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Price Plus Time (A+B)

Price Plus Time (A+B) is a delivery method like the low-bid method. ODOT designs the project in-house or through a consultant. ODOT awards the construction contract based on the lowest combined price (A) and time/schedule (B) bid.

The selected bidder’s proposed schedule becomes contractually binding. ODOT uses the schedule for incentive/disincentive contract provisions. Meaning, if the bidder completes the project ahead of schedule, they receive a bonus. If not, they are penalized and receive a predetermined portion of the contract amount.

Price = A
Time/Schedule = B
A + (B x Road User Cost) = Bid

Why use Price Plus Time?

This method works best for projects that have:
  • A high impact on the traveling public.
  • A low amount of overlap with utilities.
  • Other third-party impacts.
ODOT can use early-completion incentives to encourage bidders to be innovative with scheduling.

What does a Price Plus Time contract involve?

Price-Plus-Time projects include two contracts directly with ODOT:
  • One contract with a design consultant*.
  • One contract with a general contractor.
*ODOT may choose to keep the design process in-house. 

What are the contracting phases of Price Plus Time method?

The phases include a design phase, a bid phase, and a construction phase. The early-completion incentives in Price Plus Time may result in a shorter construction phase.


Contact Alternative Delivery Services

4040 Fairview Industrial Drive SE, MS 2
Salem, Oregon 97302