Guidelines for Cost Estimate Template

Transcription

1 Guidelines for Cost Estimate Template Date: December 11, 2014 Version: 1 Public Information

2 Table of Contents Overview... 1 Protecting / Unprotecting the Spreadsheet... 1 Entry and Formula Fields... 1 Sheet Notes... 1 Level of Breakdown... 1 Assumptions for Line Items... 1 Quantity, Sizes, Types... 2 Contract... 2 Supply and Install... 2 Multiple Transmission Lines, Substations or Telecom Facilities... 2 Printing Size... 2 Benchmarking Database... 2 Summary (Tab 1)... 3 Owner s Costs (Summary Tab 1)... 3 Salvage and Other Costs (Summary Tab 1)... 3 Transmission Lines (Tabs 2 OH and UG)... 3 Substations (Tab 3)... 3 Telecommunication (Tab 4)... 3 Distributed Costs (Tab 5)... 4 Contingency / Risk Register Summary (Tab 6)... 4 Escalation (Tab 7)... 4 AESO Contact Information... 5 Tab 1 Summary... 6 Tab 2 Transmission Line Costs (OH) and (UG)... 7 Tab 3 Substations... 8 Tab 4 Telecommunications... 9 Tab 5 Distributed Labour Tab 6 Contingency / Risk Register Tab 7 Escalation Definitions... 13

3 Overview This document is provided as a guideline for users of the revised Cost Estimate Template effective January 5, This guideline provides instruction for cost estimating requirements throughout all stages of a transmission project. The new Cost Estimate Template contains 7 tabs; each detailed below. Tab 1 Tab 2 Tab 3 Tab 4 Tab 5 Tab 6 Tab 7 Estimate Summary Transmission Lines (OH & UG) Substations Telecommunications Distributed Labour Contingency / Risk Register Escalation Protecting / Unprotecting the Spreadsheet Various cells have been locked to preserve the integrity of the formulas. The password is 'aeso' - all lowercase. Each sheet within the spreadsheet has been individually protected. To unprotect one of the sheets, and if you are using Excel 2010, go to the Review tab on the ribbon and click Unprotect Sheet and type in the password. For other versions of Excel, perform a quick Internet search for 'excel worksheet protection'. Entry and Formula Fields Light grey cells indicate where the user enters cost estimate information; white cells indicate formula fields. Sheet Notes On every cost estimate tab, italicized notes are provided in the right-most column indicating what information should be included in each cost category Level of Breakdown If estimate details cannot be provided for a cost category, summarize the total costs into the main category for that item. For example, in preparing a cost estimate where transmission line foundation types are unknown, in the main Foundations category, the user would provide a total estimate and note to be determined in the Assumptions column. This applies for all cost categories absent of cost details. Please note this will require unprotecting the worksheet as per the above-noted instructions. Assumptions for Line Items The assumptions column located on the right side of each tab / sheet lists all assumptions made in determining the line item estimate. Examples include: Environmental (e.g. design loading criteria, soil, terrain, winter/summer construction, brushing) Page 1

4 ROW considerations Project schedule Outage constraints Labour and material market conditions Standards Studies Source of costs listed in the estimate Market fluctuations (e.g. steel prices, foreign exchange, etc.) Hearing costs (if applicable) Quantity, Sizes, Types On every cost estimate tab, a column is provided for detailing quantities, sizes and types of materials or services or other key characteristics. Contract On every cost estimate tab, a Contract column is provided for detailing external contractor costs. For example, if the total cost estimate for Line Detailed Engineering is $5.0 M and $3.0 M is allocated to the Market Participant and $2.0 M is allocated to the contractor; you would note $3,000,000 in the System and / or Customer column and $2,000,000 in the Contract column. Supply and Install On every cost estimate tab, additional rows are provided for Supply and Install. These cells allow users to provide summarized supply and install cost estimates. For example, if a contractor provided materials and services for installation of screw piles foundations and would not provide a cost breakdown, the Supply and Install categories can be used. Multiple Transmission Lines, Substations or Telecom Facilities For projects requiring more than 3 transmission lines, more than 3 substations or more than 2 telecom facilities; the cost estimate spreadsheet will have to be modified to include these additional sections and formulas will need to be revised. Users can ask their AESO Project Manager to provide a project-specific, revised Cost Estimate Template. Printing Size The Cost Estimate Template is formatted to print on 11 x 17 paper and will not easily translate to a smaller size. Benchmarking Database The AESO has developed a suite of transmission cost benchmarking database used to assist in cost estimating. More information regarding Cost Benchmarking is available on the AESO website. All cost estimates received by the AESO are input into the database. The project name and numbers are not published. Page 2

5 Summary (Tab 1) Summary-Tab 1 is the primary tab compiling costs directly recorded on this sheet, along with costs linked from remaining tabs. The header section includes identifying fields such as Project Name and Number, Prepared By, Estimate Basis, Low and High estimate ranges, Date of Estimate and Base Year. Note that the AACE Class cell is not expected to be filled in at this time. For details on header section content, users should consult with their AESO Project Manager or review the AESO Direction Letter. The costs for Transmission Line, Substation, Telecommunication, and Distributed, including Contingency and Escalation, are pulled from secondary tabs. Owner s Costs (Summary Tab 1) Owner s costs include costs relating to pre-proposal to provide service (PPS), PPS, Facility Applications, and Land. There is a line for Other costs, which users can also use for land costs that should not be publically disclosed. These costs, along with any assumptions, should be input directly onto the Summary Tab-1 sheet. Salvage and Other Costs (Summary Tab 1) These costs are to be entered directly into the Summary Tab 1 sheet. See Estimate Summary Tab 1 screenshot. Transmission Lines (Tabs 2 OH and UG) Transmission Line cost estimating is divided into two separate tabs; Overhead and Underground, and is consolidated on the Summary Tab-1. The Cost Estimate Template allows up to three individual transmission lines. Users requiring four or more transmission lines can add the additional lines themselves or ask their AESO Project Manager to provide a project-specific revised Cost Estimate Template. All formulas should be revised accordingly. See Transmission Line Tab 2 screenshots. Substations (Tab 3) Users provide substation cost estimates for materials, labour and supply and install, which are summarized on Summary-Tab 1. The Cost Estimate Template allows up to three substations. Users requiring four or more substation estimates can add the additional substations themselves or can ask their AESO Project Manager to provide a project-specific revised Cost Estimate Template. All formulas should be revised accordingly. See Substation Tab 3 screenshot. Telecommunication (Tab 4) Users provide communication site costs for materials, labour and supply and install, which are summarized on Summary-Tab 1. Page 3

6 Users complete one section for each site. Telecom-Tab 4 allows for two sites. Users requiring three or more sites can add the Telecom sites themselves or can ask their AESO Project Manager to provide a project-specific revised Cost Estimate template. All formulas should be revised accordingly. See Telecom Tab 4 screenshot. Distributed Costs (Tab 5) Users are to include resource type under each cost category; along with the estimated number of Full Time Equivalents (FTEs) and estimated man-days. Contingency / Risk Register Summary (Tab 6) Users need to complete the risk register and calculate contingency for each project. Risk Identification: Identifies project risks complete with description including potential impact to the project. Impact: Provides a drop-down menu including Low, Medium or High classifications. Probability: Provides a drop-down menu, with a range of choices between 10-90%, indicating probability assessment the risk will materialize. Cost: The cost impact field is an open cell allowing the user to note the estimated cost associated with the potential risk occurring. Contingency: The Contingency field is formula cell calculating the probability of the risk occurring, multiplied by the cost impact. For example, if the cost impact is $1.0M and the probability of its occurrence is 50%; then the contingency is $500K. Action: The action field provides a drop-down menu, with the following risk-mitigation strategy choices: Accept, Mitigation, Eliminate, or Transfer. Response: If the Market Participant intends to mitigate, eliminate or transfer the risk, they should provide notes in the Response column advising how they plan to do so. If they choose to accept the risk, notes should be provided supporting this decision. Known / Unknown Risk: The first column of the Risk Register Summary separates risks into two categories, known and unknown. Typically, users should populate the known risks section and use the accuracy range for unknown risks. If the Market Participant feels it necessary to identify additional contingency for unknown risks in addition to the accuracy range, the user may utilize the unknown risks line on the Contingency / Risk Register, along with reasoning. Escalation (Tab 7) The escalation tab calculates cost estimates anticipated at the in-service date of the project. For example, cost estimates provided in 2014 dollars for an ISD of 2016 escalates the cost estimates by an index % for 2 years, providing increased cost estimates for the in-service date. The Escalation tab provides users with the flexibility to assign varying escalation percentages per line item. Page 4

7 AESO Contact Information If you have any questions about these Guidelines or the new Cost Estimate Template, please contact the AESO by at or leave a message on our phone line at (403) (checked daily) or contact your AESO Project Manager. Page 5

8 Tab 1 Summary Fill in these sections. Enter Transmission Line costs on Tab 2 (OH) and/or (UG) Enter Substation Facilities costs on Tab 3 Enter Telecommunications costs on Tab 4 The numbers in this worksheet are provided as an example only. Light-grey shaded areas indicate direct-entry cells. ASSUMPTIONS: Use this area to record assumptions used to calculate line item costs. If you do not wish to use this column, add a note referring to your attached Basis of Estimate (BOE) document. CONFIDENTIAL LAND COSTS: MARKET PARTICIPANT or AESO may consolidate land costs into Other category under Owners Costs if necessary. Enter Management costs on Tab 5 Distributed Labour Enter Contingency on Tab 6 and Escalation on Tab 7 SUPPLY & INSTALL: Refers to materials and equipment that are all-inclusive installed costs and are not able to be apportioned between materials and labour. In situations where an item must be reallocated to Supply & Install from Materials or Labour, clarification should be noted. Page 6

9 Tab 2 Transmission Line Costs (OH) and (UG) There are two separate Transmission Line tabs, one for Overhead lines (OH) and the other for Underground lines (UG). There are sections included for up to three transmission lines, OH & UH scroll down to see them. If you have three or more lines either modify the sheet or contact your AESO Project Manager for a project-specific, revised Cost Estimate template. Both sheets Transmission sheets are consolidated under Transmission in Tab 1. Insert additional rows if additional items are needed. Page 7

10 Tab 3 Substations There are sections included for up to three substations (scroll down to view). If you have three or more lines, either add them or contact your AESO Project Manager for a project-specific, revised Cost Estimate. Other Major Equipment lines are placeholders for users to note additional project major equipment not provided for in the spreadsheet template. Replace the words Other Major Equipment with the type of equipment included. Insert additional rows if additional items are needed. Page 8

11 Tab 4 Telecommunications There are sections included for up to two telecommunications sites (scroll down to view). If you have 2 or more Telecom sites, either add them or contact your AESO Project Manager for a project-specific, revised Cost Estimate Insert additional rows if additional items are needed. Page 9

12 Tab 5 Distributed Labour Page 10

13 Tab 6 Contingency / Risk Register If Known risks are not understood due to the early stages of a project, identify as Unknown Risks. Unknown Risk will also be used for the Approved Cost Estimate (ACE) since the estimate will not have accuracy ranges. Page 11

14 Tab 7 Escalation If individual item rates are not available, input the same percentage rate in each line. Page 12

15 Definitions Contingency Identified risks, potential mitigation strategies and measures, possible delays and estimated length of delays. Escalation The increase of costs and prices over time - specifically due to inflation. Escalation should be calculated and forecast to the planned in-service date. E&S Engineering and Supervision Costs; also known as Project Overhead. Land Damage Claims A payment(s) to landowners/occupants by operators for damage caused by an operator outside the area it has been granted, or for damage to livestock or personal property caused by the operator. (Courtesy of Surface Rights Board website, 2014) Land Rights - Easements includes payments for the following: Surface lease / Right of Entry Order / Compensation payment Entry fee Early access and survey routing consent Other Major Equipment A placeholder for any other major equipment not itemized, e.g. synchronized condenser. Owner s Costs Costs incurred by the Market Participant for the following: preparing the NID and PPS cost estimates; labour related to any engineering required to prepare the cost estimate: labour related to preparing the PPS Proposal; preparing Facilities Application(s) (includes AUC 007 requirements, i.e. PIP); regulatory proceeding associated with Facilities Application(s); and Land costs. P&C Protection and Controls. Procurement The contracting process used to secure contractors/subcontractors to provide materials, labour or turn-key solutions for a project. ROW Right Of Way. Supply and Install Materials and equipment that are all-inclusive installed costs and are not able to be apportioned between materials and labour costs. In situations where an item had to be reallocated to Supply and Install from a materials or labour line, clarification should be noted. SVS means Static Var System, which covers a wide range of reactive support, including: SVC, STATCOM, TSC, TSR, and others. Page 13