Right of way (ROW) acquisition for highway and transportation projects can be very expensive and time consuming. The federal government spent nearly one billion dollars for ROW in fiscal year 1999, at an average federal cost of $36,400 per parcel (FHWA, 2003). States and local agencies spent $1.8 billion in the same year, on projects subject to federal acquisition regulations. An additional $100 million in federal and state funds was paid to displaced business and property owners for reestablishment and relocation assistance (FHWA, 2003). The federal totals represent approximately 4 percent of total federal funding for highways in 1999 (AASHTO, 2002). Accurate ROW cost estimation can be key to project budgeting and completion.

Texas ROW administrators report a number of challenges routinely encountered in ROW cost estimation (Kockelman, anticipate the extent of takings based on limited information. Second, administrators often have limited time to prepare estimates, thus restricting the amount of research that can be undertaken for complex parcels. Third, they typically prepare ROW estimates several years in advance of actual ROW acquisition, during which time significant inflation and speculation can occur, resulting in property and damage appreciation. Administrators (both urban and rural) report that this time interval is typically three years, but it may stretch to seven years in some cases (Kockelman, et al., 2003). First, early estimates are based on planning-level maps, so project administrators mustet al., 2003). These factors can easily combine to bias ROW cost estimates low.

Cited from (http://www.ce.utexas.edu/prof/kockelman/public_html/TRB04ROW.pdf)

By Jared D Heiner

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