What are the two components of the cost of a transportation facility improvement? Describe each.
What will be an ideal response?
The cost of a transportation facility improvement includes two
components: first cost (also called initial cost) and continuing costs for annual
maintenance, operation, and administration. The first cost for a highway or transit
project may include engineering design, right-of-way, and construction. Design
parameters specific to each project will dictate which items will be required and
their costs. Maintenance and operating costs of the facility must also be
determined. These are recurring costs, or continuing costs, that will be incurred
over the life of the facility and are usually based on historical data for similar
projects.
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