Synthesis of Information Related to Highway Practices. Topic 55-09. Open-books Pricing Practices for Construction Manager/General Contractor and Progressive Design-Build Projects

The use of open-books pricing practices in Construction Manager General Contractor (CMGC) and Progressive Design-Build (PDB) projects is becoming increasingly popular due to its benefits, such as increased price transparency. It also provides an opportunity for price-informed decisions, which can potentially retire major risks prior to establishing the negotiated contract price and reduce the size of the contingency pool carried into the final agreement. Many state departments of transportation (DOTs) have experience using open-books negotiations in alternative contracting and have developed diverse approaches for CMGC and PDB projects. However, there is currently limited guidance on how to configure the procedures for open-books price negotiations, how to articulate those procedures in procurement documents, and the effectiveness of the procedures in use. Additionally, there is a gap in identifying effective practices for executing the "off ramp" if negotiations fail or if the estimated project price exceeds available funding. The objective of this synthesis is to document state DOTs policies and procedures for developing open-books pricing practices for CMGC and PDB.

• Record URL:
  http://apps.trb.org/cmsfeed/TRBNetProjectDisplay.asp?ProjectID=5476

Language

• English

Project

• Status: Active
• Funding: $55000
• Contract Numbers:

  Project 20-05, Topic 55-09

• Sponsor Organizations:

  National Cooperative Highway Research Program

  Transportation Research Board
  500 Fifth Street, NW
  Washington, DC  United States  20001

  Federal Highway Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590

  American Association of State Highway and Transportation Officials (AASHTO)

  444 North Capitol Street, NW
  Washington, DC  United States  20001
• Project Managers:

  Nasri, Arefeh

• Performing Organizations:
  ,   Germany 

  Gransberg & Associates, Incorporated

  Norman, OK  United States 
• Principal Investigators:

  Gransberg, Douglas D

• Start Date: 20230427
• Expected Completion Date: 0
• Actual Completion Date: 0

Subject/Index Terms

• TRT Terms: Construction management; Contract administration; Design build; Pricing; State departments of transportation
• Subject Areas: Administration and Management; Construction; Finance; Highways;

Filing Info

• Accession Number: 01884764
• Record Type: Research project
• Source Agency: Transportation Research Board
• Contract Numbers: Project 20-05, Topic 55-09
• Files: TRB, RIP
• Created Date: Jun 9 2023 7:20PM