DOCSLIB.ORG

Guide to Cost Predictability in Construction: an Analysis of Issues Affecting the Accuracy of Construction Cost Estimates

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Guide to Cost Predictability in Construction: an Analysis of Issues Affecting the Accuracy of Construction Cost Estimates Guide to Cost PrediCtability in ConstruCtion: an analysis of issues affeCtinG the accuraCy of ConstruCtion Cost estimates Prepared by the Joint Federal Government / Industry Cost Predictability Taskforce november 2012 Guide to Cost Predictability in Construction: An Analysis of Issues Affecting the Accuracy of Construction Cost Estimates November 2012 Table of Contents Note from the Taskforce Chairman . 1 Executive Summary . 2 Taskforce Participation . 3 Introduction to the Cost Predictability Issue . 4 Issues and Considerations in Cost Predictability . 6 Cost Estimate Variance Matrix . 9 Recommendations for Improved Cost Predictability . .10 Postscript . .11 Appendix 1 – Classes of Estimates . .12 Appendix 2 – Documents Recommended for Estimates . .14 Appendix 3 – Qualifications for Estimators and Cost Consultants . .21 Appendix 4 – Sources of Information and References . .24 Enquiries should be directed to: Canadian Construction Association www.cca-acc.com This guide is the product of the individual taskforce members’ collective input and does not purport to express or represent the position of their respective organizations or associations. It reflects recommended industry practices. Readers are cautioned that this guide does not deal with any specific fact situation or circumstance. This guide does not constitute legal or other professional advice. The taskforce and their respective organizations or associations do not accept any responsibility or liability for loss or damage which may be suffered as a result of its use or interpretation. Copyright 2012 Must not be copied in whole or in part without the written permission of the Joint Federal Government / Industry Cost Predictability Taskforce. Guide to Cost Predictability in Construction: An Analysis of Issues Affecting the Accuracy of Construction Cost Estimates November 2012 Note from the Taskforce Chairman associated degree of accuracy of the estimate can be expected to vary accordingly. What at first appeared to be a relatively simple task to review the various and mostly obvious causes of poor For this reason the taskforce concluded that the previously cost predictability increasingly grew in each taskforce accepted degree of accuracy for Class A estimates should meeting as more and more variables were raised and be expanded from +/- 5% to a range of +/- 5 to 10%, to reviewed. As the topics for consideration ranged from accommodate the range of such non-standard projects, first bid comparison, whether low, median or average, to with a similar variation applied to the other classes of cost growth during construction, to final project cost, and estimates. As well, for projects involving significant even whether to review various “soft costs” to the extent renovations, or challenging geographic, environmental, or that they may have an effect on cost predictability, etc., other unique circumstances, a further allowance should be it soon became apparent that a clear and rigid definition analyzed and included. of the scope of the taskforce had to be established. This would limit the discussions to achieve definable In addition, whereas the previous cost predictability recommendations relating to the original rationale for guidelines were related primarily to the degree of design the taskforce, which was to analyze the increasingly large development completion, it became obvious that with the variances being experienced by PWGSC, DCC, and others increasing variety and complexity of various projects, the between their “pre-tender estimate” and the subsequent potential accuracy of estimates must equally recognize contractors’ bids. the relationship to the level of complexity of any particular project, or its level of estimating difficulty. For this reason, a The basic question whether such increasing variances Cost Estimate Variance Matrix was developed, to recognize are the result of the construction industry’s “pricing the combination of both these dimensions in arriving at a strategies”, or of an inaccurate or insufficient estimating reasonable estimate variance. process, was soon concluded to be the latter, since with few exceptions, under a normal and competitive bidding Finally, since estimating and bidding is not an exact process actual bid prices are generally the best indicator of science, the expectation for estimate accuracy must be the prevailing competitive market conditions for a specific realistic, in relation to the particular type of project and in project at that time. Upon further review it was also found proportion to the quality and time expended to produce that the owners’ estimating process was seldom properly a specific level of estimate accuracy. But at any level, completed up to a reasonable Class A level, and in most adherence to the recommendations of this guide should cases only up to Class B, or even a brought forward Class C! definitely improve cost predictability. Also, it must be recognized that each project is unique In this respect it bears repeating the obvious, that to and different from the previous one in varying degrees. achieve a realistic Class A estimate requires the following Although many projects may be relatively repetitive and ingredients: “similar”, such as “standard” office buildings or schools, 1. Class A professional and experienced estimating many others are non-standard and individually complex, qualifications; unique, one-of-a-kind, remotely located, etc., or any combination thereof, such as leading edge lab facilities, 2. Class A completed project design documentation; and historic building renovations, environmentally challenged 3. Class A time, sufficient to produce the required estimate locations and increasingly green, sustainable, and more analysis with accuracy. innovative structures and systems. Lastly, the taskforce was fortunate to have the benefit of Further, since the preparation of project estimates has senior, experienced, informed, articulate, and independent typically been based on historical information, such cross-sector representatives; I sincerely want to thank each information may be outdated, or perhaps not even exist of them for their effective and dedicated participation in for certain individual types of projects; therefore, the the production of this guide. 1 Guide to Cost Predictability in Construction: An Analysis of Issues Affecting the Accuracy of Construction Cost Estimates November 2012 Executive Summary • recognize the degree of accuracy of the estimate being used. Large discrepancies between pre-tender estimates and actual bids for construction have a serious impact on A large number of factors contribute to variances in the viability of a project. Owners, architects, engineers, estimate to bid prices. This guide will provide practical cost consultants, contractors and subcontractors all advice and discuss the primary ways to improve the cost have a vested interest in ensuring a high degree of cost predictability of projects. The consequence of a failure is predictability. This issue, raised at the Federal Government often a cancelled project. / Industry Real Property Advisory Council, resulted in the formation of a Cost Predictability Taskforce, to research and The Cost Estimate Variance Matrix recommend solutions to this increasing problem. As shown in the Cost Estimate Variance Matrix, the accuracy of estimates varies throughout the project design Defining Cost Predictability cycle and according to the complexity of the specific For the purpose of this guide, “cost predictability” is project, and several other factors that may be unique to defined as “the prediction of a construction cost estimate, a project. Depending on the class of estimate and the as compared to the median of competitive bids”, where complexity of the project, variances can range from 5% to “prediction” is defined as “an assertion on the basis of data, 30%. If additional unique aspects or risks apply to a project, theory or experience, but in advance of proof”. these variances should be analyzed and increased by an appropriate amount. As such this guide will apply only to procurement processes that typically require the submission of a total Improving Cost Predictability project bid, such as a design-bid-build or design-build Early in the project life cycle, i.e., before the requirements process, and although not directly applicable to the are well-defined and before accurate estimates are construction management process, it could also be applied available, owners will need to set budgets. The challenge to the sequential trade contractors’ bids. for all stakeholders is to ensure that the appropriate scope and cost management framework is adopted to ensure Similarly, many of the same underlying principles could the desired, or required, degree of cost predictability. The also be applied to the further development of cost following recommendations should be considered to predictability guides for the increasing range of P3 and improve the cost predictability between the final pre- lease/purchase procurement process variations. tender estimate and actual bid prices: Taskforce Analysis Before Tender There is no common statistical database on variances • include sufficient contingency to address market between pre-tender estimates and final bid results for volatility, timing of construction, and other exclusions in the Canadian construction market. However, members the estimate; of the task force shared internal data that showed up to 40% of tenders had low bids that varied, either up or • consider possible scope
Load more

Recommended publications
  • Construction Cost Engineering
    Construction Cost Engineering Purpose and Background Pressure to deliver construction projects at a faster pace has grown and many owners are now demanding that engineers and construction professionals deliver completed facilities in half the time the industry was used to having in the recent past. As a result, the need to be able to accurately estimate the cost of new projects has grown more and more important. There is no time to rescope a project due to funding constraints. Owners, engineers and designers must be cognizant of the cost implications of design decisions throughout the project development process. To do this, they must understand the fundamental concepts of construction cost estimating from both the contractor’s and the owner’s perspective. Additionally, after contract award, this same group must be able to accurately analyze the cost consequences of change orders and thus facilitate the timely completion of the change process to minimize delay. Finally, the proliferation of the use of innovative project delivery methods such as Design- Build and Construction Manager-at-Risk have fundamentally changed the way engineers must approach cost engineering to account for the shifts in professional responsibility inherent to these new delivery methods. This seminar breaks down the construction cost engineering process into its component steps and reassemble it into a straightforward, logical methodology for the development of valid cost analyses of construction projects from the owner’s standpoint. The seminar alternates between lecture/discussion periods and short, high-impact team exercises that are designed to reinforce the preceding lecture’s learning objectives. It offers a comprehensive view of the cost engineering process as a fully integrated system rather than the conventional approach of separate but related activities.
    [Show full text]
  • GAO-20-195G, Cost Estimating and Assessment Guide
    COST ESTIMATING AND ASSESSMENT GUIDE Best Practices for Developing and Managing Program Costs GAO-20-195G March 2020 Contents Preface 1 Introduction 3 Chapter 1 Why Government Programs Need Cost Estimates and the Challenges in Developing Them 8 Cost Estimating Challenges 9 Chapter 2 Cost Analysis and Cost Estimates 17 Types of Cost Estimates 17 Significance of Cost Estimates 22 Cost Estimates in Acquisition 22 The Importance of Cost Estimates in Establishing Budgets 24 Cost Estimates and Affordability 25 Chapter 3 The Characteristics of Credible Cost Estimates and a Reliable Process for Creating Them 31 The Four Characteristics of a Reliable Cost Estimate 31 Best Practices Related to Developing and Maintaining a Reliable Cost Estimate 32 Cost Estimating Best Practices and the Estimating Process 33 Chapter 4 Step 1: Define the Estimate’s Purpose 38 Scope 38 Including All Costs in a Life Cycle Cost Estimate 39 Survey of Step 1 40 Chapter 5 Step 2: Developing the Estimating Plan 41 Team Composition and Organization 41 Study Plan and Schedule 42 Cost Estimating Team 44 Certification and Training for Cost Estimating and EVM Analysis 46 Survey of Step 2 46 Chapter 6 Step 3: Define the Program - Technical Baseline Description 48 Definition and Purpose 48 Process 48 Contents 49 Page i GAO-20-195G Cost Estimating and Assessment Guide Key System Characteristics and Performance Parameters 52 Survey of Step 3 54 Chapter 7 Step 4: Determine the Estimating Structure - Work Breakdown Structure 56 WBS Concepts 56 Common WBS Elements 61 WBS Development
    [Show full text]
  • A Case for Incorporating Pre-Construction Cost Estimating in Construction Engineering and Management Programs
    Paper ID #14387 A Case for Incorporating Pre-construction Cost Estimating in Construction Engineering and Management Programs Dr. Carla Lopez del Puerto, University of Puerto Rico, Mayaguez¨ Carla Lopez del Puerto, PhD Associate Professor Construction Engineering and Management Depart- ment of Civil Engineering University of Puerto Rico at Mayaguez email: [email protected] http://cem.uprm.edu Luis G. Costa Agosto, University of Puerto Rico, Mayaguez¨ Luis G. Costa Agosto Graduate Student Construction Engineering and Management University of Puerto Rico at Mayaguez email: [email protected] http://cem.uprm.edu Prof. Douglas D. Gransberg PhD, PE, Iowa State UIniversity Douglas D. Gransberg is the Donald and Sharon Greenwood Professor of Construction Engineering at Iowa State University. He received both his B.S. and M.S. degrees in Civil Engineering from Oregon State University and his Ph.D. in Civil Engineering from the University of Colorado at Boulder. He was a faculty member at the University of Oklahoma and Texas Tech University before joining ISU in 2011. His research spans the full life cycle of engineering, construction and maintenance, from the procurement of new projects using alternative project delivery methods such as Construction Manager/General Con- tractor and Design-Build to the preservation and maintenance of pavements and bridges. His research has received awards from the Transportation Research Board, several US state departments of transportation and the New Zealand Transit Agency. He is also a registered Professional Engineer in Oklahoma, Texas and Oregon, a Certified Cost Engineer, a Designated Design-Build Professional and a Fellow of the Royal Institution of Chartered Surveyors in the UK.
    [Show full text]
  • Skills and Knowledge of Cost Engineering
    SAMPLE AACE International Skills and Knowledge of Cost Engineering Skills and Knowledge of Cost Engineering Sixth Edition Dr. Makarand Hastak, PE CCP, Editor 2015 Skills and Knowledge of Cost Engineering Sixth Edition Copyright © 1987-2015 by AACE® International 1265 Suncrest Towne Centre Drive, Morgantown, WV 26505-1876, USA Phone: +1.304.2968444 | Fax: +1.304.2915728 | E-mail: [email protected] | Web: web.aacei.org SAMPLE 1 AACE International Skills and Knowledge of Cost Engineering A Publication of Skills and Knowledge of Cost Engineering Sixth Edition Dr. Makarand Hastak, PE CCP, Editor A continuing project of the AACE International Education Board 2017- 2018 Education Board Chair: Michael R. Nosbisch, CCP PSP FAACE [email protected] Vice President - Education Board: Martin R. Darley, CCP [email protected] Members: Dr. Nakisa Alborz Michael Bensussen B. Steven Feng, II Andrea Georgopolous Omar Nava Mazzaoui, P. Eng. Bryan Payne, PE CCP CFCC Julianne Richards Marina Sominsky, PSP SAMPLE Contributing Members: Nelson E. Bonilla, CCP FAACE Trevor X. Crawford, CCP FAACE Clive D. Francis, CCP FAACE Hon. Life Kenneth W. Larison Thomas L. Long Neil D. Opfer, CCP CEP PSP Stephen O. Revay, CCP CFCC FAACE Debbie Richards, CCT PSP Brian Wilcox James G. Zack, Jr. CFCC FAACE Hon. Life AACE Headquarters Liaison: Teri Jefferson, CMP, Manager Education +1 (304) 296-8444 x. 1120 [email protected] 3 AACE International Skills and Knowledge of Cost Engineering 2015/2016 Education Board Members: Peter W. Griesmyer, FAACE (Chair) Dr. Nadia Al-Aubaidy Dr. Baabak Ashuri, CCP DRMP Michael Bensussen Chris A. Boyd, CCP CEP Dr. John O.
    [Show full text]
  • Earned Value Management and Its Applications: a Case of an Oil & Gas Project in Kazakhstan1
    PM World Journal Earned Value Management and its Application: A Case of Vol. VII, Issue V – May 2018 an Oil & Gas Project in Kazakhstan www.pmworldjournal.net Student Paper by Assylkhan Ziyash Earned Value Management and its Applications: A Case of an Oil & Gas Project in Kazakhstan1 Assylkhan Ziyash Abstract This research is performed in the study of issues in project control and progress performance evaluation. Particularly, it focuses on the progress measurement by applying the Earned Value Management (EVM). EVM is one of the widely used approaches for project monitoring and control which allows one to assess project progress through scope, schedule, and cost measurements. In order to track the progress effectively the measurements data should be provided systematically. According to the previous research studies on this subject, there are a lot of benefits that have been associated with the use of EVM in Project Management (PM). The main purpose of this research is to assess how EVM, when applied to a real project, helps a project manager to be successful in terms of budget utilization and adherence to schedule. This study is aimed to well understanding of the actual cost expenditures versus planned costs and potential usage of EVM to compare and analyze the available data. For the purpose of data collection, this research evaluates a project that has recently been delivered in the oil and gas industry in Kazakhstan. The study compares actual spending against planned values. It should be noted that the current project did not apply the EVM methodology while being executed. The project had significant cost increase from original budget.
    [Show full text]
  • Cost Engineering
    Lower Yellowstone Intake Diversion Dam Fish Passage Project, Montana APPENDIX B – COST ENGINEERING Lower Yellowstone Intake Fish Passage EIS OCTOBER 2016 Lower Yellowstone Intake Diversion Dam Fish Passage Project Final Cost Engineering Appendix October 2016 Contents 1.0 Alternative Construction Cost Estimates ................................................................................ 1 1.1 General ........................................................................................................................ 1 1.2 Purpose ........................................................................................................................ 1 1.3 Design Alternatives ..................................................................................................... 1 1.4 Alternative Design Levels ........................................................................................... 2 1.5 Estimates for Comparison Purposes ............................................................................ 3 2.0 Initial Alternatives .................................................................................................................. 4 2.1 Detailed Alternative Descriptions ............................................................................... 4 2.1.1 Rock Ramp......................................................................................................4 2.1.2 Bypass Channel ...............................................................................................5 2.2 Basis of Estimates ......................................................................................................
    [Show full text]
  • Unique Approach to Teaching Heavy Civil Estimating
    Paper ID #18320 Unique Approach to Teaching Heavy Civil Estimating Dr. Okere O. George, Washington State University George is an assistant professor in the construction management program in the School of Design and Construction at Washington State University (WSU). Before joining WSU he worked for Kiewit Corpo- ration on various heavy civil projects. He received his PhD in Technology Management from Indiana State University with specialization in Construction Management. His research focus is in the area of contract administration on state DOT projects. Dr. W. Max Kirk, Washington State University Max is currently an Associate Professor in Construction Management in the School of Design and Con- struction at Washington State University. Max received a B.S., Washington State University, 1977; B.A., Eastern Washington University, June 1985; M.S. Arizona State University, May 1990; Ph.D., University of Nebraska-Lincoln, May 2000. After stepping down from administrative duties as Interim Director School of Design and Construction in 2014, Assistant Director School of Design and Construction (2006-2013) and coordinator of Construc- tion Management (2001-2013), Max is now focusing on his teaching and research duties and also been appointed as the University Ombudsman in July 2015. This past spring of 2014 working as a Co-PI a team of researchers received a research grant to study Climate Change Impacts on Indoor Air Quality. Grant Funded $996,588.00 Max also holds a patent No. 6,213,117 (2000) for a Motorized, Insulated Damper Assembly for Indoor Air Quality. c American Society for Engineering Education, 2017 Unique Approach to Teaching Heavy Civil Cost Estimating This paper is an evidence-based practice paper and it is about a unique approach to teaching heavy civil cost estimating.
    [Show full text]
  • 18R-97: Cost Estimate Classification System – As Applied in Engineering, Procurement, and 2 of 21 Construction for the Process Industries
    18R-97 COST ESTIMATE CLASSIFICATION SYSTEM - AS APPLIED IN ENGINEERING, PROCUREMENT, AND CONSTRUCTION FOR THE PROCESS SAMPLEINDUSTRIES AACE International Recommended Practice No. 18R-97 COST ESTIMATE CLASSIFICATION SYSTEM – AS APPLIED IN ENGINEERING, PROCUREMENT, AND CONSTRUCTION FOR THE PROCESS INDUSTRIES TCM Framework: 7.3 – Cost Estimating and Budgeting Rev. August 7, 2020 Note: As AACE International Recommended Practices evolve over time, please refer to web.aacei.org for the latest revisions. Any terms found in AACE Recommended Practice 10S-90, Cost Engineering Terminology, supersede terms defined in other AACE work products, including but not limited to, other recommended practices, the Total Cost Management Framework, and Skills & Knowledge of Cost Engineering. Contributors: Disclaimer: The content provided by the contributors to this recommended practice is their own and does not necessarily reflect that of their employers, unless otherwise stated. August 7, 2020 Revision: Peter R. Bredehoeft, Jr. CEP FAACE (Primary Contributor) John K. Hollmann, PE CCP CEP DRMP FAACE Hon. Life (Primary Larry R. Dysert, CCP CEP DRMP FAACE Hon. Life Contributor) (Primary Contributor) Todd W. Pickett, CCP CEP (Primary Contributor) March 6, 2019 Revision: Peter R. Bredehoeft,SAMPLE Jr. CEP FAACE (Primary Contributor) John K. Hollmann, CCP CEP DRMP FAACE Hon. Life Larry R. Dysert, CCP CEP DRMP FAACE Hon. Life (Primary Contributor) (Primary Contributor) March 1, 2016 Revision: Larry R. Dysert, CCP CEP DRMP (Primary Contributor) Dan Melamed, CCP EVP Laurie S. Bowman, CCP DRMP EVP PSP Todd W. Pickett, CCP CEP Peter R. Bredehoeft, Jr. CEP Richard C. Plumery, EVP November 29, 2011 Revision: Peter Christensen, CCE (Primary Contributor) Robert C.
    [Show full text]
  • Cost Estimating and Project Controls Closing the Loop
    COST ESTIMATING AND PROJECT CONTROLS CLOSING THE LOOP www.CostEngineering.eu COST ESTIMATING AND PROJECT CONTROLS: "CLOSING THE LOOP" Foreword by Ko des Bouvrie Cost Engineering is proud to welcome you to the Cost Engineering Event 2015, the fi fth edition of the most important cost engineering event in Europe. Nowadays we see more and more pressure for projects to be delivered in time, within the established budget and with the best quality. Therefore, the theme for this year’s Event is “Cost Estimating and Project Control: Closing the loop”. A title that refl ects the necessity of bringing estimating and project controls closer together. At the previous Cost Engineering Event the theme was about Total Cost Management and we noticed that the companies we work with are more and more interested in the total concept of cost engineering. At Cost Engineering we therefore promote that companies should make a step in bringing the estimating and project controls departments closer together, as opposed to two different departments each with their own different views and tools. We also see that projects are driven by cashfl ow. This asks for skilled project controllers who have access to more detailed information from the estimate to make better forecasts and analysis. In essence, forecasting is the same as cost estimating, so why don’t we make better use of the estimate and the knowledge of the estimator? In return, the estimator has to rely on good historical data and the feedback on what happened to the estimate. After all, estimating is looking into the future and project controls refl ects the reality at the end of the project.
    [Show full text]
  • The Early History of Cost Engineering
    2016 AACE® INTERNATIONAL TECHNICAL PAPER TCM.2104 The Early History of Cost Engineering John K. Hollmann, PE CCP CEP DRMP Abstract—At the 50th anniversary of AACE International®, the association published a recap of its founding in 1956. However, cost estimating and engineering economics applied in capital asset management, the early core practices of Cost Engineering, have a much longer history one that has not been well documented. This paper will review notable developments and leaders in these fields prior to 1956. The story starts with “De Re Metallica” by Agricola published 400 years before in 1556 (translated to English by engineer and future President Herbert Hoover and his wife Lou.) It goes on to discuss early leaders in cost estimating and engineering economics such as Wellington, Fish and Gillette. Those interested in history and wondering how Cost Engineering came to be may find this paper interesting. The paper also discusses the current AACE® mission and strategy in comparison to this history. TCM.2104.1 Copyright © AACE® International. This paper may not be reproduced or republished without expressed written consent from AACE® International 2016 AACE® INTERNATIONAL TECHNICAL PAPER Table of Contents Abstract ....................................................................................................................................... 1 List of Figures .............................................................................................................................. 2 Introduction …………………………… …………………………………………………………………………………………….
    [Show full text]
  • Cost Estimating Guide
    NOT MEASUREMENT SENSITIVE DOE G 413.3-21A 6-6-2018 Cost Estimating Guide [This Guide describes suggested non-mandatory approaches for meeting requirements. Guides are not requirements documents and are not to be construed as requirements in any audit or appraisal for compliance with the parent Policy, Order, Notice, or Manual.] U.S. Department of Energy Washington, D.C. 20585 AVAILABLE ONLINE AT: INITIATED BY: www.directives.doe.gov Office of Project Management DOE G 413.3-21A i (and ii) 6-6-2018 FOREWORD A strong cost estimating foundation is essential to achieving program and project success. Every Federal cost estimating practitioner is challenged to strive for high quality cost estimates by using the preferred best practices, methods and procedures contained in this Department of Energy (DOE) Cost Estimating Guide. Content in this guide supersedes DOE Guide 413.3-21, Chg1, Cost Estimating Guide, 10-22-2015. The Guide is applicable to all phases of the Department’s acquisition of capital asset life-cycle management activities and may be used by all DOE elements, programs and projects. When considering unique attributes, technology, and complexity, DOE personnel are advised to carefully compare alternate methods or tailored approaches against this uniform, comprehensive cost estimating guidance. Programs may specify more specific processes and procedures that augment or replace those in this guide (e.g. NNSA Life Extension Programs (LEPs) fall under the process/timeline in the Phase 6.X process). Guides provide non-mandatory supplemental information and additional guidance regarding executing the Department’s Policies, Orders, Notices, and regulatory standards. Guides may also provide acceptable methods for implementing these requirements.
    [Show full text]
  • Civil Works Cost Engineering,” Included As Petitioner’S
    STATE OF INDIANA INDIANA UTILITY REGULATORY COMMISSION IN THE MATTER OF THE PETITION OF ) THE TOWN OF CHANDLER, INDIANA, ) FOR APPROVAL OF A NEW SCHEDULE ) OF RATES AND CHARGES FOR WATER ) UTILITY SERVICE AND FOR ) AUTHORITY TO ISSUE REVENUE ) CAUSE NO. 45062 BONDS TO PROVIDE FUNDS FOR THE ) COSTS OF THE ACQUISITION AND ) INSTALLATION OF IMPROVEMENTS ) AND EXTENSIONS TO THE ) WATERWORKS OF THE TOWN ) PETITIONER’S EXHIBIT NO. 2-R Prepared Rebuttal Testimony and Attachments of J. Christopher Kaufman Jr. Water Resources Department Manager for Beam, Longest and Neff, LLC Sponsoring Petitioner’s Attachment Nos. JCK-1R through JCK-3R 4841-1203-1856.v3 Petitioner’s Exhibit No. 2-R (J. Christopher Kaufman Jr.) Cause No. 45062: Chandler Municipal Water Works Page 1 of 9 VERIFIED REBUTTAL TESTIMONY OF CHRIS KAUFMAN 1 Q. Please state your name, employer, and business address. 2 A. My name is J. Christopher Kaufman Jr. and I am the water resources department 3 manager at Beam, Longest and Neff, LLC (“BLN”), an engineering consulting firm. My 4 business address is 8320 Craig Street, Indianapolis, Indiana 46250. 5 6 Q. Are you the same Christopher Kaufman who provided direct testimony in this Cause 7 on behalf of the Waterworks Utility of the Town of Chandler, Indiana (“Petitioner” or 8 “Chandler”)? 9 A. Yes, I am. 10 11 Q. What is the purpose of your rebuttal testimony? 12 A. The purpose of my rebuttal testimony is to respond to positions taken by the Office of 13 Utility Consumer Counselor (“OUCC”) through the testimony of witness James Parks 14 regarding Chandler’s allowances for contingencies and engineering costs in the 15 acquisition, construction, installation, and equipping of a road relocation project, line 16 replacement, an additional transmission line, and related waterworks improvements 17 (collectively, the “Project”).
    [Show full text]