1. Survey Responses for Construction Contract Administration Cost Trends Survey
AASHTO Subcommittee on Construction
Contract Administration Section
July 2009
Prepared by
John A. Perry, FHWA-ID
Craig McDaniel, WA DOT
William Hanson, FHWA-KY

2. Survey Data Representation
Survey responses from 32 states DC
Puerto
Rico
Ontario Ministry of Transportation
NY State
Bridge Authority

3. Question 1 - Does your state have a formal lessons learned process to review cost trends?

4. Formal Lessons Learned Process to Monitor Cost Trends - Benefits
Improved PS&E packages & estimates
Focused communications w/project development
Fewer field problems
Trend reviews yield performance improvements
Identification of recurring cost overrun problems
Distributing findings helps minimize problems
Helps focus revisions to procedures

5. Formal Lessons Learned Process to Monitor Cost Trends - Problems
Data collected may not represent current problems
Problems are mostly cultural in nature
Project Delivery Systems
Requires resources to maintain formal process

6. Question 2 - Does your state have an informal lessons learned process to review cost trends?

7. Informal Lessons Learned Process to Monitor Cost Trends - Benefits
Improved communications, performance & consistency
Timely feedback to designers
Easier to identify key focus areas & solutions
Creation of different tools and solutions
Effective specification & procedure changes
Cost savings and timely feedback
Annual Post Construction Reviews
Efficiencies gained through use of technology

8. Informal Lessons Learned Process to Monitor Cost Trends - Problems
Scheduling / attendance at meetings
Cost of travel
Misinterpretation of specifications
Changing culture
Design-bid-build vs. Alternative project delivery system
Getting PM’s to implement policy changes
Follow through on assigned review items

9. Question 3 – If a formal lessons learned process were made available would you designate the resources to use it?

10. Reasons for not designating resources to implement and maintain a formal process
Lack of resources (human, funding etc.)
New staff required to maintain system
Shifting of resources
Cost of new technologies
May not fit existing business practices
Level of effort needed to implement is too big
Current system has minimal data
Barely meet current demands
Lack of time

11. Question 4 – Do you review Contract Administration cost trends on a recurring basis?

12. CA cost trends tracked by states – Construction Management
Bid vs Final CA costs
Construction Engineering (CE) & Inspection costs
(Direct vs Indirect costs) / (CE vs PE costs)
Time card data, manpower costs/contract
Inspection costs vs contract value
Cost management by % overrun & work type
Contract changes by entitlement & payment type
Construction payouts vs CN oversight costs
CE and Materials Testing costs

13. CA cost trends tracked by states – Unit Bid Pricing
Change orders
Overruns & underruns
Contract time
Unclassified & common excavation
Crushed materials
Paving and Structural Concrete
Asphalt
Structural & Reinforcing Steel
Plant mix incentives / disincentives
Fuel adjustments

14. Question 5 – Do you review project specific bid data to identify trends as part of the award process?

15. Project Specific Bid Data Items Reviewed
Clearing & Grubbing
Crushed Base
Asphalt, Steel & Cement
Plant mix
Barricades
Fuel
Mobilization
Top 52 pay items
All standard bid items

16. Question 6 – Do you define mathematically and/or materially unbalanced bids and how are they responsive?

17. How are bids determined to be responsive
Define definition of a balanced bids
BAMS Reports help identify unbalanced bids
Bid Review Committee identifies
Left to engineering judgment
Items >25% of EE and Average of Bids
23 CFR – definitions provided
23 CFR (c, d, e) – process provided

18. Question 7 – How do you Document, distribute, and utilize the results of your bid data reviews?
Database
Meeting Minutes
AASHTOWare
Trns-port
Monthly, quarterly, and Annual Reports
Microsoft Products

19. Question 7 – How do you document, Distribute, and utilize the results of your bid data reviews?
Published electronically
Post on-line (Internal Use Only)
Estimators
Project Managers
CA Engineer
Internal Management Team
FHWA

20. Question 7 – How do you document, distribute, and Utilize the results of your bid data reviews?
Improve cost estimating on future EE’s
To update the Estimating Data Base
Pre-Award Meetings w/Senior Staff
To award proposals

21. Question 7a – Do you have a process for sharing lessons learned through disputes?
Yes 25 No 7
Publish on-line
Revise Specifications
Pre Award Meetings
Hold Dispute Solution Meetings
Weekly Construction Roundtable
Distribute to District Construction Engineers

22. Question 7b – Do you have an end of project review requirement?
Yes 26 No 6
Feedback loop to design staff
Design Recommendations Memo
Report to Preconstruction Personnel
Formal Post Construction Reviews
Projects with large numbers of change orders
Project Assessments Completed and Shared

23. Question 8 – Does your state carry out performance evaluations on the contractor?

24. Question 8a - What are the consequences for a poor contractor performance evaluation rating?
Placed on probation, suspended, sanctioned or debarred
Changes in Prequalification Status
Bid on Low Cost Contracts Only
Not allowed to bid on State projects
Awarded fewer projects
Deceased Bond Rating
Plan of Action to improve rating

25. Question 8b – Do you track performance evaluation ratings and tell the contractor how to stay on the qualifications list?
Of the 21 States that do Performance Evaluations

26. Question 8c – What methods help to improve the contractors performance rating?
Evaluation System
Separate Prime & Sub Evaluations
Improved Communications & Feedback
Annual Rating Reviews & Training
Share poor ratings with contractor
Notice of Limited prequalification
Performance Improvement Plans
Specification Incentives

27. Question 9 – Does the contractor get an opportunity to provide feedback on the quality of contract documents?
Yes 18 No 14
AGC / Industry Meetings
On-line Surveys & Questionnaires
Joint completion of Design Rating Forms
Post Construction Reviews >$10 Million
Formal QA Forum
Difficult to do with low staffing levels

28. Question 10 – Is the contractor allowed to provide feedback on the performance of the construction engineering and inspection forces?

29. Question 10a - How is this information used to improve Contract Administration processes and the contractor’s performance?
All comments evaluated on a case-by-case basis
One on one feedback is provided to staff
Information is summarized / distributed annually
Specification and Contract Modifications are made

30. Question 10b - What were the results
POSITIVE RESULTS OF CONTRACTOR FEEDBACK
Survey improves staff behavior and partnering
Generally favorable, some issues corrected
Some specifications and procedures adjusted
Identified training opportunities for staff
Improved communication lead to program improvements
LIMITATIONS ON CONTRACTOR FEEDBACK
Non Specific / General Feedback
Limited Forms Returned
Reluctance to Provide Negative Feedback