Factors to Consider in Innovative Contracting

1. Factors to Consider in Innovative Contracting Doyt Bolling and Jared Holland Utah Technology Transfer Center

2. Innovative Contracting • The primary goal of Innovative Contracting is to provide timely delivery of a quality project or facility with limited User & Social Impacts. • User & Social Impacts- Costs incurred by the road user or public that are not directly accounted for in Traditional Contracts.

3. Factors • Third Party Conflicts • Project Complexity • Availability of Funds • Time Constraints • Road User Impacts • Product Quality

4. Third Party Conflicts • Utilities • Environmental • Political Legal * Innovative Contracting should not be used in any case where a third party conflict exists.

5. Project Complexity • Routine • Complex Design • Complex Construction • Technical Integration

6. Availability of Funds • Emergency Project • Timing of Funds • Local, State, Federal • Bonding • Toll Fees

7. Time Constraints • Event • Emergency • Public Perception • Limited Resources

8. Road User Impacts • High Accident Rates/Safety in Work Zones • Impact to Businesses • Traffic Control • High Road User Costs (Delays, Inconvenience) • Air Pollution

9. Product Quality • Smoothness • Extended Service Life • Maintenance Objectives • Improved Serviceability

10. Contracting Procedures • Traditional Contract (Design-Bid-Build) • Design-Build • A+B Bidding • Lane Rental • Warranty • Job Order Contracting

11. Traditional Contracts • Projects with Third Party Conflicts • Cookie Cutter Projects • Projects with Negligible Impacts to the Road User, Public, & Environment • Projects with Potential Risks

12. Design-Build • Decrease Time (Emergency/Event) • Complex Design • Complex Construction • Technical Integration • Limited In-house Resources • Projects Procured Just-In-Time

13. A+B Bidding • Decrease Time (Emergency/Event) • Potential for High Road User Cost • Potential Impact to Local Businesses • Public Perception • Vital Corridor

14. Lane Rental • Decrease Time (Emergency/Event) • Potential for High Road User Cost • Potential Impact to Local Businesses • No Alternative Routes • High ADT

15. Warranty • Projects in which Performance can be Measured • Minimize Overall Life-Cycle Costs • Project Conditions are Well-Defined • Incorporation of New Technology in Materials, Equipment, and Construction Processes

16. Job-Order Contracting • Routine Projects • Reduce Administrative Costs • Projects Procured Quickly (JIT)

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

18. Early Assessment of Innovative Contracting Practices (Trauner)

19. Design-Build

20. A+B Bidding

21. Lane Rental

22. Warranty

23. Job-Order Contracting

24. Innovative Contracting Website Access • Accessing WebSite • Connect to www.utaht2.usu.edu • Click on the Innovative Contracting Link. Or • Go 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 Query • After 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. Or • If 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.

25. Questions?