Cost Estimates
A common task in a corridor plan is to develop planning-level cost estimates of proposed solutions. Estimates of how much it may cost to design, permit, construct and maintain an infrastructure or other solution inform next steps coming from the corridor plan. Implications include whether a solution can be funded using existing funding sources, mechanisms for funding the project, and timing or phasing of project development. Planning level costs should be estimated using a methodology approved by the project team. Planning level cost estimates for each infrastructure solution should identify the percent of the proposed investment by each MnSHIP Investment Category, consistent with the Investment Category Guidance (for internal MnDOT access only). Identifying a solution’s alignment with MnSHIP Investment Categories will help MnDOT understand how the solution relates to the overall investment direction set in MnSHIP.
Capital cost estimates should not be included as an evaluation criterion. Rather, how much a solution costs should be considered in parallel with the performance evaluation but the two should be maintained as separate measures. Although a high cost may be a challenge and/or an impediment to implementation, it does not negate positive performance. Similarly, a low cost option may be easy to fund but if it does not perform well, the low cost is not a positive consideration.
A qualitative estimate of life cycle costs for a given option is included as an evaluation criteria (see Table 15, Asset Management). While capital costs may be obtained through one-time funding sources and can be considered separately from other evaluation criteria, operations and maintenance costs are borne by the agency for the infrastructure lifespan and are considered part of performance measurement.