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36 by packaging projects with as much lane-mileage as is prac- had three responses, Michigan, Utah, and Wyoming, that indi- tical (Erwin and Tighe 2008). This agreement between the cated that they used QPA provisions. The pay formula was literature and the survey provides an effective practice: based on the job mix formula and the percent within limits found during QC/QA testing. Because those three states' Make microsurfacing contract packages as large as is microsurfacing specifications were included in the content practical to reduce the unit price and increase the number analysis, it was able to validate the survey response. of lane-miles that can be treated each year. SUMMARY This practice links with the finding in the previous section regarding a perceived lack of competition in the industry. This chapter has summarized the salient aspects of microsur- Agencies that responded to having a reasonably consistent facing contract formation and administration. The conclusions annual microsurfacing program generally were satisfied with and effective practices are discussed here. the level of competition. Therefore, increasing the size of microsurfacing projects would also serve to enhance the con- sistency within a given program by permitting the agency to Conclusions more effectively utilize its pavement preservation and main- tenance budget. The following conclusions were reached: Most of the U.S. and Canadian agencies do not have an Incentive/Disincentive and Quality Price Adjustment Clauses adequate level of competition among qualified micro- surfacing contractors for their programs. This may be One means to create a contractual mechanism that pro- because most microsurfacing programs do not advertise motes early completion or quality is the use of an incentive/ a consistent amount of work each, making it difficult for disincentive (I/D) provision or a quality price adjustment interested contractors to develop the technical capacity (QPA) provision in the measurement and payment clause of and equipment necessary to competitively bid on these the microsurfacing contract (Laungrungrong et al. 2007). The contracts. I/D provision would normally apply to the project schedule The concept of requiring warranties on microsurfacing and pay a bonus for finishing early or a penalty for being late. projects was found to be less onerous than for other pave- The QPA provision operates on the theory that the agency is ment work because most agencies require the contractor willing to pay the contractor on a basis that is commensurate to furnish the job mix formula. with the actual quality of the delivered product. Therefore, Few agencies require microsurfacing contractors and if the final product exceeds the performance criteria, the agency personnel to complete microsurfacing training contractor will be paid an additional amount. The provision and/or a certification program. This indicates a need for works in the other direction as well. "However, negative price such a program and, therefore, the FHWA Pavement adjustments can provide a basis for accepting and paying for Preservation Expert Task Group initiative to develop a work that does not fully meet specifications and removal and microsurfacing certification program at the national level replacement is not justified. They are not to penalize a con- is both timely and valuable. tractor, but rather to pay an equitable amount for the value of the product delivered" (FHWA 2006). Effective Practices Because state and provincial microsurfacing projects are usually installed on active highways where minimizing dis- The following effective practices were identified: ruption is one of the objectives to the contract, I/D provisions are appropriate (Gao 2010). The Michigan DOT "found that Agencies in northern climates can mitigate potential the average net reduction in contract days was 19% in com- quality issues induced by a short microsurfacing season parison with similar projects that were let with an expe- by requiring a warranty. dited schedule clause requiring the contractor to work a six Scheduling microsurfacing project letting as early as pos- calendar-day work week, but without the use of an I/D provi- sible will permit its completion as early in the season as sion" (FHWA 2006). Microsurfacing is also a product that possible and mitigate the risk that unstable weather at the has a number of material quality and performance features end of the season will adversely impact microsurfacing that can be measured. The same physical parameters that are quality. shown in Table 23 for warranties could also be used as crite- Microsurfacing is to be paid for by the ton if the agency ria in QPA provisions. is not using a performance specification. Make microsurfacing contract packages as large as is The survey and the content analysis looked for evidence of practical to reduce the unit price and increase the number I/D or QPA provisions in microsurfacing practice. The survey of lane-miles that can be treated each year.