Contracting Strategies
In traditional highway construction contracting (design-bid-build), cost is generally the one criterion that determines the winning bid. As State and local agencies strive to meet customer needs, factors such as quality, delivery time, social and economic impact, safety, public perception, and life-cycle costs have gained in importance. Since the 1990s, FHWA has been supporting the use of innovative contracting methods to help achieve these goals. This page includes information on several innovative contracting strategies, as well as overall contracting and contract administration techniques:
Alternative/Innovative Contracting
A + B Bidding
- Example: A+B Bidding Reduces Construction Time in Iowa - Article in the October 2008 issue of Innovator that discusses how the Iowa DOT used A+B Bidding, in combination with other strategies, to reduce construction time on the 24th Street Bridge replacement project in Council Bluffs from 2 years to 1 year.
Design-Build
Design-build (DB) projects have become more prevalent as agencies seek to speed up projects and leverage resources. Good work zone planning, design, and operations practices like those advocated by the Work Zone Safety and Mobility Rule are just as important to DB projects, but they may need to be applied somewhat differently to address the differences between DB and traditional design-bid-build (DBB) processes.
Implementing effective work zone practices in DB projects presents several challenges. Unlike traditional projects, the owner agency and contractor have distinct roles and risk responsibilities, and detailed plans and specifications are not developed before bidding. Instead, a well-crafted Request for Proposal must clearly define requirements without limiting innovation. The contractor is responsible for creating the Transportation Management Plan, which may be hindered by limited familiarity with agency policies. Real-time phasing and plan development leave little time to assess impacts or review traffic control plans, which are often finalized just days before implementation. Frequent changes in work zone configurations further complicate traffic maintenance and issue resolution.
- Incorporating Work Zone Safety and Mobility in Design-Build Projects - To ensure good work zone planning, design, and operations on a design-build (DB) project, it is important to develop a strong request for proposals (RFP). FHWA resources are available to help with RFPs and effective work zone management on DB projects.
- Example: Massachusetts FAST 14 Project - Using the design-build project delivery method helped Massachusetts DOT and its contractor shrink a four-year $98 million bridge project to just one summer on the "Fast 14" project to replace 14 deteriorated bridge superstructures along I-93.
- Massachusetts "Fast 14" Project Replaces Bridges in One Summer - Article in September/October 2011 issue of FHWA Innovator.
- Example: I-85 Interchange Design-Build Project Using Prefabricated Bridge Elements in West Point, Georgia - Describes Georgia's first project to use design-build contracting and prefabricated substructure elements. An economic analysis including construction costs and user costs shows that the project saved about $1.98 million (about 45 percent) over traditional contracting and construction methods.
Performance Contracting
- Example: Performance Contracting for Construction on in Michigan - As part of a Highways for LIFE Demonstration Project, Michigan DOT (MDOT) used performance contracting for construction (PCfC) on M-115, a two-lane rural highway in Clare County. Through the use of PCfC, the project was completed with minimal disruption to the traveling public, and provided MDOT with a safer, smoother pavement with a 5-year warranty and lower life-cycle costs.
- Highways for LIFE Report - Michigan Demonstration Project: Performance Contracting for Construction on M-115 in Clare County, MI
- Performance Contracting: A New Way of Doing Business - Article in September 2008 issue of FHWA Focus.
Safety Contingency Funding
- Innovative Highway Project Delivery Methods: Safety Contingency Funding Factsheet> (PDF 392KB) - This factsheet explores the use of a safety contingency funding approach to address the work zone safety issues quickly and efficiently.
Other Resources
- Using Safety Contingency Funding to Address Unforeseen Safety Needs During Construction in Texas — Factsheet (HTML, PDF 709KB)
- Work Zone Road User Costs - Concepts and Applications (HTML, PDF 2.9MB) - Provides information on performing work zone road user cost (RUC) analysis, including possible RUC components that agencies can select depending on work zone scenario being analyzed, step by step RUC computation instructions, and applications in Maintenance of Traffic alternative analysis, project delivery/contracting strategies, and benefit-cost analysis.
Contract and Contract Administration Resources
The FHWA Contract Administration page provides resources that cover topics such as required contract provisions, performance-based contractor prequalification, cost estimation practices, and innovative contracting methods like Design-Build and Construction Manager/General Contractor.
The page also includes links to policy documents, regulations, and experimental programs aimed at improving project delivery and workforce development. It offers access to sample documents and guidance on specialized topics like Buy America, Davis-Bacon compliance, electronic contracting, and equipment acquisition costs.
