Service | Rates | Natural Gas | Water | Contact Us | Home
Related stories Time is money on state projects Workdays not all "working days" Contractors thrive by shuffling crews Combining jobs creates efficiency, frustration Months of work lost to 'bad luck' Utility lines can tangle road work "SUE" helps state avoid utility line surprises Delays are cost of penny-wise approach Inspectors watch crews waste time |
8.18.04 Some bids consider time as well as money When public agencies hire road contractors, one question dominates deliberations: Who can do the work the cheapest? But some public agencies also consider how fast contractors can do the job. It's called cost-plus-time bidding, and it is one of several contracting innovations gaining popularity. Competing contractors bid the cost of a project and the number of days it will take them to finish. That lets decision-makers weigh the benefits of speed against any savings from a slower pace. Getting a project done faster can reduce safety hazards, traffic congestion and curtail the losses endured by retailers next to construction zones. For some decision-makers, those benefits offset the higher costs, said Jerry Blanding, innovative contracting engineer with the Federal Highway Administration. Nationally, he said, the public is demanding that road projects get done as fast as possible: "They want us to get in, get out and stay out," Blanding said. Another popular innovation is lane rentals. Contractors are charged a fee for each hour that traffic lanes are closed, and they're charged extra for use in peak hours. This encourages contractors to keep lanes open as much as possible and close lanes overnight or on weekends when traffic is lightest. The most tried and true method for prodding contractors is firm deadlines, incentives for early completion and big penalties for running late. Since 1992, the Nebraska Roads Department has placed incentives and penalties in 54 contracts. Of those, 36 contracts yielded bonuses for contractors totaling more than $5 million. Two led to about $125,000 in penalties. The City of Colorado Springs, Colo., has been pleased with its use of incentives in road contracts, said Dave Zelenok, the city's former public works director. Officials have especially noticed how effective contractors can become at scheduling work. "Amazing things happen when you knowingly increase the cost of a project by just 2 or 3 percent," said Zelenok, who is on the American Public Works Association's transportation committee. "We're astonished at the amazing speed in which these guys can coordinate these projects." |
|||