Oklahoma Turnpike Authority (OTA). The projects were divided in two types, roads and bridges.…”

Section: Introductionmentioning

confidence: 99%

See 1 more Smart Citation

A Case for Incorporating Pre-construction Cost Estimating in Construction Engineering and Management Programs

Puerto¹,

Agosto²,

Gransberg³

2016 ASEE Annual Conference &Amp; Exposition Proceedings

Self Cite

View full text Add to dashboard Cite

The need to effectively manage costs during the construction phase of a project to meet budget constraints is widely understood by both practitioners and academics. Most, if not all, Construction Engineering and Management undergraduate and graduate programs require that students complete construction cost estimating courses as part of their core curriculum. However, the value of estimating the owner's planning, design, and procurement costs during the preconstruction period is not typically included in the Construction Engineering and Management curriculum. Preconstruction costs are usually defined as all work required to develop and advertise construction documents to a point where the construction contract can be awarded. Final project construction documents literally define the level of required construction quality and as such, must also be of adequate quality to achieve the construction project's ultimate success. Thus, failing to provide an adequate and sufficient preconstruction budget constrains the necessary resources to fully develop these documents and may unintentionally constrain the document development process causing planners and designers to match their level of effort to the amount of time permitted by the budget. Not only may the quality of the construction documents be negatively impacted but design factors of safety may be unnecessarily increased due to a lack of time to do detailed design analyses. It can also, eventually, have an impact in design issues related to serviceability, operation, or maintenance. Lastly, the increased use of alternative project delivery methods, such as Design-Build and Construction Manager-atRisk, have created a need to teach preconstruction cost estimating in academic programs to ensure that graduates have the necessary knowledge and skills to effectively manage construction projects delivered using both traditional and alternative methods. This paper contributes to the body of knowledge by demonstrating the importance of accurately estimating owner's preconstruction costs and proposing a framework to assist engineering educators to integrate the subject into the required curriculum in Construction Engineering and Management programs.

show abstract