Survey Results: Cost Estimates for Public Works Projects

Late last fall, I conducted an online survey of the practices of public agencies relating to cost estimates on public works projects.

Here are the results from the 75 respondents:

1.  Does your agency develop cost estimates for your public works projects?

• 80.0% - Yes
• 14.7% - Sometimes
• 4.0% -   No
• 1.3%  -  Other: 1.3%

2.  Who usually prepares your agency's cost estimate?

• 57.3% - Architect or engineer who designed project
• 20.0% - Agency staff
• 13.3% - Varies - Either A&E or agency staff
• 4.0%   - Independent cost estimator
• 2.7%   - Don't do cost estimates
• 2.7%   - Other

3.  Does your agency include the cost estimate in the newspaper advertisement for the project?

• 38.7% - Yes - we publish a dollar range on either side of the estimate
• 12.0% - Yes - we publish the exact cost estimate
• 9.3%   - Sometimes - depending on the project
• 5.3%   - We include the estimate in the bidding documents
• 32.0% - No - we never publish the cost estimate
• 2.7%   - Other

4.  Does your agency disclose the cost estimate upon request?

• 29.3% - Yes - we provide the cost estimate if anyone asks for it - at anytime
• 10.7% - Yes - but we require a formal public records request
• 10.7% - Yes - we provide at the bid opening
• 22.7% - The cost estimate is already included in the advertisement or bidding documents
• 9.3%   - No - we never disclose the cost estimate
• 17.3% - Other

Demographics:  There were 75 responses from across the United States, with 61 responses from agencies in the State of Washington.  There were also responses from ten other states: Arkansas, California, Florida, Georgia, Michigan, North Carolina, Nevada, Oklahoma, Oregon, South Carolina, and one response from Ontario (Canada).

Mike Purdy's Public Contracting Blog 

© 2012 by Michael E. Purdy Associates, LLC 

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