FHWA approves final rule for innovative contracting method - Policy and Legislation - Federal Highway Administration - Brief Article

Public Roads, March-April, 2003

The Federal Highway Administration (FHWA) published a final rule in the Federal Register to allow design-build contracting, an innovative technique that combines, rather than separates, responsibility for the design and construction phases of a transportation project. Compared with traditional contracting, design-build contracting has the potential to save time and taxpayer dollars on transportation infrastructure projects.

Recipients in the Federal-aid highway program will be able to use design-build contracting just as they would traditional contracting. In the streamlined process, firms develop technical and cost proposals that optimize use of their design, construction, and managerial abilities. The contracting agency then rates the proposals, considering factors such as design quality, timeliness, managerial capability, cost, and ability to minimize traffic disruption.

By enabling contractors to optimize their workforce, equipment, and scheduling, the design-build concept provides more flexibility for innovation. From the contracting agency's perspective, the potential savings in time are a significant benefit. Also, because design and construction are performed under the same contract rather than two separate ones, design-build contracting limits confusion about responsibilities and tasks and thereby minimizes claims for design errors or construction delays.

FHWA provided flexibility in the final rule by delegating the approval of projects to FHWA Division Offices in the 50 States, the District of Columbia, and Puerto Rico.