State departments of transportation (DOTs) have increased their use of alternative project delivery (APD) methods such as design-build and public-private partnerships to deliver construction projects. The assessment and assignment of financial risk to the selected contractor is a critical element in the development of a solicitation by the state DOT or other project owner. How risk is allocated and the degree to which risk is transferred from the state DOT/owner to the contractor influences potential bidders’ decisions to propose on projects and how to structure and price their proposals.
NCHRP Research Report 1160: Alternative Project Delivery Methods: Assessing and Allocating Risk to Increase Competition, from TRB's National Cooperative Highway Research Program, presents a guide to help state DOTs and other project owners integrate risk analysis into their project development processes to determine the optimal risk allocation for projects using APD methods and incorporate risk allocation into procurement documents in a manner that attracts competition and minimizes risk premiums.
Supplemental to the report is NCHRP Web-Only Document 434: Defining Contractual Risk Profiles to Increase Competition on Alternative Project Delivery Methods.
180 pages
·
8.5 x 11
·
paperback
ISBN Paperback: 0-309-60091-X
ISBN Ebook: 0-309-60263-7
DOI:
https://doi.org/10.17226/29284
National Academies of Sciences, Engineering, and Medicine. 2025. Alternative Project Delivery Methods: Assessing and Allocating Risk to Increase Competition. Washington, DC: The National Academies Press.
Import this citation to: