Cost Estimation System CES

Implementation at NDOR

TUG 2006

NEBRASKANEBRASKA

Diverse RoadwaysDiverse Roadways

BackgroundBackground

• Nebraska’s State Highway program is an estimated $350,000,000

• Nebraska’s Lettings consist of 250+

contracts per year

• Nebraska has 400+ active contracts at

any given time

BackgroundBackground

• Centralized Estimating section5 Estimators

50 + years of experience

• Bid Based Estimates Currently using PES generate bid based prices

Only able to use one bid history

• NDOR is having to adjust schedule of program due to price instabilities

• Management wanted to factor inflation at the project level into decision making processUse inflation to get a better idea of total project

price as you move projects in the schedule

• Open up possibility to use cost sheets to validate prices

NeedsNeeds

• CES is a tool for the complete life cycle of the estimation of a project

• Ability to use multiple Bid Histories and group items based on type of Contract

• Allows the estimator to work more efficiently

• Integral component of Trns•port systemmaintains the integrity of the estimate prices

allows for snapshot capability at any point in the life cycle

Why CESWhy CES

Trns•port Modules Trns•port Modules

SiteManagerSiteManager

Estimation

BAMS/DSS Data Warehouse

Bid LettingsProjects & Proposals

ExpediteExpedite

CESCES

Construction

LASLASPESPES

SiteManagerMaterials

SiteManagerMaterials

Project begins in CESLong Range estimates - project-level

estimates based on project work types and their major cost groups

Item-level estimates - bid item estimates derived from bid histories

• Export to PES

• Snapshots taken to track evolution of the estimate

WorkflowWorkflow

• Called Info TechKathy Yelle and troops

• Developed Contract Agreement 1.75 service units

Pre-work on developing bid histories

3 days on-site implementation and discussion

3 days on-site training and discussion

Who ya gonna call…Who ya gonna call…

• Market areas help define your price indexes

Same types of items - Same types of jobs

• Market Types (redefined in 2004)Asphalt

Concrete

Structures

Districts

Market Areas - DSSMarket Areas - DSS

• Project begins in CESLong Range estimates - project-level estimates based

on project work types and their major cost groups

Item-level estimates - bid item estimates derived from bid histories

• Export to PES

• Snapshots taken to track evolution of the estimate

Market Areas - DSSMarket Areas - DSS

Market Areas - DSSMarket Areas - DSS

• Project begins in CESLong Range estimates - project-level estimates based

on project work types and their major cost groups

Item-level estimates - bid item estimates derived from bid histories

• Export to PES

• Snapshots taken to track evolution of the estimate

Market Areas - DSSMarket Areas - DSS

Market Areas - DSSMarket Areas - DSS

Bid Histories - DSSBid Histories - DSS

• Using HIREG to develop based on Market area and Time - Input

Time - 3 year, 2 year, 18 months, 1 year

• Determined type of observations to include - Input

low bid, low 3 bids, all bids

minimum of occurrences

• Bid Histories -OutputWeighted Averages

Regressions

• Two Days UserHigh level - Navigation, Shortcuts, best

practices

More detailed level – Utilizing multiple libraries, standard task, snapshots

• One Day System AdministratorHigh level - Navigation, User Roles

More detailed level – Creating and maintaining libraries

Basic TrainingBasic Training

Basic TrainingBasic Training

Basic TrainingBasic Training

Retirement…???Retirement…???

• CES to PES ExportWorking with TTF, Info Tech and other

Agencies

• Customize Screens

• Create ReportsDetail estimate report with inflation

To DoTo Do

QuestionsQuestions