Best Practice

BEST PRACTICE:

F1−1: Alternative Contracting Practices

DESCRIPTION:

escriptionn 1996, the Florida Legislature authorized the Florida Department of Transportation (FDOT) to use alternative contracting techniques on construction projects. Alternative contracting techniques include A+B, Lane Rental, Design/Build, Public Private Partnerships (PPP), Witness and Hold, Streamline Contracting, Warranty Clauses, No Excuse Bonus, Lump Sum, Liquidated Savings, and Incentive/Disincentive. More than one alternative contracting technique may be used on the same project (e.g., Lane Rental combined with No Excuse Bonus). The Legislature limits the use of some innovative contracting techniques (Low Bid Design−Build, Construction Manager at Risk, and Bid Averaging) to $120 million (F.S. 337.025) annually, excluding Turnpike and ARRA projects.

REASON(S) FOR ADOPTING:

To accelerate contract completion and to control cost overruns on construction projects.

PRIMARY BENEFIT(S):

Early project completion results in reduced disruption and inconvenience to motorists and nearby businesses and homeowners.

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

Alternative contracting practices are used on many different types of projects. FDOT specifically evaluates which method may be most suitable for a particular project. Incentive/Disincentive is used on all critical projects on the Florida Turnpike.

STATE(S) WHERE USED:

Florida

SOURCE/CONTACT(S):

Karen Brunelle, P.E., Office of Project Development Director, FHWA Florida Division Office
Phone: (850) 553−2218
E−mail: Karen.Brunelle@.dot.gov