Contracting Method Case Study

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Innovative Contracting Methods: In the past few decades, came up many innovative contracting methods to solve this need and many other problems with the traditional contracting method. Some new methods were negotiating costs while improving the quality and time of the project, some focused on valuation of time alone and some ensured the contractor’s credibility and so on. The innovative methods have been coming every time a new factor of consideration is identified in the construction process. In highway construction alone, the considering factors change from place to place, time to time, street to street and so on. Some of the bidding processes apart from the traditional contacting method that are used in governmental projects across the world…show more content…
In this above case, the Contrator B has won the project, though it is neither the least cost bidder nor offers least time quote for this project, but based on its Least Total Combined Value in column 7. The 14 projects that were contracted using the A+B method during late 18th century have been studied as summarized in Table 2 (Herbsman and Ellis,…show more content…
But the range of time saving was really large. It is also not always true to have time savings as it is seen that in one construction project in Maryland it was 0 and also there are other instances in the states of Georgia and Missouri where time saving turned out negative. This means that the total time quoted by the lowest bidder is more than the actual estimate given by the engineer.
A study results (Herbsman, Chen, Epstein, 1995), taken up on 11 projects in North Carolina, are depicted using Figure 4. From this study, it is noted that all the projects sanctioned, by the North Carolina Department of Transportation, in this method have never had negative time saving. Of the 11 independent projects studied, it was found that 10 of them had a time saving and only one had no time saving. These prove that this bidding method was capable of reducing the project duration.

Figure 4: Time estimates for A+B projects in North Carolina in 1991-1993 (Herbsman, Chen, Epstein,
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