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Page 120
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2022. Systematic Approach for Determining Construction Contract Time: A Guidebook. Washington, DC: The National Academies Press. doi: 10.17226/26537.
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Page 120
Page 121
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2022. Systematic Approach for Determining Construction Contract Time: A Guidebook. Washington, DC: The National Academies Press. doi: 10.17226/26537.
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Page 121
Page 122
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2022. Systematic Approach for Determining Construction Contract Time: A Guidebook. Washington, DC: The National Academies Press. doi: 10.17226/26537.
×
Page 122
Page 123
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2022. Systematic Approach for Determining Construction Contract Time: A Guidebook. Washington, DC: The National Academies Press. doi: 10.17226/26537.
×
Page 123
Page 124
Suggested Citation:"Glossary." National Academies of Sciences, Engineering, and Medicine. 2022. Systematic Approach for Determining Construction Contract Time: A Guidebook. Washington, DC: The National Academies Press. doi: 10.17226/26537.
×
Page 124

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120 A+B method Also known as cost-plus-time bidding. is method involves time, with an associated cost, in the low-bid determination. Under the A+B method, each bid submitted consists of two components: (a) the “A” component is the traditional bid for the contract items and is the dollar amount for all work to be performed under the contract; (b) the “B” component is a “bid” of the total number of calendar days required to complete the project, as estimated by the bidder (calendar days are used to avoid any potential for con- troversy that might arise if workdays were to be used). Annual average daily trac (AADT) e total volume of trac on a highway segment for one year divided by the number of days in the year. Alternative contracting method (ACM) Any project delivery method other than the traditional DBB method. In this guidebook, ACMs include A+B, incentives and disincentives, no-excuse bonus, lane rental, design-build, construction manager/ general contractor or construction manager-at-risk, and public private partnership. Calendar day Each day shown on the calendar; however, if another denition is set forth in the state contract specications, that denition will apply (23 CFR 635.102). Construction manager/ general contractor (CMGC) A project to be delivered using a two-phase contract with a construc- tion manager or general contractor for services during both the pre- construction and construction phases of a project (23 CFR 635.102). Construction contract time (CCT) Contract time allocated specically for the construction work of a project. is term assumes the project design has been completed by the agency, and the awarded bidder is expected to perform only construction work. Contract time Number of workdays or calendar days specied in a contract for com- pletion of the contract work. e term includes authorized time extensions (23 CFR 635.102). Contract time determination (CTD) Process of establishing the contract time of a project. It may involve consideration of various technical and non-technical factors that may aect the contract time. Contract time may be driven by esti- mated project duration or non-project-specic external factors such as political consideration or community activities or both. Glossary

Glossary 121   Controlling activities Work items that are expected to drive a project’s schedule. They are likely to be on the critical path, but they may not be part of the critical path in all projects. It may change criticality to become part of the critical path based on project constraints and scope (Jeong et al. 2008). Controlling activities involve the relationships among three concepts: activities, controlling activities, and critical activities (see art). Project controlling activities Individual activities of a project Critical activities Critical activity Activity that is on the critical path and has direct impact on the total project duration. All critical activities are part of project controlling activities, but not all project controlling activities can be part of critical path (Jeong et al. 2008). Design-build (DB) A project delivery system in which the agency retains a single entity to design and construct a project. Design-bid-build (DBB) The traditional project delivery system through which the agency contracts with separate entities for design and construction services. Global factor An influential factor that affects the entire project duration (EPD and, ultimately, the contract time), without associating itself with any specific work item. Incentive As used in this guidebook, incentive refers to any technique employed by the transportation agency, through modifying contract provi- sions or payment procedures, to incentivize a bidder to finish on time or to accelerate project completion. It includes A+B method, incentives/disincentives, and lane rental. Incentive/disincentive for early completion A contract provision that compensates the contractor a certain amount of money for each day identified critical work is completed ahead of schedule and assesses a deduction for each day the con- tractor overruns the incentive/disincentive time. Its use is primarily intended for those critical projects in which traffic inconvenience and delays are to be held to a minimum. The amounts are based on such items as traffic safety, traffic maintenance, and road user delay costs (23 CFR 635.102). Influential factors Factors or constraints that are able to—directly or indirectly—affect the contract time of a project. Letting date/Letting day The day on which price proposals are publicly opened and the apparent successful proposer is announced (GDOT 2018).

122 Systematic Approach for Determining Construction Contract Time: A Guidebook Liquidated damages The daily amount set forth in the contract to be deducted from the contract price to cover additional costs incurred by a state DOT because of the contractor’s failure to complete the contract work within the number of calendar days or workdays specified. The term may also mean the total of all daily amounts deducted under the terms of a particular contract (23 CFR 635.102). Local factor An influential factor that affects only a specific work item or a limited number of work items in a project. National Environmental Policy Act (NEPA) of 1969 Legislation that established a national environmental policy requiring that any project using federal funding or requiring federal approval, including transportation projects, examine the effects of proposed and alternative choices on the environment before a federal deci- sion is made (FHWA). Non-controlling activities Activities that do not drive the project’s schedule. Non-controlling activities can be performed concurrently with other activities. The completion of a non-controlling activity is not mandatory for starting any other activities. Non-technical factors External factors that are not technical or project-specific. Non- technical factors may affect or dictate the contract time of a project decisively. Principal components (of contract time) In this guidebook, contract time consists of two principal compo- nents: (a) the estimated project duration, and (b) influential factors. Programming Prioritizing proposed projects and matching those projects with available funds to accomplish agreed-upon, stated needs (FHWA). Project duration estimate (PDE) A rational estimate of the time needed to complete the scope of work specified in a contract using a scheduling method based on available project design and known project information. A PDE is a rational estimate assuming normal working conditions, and it generally ignores non-technical factors and external constraints. The PDE is typically used as a basis for determining contract time. However, the PDE does not necessarily equal the contract time. Various methods (e.g., top-down, bottom-up) can be used to obtain the PDE. Right of way (ROW) The land (usually a strip) acquired for or devoted to highway trans- portation purposes (FHWA). Specialty items Work items identified in the contract that are not normally asso- ciated with highway construction and require highly specialized knowledge, abilities, or equipment not ordinarily available in the type of contracting organizations qualified and expected to bid on the contract; in general, these items are to be limited to minor com- ponents of the overall contract (23 CFR 635.102). Stakeholder(s) (1) A person or group affected by or who believes they are affected by a transportation plan, program, or project. It also includes resi- dents of affected geographical areas (FHWA). (2) Individuals and organizations involved in or affected by the transportation planning process. Includes federal/state/local officials, metropolitan planning organizations, transit operators, freight companies, shippers, and the general public (FHWA).

Glossary 123   Technical factors Project resource-related factors that are typically used to calculate an estimated duration of the project under normal construction conditions. They may include work items, quantities of work items, production rates, and the like. Transportation Management Plan (TMP) A plan that lays out a set of coordinated strategies and describes how these strategies will be used to manage the work zone impacts of a project (FHWA). Types of contract time The Illinois DOT (2017) defines three types of contract time, as follows: Working day—Contracts specify the number of working days it should take for the contractor to complete the work. Completion date—Contracts specify a date when the work is to be completed. Completion date (via calendar days)—Contracts specify the number of calendar days needed to establish the completion date based on when the contract is started. Workday (or working day) Generally, a workday or working day is defined as a calendar day during which construction operations can proceed for a major part of a shift. Saturdays, Sundays, and state-recognized legal holidays are normally excluded (23 CFR 635.102).

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Contract time affects the cost of construction, traffic disruption and public inconvenience, the economic impact of projects to the surrounding areas, and schedule risks.

The TRB National Cooperative Highway Research Program's NCHRP Research Report 979: Systematic Approach for Determining Construction Contract Time: A Guidebook provides state departments of transportation guidance for producing consistently credible, reliable, and defensible contract time estimates.

Supplemental to the report is NCHRP Web-Only Document 298: Developing a Systematic Approach for Determining Construction Contract Time, a spreadsheet-based Toolkit, a Technical Memorandum, and a Presentation.

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