ROI of $11.39 for every $1 spent on subsurface utility engineering on highway construction projects

A definitive study of twenty-two projects utilizing subsurface utility engineering (SUE) and eight non-SUE projects from Pennsylvania Department of Transportation (PennDOT) districts has revealed that $11.39 can be saved for every $1 spent on SUE.  The cost of conducting a SUE survey was estimated at 1.65% of total project cost.

Eleven main benefit factors were considered in the analysis.

  1. Utility relocation cost
  2. Utility damage cost
  3. Emergency restoration cost
  4. Traffic delay cost
  5. Business impact cost
  6. User service cost
  7. Environmental impact cost
  8. Information gathering and verification cost
  9. Legal and litigation cost
  10. Efficient utility design and construction
  11. Other utility related costs and benefits

On the cost side two kinds of costs are involved in conducting a SUE survey. One is the use of geophysical techniques such as EMI and GPR to identify the location of underground utilities and other objects.  The other is potholing (using safe excavation techniques) to confirm the location of the utilities and objects identified.  In this study for the projects utilizing SUE, costs are obtained from directly from project accounting. For the projects that did not use SUE, costs are estimated from interviews, historical data, and individual project studies.

For the twenty-two projects where SUE was applied, all underground utilities and other objects were located to ASCE 38-02 quality level A (potholing) or B (EMI and GPR).  For the eight projects utilized traditional methods, the location of underground networks was estimated to ASCE quality levels C (site visit) and D (as-builts).

Previous ROI studies of SUE only used projects where SUE surveys were performed to quantify the cost savings of SUE.  In this study, non-SUE projects were used to determine the cost savings of SUE because direct costs incurred by problems that would have been avoided by SUE can be considered as SUE benefits. The results of the study revealed that $11.39 can be saved for every $1 spent on SUE on road projects. A ratio of 1.65% was determined as the ratio of SUE cost to total project cost. It was concluded that SUE can provide accurate utility information with important project benefits at reasonable cost. Project relocation cost is the most important item to the cost savings, representing 40.33% of total savings. The study also showed that the greater the complexity level of buried utilities, the higher the SUE benefits.

Source

Yeun J. Jung, Evaluation of subsurface utility engineering for highway projects: Benefit–cost analysis, pages 111-122 in Tunnelling and Underground Space Technology Volume 27, Issue 1 Pages 1-168 (January 2012)

Geoff Zeiss

Geoff Zeiss

Geoff Zeiss has more than 20 years experience in the geospatial software industry and 15 years experience developing enterprise geospatial solutions for the utilities, communications, and public works industries. His particular interests include the convergence of BIM, CAD, geospatial, and 3D. In recognition of his efforts to evangelize geospatial in vertical industries such as utilities and construction, Geoff received the Geospatial Ambassador Award at Geospatial World Forum 2014. Currently Geoff is Principal at Between the Poles, a thought leadership consulting firm. From 2001 to 2012 Geoff was Director of Utility Industry Program at Autodesk Inc, where he was responsible for thought leadership for the utility industry program. From 1999 to 2001 he was Director of Enterprise Software Development at Autodesk. He received one of ten annual global technology awards in 2004 from Oracle Corporation for technical innovation and leadership in the use of Oracle. Prior to Autodesk Geoff was Director of Product Development at VISION* Solutions. VISION* Solutions is credited with pioneering relational spatial data management, CAD/GIS integration, and long transactions (data versioning) in the utility, communications, and public works industries. Geoff is a frequent speaker at geospatial and utility events around the world including Geospatial World Forum, Where 2.0, MundoGeo Connect (Brazil), Middle East Spatial Geospatial Forum, India Geospatial Forum, Location Intelligence, Asia Geospatial Forum, and GITA events in US, Japan and Australia. Geoff received Speaker Excellence Awards at GITA 2007-2009.

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