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Implementing CBE in Maine DOT: Enhancing Efficiency & Cost Savings

Learn why the Maine DOT adopted Cost-Based Estimating (CBE) due to factors like competition, material costs, bidding practices, and contract modifications. Discover how CBE improves plan quality, credibility, cost analyses, and training for personnel.

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Implementing CBE in Maine DOT: Enhancing Efficiency & Cost Savings

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Presentation Transcript

  1. A NEW APPROACH

  2. WHAT CAUSED THE MAINE DOT TO CONSIDER CBE? • LACK OF COMPETITION • VOLITILE MATERIAL COST • LACK OF FUNDING • CONTRACTOR TAKING ADVANTAGE OF LUMP SUM ITEMS AND ERRORS IN PLANS • INCREASE IN NUMBER AND COST OF CONTRACT MODIFICATIONS

  3. WHY SHOULD MAINE DOT USE CBE

  4. Reviewing the plans for constructibility will create better plans and will result in better prices. • Increase Credibility of the Department • Review and Verify bid Quantities and Specifications • Market Analysis • Material Cost Analysis • Review Contract Documents from Consultant Design Firms • Assist in the defense of claims • Ability to question contractors bidding practices • Train MDOT designers and construction personnel • Assist Residents in validating contract modifications

  5. EXAMPLES OF MAINE DOT COST BASED ESTIMATING

  6. Eliminate Existing600 mm CMP

  7. Cost Estimate Report The additional estimated cost of using PGAB 58-34 in lieu of the traditional PGAB 64-28 for a MDOT project located in Jackman and Long Pond TWP, Maine. February 2006

  8. AN EXAMPLE OF A SUBTLE UNBALANCE BID; A $10 MARK-UP COST $30,000 THE 3,000 HRS OVER-RUNS 37% TO 4,167 HRS THE $30,000 INVESTMENT RESULT IN A $41,670 RETURN

  9. 206.061 Structural Exc-Below Grade; 5,850 cy @ $8/cy = $46,800

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