Level: Intermediate
TCM Section(s)
7.3. Cost Estimating and Budgeting
Venue: 2024 AACE International Conference & Expo
Abstract: Construction manager/general contractor (CMGC) project delivery by state departments of transportation (DOT) has grown substantially since it was originally authorized in 2000. The Utah DOT was an early adopter and other DOTs turned to it for CMGC implementation guidance. The UDOT program includes an "Independent Cost Estimate (ICE) consultant" to furnish a third opinion to validate the CMGC contractor's estimated construction cost and the current agency estimate during construction price negotiations. Conversely, DOTs in Arizona and Florida do not use an ICE. A 2010 NCHRP study reviewed the three DOTs and found no evidence of a difference in project performances attributable to an ICE. This paper revisits the perception of the value of the ICE after a decade of experience by analyzing, recent CMGC solicitations from 25 states compared to the 2010 findings. The paper finds that no quantitative performance difference has been identified between projects with an ICE and projects without; however, the number of DOTs that use an ICE greatly outnumbers those that don't, leading the paper to conclude that there is a perceived value-added by the presence of an ICE and recommending quantitative research to confirm that perception.
TCM Section(s)
7.3. Cost Estimating and Budgeting
Venue: 2024 AACE International Conference & Expo
Abstract: Construction manager/general contractor (CMGC) project delivery by state departments of transportation (DOT) has grown substantially since it was originally authorized in 2000. The Utah DOT was an early adopter and other DOTs turned to it for CMGC implementation guidance. The UDOT program includes an "Independent Cost Estimate (ICE) consultant" to furnish a third opinion to validate the CMGC contractor's estimated construction cost and the current agency estimate during construction price negotiations. Conversely, DOTs in Arizona and Florida do not use an ICE. A 2010 NCHRP study reviewed the three DOTs and found no evidence of a difference in project performances attributable to an ICE. This paper revisits the perception of the value of the ICE after a decade of experience by analyzing, recent CMGC solicitations from 25 states compared to the 2010 findings. The paper finds that no quantitative performance difference has been identified between projects with an ICE and projects without; however, the number of DOTs that use an ICE greatly outnumbers those that don't, leading the paper to conclude that there is a perceived value-added by the presence of an ICE and recommending quantitative research to confirm that perception.