Unit Rates For Asset Valuation
Purposes
Local Government Asset Management
Conference
Jag Vithanage and Ruwan De Silva
1|
Our values, our diversity
2|
Transport and Main Roads’
responsibilities include:
3|
•
Identifying and prioritising transport infrastructure needs for
Queensland.
•
Development and management of four-year Queensland Transport
and Roads Investment Program (QTRIP) A$3.9b in year 2015–16.
•
Leading the interface between the Queensland Government and the
Australian Government for delivery of federally-funded transport
projects.
•
Managing and maintaining policies, systems and processes for
effective program and project management delivery.
Queensland Transport and Roads
Investment Program (QTRIP) funding
breakdown
QTRIP Funding 2015-
2015-16
2016-17
2017-18
2018-19
16 to 2018-19
By entity:
($m)
($m)
($m)
($m)
($m)
Queensland Rail
763
559
391
444
2,159
Gold Coast Waterways
Authority
4|
Four year
total
9
-
-
-
9
Department of Transport and
Main Roads
3,138
3,956
4,837
4,743
16,675
Total
3,911
4,516
5,228
5,188
18,843
Transport and Main Roads in
summary
5
Transport and Main Roads manages:
•
State controlled road network of 33,343km.
•
National Network roads of 5,017km.
•
Other state-controlled – state strategic roads of 4086Km.
•
Regional and district roads 24,243km.
•
Busways in South East Queensland extending to 29km.
•
Owns/maintain 3010 bridges, 3987 major culverts and 33 tunnels.
•
Maritime infrastructure, cycleways and passenger transport system.
The department is the state's single largest physical asset owner with
road network with a replacement value of $66 billion.
5|
Unit rate development methodology
• The department’s road network has been classified into 14
stereotypes and each stereotype corresponds to the appropriate
network standard.
• Stereotypical roads are combination of applicable design standard
and Model Road State.
• Work Breakdown Structure (WBS) has been developed for
corresponding stereotype.
• Work Breakdown Schedules (WBS) for 12 stereotypical roads with
variants for terrain, environment, CBR and region (quantities and
items) using first principles.
• Each WBS schedule include key elements of the corresponding
stereotype and cost estimates were prepared from first principles.
6|
Unit rate development methodology
(continued)
• The unit rate costs data are developed using SmartCost database
and Expert Estimation tool.
• Five geographical cost regions in “SmartCost” provide the local
context of departmental road network upgrade costs.
• Contractors’ overhead and profit margin are applied based on the
corresponding stereotype.
• The department’s project management costs have been added to
the overhead costs as a percentage of the construction costs.
• Stereotype project costs are calculated based on 5km road length.
7|
How unit rates work
8
• Unit rates determines the gross value of the road network in $/m2
(per km).
• Costed WBS schedule items are allocated to relevant asset
components such as earth works, pavement and surfacing.
• Total costs of each asset class divided from the area to derive unit
rate for the correspondent asset class.
• Stereotypical approach provides robust resource based network
replacement cost.
• The brownfield unit rates are to be applied for calculation of Residual
Values.
• Bridge unit rates are derived from analysing data from recently
completed projects.
8|
Unit rate stereotypes
•
Central Coast (CC)
•
Central Inland (CI)
•
Southern Inland (SI)
•
Southeast Qld (SQ)
•
Tropical North (TN)
•
Resealing/Resurfacing
•
Pavement Rehabilitation
•
Road Reconstruction
•
Complete New Road
Renewal
Work
schedules
Costing
Region
Road
stereotype
Stereotype
Unit Rate
Soil Type
Terrain
Stereotype Description
Unformed roads (to differentiate whether it is in a rural or urban
0
road an 'R' or 'U' will be placed in front of the stereotype
Rural Roads
1
Unsealed roads
2
Single carriageway <= 6.4m seal width constructed pre 1980
3
Single carriageway <= 6.4m seal width constructed post 1980
4
Single carriageway > 6.4m seal width constructed pre 1980
5
Single carriageway > 6.4m seal width constructed post 1980
6
Motorway sealed - typically upto 6 lanes
7
Major motorway - 6 lanes or more
Urban Roads
8
Undivided carriageway less than 4 lanes
9
Undivided carriageway 4 lanes or more
10
Divided carriageway 4 lanes or more non-motorway standard
11
Motorway 4 to 6 lanes
12
Major motorway - 6 lanes or more
13
Busway
•
Level
•
Rolling
•
Mountainous
Stereotype example
Environment
9|
•
Reactive (R)
•
Non-Reactive (NR)
•
Wet (W)
•
Dry (D)
1LDR-CC
‘1’ = indicates that it is in rural area and is an
unsealed road
‘L’ = in a level terrain
‘D’ = in a dry environment
‘R’ = soil is reactive
‘CC’ = in Central Coast Region
Stereotype road lengths
Stereotype ID
Stereotype Code
Asset Owner
1
0
10 |
Total Segment Length
1
R01
4,285
TMR
2
R02
3,640
MR
3
R03
3,910
MR
4
R04
2,978
MR
5
R05
16,965
MR
6
R06
725
MR
7
R07
14
MR
7
R06
16
MR
8
U08
387
MR
9
U09
30
MR
10
U10
919
MR
11
U11
341
MR
12
U10
83
MR
12
U12
172
MR
13
U13
28
BUSWAY
Total
34494
SmartCost regions
Tropical
North (TN)
Central
Inland (CI)
Central
Coast (CC)
Southern
Inland (SI)
11 |
South East
Queensland
(SQ)
Work Breakdown Structure (WBS)
Item
1001
1100
1101
1002
1200
1201
1003
1311
Unit
Quantity
Unit Rate
Amount
Category
PRELIMINARY WORKS
CONTRACTOR'S SITE FACILITIES AND CAMP MRS28
site facilities
Lsum
1.000 304,581.00
304,581
MISC
LS
7.000 683,730.40
4,786,113
MISC
LS
2.500 683,730.00
1,709,325
MISC
PROVISION FOR TRAFFIC MRS02
TRAFFIC MANAGEMENT MRS02
Provision for traffic (% of construction cost)
ENVIRONMENTAL MANAGEMENT MRS51
Provision for environmental management and planning (% of construction cost)
2001
DRAINAGE, RETAINING STRUCTURES AND PROTECTIVE TREATMENTS MRS03
2100
REMOVAL/DEMOLITION MRS03
2101
Removal or demolition of culverts, complete, 600ø, 300meters
Lsum
1.000
18,842.00
18,842 Earth Works
2106
Removal or demolition of concrete kerb and channel including kerb crossings
Item
1.000
18,636.00
18,636 Earth Works
2107
Removal or demolition of concrete slabs, 150mm Thickness
Item
1.000
19,147.00
19,147 Earth Works
2108
Removal or demolition of gullies, >1.5m depth - <3m depth
Item
1.000
19,719.00
19,719 Earth Works
2240
2241.1
2241.2
2241.3
2241.4
2243.1
12 |
Description
SUPPLY AND INSTALLATION OF CULVERTS MRS03
Supply and installation
Green fields
Supply and installation
Green fields
Supply and installation
Green fields
Supply and installation
Green fields
of concrete pipe culvert components, Class 2, 450mm diameter -
m
4,987.200
364.64
1,818,533 Earth Works
of concrete pipe culvert components, Class 2, 525mm diameter -
m
3,410.400
412.18
1,405,699 Earth Works
of concrete pipe culvert components, Class 2, 600mm diameter -
m
1,020.000
500.82
510,836 Earth Works
of concrete pipe culvert components, Class 2, 750mm diameter -
m
26.400
721.58
19,050 Earth Works
m
100.800
1,942.00
195,754 Earth Works
Supply and installation of concrete box culvert components, 1500mm x 1200mm
Expert Estimation
13 |
Validation of unit rates data
• Have a consistent WBS at multiple levels
• Stereotypes WBS align with current Transport and Main Roads’
specifications.
• Benchmarking with recent tender prices and completed projects.
• Expert panel with internal asset managers, engineers and regional
estimators validate final unit rates.
14 |
Example unit rates
• Costed WBS schedule items are allocated to relevant asset components
such as earth works, pavement and surfacing.
WBS
15 |
10LWNR_CC
10LWNR_SI
10LWNR_SQ
10LWNR_TN
10LWR_CC
10LWR_SI
10LWR_SQ
10MWNR_SI
11LWNR_CC
11LWNR_SI
11LWNR_SQ
11LWNR_TN
11LWR_SQ
11MWNR_SI
11MWNR_SQ
11RWNR_SI
11RWNR_SQ
11RWR_SQ
Unit rates for 2014 (S/m2)
Earthworks
Pavement
147.79
148.63
144.54
149.49
147.79
148.63
144.54
283.93
$460.91
$463.53
$451.01
$466.12
$450.02
$980.30
$953.33
$669.28
$650.87
$649.44
336.45
338.11
328.59
340.22
336.45
338.11
328.59
410.99
$502.83
$505.31
$491.67
$508.29
$491.79
$672.29
$653.36
$637.02
$619.08
$619.23
Asphalt Surfacing
79.21
79.46
77.47
80.09
79.21
79.46
77.47
77.37
$92.44
$92.73
$90.52
$93.51
$90.48
$101.16
$98.63
$103.57
$100.98
$100.93
Bridge unit rates (from completed
projects)
Type
Construction Code
Unit Rate ($/m2) 2014/15
financial year
Box Girder
$8,397
Girder/Beam
$4,304
Deck Unit
$5,920
Cut and Cover
$10,945
Driven / Bored
$12,022
Major Culverts
All
$3,940
Riverside Expressway Bridges
All
$15,431
Houghton Highway
Girder/Beam - Houghton
$6,299
Standard Bridges
Tunnels
16 |
Summary
The benefits of developing stereotype unit rates in this manner:
• Provides robust resource-based estimates.
• Provides transparency in the method of costing development.
• Closer alignment with the department’s internal project estimating
processes.
• Data files can be reused.
17 |
Thank you
18 |