Factors to Consider in Factors to Consider in Innovative ContractingInnovative Contracting

Doyt Bolling and Jared HollandDoyt Bolling and Jared Holland

Utah Technology Transfer Utah Technology Transfer CenterCenter

Innovative ContractingInnovative Contracting

The primary goal of Innovative The primary goal of Innovative Contracting is to provide timely Contracting is to provide timely delivery of a quality project or facility delivery of a quality project or facility with limited User & Social Impacts.with limited User & Social Impacts.

User & Social Impacts- Costs User & Social Impacts- Costs incurred by the road user or public incurred by the road user or public that are not directly accounted for in that are not directly accounted for in Traditional Contracts.Traditional Contracts.

FactorsFactors

Third Party ConflictsThird Party Conflicts Project ComplexityProject Complexity Availability of FundsAvailability of Funds Time ConstraintsTime Constraints Road User ImpactsRoad User Impacts Product QualityProduct Quality

Third Party ConflictsThird Party Conflicts

UtilitiesUtilities EnvironmentalEnvironmental Political LegalPolitical Legal

* Innovative Contracting should not be used in any case * Innovative Contracting should not be used in any case where a third party conflict exists.where a third party conflict exists.

Project ComplexityProject Complexity

RoutineRoutine Complex DesignComplex Design Complex ConstructionComplex Construction Technical IntegrationTechnical Integration

Availability of FundsAvailability of Funds

Emergency ProjectEmergency Project Timing of FundsTiming of Funds Local, State, FederalLocal, State, Federal BondingBonding Toll FeesToll Fees

Time ConstraintsTime Constraints

Event Event EmergencyEmergency Public PerceptionPublic Perception Limited ResourcesLimited Resources

Road User ImpactsRoad User Impacts

High Accident Rates/Safety in Work High Accident Rates/Safety in Work ZonesZones

Impact to BusinessesImpact to Businesses Traffic ControlTraffic Control High Road User Costs (Delays, High Road User Costs (Delays,

Inconvenience)Inconvenience) Air PollutionAir Pollution

Product QualityProduct Quality

SmoothnessSmoothness Extended Service LifeExtended Service Life Maintenance ObjectivesMaintenance Objectives Improved Serviceability Improved Serviceability

Contracting ProceduresContracting Procedures

Traditional Contract (Design-Bid-Traditional Contract (Design-Bid-Build)Build)

Design-BuildDesign-Build A+B BiddingA+B Bidding Lane RentalLane Rental WarrantyWarranty Job Order ContractingJob Order Contracting

Traditional ContractsTraditional Contracts

Projects with Third Party ConflictsProjects with Third Party Conflicts Cookie Cutter ProjectsCookie Cutter Projects Projects with Negligible Impacts to Projects with Negligible Impacts to

the Road User, Public, & the Road User, Public, & EnvironmentEnvironment

Projects with Potential RisksProjects with Potential Risks

Design-BuildDesign-Build

Decrease Time (Emergency/Event)Decrease Time (Emergency/Event) Complex DesignComplex Design Complex ConstructionComplex Construction Technical IntegrationTechnical Integration Limited In-house ResourcesLimited In-house Resources Projects Procured Just-In-TimeProjects Procured Just-In-Time

A+B BiddingA+B Bidding

Decrease Time (Emergency/Event)Decrease Time (Emergency/Event) Potential for High Road User CostPotential for High Road User Cost Potential Impact to Local Potential Impact to Local

BusinessesBusinesses Public PerceptionPublic Perception Vital CorridorVital Corridor

Lane RentalLane Rental

Decrease Time (Emergency/Event)Decrease Time (Emergency/Event) Potential for High Road User CostPotential for High Road User Cost Potential Impact to Local Potential Impact to Local

BusinessesBusinesses No Alternative RoutesNo Alternative Routes High ADTHigh ADT

WarrantyWarranty

Projects in which Performance can Projects in which Performance can be Measuredbe Measured

Minimize Overall Life-Cycle CostsMinimize Overall Life-Cycle Costs Project Conditions are Well-DefinedProject Conditions are Well-Defined Incorporation of New Technology in Incorporation of New Technology in

Materials, Equipment, and Materials, Equipment, and Construction ProcessesConstruction Processes

Job-Order ContractingJob-Order Contracting

Routine ProjectsRoutine Projects Reduce Administrative CostsReduce Administrative Costs Projects Procured Quickly (JIT)Projects Procured Quickly (JIT)

Contractor ControlContractor Control

In order for Innovative Contracting In order for Innovative Contracting to be successful in a project, the to be successful in a project, the contracting firm must have control contracting firm must have control over the variable the owner wishes over the variable the owner wishes to minimize/maximize.to minimize/maximize.

Early Assessment of Early Assessment of Innovative Contracting Innovative Contracting

Practices (Trauner)Practices (Trauner)

Design-BuildDesign-Build

-4 -3 -2 -1 0 1 2 3 4

Quality

Cost

Time

Risk

Administrative

Decreased Benefit Increased Benefit

A+B BiddingA+B Bidding

-4 -3 -2 -1 0 1 2 3 4

Quality

Cost

Time

Risk

Administrative

Decreased Benefit Increased Benefit

Lane RentalLane Rental

-4 -3 -2 -1 0 1 2 3 4

Quality

Cost

Time

Risk

Administrative

Decreased Benefit Increased Benefit

WarrantyWarranty

-4 -3 -2 -1 0 1 2 3 4

Quality

Cost

Time

Risk

Administrative

Decreased Benefit Increased Benefit

Job-Order ContractingJob-Order Contracting

-4 -3 -2 -1 0 1 2 3 4

Quality

Cost

Time

Risk

Administrative

Decreased Benefit Increased Benefit

Accessing WebSite

Connect to www.utaht2.usu.eduClick on the Innovative Contracting Link.OrGo directly to the Innovative Contracting Page by entering

http://www.utaht2.usu.edu/IC/Default.html

Viewing Documents

Click on the Link “Search for Innovative Contracting Documents”.Then use the pull-down menus to select a “state” and a “contracting procedure”.

NOTE: to view all leave the pull-down menus blank.Click Run QueryAfter the query loads click on the title of the document you wish to view.A full description of the document will load.Click on “View Full Document” at the bottom of the page.If you have Adobe Acrobat Reader the document will load.OrIf you do not have Adobe Acrobat Reader, click on the icon, or visit

www.adobe.com/prodindex/acrobat/readstep.html to download a free copy.

Also, utilize the website for other information on innovative contracting practices. It includes links, basic definitions, and the draft of “Best Practices Management Guidelines for Innovative Contracting.

Innovative Contracting Website Access

Questions?Questions?