Model development for cost-plus-time bidding applied to Florida Department of Transportation highway construction

To effectively meet the growing need for additional usable highway, attention is shifting from the building of new transportation facilities to the resurfacing, rehabilitation, and restoration of existing highways. Typically, these projects are undertaken in heavily urbanized areas, causing traffic congestion during the construction period. This congestion caused by construction not only poses severe inconvenience to the traveling public, but also negatively affects the business community. With such a premium placed on construction time, many of this country's State Highway Agencies (SHAs) have begun to implement alternative construction procedures in an attempt to reduce project duration. A variety of contracting and bidding methods have been introduced in the United States over the last several years that specifically address reduction of construction times. The most popular methods are: (1) Biding on cost-plus-time (A + B); (2) Incentive/disincentive (I/D); and (3) Bidding on cost-plus-time combined with incentive/disincentive (A + B + I/D). Each of these innovative methods considers the value of time. Due to the significant impact of the value of time, schedulers are required to become more efficient in estimating the construction times.; Currently, most SHAs and contractors use traditional methods. However, more exact time estimates and closer cost predictions are necessary to enable the use of these innovative methods. This research will explore the following topics. For the Florida Department of Transportation (FDOT) (1) how to determine a reasonable range of B in an A + B contract, and (2) how to determine a maximum incentive and maximum days of incentive in an I/D contract. For contractors interested in FDOT projects, (1) what is the best strategy to determine a bid price in an I/D contract, and (2) what is the best strategy to determine a bid price using an A + B + I/D contract. Data from the Florida Department of Transportation (FDOT) are used to verify models to respond to the topics above.