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Innovative Contracting / Innovative Contracting / Highways for LifeHighways for Life
Tom Ravn, Acting State Construction EngineerTom Ravn, Acting State Construction Engineer
TH 36 Through North St. PaulTH 36 Through North St. Paul
1212thth Annual Minnesota Pavement Conference Annual Minnesota Pavement ConferenceThursday, February 14Thursday, February 14thth, 2008, 2008
Presentation OverviewPresentation Overview Constructability ReviewConstructability Review
A+B BiddingA+B Bidding
Lane RentalLane Rental
Locked Incentive DateLocked Incentive Date
Constructability ReviewConstructability Review One-on-One MeetingsOne-on-One Meetings
• Worked with AGC to identify list of contractorsWorked with AGC to identify list of contractors• Open to other contractorsOpen to other contractors
Informal information sharing meetingsInformal information sharing meetings
Industry input on:Industry input on:• ““How Fast Can You Build It?”How Fast Can You Build It?”• ““How Should Construction be Staged?”How Should Construction be Staged?”• ““What are the cost impacts with acceleration?”What are the cost impacts with acceleration?”
Acceleration TechniquesAcceleration Techniques
A+B BiddingA+B Bidding• Factors Cost (A) + Time (B) into the bidFactors Cost (A) + Time (B) into the bid
Lane RentalLane Rental• Minimizes disruptions to trafficMinimizes disruptions to traffic• Effective scheduling of resourcesEffective scheduling of resources
IncentivesIncentives• Monetary Incentives for Early CompletionMonetary Incentives for Early Completion
A+B BiddingA+B Bidding
Lowest Combination of Cost + TimeLowest Combination of Cost + Time
A = Cost of the ProjectA = Cost of the Project
B = Time ComponentB = Time Component• Days of Construction * Road User CostDays of Construction * Road User Cost
History with A+B BiddingHistory with A+B Bidding• 15% Time Savings at Bidding15% Time Savings at Bidding• 35% Time Savings with Incentive Clauses35% Time Savings with Incentive Clauses
TH 36 A+B BiddingTH 36 A+B Bidding
Time FactorsTime Factors• Road User Cost (RUC) = $15,000 per DayRoad User Cost (RUC) = $15,000 per Day• Allowable Times = 145 to 210 DaysAllowable Times = 145 to 210 Days
Bid Results – CostBid Results – Cost• 6 Bidders 6 Bidders • $27.6 to $32.7 Million$27.6 to $32.7 Million
Bid Result - TimeBid Result - Time• Time Ranged from 145 Days to 195 Days Time Ranged from 145 Days to 195 Days
Innovative StrategiesInnovative Strategies• A+B BiddingA+B Bidding
145 Max145 Max 100 Bid100 Bid 104 Actual104 Actual
• Lane RentalsLane Rentals Minimized Impacts on I-Minimized Impacts on I-
494494
• IncentivesIncentives $100,000 Max$100,000 Max
Valley Creek Road InterchangeValley Creek Road Interchange
Other A + B ProjectsOther A + B Projects
TH 10 at Hanson RoadTH 10 at Hanson Road• Bid #1Bid #1
A = $16.95 millionA = $16.95 million B = 135 DaysB = 135 Days
• Bid #2Bid #2 A = $16.98 millionA = $16.98 million B = 100 DaysB = 100 Days
TH 10 in Detroit LakesTH 10 in Detroit Lakes• Allowable Bid Range (534 to 869 Days)Allowable Bid Range (534 to 869 Days)• 3 Bids Near Minimum3 Bids Near Minimum• 3 Bids Near Maximum3 Bids Near Maximum• Winning Bid – Lowest “A” and Lowest “B”Winning Bid – Lowest “A” and Lowest “B”
Lane RentalLane Rental How Does It Work?How Does It Work?
• Hourly Charge to Temporary Lane Closures ($400 per hour)Hourly Charge to Temporary Lane Closures ($400 per hour)• Hourly Charge for Ramp Closures ($300 per hour)Hourly Charge for Ramp Closures ($300 per hour)
Bidding Lane RentalBidding Lane Rental• Contractors Bid Estimated Number of Hours for Closure Contractors Bid Estimated Number of Hours for Closure
““Lane Rental Working Fund”Lane Rental Working Fund”
• Dollars subtracted from Lane Rental Working FundDollars subtracted from Lane Rental Working Fund Excess $ at end = Incentive ($30,000 max)Excess $ at end = Incentive ($30,000 max) Overrun = Disincentive Overrun = Disincentive
Lane RentalLane Rental Why Lane Rental?Why Lane Rental?
• Minimize Traffic Impacts Prior to Full ClosureMinimize Traffic Impacts Prior to Full Closure
• Minimize Traffic Impacts After Full ClosureMinimize Traffic Impacts After Full Closure
• Public PerceptionPublic Perception ““Why is there a lane closure up, but nothing is happening”Why is there a lane closure up, but nothing is happening”
• Better Subcontractor CoordinationBetter Subcontractor Coordination
Lane Rental ProjectsLane Rental Projects
2006 Projects2006 Projects• Valley Creek RoadValley Creek Road• Metro Pavement MarkingMetro Pavement Marking• I-35 District 1I-35 District 1
2007 Projects2007 Projects• TH 10 Detroit Lakes (Detour Method)TH 10 Detroit Lakes (Detour Method)• TH 36 (Full Closure)TH 36 (Full Closure)• I-394 / I-94 Bridge RehabilitationI-394 / I-94 Bridge Rehabilitation
Locked Incentive DatesLocked Incentive Datesa.k.a “No Excuse Bonus”a.k.a “No Excuse Bonus”
How is it Different?How is it Different?
Time extensions allow normal incentives to Time extensions allow normal incentives to be paid past the anticipated datebe paid past the anticipated date
LID – If you want the incentive, you must LID – If you want the incentive, you must meet the date.meet the date.
LID – Waive all claimsLID – Waive all claims
Locked Incentive DateLocked Incentive Date
TH 36 – MetroTH 36 – Metro 145 Day Closure145 Day Closure $350,0000 for completing work within 145 Days$350,0000 for completing work within 145 Days Additional $75,000 for every 5 days early Additional $75,000 for every 5 days early $650,000 max$650,000 max
TH 10 – D4TH 10 – D4 Obligation - Open TH 59 by June 29, 2008Obligation - Open TH 59 by June 29, 2008 LID - $300,000 if work is completed on or before December LID - $300,000 if work is completed on or before December
1, 2007.1, 2007.
I-35W Bridge, MetroI-35W Bridge, Metro A+B - $7,000,000 lump sumA+B - $7,000,000 lump sum Additional $2M for every 10 days earlyAdditional $2M for every 10 days early $27,000,000 max (100 days)$27,000,000 max (100 days)
