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ArrowPerformance Contracting for Construction: Framework for Implementation

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Mark Robinson, Ph.D., P.Eng., PMPSAIC January 22, 2007

PowerPoint Version (479 kb)

Slide 1. There are five photos that make up the frame of all the slides in this presentation. Photo No 1, construction site, Photo No 2, traffic on three lanes and construction being done on three lanes, Photo No 3, overpass construction, Photo No 4, overpass construction and Photo No 5, interstate construction.


  • Why Performance Contracting for Construction?
  • Framework Purpose
  • Stakeholder Involvement
  • Framework Contents
  • Relation to the Highways for LIFE Program
  • Lessons Learned
  • Pilot Program
  • Next Steps
Slide 2

Why Performance Contracting for Construction?

  • Much of America's transportation infrastructure is reaching the end of its design life and needs to be re-constructed
  • Traffic levels and the resulting congestion levels continue to increase
  • FHWA is developing, identifying, and promoting new methods to reconstruct highways and bridges safer, faster, and better
  • Using performance contracting will allow State and local agencies to define and communicate to contractors specifically what they want to achieve
  • Contractors will have the flexibility to determine how they do the work
Slide 3

Some Pros and Cons

  • Pros
    • Introduction of Innovation
    • Defined Outcomes
    • Contractor Flexibility
    • Share of risk and rewards
  • Cons
    • New approach that requires a culture shift
    • May not be applicable to all projects
Slide 4

Framework Purpose

  • To provide State and local agencies with processes and materials that they can use to accelerate the development of a performance contract solicitation package for construction contracts
  • Meant to be used as a reference guide
  • Should help agencies to avoid common obstacles and pitfalls
Slide 5

Stakeholder Involvement

  • The project team developed the materials working with:
    • A select group of stakeholders from State DOTs and Industry
      • Provided guidance and review at the 30%, 60%, and 90% stages
  • Subject matter experts from FHWA
Slide 6

State DOT and Industry Stakeholder Group

  • Scott Jarvis - Caltrans
  • Chuck Suszko - Caltrans
  • Gene Mallette - Caltrans
  • Peggy Chandler - Texas DOT
  • Steve DeWitt - North Carolina DOT
  • Kevin Dayton - Washington State DOT
  • Dexter Newman - the Kentucky Cabinet
  • Sid Scott - Trauner Consulting
  • Brian Deery - AGC
  • Bob Lanham - Williams Brothers Construction
  • Brian Burgett - Kokosing Construction
  • Rich Juliano - ARTBA

Note: Participation did not involve formal endorsement of the final product

Slide 7

FHWA Subject Matter Experts

  • Jim Sorenson
  • Mary Huie
  • Byron Lord
  • Ken Jacoby
  • King Gee
  • Jerry Yakowenko
  • Tracy Scriba
  • Chung Eng
  • Rudy Umbs
  • John Baxter
  • Mark Swanlund
  • Peter Kopac
  • Christopher Schneider
  • David Geiger
  • Tom Deddens
  • Gus Shanine
  • Rob Elliott
  • Evan Wisniewski
  • Jim Hatter
  • John Bukowski
  • Fred Skaer
  • Shari Schaftlein
  • Myint Lwin
  • And others
Slide 8

Framework Contents

  • Overall process for performance contract development
  • Guidance on selecting appropriate projects
  • Processes, lessons learned, and sample solicitation package materials for:
    • Performance Goals
    • Measurement Methodology
    • Enhanced Low Bid Award Process
    • Best Value Award Process
    • SEP-14 Process
Slide 9

Relation to the Highways for LIFE (HfL) Program

  • HfL's mission is to improve the driving experience of the American public
  • HfL is looking for new ways to build highways and bridges safer, faster, better, and less costly
  • Performance contracting will be a tool in the HfL toolbox
  • HfL projects are not required to use performance contracting
  • Additional consideration will be given to projects that propose to use performance contracting
Slide 10

Lessons Learned

  • Each project will be different - Processes, goals, and materials will need to be tailored to the individual application
  • Performance goals should be SMART - Specific, Measurable, Achievable, Results-Oriented, and Timely
  • Performance goals MUST be under the influence of the contractor
  • The contractor must have flexibility in how they perform the work
  • Ideally, the performance-based environment will start at the concept or design stage
Slide 11

Pilot Program

  • FHWA is currently seeking 4 to 8 agencies that are interested in piloting the Performance Contracting Framework.
  • Pilot states will receive tailored technical assistance to help them implement this approach
  • Pilot states can propose the use of the framework as an innovative approach when applying for funding under the Highways for LIFE Program
  • For more information on becoming a pilot agency, contact Mary Huie at or 202-366-3039
Slide 12

Next Steps

  • Perform outreach to recruit agencies to pilot the framework
  • Provide technical assistance to 4 to 8 pilot projects
  • Capture information on successes and lessons learned
  • Prepare case study documents on each pilot application
  • Revise and update the Framework for broader release
Slide 13

For More Information

Slide 14

More Information



Scott Wolf
Center for Accelerating Innovation

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Updated: 04/04/2011

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