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contractor assumes primary responsibility for both design and
Contractor selects an
alternative for the proposal
construction teams and thus contributes to the elimination of
the conflicts between them and the acceleration of the con-
struction schedule. Design-build projects are awarded based
Agency validates on either lowest price (with or without adjustments for techni-
contractor selection process cal value) or best value for a fixed price.
An agency may define the contractor's role in pavement-
Agency evaluates contractor-
type selection in one of the following ways:
selected alternative for
compliance with its economic · Agency-specified. The agency specifies the pavement type
and noneconomic goals
in the proposal and specifies either the final thickness of
each pavement layer or the minimum thickness (or mini-
mum compacted depth). The contractor is allowed to
Contractor- make necessary design adjustments for certain conditions
NO Agency rejects or proposes
selected alternative (e.g., frost protection). In any event, the contractor must
modifications to contractor-
meets contract goals and
provisions?
selected alternative follow the agency-specified pavement type and thickness
design.
· Agency-preferred. The agency specifies the preferred
YES
pavement types as well as any pavement types that are
Agency accepts contractor- not allowed. The contractor must select a pavement type
selected alternative from the choice the agency provides. The agency may
ask the contractor to perform thickness design for the
Figure 18. Agency evaluation of contractor selected pavement type in accordance with the standard
pavement type. procedures.
· Agency-permitted. The agency allows the contractor to
select the pavement type and perform structural design. The
The agency can use the following criteria in evaluating the agency requires the contractor to provide detailed docu-
contractor-selected pavement type: mentation of the design inputs, a narrative on how the
inputs were determined, the design methodology, and the
· Cost feasibility and reasonableness of alternatives. outputs.
· M&R schedule.
· Structural design. Design-build projects usually involve contractor services
· Innovative/new practices proposed. only in the design and construction phases, typically with a
· Quality management. limited warranty period; they usually do not extend to other
· Construction time and the impact of work zone to traffic. phases of the pavement life cycle, such as M&R. On proj-
· Constructability. ects with a shorter turnover period and limited contractor
responsibility, the agency assumes the responsibility for
Based on the evaluation, the agency can accept or reject the
managing future performance risks. Therefore, the agency
contractor's proposed pavement type or initiate negotiations
can stipulate the pavement alternative(s) to be used in a
for further modifications. When the pavement portion is a
project or specify the criteria, such as the life-cycle strate-
relatively small part of the project, scoring on the pavement
gies, design criteria and inputs for LCCA, to be followed in
design will not be a determining factor in the award of the
the selection process. These stipulations help to ensure that
project. In such cases, and where a low bid award is mandated
the contractor builds a pavement that meets the agency's
by law, the agency should consider specifying the acceptable
expectations.
pavement designs in the RFP.
In the agency-specified scenario, the agency performs the
pavement-type selection using its own design methodology,
7.5 Pavement-Type Selection in life-cycle strategies, and cost criteria. While specifying the
Alternate Contracting Projects final pavement type, the agency is encouraged to allow for
incentives for contractor innovation and competition that
7.5.1 Design-Build Projects
would result in long-term cost savings. In the agency-preferred
In design-build projects, an agency executes a single contract and agency-permitted scenarios, contractors follow the agency's
for both design services and construction of a project. The process in pavement-type selection. The contractor can follow
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Scenarios for
design-build projects
Figure 19. Pavement-type selection for design-build
projects.
the process presented in Figure 19. The individual steps of the Due to the complexity of these projects, there are several risk
selection process include: factors associated with finance, revenue, macroeconomics, and
facility management that may have a direct or indirect bearing
Step 1. Identifying feasible alternatives from the RFP when on the pavement-related costs. These risks may have a "subjec-
restrictive, or the agency's pool of alternatives when tive" influence on the contractor's decision making. Assump-
permissive (see Figure 3). tions pertaining to the following factors contribute to these
Step 2. Following agency-allowed practices or RFP instruc- risks:
tions in developing pavement life-cycle strategies for
alternatives (see Figure 4). · Traffic volume projections.
Step 3. Following agency-allowed practices or RFP instruc- · Revenue from tolls.
tions in conducting LCCA (see Figure 8) and evalu- · Maintenance costs.
ation using economic and noneconomic factors (see · Operational costs.
Figure 15). · Financing costs.
Step 4. Selecting the most-preferred alternative (see Fig- · Commodity prices.
ure 18). · Inflation and discount rates.
Given the contractor's risks and responsibilities in design-
7.5.2 Design-Build Projects with O&M
build with O&M, agencies generally allow the contractors to
These projects involve a greater role for the private sector select the preferred pavement type. The contractor can fol-
through publicprivate partnerships in areas such as project low the process presented in Figure 20. The individual steps
conceptualization, financial planning, project financing, O&M, of the selection process can include:
toll collection, congestion pricing, and design and construction.
Design-build projects with O&M typically are larger and more Step 1. Reviewing contract provisions to identify potential
complex than traditional projects. risks (see Figure 17 for Steps 1 through 4).
Variants of design-build projects with O&M include: Step 2. Performing risk assessment to develop risk manage-
ment strategies.
· Design-buildoperatemaintain. Step 3. Reviewing the agency's pavement-type selection prac-
· Design-buildfinanceoperate. tices, design methodology, and pavement performance
· Long-term lease. data.
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Agency decides on
Step 7. Conducting LCCA using contractor-specific inputs
design-build project with (see Figure 8) and evaluation using economic and
operations and maintenance noneconomic factors (see Figure 15).
Step 8. Selecting the most-preferred alternative (see Fig-
Contractor reviews agency ure 18).
practices, contract provisions
and performance criteria
7.5.3 Performance Warranty Projects
Contractor performs risk Pavement warranties require significant decision making by
assessment both agencies and contractors, as they contribute additional
risks and benefits to pavement life-cycle costs. There are three
Contractor develops types of warranties practiced in the highway industry: materi-
pavement life-cycle strategies als and workmanship, short-term performance, and long-term
for agency-specified performance. Table 12 provides a comparison of the important
performance criteria
aspects of the three warranty types.
Contractor performs LCCA
and evaluation using Materials and Workmanship Warranty
economic and noneconomic
factors In projects involving materials and workmanship war-
ranty, the contractor is responsible only for material prop-
Contractor-based selection of erties and workmanship issues that contribute to poor
the most-preferred alternative pavement performance during the warranty period. Since
the agency is responsible for pavement-type selection, pave-
Figure 20. Pavement- ment design, and LCCA, the agency-based process can be
type selection for followed.
design-build projects
with O&M.
Short-Term Performance Warranty
Step 4. Developing contractor-specific inputs for use in the In short-term performance warranty projects, the agency is
selection process. responsible for pavement-type selection and structural design
Step 5. Selecting feasible alternatives considering project- requirements. Some agencies, however, may allow the con-
specific constraints (see Figure 3). The contractors tractor to select the pavement type in addition to design and
may select alternatives from the agency's pool or pro- construction aspects, and thereby allow for innovation. The
pose their own alternatives. contractor is responsible for material design, any improvements
Step 6. Developing pavement life-cycle strategies for selected needed in materials and structural designs, better quality con-
alternatives using contractor-specific inputs and trol, and performance issues during the warranty period. Short-
agency-specified performance criteria (see Figure 4). term warranties are used in both traditional design-bid-build
Table 12. Comparison of pavement warranty types.
Materials &
Aspect Short-Term Performance Long-Term Performance
Workmanship
Typical period 24 years 510 years 1020 years
Agency-specified minimum
Agency-specified minimum
Agency's current standard structural design, material
Type of materials and construction
specifications for specific design, materials, and
specifications requirements acceptable for
treatment construction requirements
project
acceptable for project
Agency Structural design, material
Structural design, evaluation Evaluation
responsibility design, evaluation
Correct defects in Material design, quality Structural design, material
Contractor pavement caused by control, and pavement design, quality control, and
responsibility elements within their performance for warranty pavement performance for
control period warranty period
Initial: construction activities Initial: construction activities
Acceptance of In accordance with
project agency's normal practices Final: after specified Final: after specified warranty
warranty period is completed period is completed
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maintenance activities over an extended period (typically,
Options for
performance warranty projects between 10 and 20 years). This type of warranty is used in
both traditional and alternate contracting projects, where
some projects may involve substantial financial investment
from the contractor. However, the contractor generally is not
Long-term Short-term Materials and given facility operations control.
performance performance workmanship In these projects, the contractor is responsible for pavement-
(10 to 20 years) (5 to 10 years) (2 to 4 years )
type selection, structural design, materials selection and
Contractor reviews Contractor reviews
design, quality control, pavement maintenance, rehabilitation
agency practices and agency practices and strategies, and performance. Contractor-based type selection
performance criteria performance criteria is considered vital to long-term performance warranty proj-
ects, as it allows the contractor to select the most appropriate
Contractor performs Contractor performs and cost-effective strategy for meeting performance require-
risk assessment risk assessment ments. The agency is responsible for establishing realistic per-
formance thresholds, monitoring performance and, in some
Contractor develops Agency-based cases, sharing risks. Establishing realistic and achievable per-
pavement life cycle pavement-type formance thresholds based on historical data is critical. Agen-
strategies for selection
cies use performance specifications for acceptance in these
agency -specified
performance criteria projects.
The contractor can follow the process presented in Figure 21.
Contractor performs
The individual steps of the selection process can include:
LCCA and
evaluation using Step 1. Reviewing contract provisions to identify potential
economic and non-
economic factors
risks (see Figure 17 for steps 1 through 4).
Step 2. Performing risk assessment to develop risk manage-
ment strategies.
Contractor-based selection of Step 3. Reviewing the agency's pavement-type selection prac-
most-preferred alternative
tices, design methodology, and pavement perfor-
mance data,
Figure 21. Pavement-type selection for performance
Step 4. Developing contractor-specific inputs for use in the
warranty projects.
selection process.
Step 5. Selecting feasible alternatives considering project-
contracts and alternate contracts including design-build and
specific constraints (see Figure 3). The contractor
multiparameter bidding.
may select alternatives from the agency's pool or pro-
The agency specifies performance thresholds to monitor
pose their own alternatives.
pavement performance during the warranty period. In short-
Step 6. Developing pavement life-cycle strategies for selected
term performance warranty projects, the agency-based
alternatives using contractor-specific inputs and
pavement-type selection process can be followed (see Fig-
agency-specified performance criteria (see Fig-
ure 21). In addition, the contractor may need to perform risk
ure 4).
assessment to incorporate risk premiums in the bid price.
Step 7. Conducting LCCA using contractor-specific inputs
(see Figure 8) and evaluation using economic and
Long-Term Performance Warranty
noneconomic factors (see Figure 15).
In long-term performance warranty projects, the contractor Step 8. Selecting the most-preferred alternative (see Fig-
is responsible for performance issues and planned/unplanned ure 18).
