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From page 34... ... 34 NCHRP LRD 86 to provide schedule and/or cost relief to the contractor if there are delays in obtaining the agreement that are not caused by the contractor or if the nal railroad agreement includes material changes to the requirements described in the information provided to the proposers prior to the proposal due date. Read the entire page →
From page 35... ... NCHRP LRD 86 35 project delivery methods experience, scope of work, aggressiveness of schedule, political pressure, and existing structures entailed in such large size projects. For P3 projects, such as the NCDOT I-77 Express (HOT) Read the entire page →
From page 36... ... 36 NCHRP LRD 86 Procuring P3 projects adds a greater level of complexity, which needs to account for the length of the agreement term, as well as the inclusion of new elements (such as operations and maintenance) Read the entire page →
From page 37... ... NCHRP LRD 86 37 Excerpt 24 – Procurement/Selection Method East End Crossing, Indiana Finance Authority RFP document– 5.2 Best Value Determination e best value determination will be based on the following 100 point scale. e Financial Score will represent up to 75 points of the total score and the Technical Score will represent up to 25 points of the total score. Read the entire page →
From page 38... ... 38 NCHRP LRD 86 authorized WSDOT to use DB for the "Alaskan Way viaduct replacement project" (SR 99 Tunnel DB project) Read the entire page →
From page 39... ... NCHRP LRD 86 39 a. Size and Complexity As projects become larger and more complex, the risks associated with the projects change and so does the nature and coverage amount of insurance. Read the entire page →
From page 40... ... 40 NCHRP LRD 86 some owners allow for probable maximum loss limits that are based on an assessment of what would likely be the maximum loss a facility were to incur. (See Excerpt 27 from the Indiana East End Crossing project.) Read the entire page →
From page 41... ... NCHRP LRD 86 41 tor provide professional liability insurance to cover errors and omissions associated with the design. e limits of the policy should be in line with the size of the project. Read the entire page →
From page 42... ... 42 NCHRP LRD 86 duce the performance bond amount to 50 percent, leaving the payment bond at 100 percent as required by law.113 As can be seen from the Bay Bridge example, project size alone can present an obstacle to 100 percent bonds. Only a limited number of sureties have the ability to provide bonds equal to 100 percent of the value of a mega project, or to participate as co-sureties in providing such bonds, and only a limited number of contractors have bonding capacity to obtain such bonds. Read the entire page →
From page 43... ... NCHRP LRD 86 43 Owners may request legislative authorization to reduce the required bond amounts for large projects, unless the authority already has the legislative authority to leave the bond amount to the discretion of the contracting entity.123 Caltrans had legislative authority allowing a reduced bond amount for the San Francisco Bay Bridge project.124 For the WSDOT Alaskan Way Viaduct SR 99 Bored Tunnel Alternative DB project, with a contract value of $1.089 billion, the owner determined that the project risk would be covered by a surety bond of $500 million (Excerpt 29) Read the entire page →
From page 44... ... 44 NCHRP LRD 86 that supplies the new product would bear the risk of failure of the product during the warranty period.128 As part of its adoption of the "Design-Build Rule," FHWA modied the warranty regulation to allow short-term general warranties and longer term performance warranties for DB projects.129 Warranty provisions must be carefully draed to properly allocate risks to dierent parties. In general, express warranty provisions in construction contracts require the contractor's work to be free of defects and in conformity with the design provided by the owner and obligate the contractor to x defects discovered during the warranty period.130 Warranties for DB contracts also need to address responsibility for defects in design. Read the entire page →
From page 45... ... NCHRP LRD 86 45 e contractor's warranty obligations should be covered under the performance security provisions for the original work unless the owner agrees to release the security. It is not uncommon for owners to allow for a replacement of the original performance bond with a smaller warranty bond. Read the entire page →
From page 46... ... 46 NCHRP LRD 86 the Caltrans 15/I-215 Devore Interchange DB Project, warranting that the design work performed by the design-builder and its subcontractors meets accepted standards of the industry. is is the equivalent of provisions in the owner's direct contracts with the design professional (i.e., the architect or engineer) Read the entire page →
From page 47... ... NCHRP LRD 86 47 Excerpt 32 – Warranty Requirements I-15/I-215 Interchange Improvement (Devore) Project, Caltrans DB 104-15.1 21.1.1 Project Warranties Design-builder warrants that: (a) Read the entire page →
From page 48... ... 48 NCHRP LRD 86 Excerpt 33 – Noncompliance Points East End Crossing, Indiana Finance Authority Article 11- NoNcompliANce eveNts ANd NoNcompliANce poiNts 11.1 NoNcompliaNce poiNts system 11.1.1 Attachment 1 of Exhibit 12 to this Agreement sets forth a table for the identification of Noncompliance Events and the "Cure Period" (if any) available to Developer for each such Noncompliance Event. Read the entire page →
From page 49... ... NCHRP LRD 86 49 front costs incurred by the contractor are repaid on the back end. Some P3 agreements mitigate the risk to the contractor by prioritizing payments to the contractor in any appropriation for the agency. Read the entire page →
From page 50... ... 50 NCHRP LRD 86 an owner's release of retention for subcontractor work on incremental acceptances of portions of the project.147 Another option is to not withhold retainage at all.148 For instance, California and Indiana do not have statutory retention requirements for state highway projects. Read the entire page →
From page 51... ... NCHRP LRD 86 51 public.149 UDOT developed a timeline for its incentive/disincentive, and liquidated damages framework in the I-15 Express Lanes Project bid documents where the project was divided into time segments, and the charges were computed based on the minimum bid and maximum calendar days of each segment. (See Excerpt 36.) Read the entire page →

From page 34...

... 34 NCHRP LRD 86 to provide schedule and/or cost relief to the contractor if there are delays in obtaining the agreement that are not caused by the contractor or if the nal railroad agreement includes material changes to the requirements described in the information provided to the proposers prior to the proposal due date.