Making recycling contracts work for local government

1. Making recycling contracts work for local government George Vorobieff, AustStab Heath Curnow, Stabil-Lime Distributors Steven Hey, Highway Stabilisers Maurice Serruto, Works Infrastructure 8 March 2006

2. NZ Provision for 4 wheel drive vehicles 4WD Boring

3. Presentation • description of the recycling contracts for local road stabilisation • the benefits and limitations of the contracts • does one approach favour or limit the use of stabilisation • Innovative pavement design for recycled roads

4. Road recycling industry in Victoria • Plant mix from demolition firms • Insitu from specialist contractors - Highway Stabilisers - Stabil-Lime Distributors - Works Infrastructure • Insitu recycling by stabilisation is 50 years old in Victoria & still more cost effective than plant mix process

5. From the past and now …

6. Types of contracts • Full Service Contracts • Part Service • Day Plant Hire • Annual Rate Contracts • Alliance/Term Maintenance Contracts

7. Full service contracts • All plant, labour & materials are provided by the specialist recycling contractor • Provision can also incorporate pavement design, survey, setting out, importation of additional materials, and final wearing surface • Usually a lump sum or m2 basis.

8. Full service - benefits • Council has a ‘one stop shop’ service. • Contractor has full control of deployment of labour, plant and materials, therefore leading to more control over costs. • Provides a more competitive price. • Experienced stabilisation contractor provides good advice on design and process, leading to better outcome for both sides

9. Full service - limitations • Council may have own labour & equipment that would not be utilised • Council does not have full control of operations • Specifier needs to be specific on what is required under ‘full service’ contract, otherwise additional costs may be incurred

10. Full service • Allows the Council to have a more competitive price over other methods of service contracts and allows the stabilisation contractor control of costs and provides a better price

11. Types of contracts • Full Service Contracts • Part Service

12. Part service • Also called ‘Spread and Mix’- where the Council only requires a spreader & stabiliser - to provide & spread powdered binder, & mix into the pavement • Council compacts & trimswith their plant • Price on m2 basis

13. Part service (Cont’d) • Convenient and cost effective method of pavement rehabilitation • Due to the remoteness of some rural type works, establishment, travel & accommodation costs can become an increasingly large percentage of the contract • By using local government labour and plant, these costs can be greatly reduced, thus reducing the overall cost of the works

14. Part service (Cont’d) • Need to include an experienced stabilising supervisor on the site to work in conjunction with the Local Government supervisor • Might add costs, but reduces risk of early distress and increases long term performance

15. Part service - benefits • Allows utilisation of Council’s own personnel and equipment • Dependant on experience of Council’s own personnel

16. Part service - Limitations • Can be more costly if Council’s personnel are not experienced in stabilisation • Productivity of Council operation not as expected by contractor (ie priced to do 5000m2/day and Council can only complete 3000m2/day • If mix design is wrong, Council still expects design advice from contractor

17. Does this approach favour or limit the use of stabilisation? • Risk is with the Council and the specification • Contractor has no control of work processes or design • Not the best approach if Council has little experience with stabilisation

18. Types of contracts • Full Service Contracts • Part Service • Day Plant Hire

19. Day plant hire • schedule of rates contracts • not subject to rise and fall • rates are on hold for the duration of the financial year • rates are to include plant, operator, fuels, etc. • designed to augment Council’s plant and crews in the case of part service contracts

20. Day plant hire - evaluation • Value for money • Suitability and condition • Demonstrated performance • Availability • OH&S

21. Benefits and limitations • Preselected contractors - Council knows it is getting specialists at known rates • Council able to compare rates from preselected contractors and use to its advantage as required • Some margin for risk built into rates as contractors are not sure of type of work, if available (ie is plant better used elsewhere, etc) • Council can obtain better rates closer to the date of the job (and often Councils ask for this anyway)

22. Does this approach favour or limit the use of stabilisation? • The industry would benefit if specialised plant ie mixers & spreaders are operated by the specialists, so dry hire is not favoured by contractors • Reputable operators and reliable plant favours the use of stabilisation • Competitive rates, so Council gets best deal, promoting the use of stabilisation • Limiting factor if risk to contractor is seen as excessive

23. Types of contracts • Full Service Contracts • Part Service • Day Plant Hire • Annual Rate Contracts

24. Annual rate • Traditionally been used for routine maintenance type contracts • A typical contract would use several rates depending on the required treatment and areas of treatment • Rates are generally inclusive of all plant and binder required to undertake the works as well as all establishment costs • Rates are based on 1-500m2, 501-1000m2 or >1000m2.

25. Annual rate - benefits • ease of award of minor works involving stabilisation rather than the need for individual quotations for works throughout year • When meeting budget constraints, it is a simple exercise to calculate the ‘precise’ cost of works rather than the need for cost estimating

26. Annual rate - limitations • risk involved to the contractor ie a large difference in the cost of undertaking 10m2 of stabilising compared to 500m2 • so a higher rate will normally be submitted to cover these risks • This leads to a higher overall cost to perform the works

27. Does this approach favour or limit the use of stabilisation? • Annual rate approach can favour the use of stabilisation as a simple m2 rate for pavement rehabilitation • However - may limit the use as the rates can become inflated over larger areas

28. Small patch stabilisation

29. Small patch stabilisation • If done properly, patch stabilisation can be an effective tool for short term maintenance of distressed areas until a more permanent solution is available. However many of these are failing after 12 months due to poor plant being used or methodology (or both) • Councils are awarding the small patch size contracts to contractors using bobcat/tractor attachments as opposed to purpose built stabilisation machines designed as a ‘mobile mixing plant’ • Other issues - are the use of smaller rollers - difficulty of ensuring compaction in corners and edges of the patch.

30. Types of contracts • Full Service Contracts • Part Service • Day Plant Hire • Annual Rate Contracts • Alliance/Term Maintenance Contracts

31. Alliance/Term Maintenance Contracts • Easy to manage term maintenance contracts • Need robust intervention levels • No ‘calculated’ savings have ever been published • Alliance is best with internal staff doing the work at ‘fair’ negotiated rates

32. Innovative pavement designs • Trend to use modified rather than bound stabilised materials • Where pavements have exceeded their design life, materials have often broken down such that the pavement fails due to poor gradings • Additional granular material can be introduced and blended with the insitu material in order to address these grading issues • Lime may also be added to correct PI or use some of the subgrade material in the base layer

33. Innovative pavement designs • Where granular stabilisation is to simply correct rideability & not to correct gradings or to add additional pavement strength, certain problems can be encountered • Several factors must be considered such as gradings, material type, traffic loadings etc. • Granular stabilisation should not be used to stabilise isolated patches with level constraints

34. Granular stabilisation • Used with VicRoads on the Western Hwy at Kaniva where a no fines class 3 crushed rock was added to the insitu sandstone pavement to achieve a class 3 grading prior to constructing the base layer. • Princetown Road for the Corrangamite Shire using no fines scoria blended with the insitu pavement

35. Please do not reinvent the wheel!

36. Summary • Council needs to weigh up - own equipment utilisation - experienced crews - assignment of risks - use of specialist contractors - location of sites • Road recycling from stabilisation is successful rehabilitation treatment