What is Alternative Contracting?
Alternative Contracting consists of project delivery methods, contract procurement methods, and contracting tools that deviate from the traditional design-bid-build low bid business method. Alternative Contracting is also called "Innovative Contracting" as it was originally identified by FHWA Special Experimental Project No. 14 (SEP-14). SEP-14 is the FHWA program that provides State DOT's the ability to test and evaluate non-traditional contracting on Federal Aid highway projects. FHWA no longer considers the following methods experimental, and therefore they do not require a SEP-14 approved workplan: Cost+Time (A+B), Design-Build, and Incentive/Disincentives. Oregon State Law requires the use of low-bid procurement for highway construction (ORS 279C.300), but allows exemption from this requirement if required findings are approved (ORS 279C.335). Methods that require an exemption from state law include Design-Build, CM/GC, Design-Bid-Build Best Value (A+C+D), and Cost+Time (A+B).
Alternative Contracting Methods and Tools are meant NOT to replace traditional Design-Bid-Build low bid, but to provide additional options for unique, complex, or schedule critical projects. When considering alternative contracting for a project, the selection of the right method or tool is critical to the success of the project. ODOT has used alternative contracting for projects ranging from project development methods (i.e. Design-Build) to alternative bidding tools (i.e. A+C+D) to contracting tools (i.e. Incentive/Disincentive.
Karen N. Scott, Alternative Contracting Engineer, 503-986-4347
Final Reports for Projects with State Exemptions
Many volumes of information exist for alternative / innovative contracting. The information provided here is a starting point. Please contact Karen Scott for assistance is finding information appropriate for your specific project.
ODOT Selection Guide – Still in development.
AAHSTO Primer on Contracting for the Twenty-first Century
Related Web Sites:
Other States (not all inclusive):
Contractor Special Prequalification
- I-84: Sandy River – Jordan Rd -Bundle 210
- US26: Dennis L. Edwards Tunnel Project
Still in Development