Guide for the Process of Managing Risk on Rapid Renewal Projects (2012)

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142 Appendix B consists of three sections. They are • Risk Checklist for Traditional Transportation Projects • Summary Risk Checklist for Rapid Renewal Projects • Rapid Renewal Risk Categories and Potential Risk Management Actions by Project Phase RISK CHECKLIST FOR TRADITIONAL TRANSPORTATION PROJECTS As shown, the items on this list do not form a formal risk register (i.e., this is not a comprehensive list of items for any particular project, and the listed items are not nonoverlapping by intention). The list is only intended to serve as a supplemental checklist to identify items missed during brainstorming. Identified items then need to be redefined and recast to ensure a comprehensive, nonoverlapping set of events in the risk register, adequately considering significant relationships (e.g., correlation, depen- dency) among items in the list, if any. Some items shown are really base uncertainty (i.e., uncertainty within the base project or estimate assumptions), while the remainder are truly risk and opportunity events (i.e., uncertain conditions and events outside the base assumptions). When identifying and quantifying risk, consider the issues of ownership/allocation (It’s a risk to whom? And who pays?), impacts of insurance in capping costs, influ- ence of “below-the-line” markups, correlation between cost and time impacts, among others. B RAPID RENEWAL RISK CATEGORIES AND RISK MANAGEMENT ACTION CATEGORIES

143 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Uncertainty in “soft” costs and schedule (Other than identified through other items, and excluding additional costs that result from project delays, which are accumulated directly and additionally through simula- tion.) Fundamental question: Is the base estimate for each in terms of a percentage of construction cost? Or a detailed line-item estimate? • Design completion; • Plans, specifications, and estimates completion; • Administration costs (owner); • Oversight costs (regulator); • Construction management and construction inspection; • Project management; • Design support during construction/construction engineering; • Mobilization; • Sales tax; • Financing, including interest costs; • Insurance; • Surety capacity and bonding; • Annual inflation rates [construction, right-of-way, engineering, other]; • Stipends; and • Extended overheads from project delays (if not captured separately). Contracting, procurement, and project delivery • Project delivery method [design–build, design–bid–build, public–private partner- ship (P3)], including uncertainty in ultimate method, and new or unique method to owner; • Single versus multiple contracts (if not captured under market conditions); • Construction market conditions (contractor pricing strategy or markup; cyclic market, and location within cycle at time of bid; number of viable bidders), includ- ing the potential for delay to the procurement process and/or rebidding; • Significant increase in material, labor, or equipment costs (beyond what is included in inflation rates and market conditions); • Delays procuring critical materials, labor, or specialized equipment; • Bid protests; • Claims related to clarity of bid and contract documents; • Errors and omissions; • Other issues related to unclear contract documents (identified either during pro- curement or later during construction);

144 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Other delays to contract procurement process (e.g., bonding and insurance issues); • Owner approach to specifications (e.g., prescriptive versus performance based); • Incomplete or vague specifications; and • Contractor nonperformance (inefficiency if the impacts are not due to or captured by other risk items; default; bankruptcy). Construction and constructability See also “geotechnical and structural;” there is some overlap in these two lists. • Additional pavement resurfacing; • Additional geometry realignment; • Uncertainty in construction unit costs (e.g., earthworks); • Uncertainty in construction quantities (e.g., bridges, walls); • Inadequate staging areas identified for construction; • Dewatering issues during construction; • Issues related to tunnel construction procedures (see also tunneling under Geo- technical and Structures); • Issues related to other construction procedures; • Uncertainty in planned construction sequencing, staging, phasing, and duration; • Planned construction phasing does not work (need new plan); • Maintenance of traffic or work-zone traffic control issues: — Labor for assumed plan if plan is adequate. — Proposed plan is not adequate. — Issues related to detours. • Difficult or multiple contractor interfaces; • Uncertainty in structure demolition sequence and method; • Force majeure during construction (acts of nature that affect construction, such as earthquakes, tornadoes); • Safety issues (personnel, adjoining structures); • Material reuse, removal, restoration; • Condition of existing structures (repair required?); • Accidents or incidents during construction (traffic, collapse, crane toppling, slope failure, vandalism); • Critical equipment failure; • Excessive scour or flooding; • New or unproven systems, processes, or materials; • Marine construction issues;

145 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Other difficult or specialized construction issues; • Tie-ins with existing facilities, roadways, structures, or local access; • Failure prior to replacement (e.g., bridges); • Additional temporary erosion and sediment control costs; • Railroad conflicts (anticipated or unanticipated); • Utility conflicts (anticipated or unanticipated); • Work-window restrictions (e.g., fish windows, weather shutdown windows); and • Other third-party delays during construction. Design • Uncertainty in, or risk or opportunity related to, the base design elements (e.g., due to early design, project definition, or development), including type, size, and location and unit prices and quantities. Consider related (i.e., correlated or de- pendent) impacts to design, right-of-way, environmental documentation, permit- ting, utilities, and construction. Consider relationships to other issues in this list ( conditionality/correlation). Example items include — Horizontal alignment (e.g., geometry, grade); — Vertical alignment (e.g., underground versus surface versus aerial); — Bridges (superstructure and substructure); — Retaining walls; — Earthworks; — Noise walls; — Other structures; — Stormwater collection and treatment; — Paving; — Right-of-way (e.g., full versus partial takes; uncertain parcels/quantities); — Maintenance of traffic, traffic control; — Transportation demand management , intelligent transportation systems ; — Construction staging/phasing; — Electrical (systems, signals, illumination); and — Mechanical. • Design errors and omissions or errors in plans, specs, or estimates (discovered during construction); • Urban design and construction issues; • Changes in design standards (e.g., increased seismic criteria for structures); • Design deviations (e.g., design speeds, vertical clearances, turn radii);

146 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Access deviations (e.g., FHWA); • Additional aesthetics, context-sensitive solutions; • Allowances for miscellaneous items (known pay items not yet itemized in the esti- mate); and • Floodplain issues. Environmental • Uncertainty in appropriate environmental documentation and all the related conse- quential events (e.g., change in design, right-of-way, scope, and construction costs); • Challenge to environmental documentation (e.g., resulting in delay in record of decision; • Delay in review and/or approval of environmental documentation; • Supplemental environmental documentation or reevaluation required; • Challenge to early-action mitigation plan (wetlands, floodplain, habitat); • Additional habitat mitigation required on- or off-site (e.g., wetlands, fish ladders, meandering, connectivity); • Uncertain wetland mitigation [e.g., uncertain impacts, uncertain type of mitigation (replacement, enhancement, banking); different replacement ratio than assumed]; • Difficulty identifying and acquiring suitable wetland mitigation site (including col- lecting required growing-season data); • Biological assessment consultation issues or delay; • New species listings (Endangered Species Act); • Encounter unanticipated listed species during construction; • Uncertain stormwater treatment standards or quantities; • Uncertain stormwater discharge criteria (e.g., receiving body exemptions); • Uncertain groundwater treatment standards or quantities; • Encounter unanticipated contaminated or hazardous materials (and possibly ex- tent of liability for remediation); • Encounter unanticipated contaminated groundwater (and possibly extent of li- ability for remediation); • Additional noise mitigation required; • Additional view mitigation required; • Unanticipated National Historic Preservation Act (NHPA) Section 106 issues (ar- chaeological, cultural, or historical finds) encountered during design or construction; • Known NHPA Section 106 issues different than anticipated; • Unanticipated 4(f) issues; • Known 4(f) issues different than anticipated; and

147 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Other regulatory issues (e.g., environmental impact statement, National Environ- mental Policy Act). External influences and management These include political, regulatory, municipalities, and economic. • Difficulty obtaining other agency approvals or agreements (higher level, municipalities); • Conflicts with other projects (municipalities, counties, state); • Other predecessor projects not completed on time (delay current project); • Coordination with other entities (e.g., railroads); • Coordination between multiple contractors on this project; • Force majeure during design (e.g., earthquake causes existing facility to fail, re- quiring accelerated design and construction of new facility); • Public opposition; • Political opposition; • Funding shortfall (and related delay or increased financing cost); • Funding delay; • Legal challenges (other than environmental); • Intergovernmental agreements and jurisdiction; • Labor issues (contract negotiations, strike); • Tribal issues (e.g., fishing rights, tribal employment rights office employment); • Program management or executive oversight issues; • Project management issues, workload management; • Revenue issues (ridership, regulations or policies); • Cash-flow constraints; and • Other significant constraints, milestones, or promises to be met. Geotechnical and structural • Uncertainty in bridge or culvert design (including type, size, and location of foun- dations and superstructure); • Difficult bridge construction (e.g., transportation or erection of large components; other specialty construction; groundwater, adverse ground conditions; obstruc- tions; scour; other foundation problems); • Uncertainty in retaining wall design (including type, length, height of foundations and superstructure); • Difficult retaining wall construction (e.g., groundwater, adverse ground condi- tions; obstructions; other foundation problems);

148 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Slope stability issues—e.g., natural, manufactured (cuts, embankments); • Liquefaction design issues; • Uncertainty in seismic design criteria; • Uncertainty in ground improvement design (e.g., what type, how much is required); • Uncertainty in ground improvement performance (construction—need additional or different type of improvement); • Damage to nearby structures during construction or as result of construction; • Tunneling-specific issues: — Uncertain or early design (including uncertainty in tunneling method, lining); — Tunnel boring machine (TBM) problems [e.g., TBM operator issues or inex- perience; machine procurement; machine assembly, disassembly, and recovery; machine maintenance; power-supply problems; drive rate or productivity (vari- ous causes, including obstructions or other poor ground conditions); drive mis- alignment; other problems]; — Liner problems (e.g., damaged liner segments; bad gasket or seal resulting in leakage); — Problems with shaft or emergency exit construction; — Problems with cross-passage excavation; and — Other tunnel construction problems. • Compatibility of new structures when placed adjacent to existing structures; and • Other general geotechnical risk. Operations and maintenance (O&M) • Uncertain annual costs for typical maintenance; • Additional resurfacing or redecking cycles required; • Additional significant (unplanned) maintenance required; and • Uncertain O&M period (e.g., for P3 concessions). Permitting • Difficulty obtaining permit approval (by permit type, e.g., 401, 404, National Pollutant Discharge Elimination System, U.S. Coast Guard, shoreline)—human resource issues, incomplete or inadequate permit applications, or simple disagree- ment by approving agencies; • Uncertain permit requirements (current and in the future); • Challenges to permits once issued (e.g., shoreline, 401, 404); • Air quality permitting issues; • Noncompliance with permits (environmental or construction);

149 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Right-of-way/real estate • Global right-of-way problems (e.g., for widening, drainage, pipelines, detention, staging); • Additional right-of-way required (e.g., plans change; inaccurate early estimates); • Difficult or additional condemnation (either globally or for particular parcels); • Additional relocation required (either globally or for particular parcels—business versus residential); • Additional demolition required, including unanticipated remediation, either globally or for particular parcels; • Accelerating pace of development in project corridor; • Changes in land use and/or demographics in project corridor; • Workforce shortages; • Process delays (e.g., right-of-way plan development by team, plan approval process); • Planned right-of-way donations do not occur, or opportunity for additional donations; • Difficulty obtaining rights-of-entry; • Railroad right-of-way problems; • Issues related to required easements (surface, subsurface); and • Other right-of-way issues; Scope issues These are issues other than those identified through other items elsewhere in this list, such as design. • Additional capacity required (e.g., lanes); • Additional interchanges required (system-to-system or service); • Additional local improvements required (e.g., additional paving or signals on local connections); • Additional transit facility, park-and-ride, and so forth required; • Other additional structures required (e.g., wildlife crossings); • Scope reduction opportunity, value engineering; • Replace structures instead of retrofitting (or vice versa); • Tolling facilities; • Managed lanes; • Note on scope changes: scope changes can occur during design and/or construc- tion, and can be due to — Incomplete design;

150 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS — Stakeholder influences leading to additional scope (e.g., aesthetics, political pressure); — Errors in design; — Construction problems; and — Regulatory changes. Systems • Software problems (technical, labor); • Electrical system problems (technical, labor); • Mechanical system problems (technical, labor); • Problems with station finishes (technical, labor); • Track installation problems (technical, labor); and • Problems related to systems integration and testing. Traffic and access issues • Uncertainty in traffic management costs (intelligent transportation systems, trans- portation demand management); • Access to site during construction; and • Business or economic disruption mitigation. Utilities issues • Delay in completing utility agreements (e.g., due to disagreement over responsibil- ity to move, disagreement over cost sharing, delay in reviews and approvals by utility); • Late changes to design delays utility planning (e.g., have to redo utility design); • Utility relocations to be completed by others (utility companies, municipalities) are not completed on time; • Unexpected utilities encountered during construction; • Damage to utilities during construction (known or unknown); • Utility integration with project and/or utility betterments not as planned; and • Cost sharing with utilities not as planned. Vehicles • Uncertainty in required number and/or type of vehicles; • Uncertainty in contracted price for vehicles (may include uncertainty in number/ type of vehicles); • Delay in vehicle delivery; and

151 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Cost increase due to change orders (for various reasons, perhaps detailed sepa- rately; separate from uncertainty in contract price). SUMMARY RISK CHECKLIST FOR RAPID RENEWAL PROJECTS The lists below summarize categories or types of rapid renewal risks by project phase. The lists do not attempt to capture specific risks related to rapid renewal. Use these lists of risk categories as a quick check to make sure no major types of risks were missed during initial risk brainstorming. Because the lists below only address categories of risks, they do not constitute a proper risk register. To develop a risk register, the DOT must identify a comprehen- sive, nonoverlapping set of individual (i.e., specific) risks and opportunities for the particular project being considered. More detail is provided in the Rapid Renewal Risk Categories and Potential Risk Management Actions by Project Phase section for each of the entries below. Finally, the DOT should remember to consider risks and opportunities for all aspects of a project, not just for the rapid renewal elements covered specifically in this guide. Planning • Planning assumptions and projections are inaccurate. • Resources are not available from all disciplines for advanced planning. • Advanced planning for rapid renewal projects is not coordinated with transporta- tion network. • Uncompleted or infeasible rapid renewal projects erode public trust. • Planning partners do not have resources to partner in advancing rapid renewal projects. Project scoping (including project delivery and funding or financing) • Project contains unrealistic scope considering budget and political landscape. • Master planning/integrated development process is inefficient or poorly implemented. • Owner is not capable of managing the delivery method. • Delivery method is not appropriate for the project. • Procurement protest occurs preaward. • Dispute occurs postaward. • Market cannot support selected delivery method, method restricts competition. • Other cost and/or schedule premiums result from delivery method. • Cost premiums result from innovative payment structure. • Insufficient market interest in innovative payment processes exists to create competition.

152 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Poor market conditions make securing financing difficult. • Enabling legislation is not in place to allow alternative financing. • Changes in legislation before financial close (e.g., tolling, competing facilities) jeopardize alternative financing. • Other delay in funding process occurs. • Actual revenues are significantly less than anticipated (operations and maintenance). • Surety market cannot support project’s bond requirements. • Bonding capability of contractors is not adequate. • Lack of payment bond results in subcontractor protests or claims. • Contractor defaults. Environmental process and permits • Additional documentation is required (but not a change in document type). • Approval/signatory organizations cannot accommodate streamlined processing/ approval. • Challenge to environmental documentation occurs once determination has been issued. • Challenge to permits once issued occurs. • Delay in permit review or approval occurs. • Development of permit application takes longer than anticipated. • Different type of environmental documentation is required. • Other delay to completion of environmental process related to attempted accelera- tion occurs. • Review and approval process takes longer than anticipated for other reasons. • Streamlined mitigation effort will not work (management issue). • Streamlined mitigation effort will not work (technical issue). • Unanticipated or additional permits are required. General principles of design and construction • Key design decisions are delayed. • Other key project-related decisions are delayed or changed. • Stakeholders are not able (or willing) to support accelerated design process. • Unanticipated changes are encountered in design standards. • Standardized designs are not available or suitable. • Approval of design exceptions or denial of design exceptions is delayed. • Staffing for accelerated design is not available.

153 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Owning agency is not staffed or structured for streamlined approvals. • Stakeholders are unable or unwilling to accommodate streamlined approvals. • Delays to other activities delay the design approval. • Mistakes in the design delay the design approval. • Constructability review is not allowed (policy). • Constructability review is not successful. • Constructability review is successful but leads to significant changes in design. Design and construction (by discipline) • Consider each of the following categories of rapid renewal risks and opportuni- ties separately for each design discipline and/or major project component (e.g., structures, geotechnical and earthwork, drainage and stormwater management, roadway, pavement, and intelligent transportation systems). — Innovative designs ▪ Innovative and/or long-life designs are not the right solution for the project. ▪ Innovative designs can work technically but require design exceptions or ▪ have difficult permitting requirements. — Alternative or long-life materials ▪ Candidate alternative and/or long-life materials will not work (technical issues identified during design). ▪ There is a delay in procuring candidate alternative and/or long-life materials. — Rehabilitation ▪ Rehabilitation is not the best option (identified during design). ▪ There are problems with rehabilitation during construction. — Prefabrication ▪ Candidate prefabrication technique will not work (technical issues identified during design). ▪ There is a delay in procuring prefabricated elements. ▪ There are problems with prefabricated elements during construction. — Rapid replacement technologies ▪ Candidate rapid placement technique will not work (technical issues identi- fied during design). ▪ There is a delay in procuring rapid replacement equipment and/or specialized labor. ▪ There are problems with rapid replacement technique during construction.

154 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Maintenance of traffic—full or directional closures — Planned closures and related detour routes are not allowed (political or man- agement issue). — Planned closures and routes will not work (technical issue identified during design). — Planned closures and routes will work but are not most efficient (better plan identified later during design). — Implemented closure plan does not work (problem identified during construction). Right-of-way, utilities, and railroad • Right-of-way — Late changes to the design cause delay in right-of-way planning. — Right-of-way plans are not completed as planned, for other reasons. — Funding for accelerated or advance right-of-way acquisition is delayed or reduced. — There are problems procuring critical (high-priority) parcels, such as ▪ Challenge to possession-and-use; ▪ Condemnation required; ▪ Difficulties relocating tenants; ▪ Unanticipated contamination or utilities discovered; and ▪ Additional demolition required. — There is a delay to right-of-way certification (agency process delay). • Utilities — Late changes to the design cause delay in utility planning. — Utility agreements are not reached as planned (from causes other than late de- sign changes). — There is an encountered and/or damaged utility during construction (if the own- er’s contractor performs the work). — Third party does not complete relocation as planned (if third party performs the work). • Railroad — Late changes to the design cause delay in railroad planning. — Railroad agreements are not reached as planned (from causes other than late design changes). — Railroad facility damaged during construction (if owner’s contractor performs the work). — Railroad does not complete agreed railroad-related work as planned (if railroad performs the work).

155 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Procurement and contracting strategy • Litigation initiated by an interested party challenging the propriety of the alterna- tive procurement process. • Public concern (and political pressure) resulting from the use of alternative pro- curement processes that heavily weight nonprice factors. • Public reaction to alternative procurements that trade off early accelerated com- pletion with full road closures. • Limited competition arising from projects perceived as being created for large contractors. • Other problems procuring contract (e.g., bid protest, unclear documents, contrac- tor default). • Litigation initiated by an interested party challenging the propriety of the alterna- tive contract packaging. • Public concern (and political pressure) resulting from the use of alternative con- tract packaging. • Expenditure of funds in advance of full procurement (for advance procurement). Operations and maintenance (O&M) • Required O&M effort is greater than planned (more frequent, more extensive, or both). • O&M contractor does not perform per contract requirements. Replacement • Replacement required sooner than planned. • Replacement facility does not perform as intended. RAPID RENEWAL RISK CATEGORIES AND POTENTIAL RISK MANAGEMENT ACTIONS BY PROJECT PHASE This section provides substantially more detail for each of the items identified in the Summary Risk Checklist for Rapid Renewal Projects section. For each project phase, the following is provided in a separate table: • General rapid renewal strategies that might be employed during that project phase. • For each rapid renewal strategy, the table lists categories, or types, of risks and opportunities that might result from following a particular rapid renewal strategy; the categories of risks and opportunities were identified as “risks to the owner” and to the owner’s rapid renewal objectives for the project (i.e., minimizing cost, minimizing schedule, minimizing disruption, and maximizing longevity).

156 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS • Potential risk management actions to address the various categories of risks and opportunities. The tables in this section therefore contain more background and detail on each risk category, including the corresponding rapid renewal strategy and example risks and risk management actions. The authors encourage DOTs to review the more detailed documentation in this section to develop a better understanding for how each risk category was developed and what each category means. The tables for each project phase include • Table B.1. Planning • Table B.2. Project Scoping • Table B.3. Environmental Process and Permits • Table B.4. General Principles of Design and Construction • Tables B.5–B.10. Design and Construction (by Discipline) — Table B.5. Structures — Table B.6. Geotechnical and Earthworks — Table B.7. Drainage and Stormwater Management — Table B.8. Roadway, Geometrics, and Intelligent Transportation Systems — Table B.9. Pavement — Table B.10. Maintenance of Traffic • Table B.11. Right-of-Way • Table B.12. Utilities • Table B.13. Railroad • Table B.14. Procurement and Contracting Strategy • Table B.15. Operations and Maintenance • Table B.16. Replacement Notes for all tables: 1. The risk categories are not intended to be specific risks, only general categories of potential issues that serve as prompts for identifying specific issues. Therefore, the listed categories cannot be taken together to form a proper risk register (i.e., they are not a comprehensive, nonoverlapping list of risks and opportunities). 2. The potential risk management actions are assumed to not already be part of the project plan. All actions should cost-effectively improve performance measures. The actions are not necessarily presented as one-to-one correspondence with risk categories because some actions might address more than one risk category.

157 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.1. PROJECT PHASE: PLANNING Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Conduct programmatic/portfolio planning Examples: • Long-range requirements, resources, and constraints • Short-range requirements, resources, and constraints Inaccurate planning assumptions and projections Examples: • Inaccurate traffic projections • Inaccurate population growth projections • Intermodal transportation plans not coordinated or inaccurate The following potential risk management actions could apply to a number of the risk categories in the column to the left. • Focus internal planning efforts on rapid renewal projects as a priority over traditional projects • Create awareness with planning partners (e.g., metropolitan planning organizations, municipalities) of rapid renewal projects • Secure public awareness or buy-in for rapid renewal project early in planning • Conduct early coordination and secure buy-in with local businesses that could be affected by closures and detours • Secure additional planning resources to monitor and update rapid renewal project approaches Conduct early coordination—internal Examples: • Develop integrated team (technical disciplines, project development, finance, communications) • Prioritize planning studies on rapid renewal projects Resources not available from all disciplines for advanced planning Examples: • Technical staff not available for research (e.g., right-of-way, utilities) • Technical staff not familiar with planning process (e.g., right-of-way, utilities) Advanced planning for rapid renewal projects not coordinated with transportation network Examples: • Funding opportunities for alternative transportation modes makes advanced planning obsolete • Advancement of rapid renewal project creates strain on traditional planning areas (continued)

158 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Conduct early coordination—external Examples: • Develop stakeholder awareness • Gather political support • Establish single-point communication • Brand the project • Conduct public outreach and seek additional investment Uncompleted or infeasible rapid renewal project erodes public trust Examples: • Funding for rapid renewal project not available as “sold” to the public • Rapid renewal project identified in planning as infeasible because of environmental constraints • Public opposition from small stakeholder groups successful in stopping project • Opposition from industry groups (e.g., trucking and freight stakeholder groups) Planning partners do not have resources to partner in advancing rapid renewal projects Example: • Metropolitan planning organizations do not have staff to advance rapid renewal project and still meet other commitments TABLE B.1. PROJECT PHASE: PLANNING (continued)

159 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.2. PROJECT PHASE: PROJECT SCOPING Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Conduct early and comprehensive scoping Examples: • Obtain stakeholder input early • Develop and confirm purpose and need early • Develop and test viable alternatives early • Balance scope, budget, and political goals of the project Project contains unrealistic scope considering budget and political landscape The following potential risk management actions could apply to a number of the risk categories in the column to the left. • Conduct a thorough assessment of how much the agency is willing (or can afford) to spend on the project • Make an early decision on scope that is mandatory versus discretionary, with due consideration for financing options and political and stakeholder concerns • Determine plan for implementing what is determined to be discretionary scope • Consider multiple project phasing options early in the process so that the project can be staged Employ master planning/integrated project development process Example: • Integrate engineering, environmental analysis, agency coordination, public involvement into collaborative decision-making process Master planning/integrated development process is inefficient or poorly implemented Examples • Conduct outreach within the agency to discuss how to best integrate functions • Ensure early retention of any consultants who will be assisting agency’s personnel • Consider using outside partnering consultant to assist in coordination efforts (continued) Note: Project scoping includes project delivery and funding or financing.

160 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative project delivery, including: • Design–build • Design–build–finance–operate– maintain • Contingency Management (CM) at-risk • Public–private partnership (private equity or debt) Examples: • Ensure authorizing legislation • Ensure agency has experienced staff • Develop project delivery selection methodology The following potential risk management actions could apply to a number of the risk categories in the column to the left. • Secure enabling legislation early (applies to many) • Conduct outreach to the state attorney general (AG) and obtain AG opinions for statutory areas that are unclear or evolving • Conduct broad training programs on alternative project delivery with staff • Use FHWA resources for training and education • Secure general engineering consultants with experience in innovative project delivery methods • Conduct outreach to other DOTs that have a history of success in implementing alternative delivery programs Owner not capable of managing the delivery method (could lead to delay in contracting, change in delivery method, etc.) For example, caused by: • Untrained internal resources • Management systems not established • Resources not available as needed • Lack of timely dispute resolution (e.g., from unclear documents; lack of experience) • Implement training programs for all personnel involved in project delivery decisions • Develop programmatic approach for alternative delivery methods with policy statements and general guidelines before the need for a specific project • Establish a specialized group within the agency to handle rapid renewal projects delivered through alternative project delivery methods • Use staff augmentation contracts to assist agency personnel in implementing the procurement and contracting of the project and assist in training • Develop comprehensive lessons learned from project experiences TABLE B.2. PROJECT PHASE: PROJECT SCOPING (continued) (continued)

161 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Delivery method not appropriate for the project (could lead to delay in contracting, change in delivery method, etc.) For example, caused by: • Method conflicts with owner goals • Project risk profile mismatched to delivery method • Stakeholders not aligned • Owner’s goals changed • No enabling legislation In addition to the above: • Develop comprehensive process for project delivery selection and establishing project goals, with broad participation from interested agency departments • Integrate project delivery selection with risk registering process • Consider bringing key stakeholders into the training process and project delivery selection process Procurement protest preaward (could lead to delay in contracting, change in delivery method, etc.) For example, caused by: • Insufficient history within owner organization with delivery method • Unfamiliarity of agency with evaluation of nonprice factors • Unclear evaluation factors • Inappropriate discussions with proposers • Challenges to the legality of the statute allowing the delivery system In addition to some of the items above (including training and lessons- learned compilation): • Ensure that the team is supported by experienced individuals (internal or consultants) • Perform outreach to public to determine where the potential statutory challenges may lie • Develop a requirement in the procurement documents for any protests over the process (i.e., legality of the procurement) to be raised early rather than after any short-list evaluations • Develop a comprehensive process for how communications with proposers will be handled TABLE B.2. PROJECT PHASE: PROJECT SCOPING (continued) (continued)

162 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Dispute postaward (could lead to delays and price increases) For example, caused by: • Inadequate scope definition • Ambiguous specifications • Overly active involvement of the agency in contractor’s means and methods In addition to the above: • Consider having a third-party peer review of technical scoping documents to assess completeness, accuracy, and whether they are overly prescriptive • Consider having a period of time immediately after award for contractor to assess project scope and determine whether there are any material problems with the request for proposal (RFP) documents that could not have been determined during the proposal period • Develop an internal process and training for project personnel on how to review submittals Market cannot support selected delivery method and/or method restricts competition: For example, caused by: • Contractor’s lack experience • Restrictions by agencies on ability of design professionals to participate on the contractor’s team because of conflicts of interest In addition to the above, particularly relative to legislative solutions and outreach: • Consider having a more liberal conflict-of-interest policy (per federal model) • Conduct regular meetings with contractor and consulting engineering associations to assess what is needed to obtain sufficient interest Other cost and/or schedule premiums resulting from delivery method (aside from issues listed separately) For example: • Contractor perception of high risk • Contractor concern over whether the project is “real” given scope appearing to exceed budget In addition to the above: • Have contracts with reasonable risk allocation • Ensure that the proposers understand that agency is taking steps to be a “good owner” in managing the process TABLE B.2. PROJECT PHASE: PROJECT SCOPING (continued) (continued)

163 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative contract payment processes Examples: • Milestone construction-related payments • Availability of payments for public– private partnership projects • Incentives/disincentives • Warranty and operations and maintenance (O&M) payment The following potential risk management actions could apply to a number of the risk categories in the column to the left. • Identify other agencies that have successfully used innovative payment terms • Investigate and implement best practices • Consult with marketplace to evaluate what has worked well and what has not • Establish that contract payment process correlates with behavior changes expected from contracting teams Cost premiums resulting from payment structure For example: • Contractor unfamiliarity leads to pricing premiums • Contractor concerns over unreasonable risk (not getting paid) In addition to the above: • Use outreach process to assess market interest in the alternative approach, particularly for innovative warranty, O&M, or availability payments • Create balanced contracts that eliminate major uncertainty for contracting community • Determine financing costs (if any) to be incurred by the contractor in the innovative process • Assess the cost-to-benefit of using disincentives Insufficient market interest in innovative payment processes to create competition In addition to the above: • Evaluate surety market to assess its concerns over the approach • Conduct regular meetings with contractor and consulting engineering associations to assess what is needed to obtain sufficient interest TABLE B.2. PROJECT PHASE: PROJECT SCOPING (continued) (continued)

164 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Seek alternative financing Examples: • Grant Anticipation Revenue Vehicle (GARVEE) bonds • Generate revenue through user fees (e.g., HOV/HOT lane tolling) The following potential risk management actions could apply to a number of the risk categories in the column to the left. • Secure enabling legislation early (applies to many), e.g., related to open-road tolling (transponders versus toll booths) and/or tolling enforcement • Retain an outside financial advisor to be integrally involved in the development of the project and financial modeling • Develop realistic revenue projections • Develop realistic scope, cost, and schedule requirements • Develop financial terms early, including industry review • Repackage project (e.g., multiple, smaller projects) to improve market conditions • Obtain a detailed traffic and revenue study and financial model that can be used to assess the project and how the marketplace is likely to respond to the preferred financing approach • Assess the cost-to-benefit of using alternative financing, particularly in the event that financial close does not take place in a timely fashion TABLE B.2. PROJECT PHASE: PROJECT SCOPING (continued) (continued)

165 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Poor market conditions make securing financing difficult (reduced and/or delayed funding) Examples: • Difficult market • Market collapses • Proceeding on the assumption that there will be sufficient market interest to provide proposals on a revenue-negative project • Miscalculating the amount of agency funds needed to make the project viable to the financing community See above Enabling legislation not in place to allow alternative financing In addition to the above: • Work with AG’s office and state financing department to assess likelihood of passing such legislation • Consider lessons learned from jurisdictions where this has been used • Make early “go/no-go” decision on project viability without alternative financing Changes in legislation before financial close (e.g., tolling, competing facilities) jeopardize alternative financing • Ensure that RFP documents have mechanisms to address changes in law to provide assurances to financers that they are not evaluating a potential moving target • Ensure that there is a project contingency to fund changes in law • Conduct regular meetings with legislators to assess potential concerns and the likelihood of legislative changes TABLE B.2. PROJECT PHASE: PROJECT SCOPING (continued) (continued)

166 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Other delay in funding process Examples: • Approvals for grant funding or public loans (reduced and/or delayed funding) • Process complexity leads to delays • Revenue projections not strong enough to support or get required funding See above Actual revenues significantly less than anticipated Examples: • Ability of concessionaire to live up to contract obligations • Bankruptcy of the concessionaire • For projects using availability payments, ability of agency to fund overruns • Impacts to O&M In addition to the above: • Realistically determine whether the commercial deal is good for both sides • Use contracts that allow the agency to take over the project in the event of financially distressed concessionaire • Ensure that concessionaire has strong financial balance sheet • Develop a policy for how to establish and use reserves Use alternative bonding or performance security Examples: • Letters of credit • Corporate guarantees The following potential risk management actions could apply to a number of the risk categories in the column to the left. • Repackage the project (e.g., multiple, smaller projects with multiple contractors) to accommodate surety market or bonding capacity • Secure payment bond to protect subcontractors TABLE B.2. PROJECT PHASE: PROJECT SCOPING (continued) (continued)

167 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Surety market cannot support project’s bond requirements Examples: • Contractual risks are too great • Duration of performance obligations are too long • Overall bond amounts are too great In addition to the above: • Perform outreach to the surety market on the overall agency program as well as project-specific terms and conditions • For projects in excess of $250 million, consider reducing bonding amounts • Evaluate legislative changes needed to have flexibility in bonding terms (including amount) • Use contracts that have reasonable risk allocation • Consider using a combination of bonds, letters of credit, and guarantees on larger projects Bonding capability of contractor(s) not adequate Examples: • Project is considered too long in duration to tie up bonding capacity • Dollar value of project exceeds bonding limits In addition to the above: • Perform outreach to the contracting community • Allow joint ventures • Consider using “staged” bonds, where warranty obligations are covered by a separate bond rather than the performance bond Lack of payment bond results in subcontractor protests or claims (subcontractors view that their payment rights are unprotected) In addition to the above: • Require payment bonds to be issued, even if the dollar value is less than the full contract value • Create trust fund obligations through legislation Contractor defaults (various degrees of severity) In addition to the above: • Ensure that the contract has appropriate takeover language in the event of a default • Ensure that the performance security is stable and available • Provide notice of a problem to the surety • Develop payment provisions that do not allow the contractor to “front- end load” and be too far ahead of owner TABLE B.2. PROJECT PHASE: PROJECT SCOPING (continued)

168 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.3. PROJECT PHASE: ENVIRONMENTAL PROCESS AND PERMITS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate the environmental documentation process Examples: • Leverage master planning (see Project Scoping) • Conduct early coordination (see Planning) • Identify documentation requirements early • Identify and avoid major impacts early (historical, cultural, archaeological) The individual risk categories (and their related examples, below) might apply to any or all the renewal category examples (shown to the left). Different type of documentation required Example causes or issues: • Project’s impacts are greater than originally assumed (because of design changes, originally underestimated impacts, etc.), so more substantial documentation is required (e.g., environmental impact statement instead of environmental assessment) • Additional discipline studies are required • Additional (new) alternatives must be developed and documented • Documentation requirements change The following potential risk management actions could apply to a number of the risk categories in the column to the left. • Modify the project design to reduce the impacts that are triggering different type of documentation • Anticipate potential concerns with main alternatives, and develop additional alternatives early in the process to address those concerns • Anticipate/plan for and/or start additional (targeted) discipline studies earlier to reduce impact to project schedule if they are later required • Develop alternative (or additional/ more detailed) documentation in parallel with presumed appropriate documentation to reduce impact to schedule if alternative documentation is later required Additional documentation required (but not a change in document type) Example causes or issues: • Project’s impacts are greater than originally assumed (because of design changes, originally underestimated impacts, uncertain impacts from new rapid renewal methods, etc.) • Additional discipline studies are required (e.g., more extensive cultural survey) • Additional (new) alternatives must be developed and documented Similar to above (continued)

169 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Other delay to completion of environmental process related to attempted acceleration Example causes or issues: • Discipline studies take longer than planned in the accelerated schedule (e.g., gathering growing-season data) • Signatory agencies unable to accommodate accelerated process (e.g., consultation on biological assessment takes longer than planned, lack of staff to participate in accelerated process preapproval, indecisive agency) • Stakeholders resistant to accelerated process (e.g., feel uncomfortable or rushed by the accelerated process) • Early on, identify a quick-response team to address problems with the accelerated environmental process (might include actions listed below) • Early on, develop a contingency plan to accelerate discipline studies. For example: — Establish on-call contracts with discipline specialists who might be needed later — Identify additional staffing — Develop solutions for issues obtaining rights-of-entry for field visits • If not already done, provide staffing support for signatory agencies (and plan for it early so it is ready to go when needed) • If not already done, increase public and stakeholder outreach related to the accelerated process to ease concerns about the process Seek streamlined environmental approval process/approvals Examples: • Resolve appropriate environmental document type early • Seek streamlined biological assessment and consultation process • Provide staff to signatory agencies to expedite review Approval/signatory organizations cannot accommodate streamlined processing/approval Example causes or issues: • Inadequate staffing or heavy workload • Incompatible process or procedures • Unresolved or unclear requirements • Unresolved disputes or agreements • Early on, develop a contingency plan to mitigate problems with streamlined processing/approval. For example: — Identify a quick-response team to address problems with the process — If not already done, provide staffing support for signatory agencies (and plan for it early so it is ready to go when needed) — If not already done, establish a process to quickly resolve differences/disputes or clarify requirements • If not already done, increase public and stakeholder outreach related to the accelerated process to ease concerns about the process TABLE B.3. PROJECT PHASE: ENVIRONMENTAL PROCESS AND PERMITS (continued) (continued)

170 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Review and approval process takes longer than anticipated for other reasons Example causes or issues: • Receive larger number or more substantial comments (e.g., on draft document or to specific discipline reports) than anticipated See above Challenge to environmental documentation once determination has been issued Example causes or issues: • Challenge to determination by stakeholder or other third party, whether viable or frivolous • Identify potential future sources of challenges and monitor (or perhaps even engage them positively) • Early on, develop a contingency plan to respond to a challenge if it occurs. For example: — Potentially take actions as outlined earlier for environmental documentation and process (above) — Identify on-call legal resources — Identify potential bargaining position (e.g., mitigation, design change), including securing relevant policy decisions or positions from leadership TABLE B.3. PROJECT PHASE: ENVIRONMENTAL PROCESS AND PERMITS (continued) (continued)

171 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Pursue accelerated environmental permitting Examples: • Develop permit applications coincident with design • Learn requirements early • Form multiagency permitting teams (dispute resolution) • Provide staff to signatory agencies to expedite review Development of permit application takes longer than anticipated Example causes or issues: • Project’s impacts are greater than originally assumed (because of design changes, originally underestimated impacts, etc.) • Permit conditions are different than anticipated (especially resulting from uncertainty in rapid renewal element permitting) • Late changes to project design or environmental documentation • Early on, develop a contingency plan to accelerate development of the permit application. For example: — Establish on-call contracts with discipline specialists who might be needed later — Identify additional staffing — Anticipate potential disputes over unclear requirements and work to avoid them • If not already done, provide staffing support for reviewing agencies (and plan for it early so it is ready to go when needed) • If not already done, increase public and stakeholder outreach related to the accelerated process to ease concerns about the process Delay in permit review or approval Example causes or issues: • Permitting agency uncomfortable with rapid renewal elements • Stakeholders withhold support • Agency unable to manage or is not staffed for accelerated permitting process • Early on, develop a contingency plan to mitigate problems with streamlined permit processing/ approval. For example: — Identify a quick-response team to address problems with the process — If not already done, provide staffing support for reviewing agencies (and plan for it early so it is ready to go when needed) — If not already done, establish a process to quickly resolve differences/disputes or clarify requirements TABLE B.3. PROJECT PHASE: ENVIRONMENTAL PROCESS AND PERMITS (continued) (continued)

172 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Unanticipated or additional permits required Example causes or issues: • Project’s impacts are greater than originally assumed (because of design changes, originally underestimated impacts, etc.) • Permit conditions are different than anticipated (especially resulting from uncertainty in rapid renewal element permitting) See above Challenge to permits once issued Example causes or issues: • Stakeholders or opposition groups attempt to hold up project • Identify potential future sources of challenges and monitor (or perhaps even engage them positively) • Early on, develop a contingency plan to respond to a challenge if it occurs. For example: — Potentially take actions as outlined earlier for permit development (above) — Identify on-call legal resources — Identify potential bargaining position (e.g., mitigation, design change), including securing relevant policy decisions or positions from leadership TABLE B.3. PROJECT PHASE: ENVIRONMENTAL PROCESS AND PERMITS (continued) (continued)

173 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Streamline mitigation planning and implementation Examples: • Use wetland banks • Leverage/improve existing mitigation sites (on-site or off-site), potentially including partnering with other agencies • Proactively implement mitigation for noise or view Streamlined mitigation effort will not work (management issue) Example causes or issues: • Stakeholder or governing agency does not approve plan (e.g., does not acknowledge or believe that the plan will work; mitigation not in same drainage basin as impacts) • Unforeseen regulatory constraint • Unable to acquire required mitigation site (or unacceptable delay) • Early on, develop a contingency plan to respond to and overcome resistance to the proposed mitigation plan if it occurs. For example: — Anticipate potential concerns with the proposed mitigation plan and develop additional alternative mitigation concepts early in design to address those concerns — Identify potential bargaining position (e.g., different or more mitigation, design change), including securing relevant policy decisions or positions from leadership Streamlined mitigation effort will not work (technical issue) Example causes or issues: • Plan does not adequately mitigate impacts (e.g., need more or different mitigation) • Plan not feasible from a technical standpoint (e.g., cannot sustain over time) • Wetland bank fails and cannot supply project’s mitigation • Modify the design to reduce impacts • Anticipate potential technical issues with the proposed mitigation plan, and develop additional alternative mitigation concepts early in design to address those issues TABLE B.3. PROJECT PHASE: ENVIRONMENTAL PROCESS AND PERMITS (continued)

174 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.4. PROJECT PHASE: GENERAL PRINCIPLES OF DESIGN AND CONSTRUCTION Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate the design process Examples: • Overlap design activities (make less sequential) • Involve stakeholders early • Learn requirements and constraints early • Resolve significant design decisions early • Equally develop and “carry” multiple alternatives until selection of preferred alternative • Ensure adequate staffing • Employ design exceptions as strategy • Use standardized designs for repetitive items Key design decisions are delayed Example causes or issues: • Technical—the current design has a significant technical problem • Management—the current design does not have management support • Political—the current design does not have political support or meet existing political commitments Note: This type of delay could result from (and be included under) other risk categories listed in this document. Do not double-count impacts. • Early on, develop a contingency plan to accelerate design in the face of decision delays. For example: — Establish on-call contracts with discipline specialists who might be needed later — Identify additional staffing — Develop alternative design concepts and/or carry parallel design documentation to reduce impacts Other key project-related decisions are delayed or changed Example causes or issues: • Funding delayed • Purpose and need, project definition, and/or scope significantly modified late in design, requiring redesign • Project delivery method changed (which affects design documentation) Note: This type of delay could result from (and be included under) other risk categories listed in this document. Do not double-count impacts. Similar to above (continued)

175 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Stakeholders not able (or willing) to support accelerated design process Example causes or issues: • Not able to make internal decisions or provide input on accelerated schedule • Do not support current alternative • Early on, develop a contingency plan to respond to and overcome potential inability to support, or resistance to, the proposed design. For example: — Anticipate potential concerns with the proposed design, and develop additional alternatives or concepts early in design to address those concerns — Identify potential bargaining position (e.g., design change, mitigation), including securing relevant policy decisions or positions from leadership — Provide staffing support to stakeholders to educate stakeholders on and/or help them evaluate the design Encounter unanticipated changes in design standards Example causes or issues: • Seismic (geotechnical, structural) • Hydraulic/stormwater • Environmental Note: This could be covered separately under specific design disciplines • Reduce the likelihood of being surprised, by conducting frequent searches for potential design changes and staying in contact with issuing agencies • Reduce the impacts if a change occurs by evaluating impacts from potential standards changes early; potentially carry or develop multiple design alternatives • Employ performance specifications to allow for contractor innovation Standardized designs not available or suitable Example causes or issues: • Not cost-effective or technically effective • Modify design (or specs) to allow standardized designs (when feasible) • Develop standardized designs for repeatable elements (if possible) TABLE B.4. PROJECT PHASE: GENERAL PRINCIPLES OF DESIGN AND CONSTRUCTION (continued) (continued)

176 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Delay in approval of design exceptions, or denial of design exceptions Example causes or issues: • Requested exceptions create too many adverse impacts • Requested exceptions not acceptable for other reasons (e.g., stakeholder concerns) • Early on, develop a contingency plan to accelerate approval of design exceptions. For example: — Document how proposed design achieves objectives despite (or perhaps because of) proposed exceptions — Develop process for rapidly resolving any issues with approval authority • Early on, develop a contingency plan to mitigate impacts of denial of exceptions. For example: — Develop alternative design concepts and/or carry parallel design documentation to reduce impacts Staffing for accelerated design not available Example causes or issues: • Staff redirected to higher priorities • Key technical staff not available at critical times • Early on, develop a contingency plan to accelerate design in the face of staffing issues. For example (if not already done): — Establish on-call contracts with discipline specialists who might be needed later — Identify additional staffing • Employ performance specifications to allow for contractor innovation Seek streamlined design approvals Examples: • Speed processing by providing staff support to approval authority • Coordinate early and often with approval authority Owning agency not staffed or structured for streamlined approvals Example causes or issues: • Workload too great or right staff not available • Existing process does not accommodate accelerated approvals • Early on, develop a contingency plan to mitigate problems with streamlined processing/approval. For example: — Identify a quick-response team to address problems with the process — Establish on-call contracts with discipline specialists who might be needed during approvals process — Identify additional internal staffing and have them available TABLE B.4. PROJECT PHASE: GENERAL PRINCIPLES OF DESIGN AND CONSTRUCTION (continued) (continued)

177 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Stakeholders unable or unwilling to accommodate streamlined approvals Example causes or issues: • Not able to review or make internal decisions/approvals on the streamlined schedule • Do not support submitted design • Early on, develop a contingency plan to mitigate problems with streamlined processing/approval. For example: — Identify a quick-response team to address problems with the process — If not already done, provide staffing support for approving stakeholders (and plan for it early so it is ready to go when needed) — If not already done, establish a process to quickly resolve differences/disputes or clarify requirements Delays to other activities delay the design’s approval Example causes or issues: • Delay to environmental process • Delay to permitting Note: This type of delay could result from (and be included under) other risk categories listed in this document. Do not double-count impacts. • Conduct early and frequent coordination with other disciplines, and assess potential impacts to design from delays to those activities • Elevate issues for higher (and perhaps timelier) resolution Mistakes in the design delay the design’s approval Example causes or issues: • Mistakes resulting from accelerated pace of the design process (e.g., incomplete or inadequate checks and reviews) • Conduct concept and design reviews (internal or external) early on to identify potential problems • Conduct early and frequent coordination with other disciplines to avoid miscommunication, misunderstanding, etc. • Have accelerated design approval process in place (if not already in place) to mitigate delay TABLE B.4. PROJECT PHASE: GENERAL PRINCIPLES OF DESIGN AND CONSTRUCTION (continued) (continued)

178 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Hold industry constructability reviews early Examples: • Engage nonbidding contractors to review and “war game” construction phasing plan • Seek contractor opinion (nonconflicted) on potential new rapid renewal construction techniques • Seek contractor opinion (nonconflicted) on other ways to accelerate construction (e.g., overlap activities) Constructability review not allowed (policy) Example causes or issues: • Concerns about conflicts of interest • Other existing policy prohibits engaging contracting industry for this purpose • Seek change in policy early on to allow reviews when needed Constructability review not successful Example causes or issues: • Unable to engage qualified contractors with no conflicts of interest • Feedback is biased or otherwise unreliable or unhelpful • Early on, ensure a viable pool of independent and available contractors (e.g., perhaps by using retired or out-of-town contractors) Constructability review successful, but leads to significant changes in design Example causes or issues: • Fatal flaw found, requiring redesign • Significant change in concept recommended and reviewed/ accepted, leading to redesign • Hold reviews early so that impact to design schedule is minimized • Be ready to make quick decisions on contractor recommendations (e.g., elevate and quickly resolve) • Develop and carry alternative designs and/or construction phasing/staging plans throughout the design process (one might reflect contractor recommendations) TABLE B.4. PROJECT PHASE: GENERAL PRINCIPLES OF DESIGN AND CONSTRUCTION (continued)

179 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.5. PROJECT PHASE: DESIGN AND CONSTRUCTION—STRUCTURES Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative and/or long-life designs Innovative and long-life designs not the right solution Example causes or issues: • Inadequate funding • Adequate funding but innovative and long-life designs are not the most cost-effective approach • Innovative designs too risky (e.g., no demonstrated performance history; uncertain constructability) • Interim (short-term) solution more appropriate (e.g., adjacent or follow-on project will build permanent solution) • Develop additional alternatives or concepts early in design to reduce delay if innovative or long-life designs do not work out • Secure funding in advance for long- life designs • Gather performance information for innovative designs early (before selecting design) • Coordinate with adjacent projects early to better anticipate any interim solutions required from current project Use alternative and/or long-life materials Examples: • High-performance steel • High-performance concrete • Lightweight aggregates • Fiber reinforcement Candidate materials will not work (technical issues identified during design) Example causes or issues: • Cannot get materials permitted • Planned materials not the best choice for desired structure (e.g., strength, stiffness, durability, cost) • Planned materials too risky (e.g., no demonstrated performance history) • Other project conditions preclude the materials’ application (e.g., too cold during construction) • Test materials and materials designs early on pilot section or parallel project of smaller scale • Develop additional alternatives or concepts early in design to reduce delay if candidate materials do not work out • Gather performance information for candidate materials early (before selecting them for design) (i.e., evaluate feasibility early on) Delay in procuring candidate materials Example causes or issues: • Inadequate supply when needed (delay); for example, material supply source does not meet environmental requirements • Costs higher (other than because of limited supply) and/or benefits not as great as anticipated, so delay in decision to use the materials • Required expertise in using materials not available when needed • Early on, identify material sources and evaluate potential availability (i.e., conduct feasibility study) • Have contractors guarantee supply in contract, or make provisions for schedule recovery or use of alternative, equivalent materials if material procurement is delayed (continued)

180 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Reuse or rehabilitate existing components Examples: • Rehabilitate columns and piers • Rehabilitate bridge decks • Supplement existing foundations Rehabilitation not the best option (identified during design) Example causes or issues: • Replacement turns out to be more technically viable — Improved compatibility with new structures — Difficulty performing rehabilitation — Rehabilitation does not provide desired performance • Replacement turns out to be more cost-effective (e.g., because of limited amount of rehabilitation required) • In parallel, develop design for replacement or new structure (to reduce delay if rehabilitation turns out to not be the best option) • Gather/confirm technical and cost performance information for existing structures early in design, to help make early decisions on approach and funding Problems with rehabilitation during construction Example causes or issues: • Discover that more or different rehabilitation is required (e.g., selected technique will not deliver required performance) • Discover that rehabilitation will not work (e.g., structure is in worse condition than previously believed) • Either internally or through contractor, try to anticipate potential problems in advance, and then develop alternative designs and/or remedial measures to reduce delay if problems occur • Select contractor with demonstrated success in candidate rehabilitation methods • Ensure that contract provisions allow for rapid and fair resolution of these issues Prefabricate key elements Examples: • Full-depth decks • Partial-depth decks • Decks with girders • Decks with barriers • Retaining-wall panels • Noise-wall panels Candidate prefabrication technique will not work (technical issues identified during design) Example causes or issues: • Transportation of prefabricated elements difficult or not possible • Inadequate site access (e.g., cannot maneuver on-site) • Planned structure not suitable for construction via prefabricated elements • Other project conditions preclude use of prefabrication • In parallel, develop design for alternative prefabrication or on- site fabrication (to reduce delay if prefabrication turns out to not be the best option) • Gather and confirm technical and cost performance information for prefabricating structures early in design, to help make early decisions on approach, procurement, and funding • Employ performance specifications to allow for contractor innovation TABLE B.5. PROJECT PHASE: DESIGN AND CONSTRUCTION—STRUCTURES (continued) (continued)

181 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Delay in procuring prefabricated elements Example causes or issues: • Fabrication facility not available when needed • Problems with design (e.g., errors) or constructability discovered during fabrication process • Costs higher and/or benefits not as great as anticipated, so decision to use prefabricated elements is delayed • Early on, identify fabricators and evaluate potential availability of required items (i.e., conduct feasibility study) • Have contractors guarantee availability and schedule of prefabricated items in contract, or make provisions for schedule recovery if procurement is delayed Problems with prefabricated elements during construction Example causes or issues: • Specialized construction equipment malfunctions or breaks down • Difficulty maneuvering prefabricated elements • Damage to prefabricated elements during erection • Other construction-related accident • Either internally or through contractor, try to anticipate potential problems in advance, and then develop alternative designs and/or remedial measures to reduce delay if problems occur • Select contractor with demonstrated success in candidate prefabricated construction • Ensure that contract provisions allow for rapid and fair resolution of these issues Use rapid-placement/construction techniques Examples: • Longitudinal launching • Horizontal skidding • Self-propelled modular transporters (SPMTs) • Barges • Temporary structures Candidate rapid-placement technique will not work (technical issues identified during design) Example causes or issues: • Inadequate access (e.g., cannot get SPMTs into position) • Cannot get technique permitted • Planned structure not suitable for construction via the technique • SPMTs will cross utilities that cannot be disrupted • Other project conditions preclude the technique’s application • In parallel, develop design for alternative rapid replacement or accelerated traditional technique (to reduce delay if chosen rapid replacement technique turns out to not be the best option) • Gather and confirm technical and cost performance information for the intended rapid replacement technique early in design, to help make early decisions on approach, procurement, and funding • Coordinate with affected utilities early in the process and provide partnering facilitator if needed • Employ performance specifications to allow for contractor innovation TABLE B.5. PROJECT PHASE: DESIGN AND CONSTRUCTION—STRUCTURES (continued) (continued)

182 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Delay in procuring rapid replacement equipment and/or specialized labor Example causes or issues: • Specialized equipment or labor not available when needed • Costs higher and/or benefits not as great as anticipated, so decision to use the technique is delayed • Early on, identify sources of relevant equipment and labor, and evaluate potential availability (i.e., conduct feasibility study) • Have contractors guarantee availability and schedule of specialized equipment items in contract, or make provisions for schedule recovery (e.g., alternative equipment; alternative construction method) if procurement is delayed Problems with rapid replacement technique during construction Example causes or issues: • Specialized equipment malfunctions or breaks down • Technique does not work as intended (various reasons) • Construction accident • Either internally or through contractor, try to anticipate potential problems in advance, and then develop alternative designs (using alternative construction techniques) and/or remedial measures (for selected technique) to reduce delay if problems occur • Select contractor with demonstrated success using the proposed rapid- placement technique • Ensure that contract provisions allow for rapid and fair resolution of these issues • Conduct thorough survey of existing conditions, including independent peer review • Develop contingency plans for the case that technique does not work as intended TABLE B.5. PROJECT PHASE: DESIGN AND CONSTRUCTION—STRUCTURES (continued)

183 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.6. PROJECT PHASE: DESIGN AND CONSTRUCTION—GEOTECHNICAL AND EARTHWORKS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative and long-life designs Innovative and long-life designs not the right solution Example causes or issues: • Inadequate funding • Adequate funding but innovative and long-life designs not the most cost-effective approach • Innovative designs too risky (e.g., no demonstrated performance history; uncertain constructability) • Interim (short-term) solution more appropriate (e.g., follow-on project will build permanent solution) • Develop additional alternatives or concepts early in design to reduce delay if innovative or long-life designs do not work out • Secure funding in advance for long- life designs • Gather performance information for innovative designs early (before selecting design) • Coordinate with adjacent projects early to better anticipate any interim solutions required from current project Use alternative and/or long-life materials Examples: • Flowable fill; foamed concrete; geofoam • Stabilize subgrade (e.g., with fly ash) Candidate materials will not work (technical issues identified during design) Example causes or issues: • Cannot get materials permitted • Planned materials not the best choice for desired geotechnical structure (e.g., strength, hydraulic conductivity, compressibility, durability, cost) • Planned materials too risky (e.g., no demonstrated performance history) • Other project conditions preclude the materials’ application (e.g., too cold during construction) • Test materials and materials designs early on pilot section or parallel project of smaller scale • Develop additional alternatives or concepts early in design to reduce delay if candidate materials do not work out • Gather performance information for candidate materials early (before selecting them for design) (i.e., evaluate feasibility early on) • Employ performance specifications to allow for contractor innovation Delay in procuring candidate materials Example causes or issues: • Inadequate supply when needed (delay); for example, material supply source does not meet environmental requirements • Costs higher (other than because of limited supply) and/or benefits not as great as anticipated, so decision to use the materials is delayed • Required expertise in using materials not available when needed • Early on, identify material sources and evaluate potential availability (i.e., conduct feasibility study) • Have contractors guarantee supply in contract, or make provisions for schedule recovery or use of alternative, equivalent materials if material procurement is delayed (continued)

184 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Reuse or rehabilitate existing components Examples: • Supplement existing foundations (e.g., micropiles) • Stabilize existing foundations (e.g., with ground support) Rehabilitation not the best option (identified during design) Example causes or issues: • Replacement turns out to be more technically viable — Improved compatibility with new structures — Difficulty performing rehabilitation — Rehabilitation does not provide desired performance • Replacement turns out to be more cost-effective (e.g., because of limited amount of rehabilitation required) • In parallel, develop design for replacement or new structure (to reduce delay if rehabilitation turns out to not be the best option) • Gather and confirm technical and cost performance information for existing structures early in design, to help make early decisions on approach and funding Problems with rehabilitation during construction Example causes or issues: • Discover that more or different rehabilitation is required (e.g., selected technique will not deliver required performance) • Discover that rehabilitation will not work (e.g., foundation or structure is in worse condition than previously believed) • Construction accident • Either internally or through contractor, try to anticipate potential problems in advance, and then develop alternative designs and/or remedial measures to reduce delay if problems occur • Select contractor with demonstrated success in candidate rehabilitation methods • Ensure contract provisions allow for rapid and fair resolution of these issues TABLE B.6. PROJECT PHASE: DESIGN AND CONSTRUCTION—GEOTECHNICAL AND EARTHWORKS (continued) (continued)

185 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Prefabricate key elements Candidate prefabrication technique will not work (technical issues identified during design) Example causes or issues: • Transportation of prefabricated elements difficult or not possible • Inadequate site access (e.g., cannot maneuver on-site) • Planned geotechnical structure not suitable for construction via prefabricated elements • Other project conditions preclude the use of prefabrication • In parallel, develop design for alternative prefabrication or on- site fabrication (to reduce delay if prefabrication turns out to not be the best option) • Gather and confirm technical and cost performance information for prefabricating geotechnical structures early in design, to help make early decisions on approach, procurement, and funding • Employ performance specifications to allow for contractor innovation Delay in procuring prefabricated elements Example causes or issues: • Fabrication facility not available when needed • Problems with design (e.g., errors) or constructability discovered during fabrication • Costs higher and/or benefits not as great as anticipated, decision to use the prefabricated elements is delayed • Early on, identify fabricators and evaluate potential availability of required items (i.e., conduct feasibility study) • Have contractors guarantee availability and schedule of prefabricated items in contract, or make provisions for schedule recovery if procurement is delayed Problems with prefabricated elements during construction Example causes or issues: • Specialized construction equipment malfunctions or breaks down • Difficulty maneuvering prefabricated elements • Damage prefabricated elements during construction • Other construction-related accident • Either internally or through contractor, try to anticipate potential problems in advance, and then develop alternative designs and/or remedial measures to reduce delay if problems occur • Select contractor with demonstrated success in candidate prefabricated construction • Ensure that contract provisions allow for rapid and fair resolution of these issues TABLE B.6. PROJECT PHASE: DESIGN AND CONSTRUCTION—GEOTECHNICAL AND EARTHWORKS (continued) (continued)

186 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use rapid-placement/construction techniques Examples: • Top-down excavation support • Innovative ground improvement • Rapid-embankment consolidation/ construction • Intelligent compaction equipment Candidate rapid-placement technique will not work (technical issues identified during design) Example causes or issues: • Inadequate access (e.g., cannot get specialized equipment into position) • Cannot get technique permitted • Planned geotechnical structure not suitable for construction via the technique • Other project conditions preclude the technique’s application • In parallel, develop design for alternative rapid replacement or accelerated traditional technique (to reduce delay if chosen rapid replacement technique turns out to not be the best option) • Gather and confirm technical and cost performance information for the intended rapid replacement technique early in design, to help make early decisions on approach, procurement, and funding Delay in procuring rapid replacement equipment and/or specialized labor Example causes or issues: • Specialized equipment or labor not available when needed • Costs higher and/or benefits not as great as anticipated, so decision to use the technique is delayed • Early on, identify sources of relevant equipment and labor, and evaluate potential availability (i.e., conduct feasibility study) • Have contractors guarantee availability and schedule of specialized equipment items in contract, or make provisions for schedule recovery (e.g., alternative equipment, alternative construction method) if procurement is delayed Problems with rapid-placement technique during construction Example causes or issues: • Specialized equipment malfunctions or breaks down • Technique does not work as intended (various reasons) • Construction accident • Either internally or through contractor, try to anticipate potential problems in advance, and then develop alternative designs (using alternative construction techniques) and/or remedial measures (for selected technique) to reduce delay if problems occur • Select contractor with demonstrated success using the proposed rapid- placement technique • Ensure contract provisions allow for rapid and fair resolution of these issues TABLE B.6. PROJECT PHASE: DESIGN AND CONSTRUCTION—GEOTECHNICAL AND EARTHWORKS (continued)

187 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.7. PROJECT PHASE: DESIGN AND CONSTRUCTION—DRAINAGE AND STORMWATER MANAGEMENT Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative and long-life designs Example: • Seek sustainable/natural solutions for treatment Innovative and/or long-life designs not the right solution Example causes or issues: • Innovative and long-life designs are not the most cost-effective or schedule-appropriate approach • Innovative designs too risky (e.g., no demonstrated performance history; uncertain constructability) • Interim (short-term) solution more appropriate (e.g., adjacent or follow-on project will build permanent solution) • Work with interdisciplinary team to identify alternative locations and technologies to assist in drainage/ stormwater management Use alternative and/or long-life materials Examples: • Natural materials for conveyance, detention, and treatment structures/ponds • Use materials that allow for rapid installation and subsequent construction Candidate materials will not work (technical issues identified during design) Example causes or issues: • Cannot get materials permitted • Planned materials will not work within project physical constraints • Planned materials too risky (e.g., no demonstrated performance history) • Test materials and materials designs early on pilot section or parallel project of smaller scale • Concurrently create a design with traditional material as a contingency • Develop contingency plans to achieve rapid construction via more traditional means (e.g., phased placement, alternative shifts) • Gather performance information for candidate materials early (before selecting them for design) (i.e., evaluate feasibility early on) • Employ performance specifications to allow for contractor innovation Delay in procuring candidate materials Example causes or issues: • Inadequate supply when needed (delay); for example, material supply source does not meet environmental requirements • Costs higher (other than because of limited supply) and/or benefits not as great as anticipated, so decision to use the materials is delayed • Required expertise in using materials not available when needed • Early on, identify material sources and evaluate potential availability (i.e., conduct feasibility study) • Have contractors guarantee supply in contract, or make provisions for schedule recovery or use of alternative, equivalent materials if material procurement is delayed (continued)

188 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Reuse or rehabilitate existing components Examples: • Culverts • Tie into existing drainage system (outfalls, treatment) The following potential risk management actions could apply to a number of the risk categories in the column to the left: • Conduct early testing of existing components • Explore designs that involve modifications to existing components Rehabilitation not the best option (identified during design) Example causes or issues: • Replacement turns out to be more technically viable — Improved compatibility with new drainage facilities — Difficulty performing rehabilitation — Rehabilitation does not provide desired performance • Replacement turns out to be more cost-effective (e.g., because of limited amount of rehabilitation required) • In parallel, develop design for replacement/new drainage facility (to reduce delay if rehabilitation turns out to not be the best option) • Gather and confirm technical and cost performance information for existing facility early in design, to help make early decisions on approach and funding Problems with rehabilitation during construction Example causes or issues: • Discover that more or different rehabilitation is required (e.g., selected technique will not deliver required performance) • Discover that rehabilitation will not work (e.g., existing drainage facility is in worse condition than previously believed) • Construction accident • Either internally or through contractor, try to anticipate potential problems in advance, and then develop alternative designs and/or remedial measures to reduce delay if problems occur • Select contractor with demonstrated success in candidate rehabilitation methods • Ensure contract provisions allow for rapid and fair resolution of these issues TABLE B.7. PROJECT PHASE: DESIGN AND CONSTRUCTION—DRAINAGE AND STORMWATER MANAGEMENT (continued) (continued)

189 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Prefabricate key elements Examples: • Replacement culverts • Inlet and outlet structures Candidate prefabrication technique will not work (technical issues identified during design) Example causes or issues: • Transportation of prefabricated elements difficult or not possible • Inadequate site access (e.g., cannot maneuver on-site) • Other project conditions preclude the use of prefabrication • In parallel, develop design for alternative prefabrication or on- site fabrication (to reduce delay if prefabrication turns out to not be the best option) Delay in procuring prefabricated elements Example causes or issues: • Fabrication facility not available when needed • Problems with design (e.g., errors) or constructability discovered during fabrication process • Costs higher and/or benefits not as great as anticipated, so delay in decision to use the prefabricated elements • Early on, identify fabricators and evaluate potential availability of required items (i.e., conduct feasibility study) • Have contractors guarantee availability and schedule of prefabricated items in contract, or make provisions for schedule recovery if procurement is delayed Problems with prefabricated elements during construction Example causes or issues: • Specialized construction equipment malfunctions or breaks down • Difficulty maneuvering prefabricated elements • Prefabricated elements damaged during construction • Other construction-related accident • Either internally or through contractor, try to anticipate potential problems in advance, and then develop alternative designs and/or remedial measures to reduce delay if problems occur • Select contractor with demonstrated success in candidate prefabricated construction • Ensure that contract provisions allow for rapid and fair resolution of these issues TABLE B.7. PROJECT PHASE: DESIGN AND CONSTRUCTION—DRAINAGE AND STORMWATER MANAGEMENT (continued)

190 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.8. PROJECT PHASE: DESIGN AND CONSTRUCTION—ROADWAY, GEOMETRICS, AND INTELLIGENT TRANSPORTATION SYSTEMS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative and long-life designs Examples: • Consider alternative alignment/ geometrics • Provide alternative access Innovative designs require exemptions from FHWA or other agency Examples: • Alternative alignment does not meet current design standards • Innovative intelligent transportation systems (ITS) design does not meet the approval of FHWA under current standards The following potential risk management actions could apply to a number of the risk categories in the column to the left: • Conduct early and thorough investigation of existing alignment/ geometrics to optimize reuse and minimize disruption during construction • Study use of alternative technical solutions for intelligent transportation systems (ITS) that may allow for reuse of existing infrastructure • Develop additional alternatives or concepts early in design to reduce delay if innovative or long-life designs do not work out • Secure funding in advance for long- life designs • Gather performance information for innovative designs early (before selecting design) Use alternative and long-life equipment Example: • Ensure compatibility with existing system Candidate equipment will not work (technical issues identified during design) Example causes or issues: • Planned equipment not compatible with equipment in adjacent locations • Planned materials too risky (e.g., no demonstrated performance history) (continued)

191 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Reuse or rehabilitate existing components Examples: • Fiber backbone • Communications equipment Testing of existing components is not reliable Examples: • Existing components cannot be accessed for testing • Adequate testing methods not available • Testing samples do not reflect the condition of the entire component Existing component will not be compatible with new design or construction method Examples: • Impossible to integrate existing component with new design • Existing component will be damaged during construction TABLE B.8. PROJECT PHASE: DESIGN AND CONSTRUCTION—ROADWAY, GEOMETRICS, AND INTELLIGENT TRANSPORTATION SYSTEMS (continued)

192 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.9. PROJECT PHASE: DESIGN AND CONSTRUCTION—PAVEMENT Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative and long-life designs Examples: • Conduct life-cycle analysis (e.g., asphalt versus concrete) • Consider maintenance requirements • Establish performance indicators Innovative and long-life designs not the right solution Example causes or issues: • Inadequate funding • Adequate funding but innovative and long-life designs not the most cost-effective approach • Innovative designs too risky (e.g., no demonstrated performance history; uncertain constructability) • Interim (short-term) solution more appropriate (e.g., follow-on project will build permanent solution) • Develop additional alternatives or concepts early in design to reduce delay if innovative or long-life designs do not work out • Secure funding in advance for long- life designs • Gather performance information for innovative designs early (before selecting design) • Coordinate with adjacent projects early to better anticipate any interim solutions required from current project • Employ performance specifications to allow for contractor innovation Use alternative and long-life materials Examples: • Stone matrix asphalt (SMA) • Continuously reinforced concrete pavement (CRCP) • Polymer asphalt • Composite pavement • Subgrade treatment/stabilization Candidate materials will not work (technical issues identified during design) Example causes or issues: • Cannot get materials permitted • Planned materials not the best choice for desired pavement performance (e.g., durability, cost) • Planned materials too risky (e.g., no demonstrated performance history) • Other project conditions preclude the materials’ application (e.g., too cold during construction) • Test materials and materials designs early on pilot section or parallel project of smaller scale • Develop additional alternatives or concepts early in design to reduce delay if candidate materials do not work out • Gather performance information for candidate materials early (before selecting them for design) (i.e., evaluate feasibility early on) • Use performance specifications to allow for contractor innovation Delay in procuring candidate materials Example causes or issues: • Inadequate supply when needed (delay); for example, material supply source does not meet environmental requirements • Costs higher (other than because of limited supply) and/or benefits not as great as anticipated, so delay in decision to use the materials • Required expertise in using materials not available when needed • Early on, identify material sources and evaluate potential availability (i.e., conduct feasibility study) • Have contractors guarantee supply in contract, or make provisions for schedule recovery or use of alternative, equivalent materials if material procurement is delayed (continued)

193 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Reuse or rehabilitate existing components Example: • Rubblize/recycle existing pavement Rehabilitation not the best option (identified during design) Example causes or issues: • Replacement turns out to be more technically viable — Improved compatibility with new or adjacent pavement sections — Difficulty performing rehabilitation — Rehabilitation does not provide desired performance • Replacement turns out to be more cost-effective (e.g., because of limited amount of rehabilitation required) • In parallel, develop design for replacement pavement alternative (to reduce delay if rehabilitation turns out to not be the best option) • Gather and confirm technical and cost performance information for existing pavement early in design, to help make early decisions on approach and funding Problems with rehabilitation during construction Example causes or issues: • Discover that more or different rehabilitation is required (e.g., selected technique will not deliver required performance) • Discover that rehabilitation will not work (e.g., pavement is in worse condition than previously believed) • Construction accident • Either internally or through contractor, try to anticipate potential problems in advance, and then develop alternative designs and/or remedial measures to reduce delay if problems occur • Select contractor with demonstrated success in candidate rehabilitation methods • Ensure contract provisions allow for rapid and fair resolution of these issues (continued) TABLE B.9. PROJECT PHASE: DESIGN AND CONSTRUCTION—PAVEMENT (continued)

194 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Prefabricate key elements Example: • Roadway panels (concrete, prestressed) Candidate prefabrication technique will not work (technical issues identified during design) Example causes or issues: • Transportation of prefabricated elements difficult or not possible • Inadequate site access (e.g., cannot maneuver on-site) • Planned pavement section not suitable for construction via prefabricated elements • Other project conditions preclude the use of prefabrication • In parallel, develop design for alternative prefabrication or on- site fabrication (to reduce delay if prefabrication turns out to not be the best option) • Gather and confirm technical and cost performance information for prefabricating pavement sections or panels early in design, to help make early decisions on approach, procurement, and funding Delay in procuring prefabricated elements Example causes or issues: • Fabrication facility not available when needed • Problems with design (e.g., errors) or constructability discovered during fabrication • Costs higher and/or benefits not as great as anticipated, so decision to use prefabricated elements is delayed • Early on, identify fabricators and evaluate potential availability of required items (i.e., conduct feasibility study) • Have contractors guarantee availability and schedule of prefabricated items in contract, or make provisions for schedule recovery if procurement is delayed TABLE B.9. PROJECT PHASE: DESIGN AND CONSTRUCTION—PAVEMENT (continued)

195 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.10. PROJECT PHASE: DESIGN AND CONSTRUCTION—MAINTENANCE OF TRAFFIC Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action The following potential risk management actions could apply to a number of the risk categories in the column to the left: • Use performance-based specs • Use contractor incentives at key coordination points within contract and between contracts in a phased situation • Reduce traffic demand during closures. Examples: — Provide alternative modes — Provide additional alternate routes • Conduct early coordination with agencies and other stakeholders. Examples: — Presentation of case studies — Additional outreach — Early preparation of business case for closure • Seek early contractor involvement and/or constructability reviews • Conduct detailed (or earlier) traffic and/or safety analysis • Develop multiple alternatives early, including alternative staging or closures • Develop contingency plan for implemented closures (continued)

196 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use innovative maintenance-of- traffic (MOT) strategies Examples: • Provide alternative modes • Provide alternative routes • Use creative closure strategies (incentive/disincentive; directional closures; total versus partial closures) • Develop and “carry” alternative MOT plans Planned closures and related detour routes not allowed (management issue) Example causes or issues: • Local agency will not approve (various reasons) • Owning agency will not approve (various reasons) • Not viable or allowed by project delivery or contracting approach • Contractor will not reasonably bid the approach Planned closures and related detour routes will not work (technical issue identified during design) Example causes or issues: • Unacceptable traffic capacity • Unacceptable safety impacts (to public or workers) • Unacceptable noise, dust, vibration, or other impacts to adjacent public Planned closures and related routes are not the most efficient Example causes or issues: • Another plan identified later which could work better (e.g., different or more closures; alternate routes instead of closures) Implemented closure plan does not work (during construction) Example causes or issues: • Causes unacceptable traffic impacts • Creates unacceptable ancillary impacts (e.g., adjacent businesses) (continued) TABLE B.10. PROJECT PHASE: DESIGN AND CONSTRUCTION—MAINTENANCE OF TRAFFIC (continued)

197 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Test the MOT plan before construction Examples: • Simulate plan performance (e.g., using traffic models) • “War game” the MOT plan with constructors (e.g., on a tabletop project graphic, stepping through the construction staging/ sequencing) Similar to above TABLE B.10. PROJECT PHASE: DESIGN AND CONSTRUCTION—MAINTENANCE OF TRAFFIC (continued)

198 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.11. PROJECT PHASE: RIGHT-OF-WAY Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate right-of-way (ROW) planning Examples: • Overlap ROW planning with project design and environmental activities • Coordinate early and often with design team • Carry multiple alternatives • Provide additional staff to support planning and appraisals • Approach sellers early with plans • Seek accelerated ROW funding • Seek streamlined ROW plan approval process Late changes to the design cause delay in ROW planning Example causes or issues: • Change in design late in process cascades to ROW design changes (especially if ROW planning and design are overlapped), resulting in delay in agreements and/or ROW plan review/approval • Early on, develop a contingency plan to accelerate ROW planning after late design changes. For example: — Develop and carry multiple design alternatives, and have corresponding ROW plans partially developed, to reduce impact if design changes — Coordinate early and often with design team — Early on, establish on-call contracts with real estate appraisal specialists who might be needed later ROW plans not completed as planned (other than from design changes) Example causes or issues: • Delay in review and/or approval of plans. For example: — Design/planning schedule too aggressive — Inadequate staffing — Agency waiting for project funding or contractor notice to proceed (NTP) • Accelerating pace of development in project area triggers plan revision • Early on, develop a contingency plan to mitigate problems reaching utility agreements. For example: — Identify a quick-response team to address problems with the process — If not already done, establish a process to quickly resolve problems with the plans or clarify requirements (continued)

199 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate ROW acquisition Examples: • Seek accelerated ROW funding • Conduct advance ROW acquisition; prioritize parcels for acquisition (get what is needed to start construction first) • Ensure adequate staffing • Seek willing sellers (e.g., better offers) • Provide relocation assistance to displaced tenants • Conduct accelerated environmental remediation/ clearance of select parcels Funding for accelerated or advance ROW acquisition delayed or reduced Coordinate early and often with program management to ensure funding is approved and available when needed Problems procuring critical (high- priority) parcels Example causes or issues: • Challenge to possession and use, condemnation, or other seller action that delays DOT ability to occupy parcels and/or increases ROW cost • Delays relocating tenants off-site, such as — Relocation effort larger than anticipated — No suitable replacement property or facility found — Legal challenge to relocation plan • Unanticipated contamination discovered, requiring remediation before site can be used • Delays demolishing structures on- site (other than from contamination issues) • Unanticipated utilities encountered on-site, requiring relocation before can use site • Other delays obtaining rights-of- entry • Staffing shortage (cannot complete acquisition offers as planned) • Early on, develop a contingency plan to mitigate problems with procurement of high-priority parcels. For example: — Identify a quick-response team to address problems with the procurement process (e.g., see example causes at left) — Establish on-call contracts with ROW specialists, relocation specialists, environmental remediation contractors, and/ or demolition contractors who might be needed during acquisition process (assumes accelerated acquisition is done in advance of main construction contract) — Identify additional internal staffing and have on hand Delays to ROW certification (agency process delay) • Coordinate early and often with certifying authority to ensure process and requirements are understood • Identify additional internal staffing and have on hand TABLE B.11. PROJECT PHASE: RIGHT-OF-WAY (continued)

200 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.12. PROJECT PHASE: UTILITIES Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate utility planning and agreements Examples: • Overlap utility planning with project design and environmental activities • Coordinate early and often with design team and utility companies • Carry multiple alternatives • Provide staff to support the utility’s review/approval process • Develop common/shared utility crossings • Seek accelerated utility-plan approval process Late changes to the design cause delay in utility planning Example causes or issues: • Change in design late in process cascades to utility design changes (especially if utility planning and design are overlapped), resulting in delay in agreements and/or design review/approval • Early on, develop a contingency plan to accelerate utility planning after late design changes. For example: — Develop and carry multiple alternatives early in design, to reduce impact if design changes — Coordinate early and often with utility companies — Early on, establish on-call contracts with utility specialists who might be needed later • If not already done, provide staffing support for utility companies (and plan for it early so it is ready to go when needed) Utility agreements not reached as planned (other than from design changes) Example causes or issues: • Delay in review and/or approval of agreements, by either owner or utility. For example: — Design/planning schedule too aggressive — Inadequate staffing — Utility waiting for project funding or contractor NTP • Disagreement over the proposed terms of the agreement. For example: — Cost sharing — Scope of the utility relocation — Work windows or closures — Responsibility for work — Questions related to the need for or legality of the planned relocation • Early on, develop a contingency plan to mitigate problems reaching utility agreements. For example: — Identify a quick-response team to address problems with the process — If not already done, provide staffing support for utilities (and plan for it early so it is ready to go when needed) — If not already done, establish a process to quickly resolve differences/disputes or clarify requirements — Identify potential bargaining position (e.g., mitigation, design change), including securing relevant policy decisions or positions from leadership (continued)

201 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate utility relocation Examples: • Provide incentive for utility to relocate on time • Cost sharing • Relocate critical utilities first (so construction can be started) Utility encountered and/or damaged during construction (if owner’s contractor performs the work) Example causes or issues: • Previously unknown utility encountered, perhaps because of accelerated relocation schedule (e.g., utility location effort was inadequate; potholing not conducted so schedule could be accelerated) • Existing utility damaged even though known it was there • Either internally or through contractor, try to anticipate potential problems in advance and then develop potential remedial measures to reduce delay if problems occur • If not already done, have contractor confirm utility locations • Ensure contract provisions allow for rapid and fair resolution of these issues Third party does not complete agreed relocation as planned (if third party performs the work) Example causes or issues: • Third party (e.g., utility company or municipality) too busy with other work (i.e., does not prioritize this relocation effort) • Other delay to third-party design, review/approval, or subcontracting effort • Funding delay • Third party simply “drags its feet” for other reasons • Early on, develop a contingency plan to mitigate delays in third- party utility relocations. For example: — Identify a quick-response team to address problems — If not already done, provide staffing support for utilities (and plan for it early so it is ready to go when needed) — If not already done, establish a process to quickly resolve differences/disputes or clarify requirements — Identify potential bargaining position (e.g., mitigation, design change, additional funding), including securing relevant policy decisions or positions from leadership TABLE B.12. PROJECT PHASE: UTILITIES (continued)

202 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.13. PROJECT PHASE: RAILROAD Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate railroad planning and agreements Examples: • Overlap railroad planning with project design and environmental activities • Coordinate early and often with design team and railroad representative • Carry multiple alternatives • Provide staff to support the railroad’s review/approval process • Propose mitigation to speed agreements Late changes to the design cause delay in railroad planning Example causes or issues: • Change in design late in process cascades to railroad-related design changes (especially if railroad planning and design are overlapped), resulting in delay in agreements and/or design review/ approval • Early on, develop a contingency plan to accelerate railroad planning after late design changes. For example: — Develop and carry multiple alternatives early in design, to reduce impact if design changes — Coordinate early and often with railroad companies — Early on, establish on-call contracts with railroad specialists who might be needed later — If not already done, provide staffing support for railroad companies (plan for it early so it is ready to go when needed) Railroad agreements not reached as planned (other than from design changes) Example causes or issues: • Delay in review and/or approval of agreements by either owner or railroad; for example: — Design/planning schedule too aggressive — Inadequate staffing — Railroad company waiting for project funding or contractor NTP • Disagreement over the proposed terms of the agreement. For example: — Cost sharing — Scope of the work to be done on, over, under, or adjacent to railroad property or at crossings — Work windows or closures — Responsibility for work — Questions related to the need for or legality of the planned work • Early on, develop a contingency plan to mitigate problems reaching railroad agreements. For example: — Identify a quick-response team to address problems with the process — If not already done, provide staffing support for railroads (and plan for it early so it is ready to go when needed) — If not already done, establish a process to quickly resolve differences/disputes or clarify requirements — Identify potential bargaining position (e.g., mitigation, design change), including securing relevant policy decisions or positions from leadership (continued)

203 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Accelerate railroad-related construction Examples: • Provide incentive for railroad to provide longer or more frequent work windows • Cost sharing • Complete critical railroad-related construction first (so general construction can be started) Railroad facility damaged during construction (if owner’s contractor performs the work) Example causes or issues: • Track fouled or blocked (i.e., railroad cannot operate during necessary windows) • Railroad crossing structure (bridge) damaged • Other railroad infrastructure (e.g., signals, switches, crossings) damaged • Either internally or through contractor, try to anticipate potential problems in advance, and then develop potential remedial measures to solve the problems • If not already done, have contractor confirm locations of key rail infrastructure • Ensure contractor has a plan that safeguards railroad infrastructure • Ensure contract provisions allow for rapid and fair resolution of these issues Railroad does not complete agreed railroad-related work as planned (if railroad performs the work) Example causes or issues: • Railroad too busy with other work (i.e., does not prioritize this effort) • Other delay to railroad-driven design, review/approval, or subcontracting effort • Funding delay • Railroad simply “drags its feet” for other reasons • Early on, develop a contingency plan to mitigate delays in railroad- conducted work. For example: — Identify a quick-response team to address problems — If not already done, provide staffing support for railroads (and plan for it early so it is ready to go when needed) — If not already done, establish a process to quickly resolve differences/disputes or clarify requirements — Identify potential bargaining position (e.g., mitigation, design change, additional funding), including securing relevant policy decisions or positions from leadership TABLE B.13. PROJECT PHASE: RAILROAD (continued)

204 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.14. PROJECT PHASE: PROCUREMENT AND CONTRACTING STRATEGY Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use alternative procurement method Examples: • Cost-plus-time (A + B) bidding • Cost-plus-time-plus-quality (A + B + Q) bidding • Short-list qualified contractors and then use qualifications-based selection process • Unsolicited proposals, followed by sole-source negotiations Many of the same risks and risk management actions that were identified in Table B.2, Project Scoping, relative to innovative project delivery methods, are applicable to this category. Specific attention is brought to the following actions, each of which applies to the risks discussed to the left. Examples: • Develop a procurement plan that meets the goals of the overall project and stakeholders, and in particular focus on what the goals are in using an alternative procurement and contracting approach • Ensure that the team is supported by experienced individuals (internal or consultants) • Ensure early retention of any consultants who will be assisting agency personnel • Secure enabling legislation early to allow alternative procurement approaches to work • Conduct outreach to the AG and obtain AG opinions for statutory areas that are unclear or evolving • Conduct broad training programs on procurement and contracting innovations with staff • Conduct outreach to other DOTs that have a history of success in implementing alternative procurement and contracting programs • Consider bringing key stakeholders into the training process for implementation of procurement approach • Perform outreach to public to determine where the potential statutory challenges may lie (continued)

205 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Litigation initiated by an interested party challenging the propriety of the alternative procurement process Example causes or issues: • Challenges to the ability of a state to select construction projects on something other than full, open competitive bidding • Challenges as to the reasonableness of the selection factors In addition to the above: • Create a team that develops a formal procurement and contracting plan that is reasonable, logical, and objective • Perform outreach to legislators who are concerned about alternative procurement practices • Ensure that the AG’s office is cognizant of potential issues and prepared to act quickly to address any challenges Public concern (and political pressure) resulting from the use of procurement processes that heavily weight nonprice factors Example causes or issues: • Perceived conflict of interest when a designer–builder is first selected to perform preliminary engineering and then has sole-source negotiation rights for final design and construction • Perception that contracts awarded on qualifications basis are “sweetheart” contracts and the result of cronyism In addition to the above: • Perform outreach to the public to make the procurement process transparent and to explain the rationale and public benefit behind the procurement choice • Use independent outside consultants to evaluate pricing of the contracting teams • Use escrowed bid documents to obtain access to the documents • Use open-book negotiation process • Require contractor (designer– builder) to certify the currency, completeness, and accuracy of its open-book submissions • Consider, when applicable, the use of construction-management-at-risk contracting principles, where the bulk of the work is competitively subcontracted to third parties, and with prime contractor being responsible for managing such work and interfaces Public reaction to procurements that trade off early accelerated completion with full road closures In addition to the above: • Develop a comprehensive outreach program to explain the benefits of this system • Determine and widely disseminate maintenance-of-traffic (MOT) plans that minimize disruption TABLE B.14. PROJECT PHASE: PROCUREMENT AND CONTRACTING STRATEGY (continued) (continued)

206 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Limited competition arising from projects perceived as being created for large contractors In addition to the above: • Assess whether the project can be broken down into alternative contract packaging (see below) • Require proposers to submit a subcontracting plan that demonstrates how it will use small businesses and have this as a significant selection factor Other problems procuring contract Example causes or issues: • Bid protest • Unclear contract documents or language resulting in claims, whether credible or not, which could be a problem during contract procurement, during construction, or both • Contractor default (most likely during construction) In addition to the above: • Prequalify contractors • Short-list a minimum of three contractors • Ask contractors’ association to provide feedback on draft contract documents (e.g., a request for proposal, or RFP) • Set reasonable minimum bonding requirements Use alternative contract packaging Examples: • Larger number of smaller contracts • Allowances for work that is not sufficiently designed at the time of bid or is to be undertaken far in the future and that will be performed by smaller contractors See above In addition to the above: • Conduct a thorough evaluation as to the goals and detriments of alternative contract packaging • Develop an outreach program for the smaller contractors and disadvantaged business enterprises • Consider lessons learned from other agencies that have used allowance type of contracting arrangements Use advance procurement Examples: • Early procurement of long-lead items • Advance earthwork/embankment construction contracts • Advance remediation of contaminated sites In addition to the above: • Ensure that the project delivery, procurement, and risk management plans are fully aligned • Integrate early procurement of components into a qualifications- based selection process for the prime contractor Expending funds in advance of full procurement See above, particularly as it relates to understanding how the plans integrate TABLE B.14. PROJECT PHASE: PROCUREMENT AND CONTRACTING STRATEGY (continued) (continued)

207 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Use delayed-start provision in contract Examples: • Purchase construction right-of-way (ROW) to allow for prefabrication of elements • Allow contractor to revise designs before beginning work to minimize traffic impact • Allow contractor to do off-line work that will not impede traffic Perception of delayed start will erode internal or external confidence in rapid renewal goals In addition to the above: • Educate stakeholders on need for delayed start • Align incentives and disincentives with start of mainline work rather than start of contract Mobilization costs are higher and at risk if contractor defaults In addition to the above: • Use best-value procurement to ensure that a solvent and experienced contractor is selected • Monitor work and payment closely TABLE B.14. PROJECT PHASE: PROCUREMENT AND CONTRACTING STRATEGY (continued)

208 GUIDE FOR THE PROCESS OF MANAGING RISK ON RAPID RENEWAL PROJECTS TABLE B.15. PROJECT PHASE: OPERATIONS AND MAINTENANCE Rapid Renewal Strategy Related Risk or Opportunity Category Potential Risk Management Action Consider private O&M contractor Required O&M effort greater than planned (either more frequently, more extensive, or both) Example causes or issues: • Quality of constructed facility not as anticipated or required • Extreme seasonal weather impacts • Traffic demand greater than anticipated, or mix of vehicle types not as anticipated • Ensure adequate contractual provisions (e.g., warranty) in contract with constructor • Ensure adequate quality control and assurance during construction of facility (to minimize risk of poorly constructed facility) • Conduct uncertainty-based traffic modeling for project’s projected lifetime O&M contractor does not perform per contract Example causes or issues: • Performs O&M tasks when required, but not to technical standards • Fails to perform O&M tasks per requirements (regardless of how specified) • Ensure adequate contractual provisions (e.g., performance bond) in contract with O&M contractor • Develop contingency plan in advance to quickly mobilize agency O&M resources if needed TABLE B.16. PROJECT PHASE: REPLACEMENT Rapid Renewal Category Related Risk or Opportunity Category Potential Risk Management Action Replacement required sooner than planned Example causes or issues: • Demand increases faster than anticipated, requiring additional capacity • Poor design, materials, and/or construction quality • Conduct uncertainty-based demand modeling during design (consider uncertainties and risks that could affect modeling results) • Ensure adequate contractual provisions (e.g., warranty) in contract with constructor • Ensure adequate quality control and quality assurance during construction of facility (to minimize risk of poorly constructed facility) • Delay replacement with additional maintenance (develop contingency plan in advance for funding and resources) Replacement does not perform as intended (e.g., inadequate capacity; poor construction)