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Alternative Contracting Methods

Background

 

While the majority of DOTD projects use the design-bid-build delivery method, DOTD has legislative authority to use four other methods of project delivery/financing: 

 

 

 

 

 

Procurement Methods

 

Construction Management at Risk: CMAR is a delivery method by which DOTD contracts with a design professional that is engaged by DOTD for professional pre-design or design services, or both. DOTD contracts separately with a CMAR contractor to engage in the pre-construction phase. The same CMAR contractor may also provide construction services for the project.

 

Design-Build: DB is a delivery method by which DOTD holds a single contract with the contractor for the design and construction of a project. The contractor holds the contract with the designer. Contractors are afforded the opportunity to participate in the design in an effort to reduce cost, risk and contract time.

 

Progressive Design-Build: PDB is a delivery method by which DOTD selects a design-build team early in the project lifecycle based on their qualifications, then collaboratively develops the design with them in phases, allowing for flexibility and cost control throughout the design process before finalizing a construction price and moving into the construction phase. Essentially, this method provides a more iterative and collaborative approach to traditional design-build.

 

Public-Private PartnershipP3 is an innovative procurement method that allows DOTD to contract with a private entity to share in project costs and financial risk while leveraging the private entity’s expertise and resources. This method is typically structured as Design-Build-Finance-Operate-Maintain concessions, covering 30-plus years. P3s require private sector partners to assume responsibilities traditionally held by public agencies.