20 February 2009

(2001) Ronai - Cost estimation methods of transport infrastructure projects

Péter Rónai , Cost estimation methods of transport infrastructure projects, PERIODICA POLYTECHNICA SER. TRANSP. ENG. VOL. 29, NO. 1-2, PP. 107–116 (2001)

Cost estimation methods of transport infrastructure projects
Péter Rónai [Department of Transport Economics, Budapest University of Technology and Economics]

Since overhead costs, general and administrative expenses, and profit are usually added to costs as a percentage of direct transport project costs, it is imperative that estimate accuracy begin with precise estimates of the materials and labour hours required to the job. In many transport firms and infrastructure concession investors it is the materials and `hands-on´ labour that are estimated before any other peripheral costs are calculated even though these peripheral costs frequently exceed the original hardware costs. The paper describes the methods used to determine material quantities and costs, labour hours, some of the engineering activities, and `factors´ that affect these material and labour costs, and direct costs other than those that are normally classified as material and labour costs. The introduced cost estimation methodology can also be understood as a value analysis process for the assessment methodology. In this look, the described cost estimation process is an equivalent of the value engineering of the cost calculation.

transport infrastructure, cost estimation, infrastructure, establishment

Source : Periodica Polytechnica

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