Guide for the Process of Managing Risk on Rapid Renewal Contracts

Fulfilling the objectives of rapid renewal will require the use of innovative contracting processes and a departure from business as usual. Many of these innovative techniques involve shifts in the burden of risk from the state to the contractor. This project addresses the general lack of understanding of risk and risk transfer decisions associated with contracting approaches. Different contracting approaches, such as design-build-operate-maintain-transfer (D-B-O-M-T), build-operate-transfer, warranties, design-bid-build, and design-build, generate different levels of risk for all parties involved. No standardized systematic process exists to quantify the risks for the parties involved (e.g. the transfer of risk from DOT to the contractor, etc). Objective guidance on the level and management of risk is needed to ensure industry acceptance of the concept and to assist states and industry in assessing the level of risk associated with various contracting approaches. This project will develop a guide for implementing processes for risk management on rapid renewal contracts. The guide is intended for use by State Highway Agencies (SHAs) to manage risk during the project development process. The guide will illustrate methods that could be used to address risk identification, assessment, analysis, mitigation, allocation, and monitoring. The guide will include methods to determine the economic consequences of the risk transfer to the various parties involved in the project.  The objective of this project is address the general lack of understanding of risk and risk transfer decisions associated with the differing contracting approaches that may be used for rapid renewal. This project will develop practical guidance for the application of risk management methods to the project development process in a manner consistent with the business practices of SHAs.

Language

  • English

Project

  • Status: Completed
  • Funding: $250000.00
  • Contract Numbers:

    Project R09

  • Sponsor Organizations:

    Strategic Highway Research Program 2

    Transportation Research Board
    500 Fifth Street, NW
    Washington, DC    20001
  • Project Managers:

    Bryant, James

  • Performing Organizations:

    Golder Associates

    ,    
  • Principal Investigators:

    Roberts, William

  • Start Date: 20071221
  • Expected Completion Date: 0
  • Actual Completion Date: 20110120
  • Source Data: RiP Project 15460

Subject/Index Terms

Filing Info

  • Accession Number: 01462749
  • Record Type: Research project
  • Source Agency: Transportation Research Board
  • Contract Numbers: Project R09
  • Files: TRB, RiP
  • Created Date: Jan 3 2013 2:09PM