Construction Program Guide
Contract Time
The FHWA's policies for construction time and time extensions provide for their use and for the review and approval of time related contract modifications for Federal-aid participation.
Authority/Legal Basis
Laws
- 23 U.S.C. 315 Rules, regulations, and recommendations (2012) provides very broad authority for the Secretary of Transportation to prescribe regulations to carry out the Federal-aid highway program. However, there are no specific statutes dealing with construction contract modifications other than the required use of standardized changed conditions clauses as required by 23 USC 112(e).
Regulations
- 23 CFR 635.102 Definitions (04/01/2013)
- 23 CFR 635.109 Standardized changed condition clauses (04/01/2013) prescribes the standardized contract clauses mandated by the 1987 Surface Transportation and Uniform Relocation Assistance Act. These contract clauses include the following:
- Differing Site Conditions,
- Suspensions of work ordered by the engineer, and
- Significant changes in the character of work
Subsection (c) address the unique use of changed condition clauses for design-build contracts. The FHWA encourages but does not require the use of such clauses in design-build contracts.
- 23 CFR 635.120 Changes and extra work (04/01/2013) describes the FHWA approval procedures for the review and approval of change orders and extra work. Paragraph (c) discusses the need to address contract time impacts when developing a contract change document.
- 23 CFR 635.121 Contract Time and contract time extensions (04/01/2013) describes the FHWA approval procedures for the review and approval of time extensions.
The above regulations provide the FHWA's regulatory policy regarding construction contract modifications. However, please note that these regulations were last updated on August 2, 1991 and do not include revised stewardship, oversight, and applicability requirements resulting from the 1991 ISTEA and the 1998 TEA-21. See the discussion in the FHWA Contract Administration Core Curriculum Manual for a summary of current FHWA policy).
Policy
- The FHWA Contract Administration Core Curriculum Manual summarizes policy and provides general guidance concerning contract modifications. Please refer to the following sections of the manual for more specific guidance:
- Use of Incentive/Disincentive (I/D) Provisions in Alabama (11/29/1990)
- Contract Procedures - Federal Participation in Premium Time (Overtime) Payments to Contractors (09/18/1990)
- Florida -- Consultant Service Contracts Incentive-Disincentive (I/D) Clauses (01/22/1988)
Guidance
General Information
- FHWA Contract Administration Core Curriculum Manual
- FHWA Form 1365 - Record of Authorization to Proceed with Major Contract Provision is a form that can be used to document the FHWA's advance approval of change orders
- Construction Contract Time Determination Procedures (T 5080.15) (10/15/2002)
- Geotechnical Guideline No. 15 - Geotechnical Differing Site Conditions (05/02/1998)
- Additional Guidance on 23 CFR 635 A former Federal-aid Policy Guide, Nonregulatory Supplement, 23 CFR 635A (10/09/1996) 5) Changes and Extra Work; and 7) Contract Time and Contract Time Extensions
- Incentive/Disincentive (I/D) for Early Completion (T 5080.10) (02/08/1989)
- Texas DOT Accelerated Construction Strategies Guidelines contains information on developing I/D clauses; developing road user costs and using CPM to manage projects and analyze the impact of changes
Training
- NHI 134037A - Managing Highway Contract Claims: Analysis and Avoidance
- NHI 134049 – Successfully Managing Construction Scheduling and Risk
- FHWA Contract Administration Core Curriculum (Course Description (.pdf))
Archive
- Expediting Completion of Highway Construction in Urban Areas (02/16/1970) provides guidance for division staff to critically review contract time allowances and any change orders that affect contract time on projects in urban areas.