United States Department of Transportation
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Technical Summary of Report Number 309, “Louisiana Department of Transportation and Development In-House Versus Consultant Design Cost Study”
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1998-06-01
[PDF-15.43 KB]
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Alternative Title:Louisiana Department of Transportation and Development In-House Versus Consultant Design Cost Study
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Abstract:This approach was used in the study conducted for the Louisiana DOTD. A sample of 20 inhouse and 17 consultant designs conducted in the previous five years were used to establish 37 pairs of design costs. For each pair, comparative design costs were measured as the ratio of inhouse to consultant design cost. The analysis showed that, on average, in-house design costs were approximately 80 percent of consultant design costs. However, most of this difference was not in labor rates, hours worked, or overhead costs but in the cost of contract preparation and supervision of consultant effort. The study conducted in Louisiana, suggest that in-house design is indeed cheaper. At the same time, cost comparison should not be the sole criterion in deciding on an appropriate level of consultant use. Factors such as accommodating peak demand, meeting deadlines, gaining access to special expertise, supporting a healthy consulting industry, and maintaining in-house expertise deserve attention too.
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