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Pages 9-22

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From page 9...
... 9INTRODUCTION Following the introduction of SEP-14 in the 1990s, the use of ACMs in the highway sector substantially increased. These nontraditional contracting methods were documented in the first edition of the Primer.
From page 10...
... Survey respondents identified specific cases in which legislation was used to promote an individual contracting method. For example, in 1999, the California Department of Transportation (DOT)
From page 11...
... 11 State Legislation Arkansas Legislation was passed in 2003, but no projects have been done. Florida Major design–build contracts (cost more than $10 million)
From page 12...
... disadvantages are categorized as schedule-related, cost-related, and other. When a perceived advantage or disadvantage was cited by more than one respondent, the frequency of citation is shown in parentheses after the statement.
From page 13...
... 13 regarding the application of a single innovative contracting method. This apparently contradictory input is likely as a result of differences in project specifications, the STA experience implementing the method using these specifications, and the respondents' own opinions.
From page 14...
... 14 award consideration is based on a combination of the bid for the contract items and the associated cost of the time, according to the formula: Bid Award Cost = A + (B × Road User Cost/Day) This formula is used only to determine the lowest bid for award and is not used to determine payment to the contractor.
From page 15...
... 15 Category Perceived Advantages Perceived Disadvantages Schedule- Related Project acceleration and time saving (5) (FDOT 2007; Konchar and Sanvido 1998; Construction Industry Institute 1997)
From page 16...
... where the contracting agency would benefit from a limited warranty for workmanship, materials and system functionality" (2006)
From page 17...
... 17 on time. The contractor is given a "drop-dead date" for completion of a phase of work or the entire project.
From page 18...
... Methods with Low Frequency Use As shown in Table 6, nine ACMs were used by fewer than six STAs. These are early contractor involvement, design– build–maintain, multi-parameter bidding, unabsorbed home office overhead (UHOO)
From page 19...
... 19 and financing for several toll roads that will use the plan, design, finance, construct, and lease-back method of procurement and ownership. This concept has also been utilized on tollroad projects in Colorado, Texas, and Virginia (Primer .
From page 20...
... 20 Quality Factors Quality factors may be used to advantage when administering contracts. "Several states have specifications and policies that allow for the use of past performance information, construction quality and contract progress in the contract administration process" (Primer .
From page 21...
... 21 Liquidated Savings Liquidated savings is a process by which the agency pays the contractor a modest incentive for each calendar or working day that the contract is completed ahead of schedule. Liquidated savings tend to be used on projects with limited scope and budget, for which other incentive methods would not be justifiable or affordable.
From page 22...
... any design work. The alliance takes collective responsibility for project delivery and collective ownership of all project risks, and it shares the risks and rewards of actual project performance.

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