Analysis of the impact of fuel price and bidding volume on the engineer's estimate

The research project "Analysis of the Impact of Fuel Price and Bidding Volume on the Engineer's Estimate" was initiated by the South Carolina Department of Transportation and conducted by Clemson University. This research was executed as a two part study, "Best Practices for Developing the Engineer's Estimate", which addressed two distinct but related objectives. The first research objective was to fully explore the advantages and disadvantage of alternative methodologies utilized to compile the engineer's cost estimate. This research objective is addressed in Report Volume I. The second research objective, which is addressed in this Report Volume II, was to develop a methodology for adjusting selected unit cost bid line items to account for fluctuations in fuel prices and bid volume.; This research report details the methodology utilized to determine and then adjust unit cost line items that would need to be adjusted during the bidding process based on the current fuel price or bidding volume at SCDOT. Thirty-three unit cost line items were identified that may need to be estimated differently in the future, either using an alternative estimating methodology or using the adjustment techniques described within this report. Of the 33 line items that were identified and analyzed, 28 bid line items contained sufficient data points to conduct a regression analysis. Regression plots and algorithms were developed for the 28 unit cost line items believed to be most sensitive to fuel prices and bid volume. These analyses can then be used to adjust unit cost line items during the bidding process based of fluctuations in the fuel prices or bidding volume per month. This research describes the regression plots and analyses as well as suggestions for implementing the proposed approach for bid line item adjustments for the SCDOT.