HomeMy WebLinkAbout1503 - Capital Projects Cost-Estimating ProcessCITY OF REDDING, CALIFORNIA "
Council Policy
SU BJ ECT Resolution Policy Effective
CAPITAL PROJECTS Number Number Date Page
COST-ESTIMATING PROCESS 2002-123 1503 08-20-02 1
Background
In examining the methods 1br assigning and estimating capital projects, there is a process that
generally yields successful completion of projects within budgetary estimates. Projects ora routine
nature are administered by qepartmental staff with experience for estimating and managing that
particular type of project. (Examples include: Development Services - roads and waterway
systems; Electric Department - substations and electrical distribution systems; and Community
Services Department - trails.) Unique or particularly complex projects are assigned by the City
Manager, primarily on the basis of three factors - which department is in the best position to fully
understand the needs of the project, which department is best equipped to seize funding
opportunities (e.g., grants, donations), and which depamnent or individual has the time.
Purpose
These recommendations should improve project estimation, the bid process, teamwork, and the
projects themselves. Once implemented, the recommendations can be monitored through the
success we have with future projects.
Policy
1. For all unique and complex projects, the City Manager shall appoint an ad hoc department
head committee, along with the City's "in-house" project manager, to provide an estimate
of the costs.
2. If the team (see above) and the in-house project manager/consultant recommend a specialty
consultant to complete a scoping analysis, that recommendation shall come before the City
Council. Such an analysis would result in a partial design, uncovering most of the issues
that need to be addressed, and, consequently, would produce a highly reliable cost estimate.
Unless the results of the partial design yields the information that the project is not feasible,
practical, or affordable, a majority of the work done during the analysis folds right into
completing the design process. Therefore, most of these expenditures are recouped as the
project moves forwm'd.
F-0091 - 7193
CITY OF REDDIN,G, CALIFORNIA
Council Policy
S U BJ ECT Resolution Policy Effective
Number Number Date Page
CAPITAL PROJECTS
COST-ESTIMATING PROCESS 2002-123 1503 08-20-02 2
3. Fast-tracking will not be permitted, unless approved by the City Council.
4. Depending on its practicality, additive alternates should be utilized in the bid process so the
City has options if the costs have a significant potential to exceed authorized budget
amounts. This approach should be used sparingly in that the number o£potential bidders
could be diminished, since considerably more time and expense is involved for the
preparation of such bids.
5. When the costs of a project over $100,000, for whatever reason, begin to look as though
they will exceed the.. authorized budget, the City Council will immediately be informed.
When discussing the problems with the project, staff will bring forward alternatives,
including additional funding sources that may be available and recommendations ofproj
modifications to mitigate costs.
F-0091 - 7/93