Risk-Based Construction Cost Estimating

Part I: Approach and Concepts

• Cost Estimating and the TxDOT Project Development Process:
• Risk Management:
• Risk-Based Estimating:

Part II: Risk-Based Estimating Framework

• Stage 1: Determine/Update Estimate Basis: Focuses on establishing a solid foundation for the estimate.
• Stage 2: Prepare/Update Base Estimate: Focuses on developing the most likely project cost estimate (excluding contingency).
• Stage 3: Determine Risk and Contingency: Focuses on quantifying uncertainty and developing a contingency plan.
• Stage 4: Review and Approve Estimate: Ensures the estimate is as complete and accurate as possible.
• Stage 5: Communicate Estimate: Focuses on creating a communication package that effectively conveys project information to stakeholders.

Part III: Quick Reference Guide

• Provides a concise summary of the five stages of the risk-based estimating framework.

Part IV: Appendices

• Appendix A: Glossary: Defines key terms related to construction cost estimating and risk management.
• Appendix B: RACI Diagrams: Provides examples of RACI diagrams (Responsible, Accountable, Consulted, Informed) to help assign roles and responsibilities for each stage.
• Appendix C: Tools: Describes tools and techniques for risk-based estimating, including:

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