Mike,
Not to throw cold water on your solution, but the Combined Factor (Grid Scale X Elevation Scale) is not constant. If you use GIS Data, like Contours, you might want to consider using a <<<Custom Low Distortion Projection>>>. Civil 3D can then easily convert your data to project coordinates.
Note: At the bottom of the page at this link you'll find 2 PDF's and a Powerpoint on the subject of Grid-to-Ground by the late Sinc.
Dave
Dave Stoll
Las Vegas, Nevada
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