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Subject: Innovative Contracting Practices
Sample Special Provisions
Date: November 18, 1991
From: /s/ Original signed by:
Director, Office of Engineering
Refer To: HNG-22
To: Regional Federal Highway Administrators
Federal Lands Highway Program Administrator

In May 1985, the Federal Highway Administration (FHWA) approved for use, on an experimental basis, the concept of including road user costs in the low bid determination. This approach which is discussed in FHWA Technical Advisory T 5080.10 is commonly referred to as the "A+B" method of bidding. The "A+B" method has been applied in 10 States and the District of Columbia. The States which have applied this method most frequently are Maryland and Missouri.

Another contracting technique similar to "A+B", which is relatively new in the United States is the "lane rental" method. "Lane rental" attracted favorable attention during the 1990 European Asphalt Study Tour and was subsequently discussed in some detail in my memorandum of April 2. The "lane rental" method, while not suitable for all projects, can prove to be a valuable approach to minimize traffic delays for critical projects or phases of projects which have high road user impacts. Similar to the "A+B" method, the objective of a "lane rental" provision is to encourage contractors to shorten contract time and reduce road user inconvenience and costs. "Lane rental" provides for a specified charge to the contractor, based on road user costs, for the period during which the contractor occupies part of the highway for the purpose of carrying out construction.

Since April, we have received a number of inquiries concerning both the "A+B" and the "lane rental" methods. Particularly, requests have been for information and/or copies of sample contract provisions. In response, we have developed the attached sample contract provisions for applying each of these methods. These provisions may be used as a guide by those State highway agencies (SHA's) desiring to implement these methods as part of the Special Experimental Project No. 14 effort.

For both the "A+B" and the "lane rental" methods, the road user cost and rental charge should be well documented. The amount should be based on construction engineering costs, traffic control costs, detour costs and road user delay costs. Further guidance on development of these costs is included in FHWA Technical Advisory T 5080.10. All SHA's requests to apply any of these methods should be coordinated with this office (HNG-22). Should you have any questions, please contact Messrs. Allan Rockne or Stephen Gaj at (FTS) 366-0355.

/s/ original signed by
Thomas O. Willett


Updated: 06/27/2017
Federal Highway Administration | 1200 New Jersey Avenue, SE | Washington, DC 20590 | 202-366-4000