Quantifying the Effectiveness of Innovative Contracting Strategies on Schedule, Cost and Change Order
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The transportation infrastructure systems in the United States were built between the 50's and 80's, with 20 years design life. As most of them already exceeded their original life expectancy, State Transportation Agencies (STAs) are now under increased pressure to rebuild deteriorated transportation networks. Over the recent years, state transportation agencies (STAs) have taken into consideration various project delivery approaches apart from conventional project delivery approach to expedite project delivery. Since the introduction of these new alternative delivery approaches, not many substantial studies were conducted that evaluated the performance of these new alternatives. The absence of systematic studies about the effectiveness of these strategies and lack of appropriate analytical tools to evaluate them inhibits the STAs from budgeting precisely and accurately these strategies when they are deliberated for being put into practice. This study tries to address these limitations by evaluating the effectiveness of these strategies. The major objectives of this research were: 1) to evaluate the impact of contracting strategies on dealing with change orders 2) to evaluate the performance of different contracting strategies under varied work type for the state of Florida . For this research the study was conducted to quantify the changes to project duration and cost caused by change orders in the project under different contracting strategies and type of work. This was done through evaluating 2844 completed transportation infrastructure projects, completed between 2002 and 2011 in the state of Florida. These projects comprised of both the conventional projects and innovative alternative projects. The data was then statistically analyzed for evaluating the performance of these contracting strategies. The research concluded that alternative contracting strategies perform much better than conventional contracting in controlling project schedule but are found not to be as effective in controlling the project cost growth. The study also established that project size and work type affect the effectiveness of the contracting strategies. The study indicates that A+B is the worst performing contracting strategy among all the strategies evaluated. The results of this study will help the STAs to make better informed decision regarding selection of contracting strategy for project delivery.
Gaur, Ankit (2013). Quantifying the Effectiveness of Innovative Contracting Strategies on Schedule, Cost and Change Order. Master's thesis, Texas A & M University. Available electronically from