Mitigating Risk-Driven Project Costs in Contractor Bids

Contractors submit higher bids on projects they perceive as carrying levels of risk above what they are accustomed to. Typically, contractors submit higher bid prices on projects that present unfamiliar or unknown circumstances or which include non-standard bid items. Higher-than-expected bids increase project delivery costs. This in turn can reduce the number of projects the Kentucky Transportation Cabinet (KYTC) is able to complete. To mitigate bid-related risks, the Cabinet needs information on project types and bid items that result in higher contractor bids. This information can help KYTC understand what factors influence risk perceptions among contractors. More complete knowledge of issues that generate negative risks is critical for mitigating risks shouldered by contractors, accelerating project completion, and delivering projects.

Language

• English

Project

• Status: Active
• Funding: $225000
• Contract Numbers:

  KYSPR-25-671

• Sponsor Organizations:

  Kentucky Transportation Cabinet

  200 Mero Street
  Frankfort, KY  United States  40622
• Performing Organizations:

  University of Kentucky, Lexington

  Kentucky Transportation Center College of Engineering, 176 Raymond Building
  Lexington, KY  United States  40506-0281
• Principal Investigators:

  Harik, Issam

• Start Date: 20240701
• Expected Completion Date: 20260603
• Actual Completion Date: 0

Subject/Index Terms

• TRT Terms: Bids; Contractors; Costs; Project management; Risk assessment
• Identifier Terms: Kentucky Transportation Cabinet
• Subject Areas: Administration and Management; Finance; Transportation (General);

Filing Info

• Accession Number: 01926977
• Record Type: Research project
• Source Agency: University of Kentucky, Lexington
• Contract Numbers: KYSPR-25-671
• Files: RIP, STATEDOT
• Created Date: Aug 12 2024 1:26PM