1 / 39

Determining Innovative Contracting Methods to Reduce User Costs

Determining Innovative Contracting Methods to Reduce User Costs. Stuart Thompson Utah Technology Transfer Center. FHWA Road User Survey. 32% dissatisfied with work zones

tiara
Download Presentation

Determining Innovative Contracting Methods to Reduce User Costs

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Determining Innovative Contracting Methods to Reduce User Costs Stuart Thompson Utah Technology Transfer Center

  2. FHWA Road User Survey • 32% dissatisfied with work zones • Travelers rated highway improvements that would most help overcome delays. Of more than 20, the top 3 relate to work zones and how we build roads

  3. FHWA Road User Survey • Growth in reconstruction • Growth in congestion • Growth in crashes

  4. Innovative Contracting • The primary goal of Innovative Contracting is to provide timely delivery of a quality project or facility with limited User & Social Impacts. • User & Social Impacts- Costs incurred by the road user or public that are not directly accounted for in Traditional Contracts.

  5. Road User Impacts • High Accident Rates • Travel Delay Costs • Additional Fuel Consumption

  6. Product Quality • Smoothness • Extended Service Life • Maintenance Objectives • Improved Serviceability

  7. Contracting Procedures • Traditional Contract (Design-Bid-Build) • Design-Build • A+B Bidding • Lane Rental • Warranty

  8. Traditional Contracts • Projects with Third Party Conflicts • Cookie Cutter Projects • Projects with Negligible Impacts to the Road User, Public, & Environment • Projects with Potential Risks

  9. Design-Build • Decrease Time (Emergency/Event) • Complex Design • Complex Construction • Technical Integration • Limited In-house Resources • Projects Procured Just-In-Time

  10. Design/BuildQuestionnaire Results

  11. A+B Bidding • Decrease Time (Emergency/Event) • Potential for High Road User Cost • Potential Impact to Local Businesses • Public Perception • Vital Corridor

  12. A+B Bidding • Definition: A cost plus time bidding procedure that selects the low bidder based on a monetary combination of the contract bid items (A) and the time (B) needed to complete the critical portion of the project.

  13. Benefits of A+B Bidding • A+B Bidding is used to motivate the contractor to minimize the delivery time for high priority and highly trafficked roadways. This encourages contractors to finish early by: • Offering bonuses for early completion. • Assessing disincentives for late completion.

  14. Criteria for Selection of A+B Bidding as a Contracting Procedure • Traffic restrictions, lane closures, or detours result in high road user costs. • Safety concerns, or significant impacts to the local community or economy during construction warrant expediting the project. • Traffic control phasing can be structured to maximize a contractor’s ability to reduce the duration of construction. • The project is relatively free of third party conflicts. • It is in the public interest to complete the project as soon as possible.

  15. Maryland Colorado California Virginia Texas North Carolina Wisconsin Washington New York North Dakota Iowa New Jersey Missouri Idaho Indiana Kansas Maine States Using A+B Bidding

  16. Multi-Parameter Bidding (A + B)Questionnaire Results

  17. Lessons Learned – A + B

  18. New York has completed 33 projects since 1994. Projects were completed an average of 19 days earlier than bid and an average of 87 days earlier than the engineer’s estimate. An average of 9 days were added for change orders. Only one project took more days to complete than engineer’s estimate and only two took more days than bid. An estimated 20.32 million dollars in road user costs were saved. 4.75 million dollars were paid for incentives. New York’s A+B Bidding

  19. Lane Rental • Decrease Time (Emergency/Event) • Potential for High Road User Cost • Potential Impact to Local Businesses • No Alternative Routes • High ADT

  20. Lane Rental • Definition: An innovative contracting technique by which a contractor is charged a fee for occupying lanes or shoulders to do the work.

  21. Why Pursue Lane Rental? • Primary Objective • To motivate the contractor to minimize the time that a lane, a shoulder, or a combination of lanes and shoulders are out of service so there is minimized traffic delay to highway users.

  22. Lane Rental Uses • Lane Rental has been used for projects that contain one or more of the following:

  23. Lane Rental Uses • Traffic restrictions or lane closures result in high road user costs. • The use of alternate routes or off-site detours is impractical. • The traffic control plan allows the contractor flexibility in scheduling work to minimize the impact of lane closures.

  24. Lane Rental Uses • The agency seeks contractor expertise to minimize the time that lanes are out of service. • The project is relatively free of third party conflicts (I.e. right-way issues, utilities, etc.). • The benefit in terms of reduced impact to the highway user is greater than the additional cost to minimize lane closures.

  25. How are Lane Charges Calculated? • Charges for lanes or shoulders can be on either an hourly or daily basis. • Charges per lane can vary depending on time of day, amount of traffic, and other road user costs.

  26. Oregon Example • Traditionally the State of Oregon specified times at which lane closures were not allowed. • State law did not permit the use of road user costs in the determination of liquidated damage amounts. • Therefore: no disincentive for closures or incentive to keep lanes open.

  27. Oregon DOT US 26 Reconstruction Lane Rental Project • Major reconstruction of a 2.08 mile stretch of a primary commuter route from the west suburbs to downtown Portland. • ADT ranges from about 100,000 to 130,000 vpd, with less than 2% trucks. • Rates for every 15 minutes ranged from $0 to $21,000 for lane use.

  28. Colorado New York North Carolina Utah Oklahoma Oregon Washington States Using Lane Rental

  29. Lane RentalQuestionnaire Results

  30. Lessons Learned – Lane Rental

  31. New York has completed 6 projects since 1995. Total project costs were 3.6 million dollars below the engineer’s estimate. Three projects were above and three projects were below the engineer’s estimate. New York’s Lane Rental

  32. Warranty • Projects in which Performance can be Measured • Minimize Overall Life-Cycle Costs • Project Conditions are Well-Defined • Incorporation of New Technology in Materials, Equipment, and Construction Processes

  33. Warranty • Definition: “A guarantee of the integrity of a product and of the makers responsibility for the replacement or repair of deficiencies.”

  34. Advantages of Warranty Contracting • Less owner risk. • Eliminates cost of owner QA/QC by transferring this responsibility to the contractor. • Creates an incentive for overall project quality. • Assures acceptable level of service or performance for a work item and/or major project element.

  35. Wisconsin Michigan North Carolina California Missouri Ohio Montana New Hampshire States Using Warranties

  36. WarrantyQuestionnaire Results

  37. Lessons Learned - Warranty

  38. Innovative Contracting Methods – Selection Flow Chart

  39. Questions?

More Related