INSIDE THE DOT
South Dakota Department of Transportation
Innovative Contracting Procedures
Long duration of construction projects can cause unacceptably long lane closures in urban and rural areas and lead to late season and multi-season construction. Excessive duration can potentially affect safety and increase engineering costs. To address these problems, states have begun to use innovative contract mechanisms, such as "A+B", lane rental and incentives/disincentives, which consider time duration as well as cost. The South Dakota Department of Transportation has occasionally tried incentive/disincentive clauses, but the use of innovative contracting procedures has been limited because potential benefit has been difficult to determine. Furthermore, the Department has not yet defined criteria for using innovative contracting, developed methods for estimating road user costs, determined how to consider maintenance and safety impacts, or established contractual procedures. Finally, potential effects on the contracting industry and its labor needs are unknown. Research is needed to evaluate the potential of innovative contracting procedures in South Dakota and to define guidelines for its use.
1 To assess the feasibility and potential for using innovative contracting procedures in South Dakota.
2 To develop methods for estimating road user costs in South Dakota.
3 To develop criteria and guidelines for the systematic, appropriate selection and use of innovative contracting procedures.
4 To estimate the impact of innovative contracting on road user costs, engineering costs, construction costs, and construction quality.
1 Meet with the project's technical panel to review project scope and work plan.
2 Review and summarize literature pertinent to innovative contracting procedures.
3 Survey or interview personnel from other states' transportation departments regarding their experience and opinions related to innovative contracting.
4 From review of construction records and interviews with personnel from the Department and construction contractors, characterize the Department's prior experience with innovative contracting.
5 Assess the potential for application of innovative contracting procedures in the Department's recent and current five-year construction programs. Identify the number and types of projects amenable to innovative contracting.
6 Evaluate methods, including that used in the Department's Division of Planning, for estimating road user costs associated with construction activity.
7 Define criteria-including traffic levels, construction type, economic disruption, utilities, safety, risk, potential impact on other projects, and other relevant factors-and develop procedural guidelines for selection and use of each innovative contr
8 Assess the potential impact of innovative contracting on construction, engineering, maintenance and road user costs, on safety, and on the contracting industry in South Dakota.
9 Prepare sample contracts for those innovative contracting methods found to be justified and recommend changes in SDDOT policies and procedures needed to adopt innovative contracting methods.
10 Prepare a final report and executive summary of the literature review, research methodology, findings, conclusions, and recommendations.
11 Make an executive presentation to the SDDOT Research Review Board at conclusion of the project.
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