Developing Cost Estimates for Environmental Remediation Projects
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Developing Cost Estimates for Environmental Remediation Projects - IAEA
DEVELOPING COST ESTIMATES
FOR ENVIRONMENTAL REMEDIATION
PROJECTS
IAEA NUCLEAR ENERGY SERIES No. NW-T-3.8
DEVELOPING COST ESTIMATES
FOR ENVIRONMENTAL REMEDIATION
PROJECTS
INTERNATIONAL ATOMIC ENERGY AGENCY
VIENNA, 2019
COPYRIGHT NOTICE
All IAEA scientific and technical publications are protected by the terms of the Universal Copyright Convention as adopted in 1952 (Berne) and as revised in 1972 (Paris). The copyright has since been extended by the World Intellectual Property Organization (Geneva) to include electronic and virtual intellectual property. Permission to use whole or parts of texts contained in IAEA publications in printed or electronic form must be obtained and is usually subject to royalty agreements. Proposals for non-commercial reproductions and translations are welcomed and considered on a case-by-case basis. Enquiries should be addressed to the IAEA Publishing Section at:
Marketing and Sales Unit, Publishing Section
International Atomic Energy Agency
Vienna International Centre
PO Box 100
1400 Vienna, Austria
fax: +43 1 26007 22529
tel.: +43 1 2600 22417
email: sales.publications@iaea.org
www.iaea.org/publications
© IAEA, 2019
Printed by the IAEA in Austria
November 2019
STI/PUB/1857
IAEA Library Cataloguing in Publication Data
Names: International Atomic Energy Agency.
Title: Developing cost estimates for environmental remediation projects / International Atomic Energy Agency.
Description: Vienna : International Atomic Energy Agency, 2019. | Series: IAEA nuclear energy series, ISSN 1995–7807 ; no. NW-T-3.8 | Includes bibliographical references.
Identifiers: IAEAL 19–01272 | ISBN 978–92–0–103219–5 (paperback : alk. paper)
Subjects: Hazardous waste sites — Remediation. | Cost estimates. | In situ remediation.
Classification: UDC 504.5:657.47 | STI/PUB/1857
FOREWORD
One of the IAEA’s statutory objectives is to seek to accelerate and enlarge the contribution of atomic energy to peace, health and prosperity throughout the world.
One way this objective is achieved is through the publication of a range of technical series. Two of these are the IAEA Nuclear Energy Series and the IAEA Safety Standards Series.
According to Article III.A.6 of the IAEA Statute, the safety standards establish standards of safety for protection of health and minimization of danger to life and property
. The safety standards include the Safety Fundamentals, Safety Requirements and Safety Guides. These standards are written primarily in a regulatory style and are binding on the IAEA for its own programmes. The principal users are the regulatory bodies in Member States and other national authorities.
The IAEA Nuclear Energy Series comprises reports designed to encourage and assist R&D on, and application of, nuclear energy for peaceful uses. This includes practical examples to be used by owners and operators of utilities in Member States, implementing organizations, academia, and government officials, among others. This information is presented in guides, reports on technology status and advances, and best practices for peaceful uses of nuclear energy based on inputs from international experts. The IAEA Nuclear Energy Series complements the IAEA Safety Standards Series.
Cost estimates in environmental remediation are developed to evaluate remedy selection decisions and waste site cleanup options or to assess environmental liabilities. The quality and, ultimately, the accuracy of the cost estimate will depend on the quality of the information available at the time it is prepared, and on the application of the appropriate cost estimation methodology.
The present publication addresses preparing and documenting cost estimates associated with key phases of the environmental remediation project life cycle. Its goal is to help the reader make informed decisions on ways to develop and document cost estimates for environmental remediation projects. To help achieve this goal, the publication presents clear procedures and includes a checklist of cost elements, examples of work breakdown structures, cost estimating plans and approaches, and an overview of potentially suitable remediation technologies.
The information included in this publication is designed to help those with varying levels of cost estimating expertise, including cost estimators, design engineers, technical support contractors, remedial project managers and programme managers.
The IAEA is grateful to all contributors to the drafting and review of this report, in particular L. Martino (United States of America). The IAEA officer responsible for this publication was H. Monken-Fernandes of the Division of Nuclear Fuel Cycle and Waste Technology.
EDITORIAL NOTE
This publication has been edited by the editorial staff of the IAEA to the extent considered necessary for the reader’s assistance. It does not address questions of responsibility, legal or otherwise, for acts or omissions on the part of any person.
Although great care has been taken to maintain the accuracy of information contained in this publication, neither the IAEA nor its Member States assume any responsibility for consequences which may arise from its use.
Guidance provided here, describing good practices, represents expert opinion but does not constitute recommendations made on the basis of a consensus of Member States.
The use of particular designations of countries or territories does not imply any judgement by the publisher, the IAEA, as to the legal status of such countries or territories, of their authorities and institutions or of the delimitation of their boundaries.
The mention of names of specific companies or products (whether or not indicated as registered) does not imply any intention to infringe proprietary rights, nor should it be construed as an endorsement or recommendation on the part of the IAEA.
The IAEA has no responsibility for the persistence or accuracy of URLs for external or third party Internet web sites referred to in this book and does not guarantee that any content on such web sites is, or will remain, accurate or appropriate.
The authoritative version of this publication is the hard copy issued at the same time and available as pdf on www.iaea.org/publications. To create this version for e-readers, certain changes have been made, including a the movement of some figures and tables.
CONTENTS
1. INTRODUCTION
1.1. Background
1.2. Objective
1.3. Scope
1.4. Structure
2. THE REMEDIATION PROCESS
2.1. Introduction
2.2. Remediation process steps
2.2.1. Historical site assessment
2.2.2. Remediation criteria
2.2.3. Site characterization
2.2.4. Planning remediation
2.2.5. Implementation of remedial action; operations and maintenance; and the post-remediation monitoring and maintenance phases
2.2.6. Operations and maintenance
2.2.7. Post-remediation monitoring and management
2.3. Remediation end state (remediation criteria)
2.3.1. General considerations
2.3.2. Risk assessment
2.3.3. Stakeholder involvement in defining the end state
2.3.4. Long term stability of the end state
2.4. Options study
2.4.1. Options study: Remedy screening
2.4.2. Options study: Remedy selection (optimization)
3. THE COST ESTIMATION PROCESS
3.1. Planning considerations
3.2. Problem identification and conceptualization
3.3. Objectives and approaches for the development of cost estimates
3.3.1. Budget forecasting
3.3.2. Evaluating and comparing options
3.3.3. Evaluating cost proposals for contract awards
3.4. Steps in the cost estimation process
3.4.1. Introduction
3.4.2. Screening alternatives
3.4.3. Detailed analysis of alternatives
3.4.4. Steps of the cost estimate process for the selected remedial option (final design stage)
3.4.5. Cost checklist
3.4.6. Documenting the cost estimate
4. FUNDING
4.1. Financing sources for environmental remediation projects
4.2. Financing for long term stewardship costs
4.3. External oversight from financing sources
4.4. Project benchmarking by funding sources
Appendix I: POTENTIAL REMEDIATI ON OPTIONS
Appendix II: EXAMPLE COST ESTIMATE DEVELO PMENT PLAN
Appendix III: EXAMPLE COST ESTIMATES RELATED TO AN ALTERNATIVE IN SITU TREATMENT
Appendix IV: EXAMPLE WORK BREAKDOWN STRUCTURE FOR ENVIRONMENTAL REMEDIATION COST ESTIMATES
Appendix V: REMEDIATION TECHNO LOGY COSTS
REFERENCES
Annex I: WORK BREAKDOWN STRUCTURE DICTIONARY
Annex II: COST ESTIMATE CHECKLIST OF A REMEDIATI ON PROJECT
GLOSSARY
CONTRIBUTORS TO DRAFTING AND REVIEW
STRUCTURE OF THE IAEA NUCLEAR ENERGY SERIES
1. INTRODUCTION
1.1. Background
The activities addressed in this publication include the following: mining and