Best Practice

BEST PRACTICE:

E2−5: Critical Path Method (CPM) Scheduling to Set Contract Time

DESCRIPTION:

The Oklahoma Department of Transportation (ODOT) sets a maximum allowable contract time using the Critical Path Method (CPM) scheduling method, reducing the maximum allowable amount of time that contractors can bid on A+B contracts. In A+B bidding, the A portion is construction cost, and the B portion is the number of days multiplied by a DOT−established dollar value for each day. The A and B portions are added together to get the total bid cost for the project. Contractors that can get the project done in fewer days will reduce the B portion of their bid, which may result in a lower overall bid cost. Setting the maximum allowable contract time by use of the more accurate CPM scheduling method reduced the maximum allowable amount of time the contractor can bid, and thereby encourages the contractors to be more aggressive in bidding the time part of the contract.

REASON(S) FOR ADOPTING:

When ODOT began A+B bidding projects, the contractors who were unfamiliar with the processes tended to bid the schedule (B portion) very conservatively.

PRIMARY BENEFIT(S):

Accelerated contract completion and reduced motorist delays.

MOST APPLICABLE LOCATION(S)/PROJECT(S):

Projects where the potential exists for significant motorist delays, and when projects need to be completed by a certain time (e.g., before a planned special event).

STATE(S) WHERE USED:

Oklahoma

SOURCE/CONTACT(S):

Phil Loafman, Oklahoma DOT
Phone: (405) 522−1959
E−mail: ploafman@odot.org