This project resulted from the work of a 1988 Transportation Research Board (TRB) task force that spent three years exploring innovative practices in the U.S. and abroad. Its findings were released as Transportation Research Circular Number 386, titled "Innovative Contracting Practices" (1991).

Since 1990, FHWA has been evaluating methods for improving the efficiency of delivering transportation improvement projects. Through our TE-14 program, 38 states and the District of Columbia have evaluated various innovative contracting techniques. Three of the four experimental techniques originally identified have been declared operational (cost-plus-time bidding, lane rental and warranty clauses).

The FHWA has encouraged the use of cost-plus-time bidding and lane rental provisions on critical projects that have high road user delay impacts. This contracting method encourages the contractor to schedule work to minimize the time the traveling public is exposed to construction delays. As an example, during the reconstruction of the California freeways after the Northridge Earthquake, Caltrans used the cost-plus-time bidding and reduced the total contract time by 450 days. Caltrans estimated that this bidding technique saved an estimated $47.7 million in road users costs.

In 1996, the FHWA issued a final rule that allows the states to implement warranty clauses on National Highway System construction projects. This final rule effectively eliminates FHWA's longstanding policy precluding the use of warranties on Federal-aid highway projects. Eleven states have evaluated the use of warranties under TE-14 including AZ, CA, IN, MI, MO, MT, NC, NH, OH, WA, WI.

The fourth TE-14 technique, design-build, continues to enjoy strong support from the States although some in the highway industry have expressed various reservations regarding the design- build concept. FHWA has approved design-build projects in 17 states, and the District of Columbia, including: AL, AK, AZ, CA, CO, DC, FL, ME, HI, MI, MN, IN, NJ, NC, OH, PA, SC and UT.

Utah DOT is actively pursuing a $1.325 billion design-build project to rebuild I-15 in time for the 2002 Olympics. It is believed that the use of the design-build procedure will save approximately three years in the completion of this project.

In 1995, FHWA published Rebuilding America: Partnership For Investment, FHWA publication No. FHWA-PD-95-028, which contains descriptions of innovative practices and a list of projects using these practices.

A innovative contracting "best practices" manual is being developed at the Utah State University.

A National Symposium on Innovative Contracting will be held on Orlando, FL in April 1998. Check Web site at: www.technautics.com/conferences/Orlando98.

Lane rental specifications, background information on warranties and guarantees (from the Transportation Research Board), and telephone and speaker assistance.

In 1995, FHWA published Rebuilding America: Partnership For Investment, FHWA publication No. FHWA-PD-95-028, which contains descriptions of innovative practices and a list of projects using these practices.

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U.S. Department of Transportation
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