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Alternative Contracting

Oregon law requires the use of low-bid procurement for highway construction (ORS 279C.300), but allows exemption from this requirement if required findings provided in an exemption order are approved (ORS 279C.335).

Alternative contracting methods that require an exemption include:

  • Design-Build.
  • Construction Manager/General Contractor.
  • Price Plus Time (A+B)
  • Price Plus Multi-Parameter (A+C+D).

Alternative Contracting Projects List

Contracting Methods

Alternative contracting methods and tools 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 can be critical to the success of the project.

Price-Plus-Time (A+B) is a delivery method that is similar to the low-bid method. ODOT designs the project in-house or through an architecture and engineering (A&E) consultant, then awards the construction contract based on the lowest combined price and time (schedule) bid. The schedule provided by the selected bidder becomes contractually binding and is used with incentives/disincentive contract provisions.

If the project is completed ahead of schedule, there are monetary incentives, if the project is not completed on time, the monetary disincentives are applied concurrently with liquidated damages.

The Price-Plus-Multi-Parameter (A+C+D) delivery method is similar to the low-bid method. ODOT designs the project in-house or through an A&E consultant, then awards the contract based on price and other factors.

In Price-Plus-Multi-Parameter, price is weighted at 40 percent and the multi-parameter factors make up the remaining 60 percent. The A+Multi-Parameter factors that ODOT uses are:

A = Price
B = Time
C = Contractor's qualifications
D = Contractor's proposed approach or means and methods

The Construction Manager/General Contractor delivery method leverages the combined skills of an integrated multi-discipline team to control time and cost and to ensure quality.

The team consists of ODOT representatives, an A&E firm and a CM/GC firm. This team plans, designs and constructs the project together. CM/GC services are used for pre-construction and construction work, during both the design and construction phases.

The CM/GC delivery method requires contracting with an independent cost estimator (ICE) who will assist ODOT in validating estimated costs proposed by the CM/GC firm.

The A&E firm and ICE are selected using the standard consultant selection process. The CM/GC is selected through a Request for Proposal process. ODOT awards the contract based on price and other factors like qualifications, past performance, project approach, CM/GC fee, and hourly rates.

Unique CM/GC general provisions establish the terms and conditions for the following:

  • The bidding, evaluation and award processes.
  • The services performed during the pre-construction and construction phases.

The CM/GC general provisions replaces ODOT’s Standard Specifications General Conditions Part 00100.

Design-build is a delivery method in which ODOT contracts with a single entity that can design the project and construct it.

ODOT performs approximately 15 to 30 percent of the conceptual design so we can accurately relay ODOT’s goals, requirements for the performance specifications that make up the contractual requirements of the project.

The DB method is a complex, two-stage procurement process that requires additional staff time or services from a consultant. First, ODOT invites proposers to submit a statement of qualifications in response to our request for qualifications. ODOT uses the SOQ to create a short list of proposers.

ODOT uses the request for proposal process to solicit bids from the proposer shortlist for the design and construction of the project. The DB proposers submit their proposals for design, construction, time, and the cost to perform all aspects of the project. ODOT awards the contract based on price and factors such as qualifications, past performance and proposed technical approach to the work.

ODOT retains oversight of the DB contract, including:

  • Over-the-shoulder design reviews.
  • Quality verification.
  • Progress report reviews.

Unique DB general provisions establish the terms and conditions for the following:

  • The bidding, evaluation and award processes.
  • The services performed during the design and construction phases.

The DB general provisions replace the ODOT Standard Specifications – General Conditions Part 00100.

Contractual Options and Services

Contractor special pre-qualifications may be needed when a public improvement project requires special knowledge or expertise. If used, these special qualifications are required in addition to the mandatory general pre-qualifications (also known as prime contractor pre-qualification).

When a special pre-qualification is used, ODOT publishes a Request for Contractor Special Pre-qualification on its internal procurement website and in the Daily Journal of Commerce for projects estimated at $125,000 or more.

Interested contractors must submit their qualifications prior to the bid opening. An evaluation committee reviews each submittal, applying a pass or fail score. Only contractors with a passing submittal will be deemed specially pre-qualified and allowed to submit a bid on the project. Special pre-qualified contractors must also meet the ODOT mandatory general pre-qualification requirements to be eligible to bid on the project. ODOT awards the contract to the lowest bidder.

ODOT uses unique special provisions that modify the ODOT Standard Specifications – General Conditions Part 00100.

ODOT uses incentive/disincentive contract provisions to maintain construction completion dates, encourage innovation in work sequencing, and accelerate project delivery.

ODOT primarily uses I/D provisions on critical projects where traffic inconvenience and delays must be kept to a minimum. ODOT applies I/D provisions to a portion of the work, with amounts based on cost estimates for items such as road user delays, traffic safety, and traffic maintenance.

In short:

  • When the contractor completes the work ahead of schedule, ODOT applies monetary incentives.
  • When the contractor completes the work later than scheduled, ODOT applies monetary disincentives along with liquidated damages.

ODOT uses unique special provisions that modify the ODOT Standard Specifications – General Conditions Part 00100.

Resources

Alternative Delivery Services Team

The ADS team offers specialized program information, training and project guidance for the different alternative delivery methods and contracting options, including those identified above.

The Alternative Delivery Services team supports ODOT project teams with the following:

  • Offer guidance in selecting a preferred delivery method, given the specific project's goals, risks and needs.
  • Coordinate the alternative delivery method selection and approval processes.
  • Provide solicitation template documents during the early stages of the procurement process.
  • Perform Risk, Value Engineering and Constructability Review services.
  • Facilitate the development and administration of policy and procedure documentation, solicitation and contractual document templates, as well as process guidance documents.​
  • Offers guidance and training on alternative delivery methods and contracting.

Contact us for more information.

The following documents are available upon request.

  • Schedule, procurement and contract templates and examples.
  • Findings of Fact for Exemption templates and examples.
  • FHWA Special Experimental Projects No. 14 templates and examples.
  • Strategy and process documents and manuals.

Additional Resources

​In addition to the Alternative Delivery Team, the following ODOT groups can provide assistance.

Office of Project Letting - OPL is a great resource for information about:

  • Design-Bid-Build.
  • Contracting with ODOT.
  • Guidance on the contractual options OPL supports.

ODOT Procurement Office - OPO is a great resource for information about the procurement processes and requirements related to:

  • A&E contracting.
  • Consultant contracting.
  • Goods and services contracting.
  • Contracting with ODOT, in general.
  • Guidance on contractual options supported by OPO.

Contact Alternative Delivery Services

4040 Fairview Industrial Drive SE, MS 4
Salem, Oregon 97302

Program Contacts

For general program inquires and project evaluations:

Phone: 503-986-7131
 

For project information, templates and historical data:

Phone: 503-986-3759
 

For contract language inquires:

Phone: 503-986-7130
 

For value engineering, risk management and constructability reviews:

Phone: 503-986-7168

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