Improved Contracting Methods for Highway Construction Projects

Project Description

Highway agencies have developed a system of contracting practices that specifies and stipulates exactly what is built, how it is built, what materials are used, and how traffic is maintained during construction. While this contracting practice tends to minimize the risks of the private contractor who is building a public project, it demands a substantial involvement by state highway agency personnel, which translates into high administrative costs. For this reason, this type of contracting method is being challenged, and other options are being sought by many agencies. The project reviewed relevant domestic and foreign literature; surveyed the construction industry; identified and evaluated contracting practices with consideration of compatibility with the low-bid system, impact on state highway agency resources, product quality, and risk allocation; and developed guidelines for three nontraditional contracting methods: warranty, multi-parameter, and best value.

The agency's final report that contains the findings of the literature review, discussions of current use, and analysis of survey results has been distributed to all state highway agencies. The guideline for nontraditional contracting methods has been published as NCHRP Report 451.

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