Engineers are used to looking at design through a unit price lens — price per square foot for base, asphalt, concrete, etc. Although right of way inherently has a unit cost per square foot, there are additional, sometimes unforeseen, costs that come into play. For instance, to understand the value of a property within a project, you need to first obtain a preliminary title report, an appraisal, as well as a plat map and legal description, if there are partial acquisitions. There is also the labor cost for negotiations with the property owner, escrow costs if successful, and eminent domain costs if not. Therefore, when a project just “touches” a property, even if the impacts are one square foot, that could easily result in a cost of $15,000 in consultant fees beyond the value of the property itself. There is also the possibility that a property owner whose property is partially impacted by a small right of way acquisition could be entitled to damages beyond the value of the underlying property, caused by the construction of the project.
Engaging a right of way consultant during the design phase often mitigates significant right of way acquisitions for pennies on the dollar. If all incidental costs are identified on a parcel-by-parcel basis, it exposes those properties that have the most cost risk and should be either avoided or have the impacts mitigated to the extent possible. Subtle changes in design can often lead to significant savings. For example, if there is flexibility in the design of roadway widening, you should compare the cost of widening on one side versus the other, as there could be a substantial difference in overall cost. In designing a new corridor for transportation or utility, care should be taken to minimize or eliminate designing through the middle of a property, which could create the need to acquire the entire property. A complete understanding of all incidental costs to any right of way acquisition program in the early stages of design can help you avoid funding requests for increased costs and can often realize savings in cost that can help stretch your project dollars.