Pavement Management: Getting the Right Contractor

Challenging topic when stuck with the low bid system

Introduction to techniques to evaluate contractors

What kinds of things will protect the agency against bad contractors

How do I use acceptable criteria without hampering competition

What is my role in educating decision makers and the public?

How many contractors should I have?

There are 4 types of selectioncriteria commonly used

Awards Method

Experience Method

Best Bid Method

Low Bid Method

Awards MethodResult: E.J. Breneman, L.P.

Experience MethodResult: E.J. Breneman, L.P.

Best Bid MethodResult: E.J. Breneman, L.P.

Low Bid MethodResult: Asphalt Paving Systems

Number of different companiescapable of doing quality work

The perils of the Low Bid System

Remember, you can’t take the Conout of Contractor!

Which is why we havespecifications!

You’re assuming all bidders read the specifications

Think about how many bids the average estimator has to look through each week If something has changed since the last bid, point it out Pre-Bid Meetings are the perfect avenue to make sure

everyone has the same information But isn’t that the contractor’s responsibility? About that…

As an agency you want all contractors to have the same knowledge about your project Do you want one guy ducking an item you never use? Do you want an unbalanced bid to potentially cost you more

money for the same work? Do you like protests?

Partnership approach will yield results

What qualifications are you requiring contractors to meet?

FDOT Pre-Qualification in Flexible Paving The process of Pre-Qualifying by FDOT adds some

protection Companies not capable of getting Pre-Qualified by FDOT

likely have financial “issues”

Experience clause Are you willing to allow on the job training on your project? Contractor should provide references of successfully

completed projects in order to be awarded the project Don’t forget to confirm the type of process

Management Plan Some Counties require a document explaining the companies

capabilities and the crew’s experience

Now you’ve got a contractor,how do you proceed?

Pre-construction meeting Don’t you have something for me? Are you sure this is a “real” mix design Okay well, is this a “real” lab? Meet our inspector, his name is Dave

Now can we start? Sure, promise you’ll do a good job for us though No you can’t skip the prime coat What change orders

Now you’ve got a contractor,how do you proceed?

Inspectors If it’s an alternative process, have you trained the

inspectors? What resources are available out there? What is the inspectors role?

The Dirty word – Profit and it’s role Agencies that routinely make life rough on the

contractor unnecessarily pay higher prices Quality contractors deserve to make money for the risk

they are taking on when constructing your project Does your inspection team understand the value of the

Win-Win?

What if there are problems?

There will be and it’s what defines a good contractor Anyone can build a good project, it takes real skill to

turn a bad project into a good one Communicate early and often Never assume anything

The Contractor has a responsibility to build a good project You are right to make them follow the specs Are they giving you what you asked for?

The Agency has a responsibility to be fair Is the Contractor held to a reasonable standard? Have we set him up to fail?

Did we test it? The materialsthat is?

Great, it passed

Did we put the contractor on the “Right” Road?

Co

nd

itio

n

Time

$1 for preventive maintenance here

Is 3 to 10 times more cost effective than here

“Right Road, Right Treatment at theRight Time” by the Right Contractor

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20

40

60

80

100

Years

PC

I

“The Right Time”Preservation and Rehab Strategies

Rejuvenation

Crack Seal

Chip Seal Micro-Surfacing

Cape Seal

Asphalt Overlay

Cold In-Place Recycling

Full Depth Reclamation

0

20

40

60

80

100

Years

PS

I (P

av

em

en

t S

erv

ice

ab

ility

Ind

ex

)

A. Routine Maintenanc e

B. Preventive Maintenance

C. Defer action

D. Rehabilitation

E. Reconstruction

The Right TimePreservation and Rehab Strategies

0

10

20

30

40

50Current Condition

% o

f N

etw

ork

Pav

em

en

t

Pavement Remaining Life Categories

I II III IV V VI(0-2) (3-7) (8-12) (13-17) (18-22) (23-27)

(Years)

10%

19%

40%

8% 6%

17%

Current network distributionMichigan DOT

0

10

20

30

40

50Ideal Condition

% o

f N

etw

ork

Pav

em

en

t

Pavement Remaining Life Categories

I II III IV V VI(0-2) (3-7) (8-12) (13-17)(18-22)(23-27)

(Years)

11%18% 18% 16% 17% 20%

Ideal network distribution Michigan DOT

Strategy to Minimize CostsP

avem

ent c

on

dit

ion

Time or traffic

Preventive maintenance treatments

Conventional overlay

The Volusia County Example

The Volusia County Example

What about competition?

Diversification doesn’t haveto be complicated

Does this look diversified?This is probably one contractor

Current County Pavement Management

Hot Mix Overlay

Mill & Overlay

Micro-Surfacing

CIR/FDR

Chip Seal

Rejuevenator

Crack Seal

Lane Miles per $1M HMA – 10 Miles

Mill & Overlay – 8 Miles

Total = 18.3 Miles

Diversification in an Urban/RuralCounty, how many contractors now

Lane Miles per $1M HMA – 4 Miles

Mill & Overlay – 3.3 Miles

Micro – 9.5 Miles

CIR/FDR – 1.2 Miles

Chip Seal – 9.1 Miles

Rejuvenation – 20 Miles

Crack Seal – 16.7 Miles

Total = 63.8 Miles

Pavement Management Urban/Rural County

20%

20%

20%

15%

10%

10%5%

Hot Mix Overlay

Mill & Overlay

Micro-Surfacing

CIR/FDR

Chip Seal

Rejuevenator

Crack Seal

Lane Miles per $1 Million Spent

Process Lane Mileage HMA – 20 Miles

Mill & Overlay – 16.7 Miles

Micro – 47.6 Miles

CIR/FDR – 8 Miles

Chip Seal – 91 Miles

Rejuvenation – 200 Miles

Crack Seal – 333 Miles0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

Miles

HMA M/O Micro CIR/FDR Chip Rejuv Crax

Process

Lane Miles Covered per $1M

My role in educating decision makers and the public?

Saving $ at the bottom of the curve enables us to invest more at the top of the curve

Process Diversification Results

Lane Miles for a $50M Alternative Process Program Rejuvenation – 10% @ $4,900/mile = 1,014 Miles

Crack Seal – 10% @ $3,000/mile = 1,014 Miles

Chip Seal – 15% @ $11,000/mile = 681 Miles

Micro – 25% @ $21,000/mile = 595 Miles

BACFC – 20% @ $44,000/mile = 227 Miles

CIR/FDR – 20% @ $125,000/mile = 80 Miles

Total = 4,264 Lane Miles or 20% of the 21,000 miles in Non-Federal Aid category

We look forward to workingwith you to maximize your return on investment!

Questions?