Evaluation of Utility Relocation Costs and Best Management Practices

In recent years, the SCDOT has experienced a significant variation in estimated costs for the relocation of utilities on many projects. This has led to cost overruns and caused concerns for the district engineers responsible for the projects. Through meetings with SCDOT personnel and utility company representatives it was determined that a standardized cost estimate form combined with improved change order management and cost management strategies was needed. Recently submitted estimates were analyzed and rated by a panel on multiple criteria to generate a list of 'poor', 'good', and 'excellent' estimates. The 'excellent' estimates provided insight into the development of a standard estimate form and the deficiencies noted in all of the estimates were addressed in the standard form. The standardized cost estimate form should be simple, easy to use, and flexible for use on all types of utility relocation projects. An Excel spreadsheet was developed with line items for material, labor, and overhead costs. It is recommended that all utility companies on all utility relocation cost estimates submitted to the SCDOT use this format. This report presents five separate standardized estimate forms for power, communication, gas, water, and sanitary sewer utilities. This report also makes recommendations for improvements to the SCDOT's cost management database while utilizing cost management best practices. The main suggestion to improve the overall cost management process is to transition to a professional project management software such as Primavera P6 that can work seamlessly with the standardized estimate forms presented in this report, manage planned versus actual costs, search and sort data by any field, and generate useful cost and schedule reports.