There is a need for a better cost estimating and forecasting for highway work in the Commonwealth of Kentucky. KRS45.245 grants the Interim Joint Committee on Transportation oversight of the biennial highway plan, including a review of all authorized highway project phases that exceed their estimates by 15%. In recent years, the Kentucky Transportation Cabinet has suffered the loss of many resources necessary to produce good cost estimated.

Estimates developed using current methods are not sufficiently accurate to preclude cost overruns in excess of 15%. During the biennium 134 overruns, totaling over $69 million, have been submitted to the Committee. All have been approved for additional funding.

Current estimating practices in Kentucky and other states were studied, and the causes for cost overruns greater than 15% during the current biennium were analyzed. Preliminary recommendations, based on the first eight months of this three year study are presented.

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The contents of this report reflect the views of the author, who is responsible for the facts and accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the University of Kentucky, the Kentucky Transportation Cabinet, or the Federal Highway Administration. This report does not constitute a standard, specification, or regulation.