ROAD CONSTRUCTION COSTSKey Concepts

Types of Main Road Works• Routine Maintenance Works are day-to-day runningrepairs,

• 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

• Surveying• Pavement Condition Assessments• Soil and Material Testing• Traffic • Drainage and Hydrological Studies

Designing

• Pavement Design• Structural Design of Bridges• Identification of material sources• Environmental and Social Assessment

Estimation

• 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 <10 Km

Size does matter!!

Cost Per Km & Source of Funding

Bank Funded ADBGOL

Stable Funding helps!!

Cost Per Km & Procurement Method

ICB NCB Sole SourcedLIB

Cost Per Km & Contracting Methodology

DBOMT DBT INPUT

Performance Contracts Perform!!

Questions?