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Factors to Consider in Innovative Contracting. Doyt Bolling and Jared Holland Utah Technology Transfer Center. Innovative Contracting. The primary goal of Innovative Contracting is to provide timely delivery of a quality project or facility with limited User & Social Impacts. - PowerPoint PPT Presentation
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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?
