Innovative bidding systems: Best Value or VE
Proponents want governments to buy their professional ideas
from the planning stage, while Governments are concerned
about the competitiveness and openness in a bid.
Cost = Construction + Loss due to congestion during construction
Design-Build Contract (Detailed design + Construction)
VE (Value Engineering) or Best Value Bid System
The winner will be decided by:
Minimum of construction cost + congestion cost
Value = (Performance) / (Bidding Price)

orPerformance = F (Reduction of construction period, Reduction ofroad closure days, Construction procedure, Work zone safety,LCC etc)

eg. NJ, US in 2005
(Cheng & Capers from NJDOT, 23rd US-Japan Bridge
Engineering Workshop)
US Rt. 1 carries more than 50,000 vehicles every day through theState Capital of NJ.
Three bridges suffered deterioration and were located close to eachother near the State Capital.
They were 26.5 m, 24.5 m, & 18.3 m of single span bridges with 2lanes in each direction2

Use of 5 full-length modular segments for each bridge
Difficult to stop traffic during daytime
Road was closed from 7:00 pm
Friday to 6 amp Monday (59 hours).
If this window was exceeded, a Lane
occupancy charge would beassessed up to USD10,000 / day.

An incentive or
disincentive of $2000
per hour was specified
if the work wascompleted in less ormore than 59 hours.
3

Example of VE requesting high-level technicalproposals --- Flyover construction over a crossing
with 100,000 ADT.

• Although traffic was restricted with partial lane closuresduring the construction, it had to be maintained and therestriction had to be minimized.
4Required conditions for proposals• Construction of flyover• 4 out of 6 existing lanes have to be remained inoperation.
• Construction is allowed only daytime in principle.
• Porous asphalt pavement• 7-span continuous steel box-girder bridge erectedwith truck-cranes & bents (Changeable)• L = 500 m, W = 16 m
• Steel-box pier anchored with a steel frame• Prestressed concrete well foundation (Changeable)• Verification of seismic performance• Maximum lane restriction days are 550 days.
5Performance Proposal Evaluation Criteria(Technical qualification evaluation is separately done.)
Evaluation Item
Technicalproposals

Construction
management

Assigned
engineersTraffic management

Points

Evaluation Criteria

1010 -- 5 -- 0

Traffic restriction days 10
during construction

0.1 point per day(A period of 450
days is the target)

Planning & Feasibility

1010 -- 5 – 0 on how
real and careful inconsideration of theconstruction site

Feasibility of newtechnology

10

10 -- 5 -- 0 on workzone safety andnoise and vibration
reduction

Experience,
knowledge &Communication skills

10

8 -- 6 -- 4 -- 2 -- 06

Many construction methods
were proposed.

7

Dialogue with short-listed bidders• Seismic / durability design methods• Design and execution for the connection of pierto steel box girder• Design and execution for the connection of pierto footing• QC / QA
were checked through official dialogues between
short-listed bidders and the evaluation committee
including specialists8Bidding
BidderGivenpoint

Proposal
Total
Evaluation Point point (X)(Traffic restrictiondays)

Price (Y) (X x 1 million)(Million/ (Y)
JPY)

A

100

130

4800

0.0271B

10030(500 days)
25(550 days)

1254650

0.0268

C

10023(530 days)

12348200.0255All are below the reference value of (Given point) /(Expected price).
Contracting with A is the most valuable.
The minimum construction cost offer is not regarded themost valuable.

9Completion10