sou · H0B339d4 · 2012-06-14 00:00:00 — These were utilized for the construction phase as well as future traffic services. The live traffic monitoring information was available 24/7 to news organizations, travelers and the general public. Another value initiative included the amount of light reaching the outside the highway boundaries. Lighting requirements were to reduce the light that directly affects surrounding properties while adequately providing lighting for safety features. The original design required 40-foot light poles with lamps that were positioned every 180 feet along both sides of both Interstates. The team used a new design scheme that had lamps mounted on 65 foot poles placed about every 370 feet in the middle of the highway, thus reducing the number of light poles from 1 500 to about 250. By using the same design-builder for design and construction, the team has realized more savings in time, cost and reduced externalities and inconvenience to the public. Comments from the FHWA mentioned that the design-build contractor had to be innovative in meeting the existing traffic flow on a three lane highway in each direction during the day. This means that the contractor could not shut down the highway during the day, meaning a lot of work at night. One example is the demolition and erection of prefabricated girders, which was completed overnight, with lanes opening for the morning rush hours. Collaboration between the design and construction staff enhances the opportunity for innovation and a total of nine value change proposals were proposed by the designer-builder. A cost sharing in the savings was an improvement and a creative approach. Typically in a Design-Build project, the owner agencies conduct environmental planning and about 30 percent of the design of the civil elements (a higher level of design for the light rail systems) prior to tender. The design-build contractor was provided with design reference drawings and essentially the design-build contractor took it from there. Using design-build, the construction could begin before the final designs were complete, and design and construction phases were integrated for speed and economy. Innovative techniques were encouraged, creating the potential for cost and time savings. The design-build concept was formalized within CDOT around 1999, and CDOT and RTD signed an Intergovernmental Agreement to work cooperatively to finance and construct the multimodal project. They also decided to use the Best Value approach to contractor selection versus the typical low bid methodology. The partnering and collaboration were included in the Design- Build approach, because a number of issues required decisions and quick decision-making as opposed to the traditional Design-Bid- Build method. The T-REX partnering process allows members to resolve design and constructability issues, before they arise in the field, through a framework by a neutral (). The project demonstrated that cost savings are often attributed to a closer and cooperative working relationship between the designers and contractor. The T-REX project used a unique feature of establishing an upset price (maximum price) during the Request for Proposals (RFP) of Billion. The contractor selection criteria were made using Best Value, which includes both technical and price proposal. The winning proposal was approximately Billion, which represented a difference of about Million from the original estimate and the proposal. The technical requirements included the ability to meet project goals, team organization and experience, to implement the project according to the RFP, demonstrate inno- vative solutions to manage construction and traffic, and commitment to public information and stakeholder input. Other T-REX construction highlights were prefabrication and preassembly, where concrete girders and have been prefabricated offsite. Sound wall panels and fascia panels covered shaft caisson walls, which was a new approach to retaining wall construction. When using Design-Build, you shouldnt dictate to the contractor on how to do things, but rather use performance specifications to the greatest extent possible. One of the benefits is that the contractor is usually in the best position to determine the wall type or other innovations that are most economically viable for a given situation. Another solution reduced construction noise to adjoining neighborhoods by using portable, mobile sound walls that were actually semi-trailers that simply joined together along the side of the highway. This is a lesson learned that innovation often includes novel uses for common resources. Some of the lessons learned include clearly defining and allocating the risks with the Design-Build contractor early in the process to determine which risks are best carried by the owner and which should be borne by the contractor. Proper risk allocation will usually result in lower overall risk for the project. Other lessons learned are as follows: Cost validation of early estimates to guarantee realistic cost throughout the process Make sure project goals are realistic Having an effective public information outreach Third party issues should be defined and resolved early Clearly define the level of participation in the final design review process It is essential how contractors will obtain permits, how agency coordination will be managed and the level of participation from the community and neighborhoods. Some key milestones are included in Box 17. and Milestones in the 17 miles () of highway reconstruction including some lanes with three, four and five through lanes, reconstruct eight interchanges, replacement of , improved drainage, enhance safety with acceleration/deceleration lanes, add shoulders and improve ramps Add 19 miles () of new double-track light rail with 34 light rail vehicles, including the construction of 13 stations with 6 000 parking spaces. Completed 22 months earlier 6.Significant Findings from Each Country This section will highlight some of the interesting and unique findings that were observed from each of the countries included in the study. They are listed alphabetically by country name. was previously known for its progressive acceptance of innovative practices and for being a forerunner in many areas of alternative contracting. The main project delivery methods for capital projects include the Design-Build, DBFO and the ECI model (a variant of the Alliance model). is mainly re-engineering and improving the existing practices. A recent governmental audit had criticized the recent application of the DBFO method. The collaborative process continues with the government and industry, and it remains to be seen if there will be some back peddling. Budgets are very tight and even the maintenance contracts are under scrutiny from a recent governmental audit. As a result, the maintenance will be done under a separate contract and in some cases the HA is providing some vehicles using labor rates. The unit prices will be collected to understand the cost associated with maintenance. Also, quality control measures are increasing in certain aspects of maintenance services. () model is the main model used and is being modified with several areas of improvement. continue to go forward with future considerations toward costs and quality. Also, the number of contracts has been reduced to 12 contracts as a result of the integration of some areas. Overall, is using some of the most progressive project delivery methods and continues to refine the contracting models. was previously a good example of utilizing innovative procurement methods, until the recent reorganization and merger of the road, rail and waterways. Part of the transition caused the loss of regional offices to another governmental organization, which displaced the client further from the service delivery. As a result of these changes and staff reorganization there has been a significant backpedaling and loss of gains previously attained. Design-Build is quoted to have monetary and time savings, but there have not been any quantitative studies or objective benchmarks to support these. Design-Build projects remain the preferred method of choice, but the reorganization has caused tension in the agreements with the contractors. One challenge is that the Finnish construction sector has less than a handful of contractors bidding on large Design-Build projects and very limited competition with the advanced variants of DB. Unfortunately, there has been a recent form of mistrust between the client and contracting industry, which needs to be corrected. The Design-Build model used in has its limitations and should be refined in order to take advantage of innovative technology, innovations in general, teamwork aspects, and reduced design development as was intended in the Design-Build model. The A + B bidding with incentives and disincentives have been used in a couple projects with both good and unfavorable results. The situation needs to be investigated to determine if the correct behavior is being rewarded, or is the construction industry opposed to the new method. to the lack of public funding for capital investments the DBFO model has now been used for the third time and the newest project was recently awarded. The first project () was considered a success story, which used the shadow toll mechanism. The second project (E-18, Lohja-Muurla) had some problems in tunnels, ICT, and many road closings during the first 6 months. is still too early to determine if VfM has been achieved. The E-18 and the newest DBFO are using the availability payment mechanism. is utilizing the in the infrastructure sector as an interoperability tool is several applications. Progress continues with the development and implementation of the for road projects. Some modules are already being used, while others still need development. Performance based maintenance contracts are working well and have been a success story in when the market was opened to competition in 2001. Now after about ten years of outsourcing, costs are slightly increasing and the market has matured. has also moved to the lowest price conforming tender with three quality levels of service (400, 450 and 500 points must be obtained). is one of the few countries using incentives in the contracts for a customer service bonus and for lower salt usage. This is considered as a world class method that has not been duplicated by others in this study. It will be interesting to see the development of the next generation contracting practices and if the good services will continue. Nevertheless, it has been a best practice and a good example for others to follow. Overall, has progressed in the use of project delivery methods, but is struggling with the capital project delivery methods. The maintenance contracts are world-class and have been recognized for its development. It remains to be seen if there is continued progress or will there be more back pedaling. , has been mainly using traditional procurement practices in the form of Design-Bid- Build. Design-Build for minor projects (small projects) is being tested and Design-Build major is in the planning stage. There seems to be a movement towards progressive models which requires a significant culture change from the traditional practices. There is also one private finance model (DBFO) in the tendering phase. The ministry is using a cautious approach, working together with the industry in order to make a viable procurement model. It will be interesting to determine if alternative project delivery methods become a common practice or will they to standard practices. There have been significant changes and improvements to the performance based maintenance contracts compared to those used in the past. The new generation contracts are now fully outsourced, duration of 10–13 years, using more performance based requirements where applicable, and balancing the risks with the contractors. Resurfacing is also included in the scope of the work using a fixed price at a minimum guarantee level. The service providers are responsible for collecting the condition data and entering the information into the asset management system. Contracts are awarded to the contractor having the lowest price conforming tender (need to pass a given threshold). Savings in the new generation contracts have been conservatively quoted between 10–. As a result, productivity gains are achieved in these new contracts and appear to be very fruitful. , is struggling with the early adventures in alternative project delivery methods for the capital projects. Maintenance contracting is on a world-class level and contract durations are further than any country in the study. has significantly progressed over the last eight years and is mainly using Design-Build and DBFM models for the capital investment projects. Design-Bid-Build is rarely used, except for dredging applications. Design-Build has been a success story and costs are almost always lower. Innovations have been realized in and traffic controls during construction periods. Politically, PPP or DBFM is the preferred method of choice for large projects and needs to be determined if the model provides VfM and is a success story. model project is underway, but is too early to make any comparisons. comments are that the partnering and teamwork seem to work well. The contracting industry is also in favor of innovative practices, and is presently driving the right behavior. It was interesting to observe that most construction work is self-performed by the contractors or by their subsidiaries. has also recently revamped their maintenance contracts and has shifted from a selfdirecting to more of a performance based approach for most activities (except maintenance). These new generation contracts include more performance based aspects, using a hybrid type model to balance the risks, and including road resurfacing using a fixed price. The PBSA has duration of 3–5 years and may include some small capital items. The contractor selection process is using a 40–price consideration and depends on the region. Savings in the new generation contracts have been quoted as being over , but there have been some quality adjustments. This is a significant improvement from the previous generation of contracts and places in the category of world-class maintenance contracts. , similar to , is very aggressive in their capital project delivery and has significantly modified the maintenance contracting practices to be aligned with world-class developments. They have a broad acceptance of alternative project delivery methods and practices, and the future challenge is to continue demonstrating VfM. like has also merged the road and rail administrations into one organization called the (). STA has made the wise choice in retaining control of the regional offices as compared to its counterpart in . has completed a few Design-Build projects and has also progressed into some DBOM contracts. They are the only country in this study that is using DBOM. The preliminary results from the DBOM projects have been termed quite well and are providing savings as compared with other models. However, there needs to be a systematic evaluation taking into account VfM over time. A quantitative evaluation of DBOM is not available, which is similar to the situation with using DB and its advanced variants. However, there are a large majority of projects using the DBB model. has a cooperation forum with the contracting industry that is termed . This is where ideas, practices and a cooperation type atmosphere between the client and contracting industry can be discussed and developed. Communication is an important part of the trust and cooperation. This forum appears to have a positive effect on sharing ideas. outsourced the maintenance activities approximately in 1995. They are using performance based contracts similar to , except for using a index, where the contractor is paid based upon the actual occurrence. The market has matured, but the contract duration is still three years using the lowest price for selecting the contractor. has not progressed into long-term contracts as might be expected, and it might be a good recommendation to increase the duration to five or seven years for their next generation contracts, and be more aligned with the other progressive countries in the study. is cautiously and optimistically moving forward in the use of alternative project delivery methods. There is strong and motivation to move forward as in other countries. The new organization will be tested to see if a pro-active approach is taken and if the maintenance contracts are taken to the next level. The industry is favorable toward alternative methods and now the strong push for productivity provides the opportunity to meet expectations. () has been performing Design-Build projects for quite some time and has good experiences even with smaller Design-build projects. They are receiving approximately fewer change orders compared to DBB and have realized savings in most of the Design-Build projects. MDSHA is also including upset prices, co-location on the largest Design-build projects, using a best value contractor selection criteria, projects completed earlier or on time, and tendering the project early in their design development stage (about design development). Even though Design-Build projects account for about of the number of total number of projects, they account for approximately when compared with the total costs. Also, they do not exclude projects, but determine which project is potentially applicable for Design-Build during the early design phases. They have an internal and simple decision system for knowing which projects are fit for Design-Build projects. They have tested the DBOM for a wastewater project, but not for road projects. The results were very good and had received innovation concepts that would not normally occur. MDHSA has been accepting several Alternative Technical Concepts (ATCs) in the tenders and have surprisingly received them even when they were not asked. It can be stated that the contracting industry is driving the innovations, which hopefully continue to produce productivity benefits. MDSHA is having success on their Design-Build projects and are carefully selecting projects that are more applicable for DB usage. It will be interesting if there is any further progression into the advanced variants of Design-Build or will the trend continue is the same direction. On the other hand DBB projects still rule and account for the majority of practices. () has been doing Design-Build for over ten years and receiving similar benefits as MDSHA. They are approximately fewer change orders compared to DBB and have realized savings in most of the Design-Build projects. Other factors include upset prices in a few projects, co-location on the largest Design-Build projects, using a best value contractor selection criteria, projects completed earlier or on time, and tendering the project early in their design development stage (about design development). Even though Design-Build projects account for about of the number of total projects, they account for approximately when compared to the total costs. VDOT has realized innovations with , traffic control and management, which have been mainly contractor lead innovations. There is one DBFO project which is the well known beltway around D.C. and will be tolled using hot lanes. Traffic issues are the highest priority due to the congestion on the highways and near the nations capital. As with other DBFO projects, it is too early to make any conclusions as the project is still being constructed. VDOT had one of the first performance based contracts tendered in the world, which was a total asset maintenance contract that included road resurfacing (few in the world at that time). Recently, a decision was made to have performance maintenance contracts for all the interstate highways in (corridor approach). The decision makers have now required severe budget reductions and as a result, the new generation contracts are using a hybrid model, which includes performance and method based requirements. These new contracts are five years in duration, measure the performance of the contractor, balance the risks with the contractors, use informal partnering and communications, use the lowest price conforming tender, and contractors must meet the MRP rating system for service delivery. The contracts are now beginning to entice more competition and bidders, as medium sized companies are beginning to understand and become knowledgeable regarding performance based contracts. VDOT is pleased with the outcomes as their internal maintenance crews are servicing the remaining roads under their jurisdiction. VDOT is quite similar to MDSHA in having success on their Design-Build projects, but there appears to be more freedom (PPTA) to select alternative delivery methods. They are also realizing success on their DBB projects as smart practices can be included in any model. DBB project still accounts for a large number of projects. Maintenance contracts continue to evolve and are considered a best practice. (MnDOT) has been doing Design-Build for many years and receiving similar benefits as MDSHA and VDOT. MnDOT was the only interview partner with whom the interview was performed via and the questionnaire was answered by email. MnDOT is receiving significant benefits in Design-Build with fewer change orders, less cost overruns, and getting projects completed earlier compared with the DBB model. Other factors include receiving innovations in the ATCs, getting more innovation in the methodology of working methods, and using a best value approach to contractor selection criteria. They are also using A + B Bidding, which has reduced the project completion time. Even though Design-Build projects account for about of the number of total projects, they account for approximately when compared with the total costs. However, one of the experiences is that Design-Build is not necessarily cheaper and sometimes costs more. It is difficult to explain this, but it may be offset by quicker delivery and innovations. It is difficult to compare costs as all projects are different and hard to compare against one another. MnDOT looks at complex projects, staffing availability, ATCs, co-location of project personnel, and schedule as the main trigger points for using Design-Build. MnDOT is having success on their Design-Build projects and are carefully selecting projects that are more applicable for DB usage. It will be interesting if there is any further progression or if the trend will decline? DBB accounts for the majority of practices and appears to be performing satisfactorily. 7.Summary and Principle Conclusions Transportation projects require a custom made solution and not a one size fits all solution, and it is important to compare many factors during project selection. All project delivery methods have provided successes, not so successful attempts, and results between favorable and unfavorable. project has a different set of requirements, objectives, challenges, and the owners should carefully consider these requirements in the context of their own culture, environmental issues, and technical characteristics to decide which project delivery method provides the best opportunity for success. On the other hand, it does make a difference which project delivery method is selected and countries should develop a systematic decision making process to assure that the best method or best likely method is used for each project. Also, having quantitative data will greatly assist the decision making process. In summary, productivity of the road contractors is not measured by any of the owners/clients and it is extremely difficult to measure or compare.