Systematic Approach for Determining Construction Contract Time: A Guidebook (2022)

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2022 N A T I O N A L C O O P E R A T I V E H I G H W A Y R E S E A R C H P R O G R A M NCHRP RESEARCH REPORT 979 Systematic Approach for Determining Construction Contract Time A GUIDEBOOK H. David Jeong Kunhee Choi Chau Le MengWai Yaw Yangtian Yin Texas A&M University College Station, TX Douglas D. Gransberg Gransberg and Associates, Inc. Norman, OK Ali Touran Nan Gao Northeastern University Boston, MA Michael Rahgozar Keville Enterprises, Inc. Boston, MA Subscriber Categories Administration and Management • Construction • Maintenance and Preservation Research sponsored by the American Association of State Highway and Transportation Officials in cooperation with the Federal Highway Administration

NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM Systematic, well-designed, and implementable research is the most effective way to solve many problems facing state departments of transportation (DOTs) administrators and engineers. Often, highway problems are of local or regional interest and can best be studied by state DOTs individually or in cooperation with their state universities and others. However, the accelerating growth of highway transporta- tion results in increasingly complex problems of wide interest to high- way authorities. These problems are best studied through a coordinated program of cooperative research. Recognizing this need, the leadership of the American Association of State Highway and Transportation Officials (AASHTO) in 1962 ini- tiated an objective national highway research program using modern scientific techniques—the National Cooperative Highway Research Program (NCHRP). NCHRP is supported on a continuing basis by funds from participating member states of AASHTO and receives the full cooperation and support of the Federal Highway Administration (FHWA), United States Department of Transportation, under Agree- ment No. 693JJ31950003. The Transportation Research Board (TRB) of the National Academies of Sciences, Engineering, and Medicine was requested by AASHTO to administer the research program because of TRB’s recognized objectivity and understanding of modern research practices. TRB is uniquely suited for this purpose for many reasons: TRB maintains an extensive com- mittee structure from which authorities on any highway transportation subject may be drawn; TRB possesses avenues of communications and cooperation with federal, state, and local governmental agencies, univer- sities, and industry; TRB’s relationship to the National Academies is an insurance of objectivity; and TRB maintains a full-time staff of special- ists in highway transportation matters to bring the findings of research directly to those in a position to use them. The program is developed on the basis of research needs iden- tified by chief administrators and other staff of the highway and transportation departments, by committees of AASHTO, and by the FHWA. Topics of the highest merit are selected by the AASHTO Special Committee on Research and Innovation (R&I), and each year R&I’s recommendations are proposed to the AASHTO Board of Direc- tors and the National Academies. Research projects to address these topics are defined by NCHRP, and qualified research agencies are selected from submitted proposals. Administration and surveillance of research contracts are the responsibilities of the National Academies and TRB. The needs for highway research are many, and NCHRP can make significant contributions to solving highway transportation problems of mutual concern to many responsible groups. The program, however, is intended to complement, rather than to substitute for or duplicate, other highway research programs. Published research reports of the NATIONAL COOPERATIVE HIGHWAY RESEARCH PROGRAM are available from Transportation Research Board Business Office 500 Fifth Street, NW Washington, DC 20001 and can be ordered through the Internet by going to https://www.mytrb.org/MyTRB/Store/default.aspx Printed in the United States of America NCHRP RESEARCH REPORT 979 Project 08-114A ISSN 2572-3766 (Print) ISSN 2572-3774 (Online) ISBN 978-0-309-09463-4 Library of Congress Control Number 2022931202 © 2022 National Academy of Sciences. All rights reserved. COPYRIGHT INFORMATION Authors herein are responsible for the authenticity of their materials and for obtaining written permissions from publishers or persons who own the copyright to any previously published or copyrighted material used herein. Cooperative Research Programs (CRP) grants permission to reproduce material in this publication for classroom and not-for-profit purposes. Permission is given with the understanding that none of the material will be used to imply TRB, AASHTO, FAA, FHWA, FTA, GHSA, NHTSA, or TDC endorsement of a particular product, method, or practice. It is expected that those reproducing the material in this document for educational and not-for-profit uses will give appropriate acknowledgment of the source of any reprinted or reproduced material. For other uses of the material, request permission from CRP. NOTICE The research report was reviewed by the technical panel and accepted for publication according to procedures established and overseen by the Transportation Research Board and approved by the National Academies of Sciences, Engineering, and Medicine. The opinions and conclusions expressed or implied in this report are those of the researchers who performed the research and are not necessarily those of the Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; the FHWA; or the program sponsors. The Transportation Research Board; the National Academies of Sciences, Engineering, and Medicine; and the sponsors of the National Cooperative Highway Research Program do not endorse products or manufacturers. Trade or manufacturers’ names or logos appear herein solely because they are considered essential to the object of the report.

The National Academy of Sciences was established in 1863 by an Act of Congress, signed by President Lincoln, as a private, non- governmental institution to advise the nation on issues related to science and technology. Members are elected by their peers for outstanding contributions to research. Dr. Marcia McNutt is president. The National Academy of Engineering was established in 1964 under the charter of the National Academy of Sciences to bring the practices of engineering to advising the nation. Members are elected by their peers for extraordinary contributions to engineering. Dr. John L. Anderson is president. The National Academy of Medicine (formerly the Institute of Medicine) was established in 1970 under the charter of the National Academy of Sciences to advise the nation on medical and health issues. Members are elected by their peers for distinguished contributions to medicine and health. Dr. Victor J. Dzau is president. The three Academies work together as the National Academies of Sciences, Engineering, and Medicine to provide independent, objective analysis and advice to the nation and conduct other activities to solve complex problems and inform public policy decisions. The National Academies also encourage education and research, recognize outstanding contributions to knowledge, and increase public understanding in matters of science, engineering, and medicine. Learn more about the National Academies of Sciences, Engineering, and Medicine at www.nationalacademies.org. The Transportation Research Board is one of seven major programs of the National Academies of Sciences, Engineering, and Medicine. The mission of the Transportation Research Board is to provide leadership in transportation improvements and innovation through trusted, timely, impartial, and evidence-based information exchange, research, and advice regarding all modes of transportation. The Board’s varied activities annually engage about 8,000 engineers, scientists, and other transportation researchers and practitioners from the public and private sectors and academia, all of whom contribute their expertise in the public interest. The program is supported by state transportation departments, federal agencies including the component administrations of the U.S. Department of Transportation, and other organizations and individuals interested in the development of transportation. Learn more about the Transportation Research Board at www.TRB.org.

C O O P E R A T I V E R E S E A R C H P R O G R A M S CRP STAFF FOR NCHRP RESEARCH REPORT 979 Christopher J. Hedges, Director, Cooperative Research Programs Lori L. Sundstrom, Deputy Director, Cooperative Research Programs Waseem Dekelbab, Associate Program Manager, National Cooperative Highway Research Program Leslie C. Harwood, Senior Program Officer Stephanie L. Campbell, Senior Program Assistant Natalie Barnes, Director of Publications Heather DiAngelis, Associate Director of Publications Margaret B. Hagood, Senior Editor Sharon Lamberton, Editor NCHRP PROJECT 08-114A PANEL Field of Transportation Planning—Area of Planning Methods & Processes Shannon Sweitzer, S&ME, Inc., Raleigh, NC (Chair) Amitabha Bandyopadhyay, SUNY Farmingdale, Farmingdale, NY James J. Blankenship, Tennessee Department of Transportation, Nashville, TN Jason L. Humphrey, South Dakota Department of Transportation, Pierre, SD MaryLou Nebergall, Washington State Department of Transportation, Tumwater, WA James R. Primeau, Rhode Island Department of Transportation, Providence, RI Ivan E. Ramirez, Contra Costa Transportation Authority, Walnut Creek, CA Amy C. Tootle, Florida Department of Transportation, Tallahassee, FL Richard B. Duval, FHWA Liaison Nelson H. Gibson, TRB Liaison

NCHRP Research Report 979 provides state departments of transportation (DOTs) guidance for producing consistently credible, reliable, and defensible contract time estimates. This guidebook also addresses the relationship of contract time to risk management and the post-construction feedback loop for continuous process improvement. The methods and tools discussed in this guide have also been integrated into an accompanying spreadsheet toolkit. These deliverables should be of immediate use to practitioners responsible for effec- tively developing, maintaining, and applying contract time determination procedures. Developing credible estimates of contract time is crucial to the decision-making process of any state DOT, as well as the DOT’s strategy for risk management and ability to develop, operate, and maintain the transportation system for which the agency is responsible. Con- tract time affects the cost of construction, traffic disruption and public inconvenience, the economic impact of projects to the surrounding areas, and schedule risks. NCHRP Synthesis 502: Practices for Establishing Contract Completion Dates for High- way Projects, published in 2017, documented state transportation agency methodologies and procedures of estimating contract time for various highway project delivery methods. NCHRP Synthesis 502 found that guidance was needed to assist DOTs in producing con- sistently credible, reliable, and defensible contract time estimates. Under NCHRP Project 08-114A, “Systematic Approach for Determining Construction Contract Time: A Guidebook,” the team led by Texas A&M University was tasked with developing a guidebook that can be used to establish and maintain a systematic approach to determining credible and defensible contract times using conventional and alternative contracting methods. The team conducted a critical review of leading policies, practices, studies, and tools for contract time determination (CTD). The team then applied multiple data collection and analysis methods to develop a comprehensive guide for determining contract time which is flexible and can be modified to fit agency needs. This guidebook was validated through workshops with DOT professionals familiar with CTD practices. Final deliverables from this research include this guidebook, a spreadsheet toolkit and user’s manual, a technical memorandum providing recommendations for implementation, and a presentation of project results. Links to these products may be found at www.nap.edu by searching for NCHRP Research Report 979: Systematic Approach for Determining Construc- tion Contract Time: A Guidebook. Additionally, the contractor’s final report is available as NCHRP Web-Only Document 298. F O R E W O R D By Leslie C. Harwood Staff Officer Transportation Research Board

1 Summary 4 Chapter 1 Introduction 4 1.1 Overview 5 1.2 Guidebook Audience 5 1.3 Guidebook Structure 7 1.4 Guidebook Format 8 1.5 References 9 Chapter 2 CTD Guide for DBB Projects 9 2.1 Types of Contract Time 14 2.2 Generic CTD Procedure for DBB Projects 17 2.3 CTD Procedure for DBB Projects—Steps and Sub-Steps 34 2.4 Impacts of Advanced Technologies on Project Duration 36 2.5 Development of Top-Down PDE Models 37 2.6 References 39 Chapter 3 CTD Guide for Urban Projects with Incentive Provisions 40 3.1 Characteristics of ACTs 42 3.2 Generic CTD Procedure for Urban Projects 46 3.3 CTD Procedure for Urban Projects—Steps and Sub-Steps 62 3.4 References 63 Chapter 4 CTD Guide for APDMs 63 4.1 Generic APDM CTD Framework 65 4.2 Overlap Between Design and Construction Activities 67 4.3 Preconstruction Period 69 4.4 Generic CTD Procedure for APDM 85 4.5 Project Acceleration Strategies 85 4.6 References 86 Chapter 5 Relationship of Contract Time to Risk Management 87 5.1 Systematic Stepwise Procedure 100 5.2 Contracting Methods and Their Impact on Risk Management 102 5.3 Summary of Schedule Risk Management 103 5.4 References 104 Chapter 6 Post-Construction Contract Time Evaluation and Feedback Loop 104 6.1 CTD Methodology Effectiveness and Metrics 107 6.2 Post-Construction Contract Time Feedback Loop 117 6.3 References C O N T E N T S

118 Abbreviations 120 Glossary A-1 Appendix A Tools B-1 Appendix B ACT Descriptions