6.4.1.3
Treatment Costs
Including the cost of maintenance and rehabilitation activities in a computerized maintenance system provides a historical record of how treatment costs have changed over time. The information from the management system, as well as bid documents, can be used to establish unit costs for each type of work activity possibly recommended by the system. Unit prices for each work activity included in the system are needed.
For many transportation projects, improving the condition of the asset is only one part of the total cost of a project. There are many other costs to incorporate into the unit price when estimating the cost of a treatment recommendation, including the cost of pavement markings, guardrails and signs on a pavement project. If these costs are ignored, the cost of a project will be underestimated, and an agency may program more work than can be constructed over a given timeframe. Some agencies inflate treatment costs by a factor of 30 to 40 percent to ensure the costs associated with project design and the improvement of ancillary assets are considered in the unit cost for a given treatment. Using this approach, $0.30 to $0.40 is added to every dollar associated with the cost of the work itself. The inflated cost (e.g., $1.40) is stored in the management system as the unit cost for estimating treatment costs.
Different unit costs may also be established to reflect different costs in urban and rural areas, or in different geographic regions of a state. These differences improve the accuracy of asset budgeting activities by reflecting the realities agencies face due to work activities in highly congested areas, differences in the availability of contractors and the scarcity of materials in certain areas.
In addition to being used to estimate budget needs, treatment cost information serves many other purposes. For instance, the cost of a proposed project and its expected life can be used to determine a Return on Investment to help ensure that the most cost-effective projects are being selected. The information can also be used to compare the effectiveness of one treatment over another, or one life cycle strategy over another. Cost information has also been used to demonstrate the benefits to using proactive maintenance across a transportation network rather than reactive maintenance.