Ilc-Mi-Tp0-601-G02 - Global Strategic Rates

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Managing major road projects in RMS (RMS internal use only)
Guideline
Guidelines for global strategic rates

for project cost estimating
ILC-MI-TP0-601-G02
Version 1.1 (07-Aug-19)
Infrastructure Life Cycle (ILC) Management System

Engineering Estimating Unit, Project Services Branch
Infrastructure Life Cycle (ILC) Management System ProjectPack
Guideline Guidelines for global strategic rates for project cost estimating
About this document

Document information
Document title Guidelines for global strategic rates for project cost estimating
Document number ILC-MI-TP0-601-G02
Version and date 1.1 (07-Aug-19)
Associated procedure ILC-MI-TP0-601
Project estimates
Prepared by Engineering Estimating Unit, Project Services Branch
Revision history
Version Date Revision description
1.0 18-Sep-18 First issue
1.1 07-Aug-19 Updates to escalation factors
RMS regularly reviews and updates documents in the ILC Management System
in accordance with the principle of continual improvement.
Therefore, the version you are working with might now have been superseded.
Note
The most recent version of this document is available on the RMS intranet in the
TechInfo site.
ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 2 of 12

Printed copies of this document are not controlled
Table of contents
1 Overview ........................................................................................................................................... 4
2 Typical strategic rates ...................................................................................................................... 4

2.1 Project management costs .................................................................................................... 4
2.2 Escalation factors for calculation of outturn dollars ....................................................... 10
2.3 Contingency for strategic estimates .................................................................................. 10
3 Further information ....................................................................................................................... 12

3.1 Acronyms, abbreviations and definitions ........................................................................ 12
3.2 References and related documents.................................................................................... 12
3.2.1 Related documents ............................................................................................... 12
3.2.2 Other references.................................................................................................... 12

1 Overview
This guideline is only to be used by RMS internal staff.
Note
This document is only to be used for major projects with a total cost of over $10M.
The costs have been adjusted to August 2018 costs.
Note
The following cost data is derived from historical Roads and Maritime project data for the
construction of road and bridge infrastructure in NSW.
The intention of this document is not to use the rates to replace estimates prepared using an
estimating methodology but to provide broad strategic information on historic costs that might
be useful in preparing the first strategic estimate of cost for a new proposal or for benchmarking
project estimates.
For more specific estimating requirements, Roads and Maritime staff are encouraged to consult
the Engineering Estimation Unit within the Project Services Branch.
The listed rates reflect road project costs where a reasonably efficient route has been selected.
For example, one that minimises earthworks and avoids sensitive sites such as SEPP14
wetlands, residential areas, areas of local or aboriginal heritage significance and national parks.
2 Typical strategic rates

2.1 Project management costs
Project management costs are all costs, internal and external to Roads and Maritime, associated
with managing the project. Project management costs are incurred at all phases of the project.
Further information on these costs can be found in the estimating manual.
Total project management cost ranges for a project are listed in the following table:
Project total cost Project management % range

Over $250m 3.0% − 4.0%
$100m − $250m 4.0% − 5.5%

$50m − $100m 5.5% − 7.5%
Less than $50m 7.5% − 13%

1. Concept development
(a) Route / concept / EIS Value of construction % of construction costs
(infrastructure costs and
utilities)
rural urban
Up to $50m 2% - 4% 4% − 6%
$50m − $150m 2%-3% 3% − 4%

Over $150m 1%-2% 2% − 3%
(b) Project management services Refer to project management costs table above
(c) Client representation 10% of project management costs
(d) Community liaison Varies:
$0 − $50,000 for small to moderate projects
$50,000 − $400,000 for moderate to large projects
Comments Note: Community liaison costs can rise significantly where there
are large numbers of meetings, workshops, newsletters etc.
2. Detailed design and documentation

(a) Investigation and design Value of construction % of construction costs
(infrastructure costs and
utilities)
Up to $50m 5% - 8%
$50m − $150m 4% - 6%
Over $150m 3% − 5%
(b) Project management services Refer to project management costs table above.
(c) Client representation 10% of project management costs.
Comments For D & C and DCM projects, the design cost will be at the lower
end. However an additional cost will be incurred in infrastructure
costs associated with design and verification.
For alliance contracts, add an additional 2% to 3% of the
construction cost for alliance preliminary costs.

3. Property acquisitions
(a) Acquire property Sydney Region Property Services – Indicative
Notes: strategic/concept rates for property acquisition
The purpose of the rates is to Location Parks Rural Residential Industrial
provide an approximate $/sqm $/sqm $/sqm $/sqm $/sqm
budgetary allowance for the Prime location N/A N/A 6000 3500
purpose of high level strategic
route analysis. Inner urban 1500 N/A 3000 2000
It is strongly recommended that Outer urban 500 N/A 1000 800

a request is made to RMS’ Future N/A 150 400 300
Property and Acquisitions development
Branch (Business Services) for a
detailed estimate of acquisition Key:
cost for any project that is being • Prime location – a high quality, sought-after location where
considered for development by values are at a premium for the relevant property categories i.e.
RMS. residential, industrial, and commercial.
It is important to appreciate that • Inner urban – Inner suburban locations.
the above rates should not be • Outer urban – Outer suburban locations.
considered as representing an
• Future development – Largely undeveloped locations that have
accurate basis for determining
been identified as future urban (growth areas).
estimated property acquisition
costs. • Non-urban – Outlying locations that are largely bushland and
agricultural lands that have not been identified for future urban
growth areas.
(b) Professional services for 7% of above costs.
property
(c) Project management services Refer to project management costs table on page 1.
Include only % of professional services (b).
(d) Client representation 10% of project management costs.
Comments Please seek advice from Property and Acquisition Branch for
current market rates and contingency to be allowed.
4. Utility adjustments
(a) Adjust utilities The construction costs include the costs associated with the utility
relocation of past projects.
• 2%-4% of infrastructure costs in mainly rural areas.
• 12%-25% of infrastructure costs in urban areas.
(b) Project management services Refer to project management costs table on page 1.
(c) Client representation 10% of project management costs.
Comments Where major utilities obviously require relocation, additional
allowance should be made for these costs.

5. Infrastructure construction
(a) Road construction (excluding bridges and utilities)
Category Description L − Length of the road
(proposed development in a single stage)
L < 1km L 1km − 2km L > 2km
Urban 4 / 6 lane $4.0 $3.2 million / $2.8 million /
Growth centre roads Includes costs such as million / lane km lane km
similar to Camden earthworks (average height lane km
Valley Way, < 2.0m), drainage,
Cowpasture Road, pavement, culvert, minor
Schofields Road. retaining walls (height <
2m) and landscaping.
Mountainous terrain $7.5 $6.5 million / $5.5 million /
Similar to Great Western million / lane km lane km
Highway projects lane km
Rural − dual L < 2km L > 2km

carriageway
Undulating landscape $3.5 million/lane km 2.75 million/lane km
(4 lanes)
Fill / cut max. 2m
Major highway similar
to Pacific Highway, Flood plain $4.25 million/lane km $3.25 million/lane km
Great Western Cut / fill up to 5m
Highway, Princes including drainage layer
Highway and Hume
Mountainous terrain $6.25 million / lane km $5 million / lane km
Highway
Cut / fill average 6m
including retaining wall /
slope treatment etc –
projects similar to those
along Great Western
Highway in Blue
Mountains
Motorway Add lanes to existing $2.5 million / lane km
motorway
Minimum earthworks and
excluding bridge widening
Rural carriageway Two way, two lane rural $4 million / lane km $2.5million / lane km
Highways similar to highway
Newell Highway and Add a lane to the highway $1.7 million / lane km
Mitchell Highway
Local road/service $2 million/lane km
road
Comments When using lane km rates, make an allowance for turning lanes, slip lanes, etc.

(b) Bridge construction

Type of bridges Description Rate range/sqm of
bridge deck
PSC plank bridges Short span (up to approximately 18m): pre- $1,800 – $2,500
stressed concrete (PSC) plank bridges
PSC plank bridges Short span (up to approximately 18m): pre- $2,500 – $3,000
(over water) stressed concrete plank bridges
Super T bridges Short to medium span (approximately 18 – 40m): $3,500 – $4,500
pre-stressed concrete girders or post-tensioned
concrete voided slabs
Super T/bulb T bridges Medium span (approximately 40 – 60m): steel or $3,500 – $5,500
post-tensioned concrete box girders
Balanced cantilever For span up to 55m $7,000 – $10,000
bridges
Incremental launch For longer span up to 79m $8,500 – $10,000
bridges
Steel bridges Steel truss bridge with steel or concrete girder $6,000 – $8,000
Footbridge Across 6 lane highway (excluding ramps and $18,000 – $20,000 (total
lifts) for 6 lanes - $1.8
Note: million)
• Add $250,000 for installation of lifts
• Add $100,000 - $200,000 for ramp installation
Replacement of bridges Note for railway track possession: $8,000 – 12,000
over motorway or rail • Add $250,000 − $350,000 for each track
network infrastructure possession
• Add $25,000 to $50,000 for minor repair works
(If other contractors are using the possession at
the same time, the lower allowance to be used in
consultation with State Rail)
Notes For widening of existing bridges, add a further 25%
Bridge rate includes approach slabs, but excludes retaining walls and any
temporary works. To determine the total cost of a bridge, the deck area
(excluding approach slabs) is to be multiplied by the rate provided above.
(c) Other items construction

Type Description Rate
Major interchange For highway $15 million
Grade separated intersection Motorway / major highways $50 million
Traffic signal (TCS) New signal (ITS only) $350,000 -$400,000/each

(c) Other items construction

Type Description Rate
Noise attenuation House treatment $30,000 / house
Noise walls
Masonry $1,000 / sqm
Perspex $1,000 / sqm
Precast $800 / sqm
Timber $420 / sqm
Retaining wall >2m (includes Block wall $800 – 1,000/sqm
excavation)
Retaining wall >2m Concrete $2,500/sqm
(includes excavation, concrete,
reinforcement etc)
Retaining wall > 2m high Reinforced earth $2,500 / sqm
Concrete with pile foundation $3,000/ sqm
Tunnels $25 million / mobilisation and / $90million / Exhaust stack if
or demobilisation built separately (includes
ventilation, electrical,
mechanical, services etc.)
Two lane tunnel $90 million/km
Three lane tunnel $150 million/km
Piling (includes excavation, 600mm diameter $1,500 / m
concrete, casing, reinforcement
750mm diameter $1,800 / m
etc.)
(d) Project management services Refer to project management costs table
(e) Client representation 10% of project management costs for project cost
(f) PA insurance (works & 0.55% of (infrastructure + utility costs) for contracts <= $50m
professional indemnity) 1% of (infrastructure + utility costs) for contracts > $50m
(g) CCTV system installation Allow $25,000/each
(include conduit, cabling, mast, installation and documentation)
(h) Variable message signs Allow $200,000 − $300,000 per sign (depending on type (A-C) and
(VMS) location

6. Finalisation
(a) Refurbish old route for Determine costs associated with refurbishment of local roads
handover to local authority
(b) Project data and post 1.0% of infrastructure costs
completion review
(c) Project management services Refer to project management costs table.
(d) Client representation 10% of project management costs
Comments Estimator should list all the assumptions in the estimate summary
sheet with reference to all the documents used.
2.2 Escalation factors for calculation of outturn dollars

• For federally and jointly funded projects, use the Project cost breakdown (PCB) template.
• For state funded projects, refer to TfNSW Road and rail construction cost escalation
indices.
2.3 Contingency for strategic estimates

Contingency for strategic estimates that have been derived using typical rates such as the ones
indicated below should be in the range of 40-70% depending on the confidence and reliability of
the information used in preparing the estimate.
Please note that the Project estimating manual recommends a range of 35-70%. Values in the
range 35-40% should be used only if the project has been advanced to concept phase level of
development, risk and detail.
One way to derive a contingency % is to use the table below to test the reliability and
confidence there is in different aspects of the information used to generate the estimate.
A total project contingency is derived by adding the assessed contingency for each activity.

Task / Comments Response Contingency
confident and
confident and
Not confident
activity
Reasonably
and not
reliable
reliable
reliable
Highly
DECREASE contingency = 
INCREASE contingency = 
Project Is it well defined? No  9% 12% 15%
scope Yes 
Is there room to vary the No 
works? Yes 
Are there many options? No 
Yes 
Risks Are there significant risks with No  9% 12% 15%
the project? Yes 
• Political
• Community
• Technical
• Financial
Has a detailed risk analysis No 
been conducted? Yes 
Constructa- Has a constructability review No  6% 8% 10%
bility been conducted? Yes 
Does constructability present No 
problems? Yes 
Key dates Are the project dates known? No  3% 4% 5%
Yes 
Is the project planned for the No 
distant future? Yes 
Information Have any investigations been No  9% 12% 15%
conducted (including desk top Yes 
studies)?
• Geotechnical
• Heritage
• Environmental
• Technical
• Hydraulic
Length of Is the project short in length? No  4% 7% 10%
project < 1 km = short project Yes 
> 25 km = long project
Total:

3 Further information
3.1 Acronyms, abbreviations and definitions
Term Meaning
EIS Environment impact statement
ITS Intelligent transport systems
PSC Prestressed concrete
3.2 References and related documents

3.2.1 Related documents
Document number Document title

ILC-MI-TP0-601 Project estimates
ILC-MI-TP0-601-G01 Guidelines for project estimates
ILC-MI-TP0-601-F01 Estimate approval form
ILC-MI-TP0-601-F02 Basis of estimate report
ILC-MI-TP0-601-F03 Engineering estimate team – services request form
ILC-MI-TP0-601-F04 Quantity takeoff - Items per drawing
ILC-MI-TP0-601-F05 Quantity takeoff - Sources of items
ILC-MI-TP0-601-F06 Preparation of an estimate - Information checklist
ILC-MI-TP0-601-F07 Estimating panel procurement process
ILC-MI-TP0-601-F08 Cost estimating panel - Record of engagement of a contractor
ILC-MI-TP0-601-F09 Cost estimating panel contract - Work request
ILC-MI-TP0-601-F10 Cost estimating panel contract - Work order
ILC-MI-TP0-601-V01 Verification record for project estimates
3.2.2 Other references
Document number Document title

Project estimating manual


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Managing major road projects in RMS (RMS internal use only)

Guidelines for global strategic rates

Infrastructure Life Cycle (ILC) Management System

About this document

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 2 of 12

2 Typical strategic rates ...................................................................................................................... 4

3 Further information ....................................................................................................................... 12

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 3 of 12

2 Typical strategic rates

Project total cost Project management % range

$100m − $250m 4.0% − 5.5%

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 4 of 12

$50m − $150m 2%-3% 3% − 4%

2. Detailed design and documentation

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 5 of 12

It is strongly recommended that Outer urban 500 N/A 1000 800

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 6 of 12

Rural − dual L < 2km L > 2km

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 7 of 12

(b) Bridge construction

(c) Other items construction

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 8 of 12

(c) Other items construction

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 9 of 12

2.2 Escalation factors for calculation of outturn dollars

2.3 Contingency for strategic estimates

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 10 of 12

Task / Comments Response Contingency

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 11 of 12

3.2 References and related documents

Document number Document title

3.2.2 Other references

Document number Document title

ILC-MI-TP0-601-G02 Version 1.1 (07-Aug-19) Page 12 of 12

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