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
- Project Delivery
- Contract and Contract Administration Resources
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.
- Example: North Dakota DOT Highway 22 - The use of an early completion incentive allowed the North Dakota DOT to repair the extensive landslide damage done to Highway 22 more than a month ahead of schedule, saving motorists from an additional six weeks of long detours and $2.5 million in road user costs.
- 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: Nevada I-15 Bridge Construction - As part of a design-build project, the Nevada Department of Transportation (NDOT) used accelerated bridge construction to move a bridge 60 feet across I-15 in Mesquite in approximately six hours without closing the road. This effort was part of the West Mesquite Interchange project to widen Falcon Ridge Parkway in Mesquite, Nevada, and increase capacity for future traffic demand. NDOT wrote the request for proposals for the project knowing that there could be significant closures and impacts on I-15. In addition, NDOT assumed the rebuilt interchange would need to be placed in a new location, which would add to the cost. The winning contractor proposed a plan that used ABC to construct the bridge off-site and move it into place, allowing the bridge to be kept it in its existing location, and reducing the original project estimate of $25 million to less than $15 million and the duration of traffic disruptions from months to days.
- Design Innovation: Quick Replacement - article in August 2012 issue of Roads & Bridges
- Example: Massachusetts Cedar Street Bridge Replacement - The use of design-build project delivery, along with accelerated bridge construction and incentive/disincentive contracting allowed the Massachusetts DOT to replace a bridge over a busy stretch of Route 9 in Wellesley in 62 hours, making it the state's fastest bridge replacement ever.
- Moving the Cedar Street Bridge Down Route 9 - project video
- Construction Quality Assurance for Design-Build Highway Projects (PDF, 237KB) - Clarifies the roles, responsibilities, and activities related to construction quality assurance on design-build highway 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 for Construction (PDF 1.6MB) - A Guide to Using Performance Goals and Measures to Improve Project Delivery - FHWA guide on performance contracting for reconstruction/rehabilitation projects. Includes recommended processes for project selection, performance goals, measurement methodology and associated incentive/disincentive fee structure, sample enhanced low bid and best value awards, SEP-14 applications, and lessons learned and sample materials from a pilot project done by Michigan DOT.
- 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.
- 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.
- Ohio DOT Innovative Contracting Manual - 2010 Edition (PDF, 268KB) - Describes ways to select innovative contracting methods and contains a matrix that shows what innovative methods would be appropriate for various typical project types.
- Example: Incentives Speed Construction in Arizona - Article in the December 2007 issue of Innovator that describes how innovative contracting methods, extra safety measures, and careful construction sequencing accelerated work and made it safer for drivers and workers on a $50 million highway reconstruction project in Arizona.
- Road Safety at Work Zones (PDF 1.3MB) - Report, developed by the European Transport Safety Council, that discusses improving safety for motorists and workers in work zones. Section 2.2 of the report discusses how using safety related performance goals in contracting can help generate more focus on safety.
- Use of Advance Construction in Financing Transportation Projects (PDF 2.4MB) - Advance Construction (AC) is a Federal-aid fund management tool designed to provide States with greater flexibility in managing Federal-aid highway funds. This AASHTO paper explores historical trends in AC usage, identifies current practices, benefits, and challenges, and includes State-specific examples.
- NCHRP Synthesis 413: Techniques for Effective Highway Construction Projects in Congested Urban Areas - Identifies strategies and successful practices used by transportation agencies to deal effectively with the challenges and impacts of construction projects in congested urban corridors.
- Conference on Transportation Construction Management, February 10-12, 2009 - Conference to discuss new challenges and solutions in successful transportation project delivery.
- Conference Presentations
- July 2009 Focus Article on Conference
Contract and Contract Administration Resources
- NCHRP Report 561: Best-Value Procurement Methods for Highway Construction Projects - Examines procurement methods, award algorithms, and rating systems for use in awarding best-value highway construction contracts. The report also explores screening criteria for selecting projects for application of best-value procurement, implementation strategies, and a model best-value specification.
- FHWA Contract Administration Web Site - Provides a number of contract administration resources, including forms, reference manuals, and regulations.
- Helping Roadway Contractors Fulfill Public Expectations - Article in the March/April 2006 issue of FHWA Public Roads.
PDF files can be viewed with the Acrobat® Reader®.
Videos in Windows media format can be viewed with the Windows Media Player.