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Final Review Instructions
Overview
Mt. View
 
The purpose is to provide the second level of review at the advanced design 75% level to refine the initial assumptions for the project I/D.  The final refinement  model establishes the “lower boundary” and “upper boundary” parameters based on evaluations of contractors’ costs and Road User Cost (RUC) cost techniques based upon reasonably accurate cost and schedule components for the project.  These boundaries in turn provide a range within which incentive amounts would be effective.
 
The roles are as follows:
    I/D development leader – Project Leader
    I/D subteam – specification writer, scheduler, traffic control
    designer
 

Workflow Checklist

Workflow check list
 Develop the baseline schedule CPM without acceleration
 Develop the days of acceleration within the CPM schedule.
 Develop the daily final Road User Costs (RUC).
 Develop the portion of costs being accelerated in Estimator.
 Enter data into the I/D calculator to develop contractors costs
 Evaluate the range of $/Day between Contractors cost and RUC
 Determine the total I/D “bucket” based on RUC
 Adjust the “Zero” date for work completion
 Adjust the number of total days for the I/D
 Adjust the value $/D for the I/D
 Complete the Specification for Spec Engineer/DOJ approval
 

Procedures
 
The final I/D development procedure includes the use of multiple documents.  The project leader or team leader should form a technical sub team from the  project development team to develop the final I/D.  The minimum team should include the specification writer, construction scheduler and traffic control designer.  The team should maintain contact with the ODOT specification engineer at this stage to process the specification revisions to the 100's section of the project special conditions.
 
The first task will be to develop a standard project schedule using the ODOT Standard Production Rates.  The standard schedule will provide a baseline of time that the project would normally take for completion.  The schedule is developed on a CPM programs such as Microsoft Project.  This data is used to validate the initial DAP assumption that an I/D is indeed necessary for the project.  This date will also be used to determine the amount of time reduction required in the I/D for the new completion date.  This new date is called the “zero date”, primarily because the contractor will receive no incentive or disincentive if the work is completed on this date.
 
The second task for the scheduler is to coordinate with the traffic control designer to identify the stages of the project and accelerate the work through the use of either additional shifts or the use of overtime.  The general rule is to first use additional shifts through the weekend as this cost is lower than overtime costs.  Additionally, the contractors cannot maintain overtime over extended periods, especially on Sunday’s.
 
The second task for the scheduler is to coordinate with the traffic control designer to identify the stages of the project and accelerate the work through the use of either additional shifts or the use of overtime.  The general rule is to first use additional shifts through the weekend as this cost is lower than overtime costs.  Additionally, the contractors cannot maintain overtime over extended periods, especially on Sunday’s.
 
The next task is to develop the final incentive amount and time for the project.   The Daily Road User Cost analysis has been greatly simplified and the initial RUC daily costs calculated in the DAP level review may be carried forward to this set of calculations. If the calculation is not yet available, obtain the ADT from the traffic tables link and use the DAP level calculator to obtain the daily RUC. Traffic Tables & Oregon State ATR Map   Additional costs might be available if needed to support the upper boundary costs in the I/D Cost Calculator.  A Daily Road User Cost is developed from this analysis. Guidance for Selecting the Daily I/D further defines the considerations to be used for the final I/D selection.
 
The specification writer will use the Estimator program to determine the actual component costs that will be accelerated.  The entire bid item may need to be accelerated, but more often, only a portion of the project need be accelerated.  Some information may be required from the designers to identify the approximate percentage of work that will need to be accelerated.   Rough percentages of work are adequate for this analysis.
 
The I/D subteam will process the needed time reduction and the costs of the accelerated portions within the I/D Cost Calculator.  This tool will provide a lower and upper boundary for the daily I/D for the given project.  The total number of reduction days is multiplied by the daily RUC to develop a total bucket of incentive dollars.
 
Once the total bucket if I/D dollars is determined, some flexibility is given to the project team to determine the final I/D per day amount and total number of days for the I/D.  It is recommended the team not place the “zero day” of the I/D on the actual day the project is needed.  A shift of the “zero day” to reduce the completion time is recommended to provide a buffer in the event the contractor does not complete work as anticipated.  This practice will prevent the disincentive days from falling beyond the date of the needed completion of work.  Usually a week of additional buffer is recommended but that can vary by project.
 
Additionally, the total number of days can be reduced and the value of the I/D increased as determined by need for the project.  There have been needs for smaller I/D’s over longer periods as well as very high I/D’s over shorter periods on projects.  This is generally determined by the DOT’s recognition of the value to gain each additional day of time to complete the facility.  Movable bridge projects and in water work projects tend to have very high value for each additional day, while modernization projects tend to have lower daily value for each day.
 
The contractors risk should also be considered also because if the disincentive is too high (generally over $30K per day) the contractors have more difficulty obtaining performance bonds for the project.  Special meetings with the AGC have been used in the past to discuss those bonding limit requirements with the contractors prior to completing the selection of the I/D value.
Ultimately, the team selects the I/D based on daily need as well as the contractors risk but in all cases the total for the I/D should not exceed the total I/D bucket.  The I/D incentive and disincentive amounts should also be the same.
 
Once the I/D amount and days are determined, the specification writer should prepare the I/D specification and forward that spec to the ODOT Specifications Engineer.  This specification is a change to the 100’s section requiring DOJ approval of the revisions.  Example ID Specifications are provided for review.  Each specification is unique to a project and it is not recommended that the specification writer simply cut and paste these examples into the project special conditions.  Evaluate the completion requirements and the project stages to clearly define the completion requirements for the I/D.
 
 

Worksheet Guidance

IMPORTANT!  Begin by saving this file in a location and with a name that you will remember.
Before completing the worksheet, the following information must be available:
A) The total biddable cost of the overall project must be estimated;
B) The portion of the project to be accellerated must be defined;
C) The Biddable Amount, less OH&P, of the accelerated portion must be estimated:
D) An estimate of the target acceleration time ( in days) must be available;
E) Daily road user cost premium of public delay for the accelerated portion must be known.
 
 

Worksheet Entry:
Note: values may be entered into yellow cells only.
1) Enter the project name;
2) Enter the code (A, B, etc.) for the project type;
3) Enter the code (AA, BB, etc.) for the construction market conditions;
4) Enter date (today's date is automatically calculated; entering a datre overrides this automatic calculation);
5) Enter a description for the portion to be accelerated;
6) Enter the total project estimate
7) Enter the Biddle Amount, less OH&P, of the accelerated project portion;
8) Enter the Target number of days of acceleration;
9) Enter the daily road user cost premium of the accelerated portion;
10) In the column defined "Stage I Project Breakdown", observe the initial suggested values for each cost category;
11) In the column entitled "Segment Specific Breakdown", enter values using the "Stage I Project Breakdown" values as a guide (pre-loaded values are for a roadway under normal market conditions);
12) In the column entitled "Acceleration impact", enter values which represent a percentage premium that acceleration will cost the contractor for each line item (see "Premium Guidance" below);
13) Finally, enter a value for "I/D Incentive Profit per Day" on line 34.  See discussion of "Results evaluation" below for guidance.

Premium Guidance

Premium Guidance:
Suggested starting points for analyzing "Acceleration Impact"
Element
Sub-element
Overtime
Add'l
Shifts
Direct cost
 
 
 
 
Labor
50%
5%
 
Materials
5%
5%
 
Equipment
-5%
-5%
 
Subcontract
55%
10%
Indirect Cost
 
 
 
Supervision
10%
25%
 
Time-related facilities
-10%
-25%
 
Non-time-related facilities
0%
0%
 
Mobilization/demobilization
0%
0%
 
Insurance and taxes
0%
0%
Markup
 
 
 
 
Risk
35%
10%
 
Home Office G&A
0%
0%
Note: Above values are very general in nature.  Extended overtime (in excess of four weeks) may cause significant inefficiency and may incur premiums beyond those above.)

Resources

Primary Resources Other Resources
Final Review Document FINAL Project Schedule (mpp)
PS & E (Estimator File)Traffic Tables & Oregon State ATR Map
ODOT Standard Production Rates ID Specifications
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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