Guidance

You are here

Cost Estimation for FTA Funded Transit Projects

Establishing a reliable baseline cost estimate is a critical element for successful project delivery. The Federal Transit Administration (FTA) requires that a Project Sponsor’s cost estimate be reasonably firm and reliable before commitment of federal funds for Capital Investment Grant (CIG) projects.

Developing Cost Estimates

When developing cost estimates for the CIG program, project sponsors must use the following material:

FTA’s Oversight Procedures

FTA performs a thorough evaluation to confirm the reliability of a Project Sponsor’s cost estimate by ensuring that estimates follow standard industry practices and the estimation process is sound. In its review process, FTA assesses the consistency of the cost estimating information provided by the Project Sponsor, evaluates the methodologies used, and confirms that the estimate adequately reflects the overall project scope, the estimated quantities shown on the design documents, the anticipated market conditions, the risk elements associated with the project, and the project schedule. 

FTA uses the following oversight procedures when reviewing the reasonableness of a project sponsor’s cost estimates:

Best Practices and Reference Documents

The following are best practices and reference documents for developing cost estimates:

Updated: Tuesday, August 20, 2019
Submit Feedback >