Friday, July 6, 2012

Design-Build in Highway Construction Reauthorization Bill

In our March Division 4 presentation, Julie Muller, presented an article "Realized Economic Efficiency of Road Project Delivery Systems" by Tina Koppinen and Peti Lahdenpera (2007).  Koppinen and Lahdenpera advocate increased use of design-build in road construction.
... and here we have the DBIA reporting that the Transportation Reauthorization Bill that just passed through Congress has several provisions that will encourage the use of design-build in U.S. highway projects:

In addition to authorizing the funding of surface transportation through FY 2014 at inflation-adjusted current levels of spending, MAP-21 singled out design-build as an innovative contracting method, making design-build projects eligible for increased Federal dollars. At the discretion of the Secretary of Transportation, design-build projects may receive Federal share payable up to 100 percent. The law also promotes the use of contract incentive payments for early completion of projects, as long as incentives are accounted for in the financial plan of the project.
Hat Tip to Lisa Dal Gallo.  Thanks, Lisa.

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