TY - GEN
T1 - Utilization of Value and Risk Assessments in Transportation Procurement
T2 - Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan, CRC 2016
AU - Pesek, Anthony
AU - Smithwick, Jake
AU - Hurtado, Kristen
AU - Sullivan, Kenneth
N1 - Publisher Copyright:
© ASCE.
PY - 2016
Y1 - 2016
N2 - The Queen Elizabeth II Highway provides the sole transportation link between the city of Edmonton and the city of Leduc. Over 35,000 vehicles commute between these areas on a daily basis, while the Edmonton International Airport is strategically positioned between them. The Canadian government has recognized the need for an alternative transportation corridor in this area. The necessary funding for Phase 1A of the 14.4 mi of new road construction was provided under the Building Canada Fund. The proposed Nisku Spine Road will be completed in four separate phases. The objective of this study was to draw analysis from a government's implementation of a value-based procurement model and risk management approach to minimize project cost. Under this procurement model, the overall project costs were reduced through past contractor experience, risk assessment plans, and value added options. The selected firm's proposal was 30% below the original anticipated cost of $21.8 million dollars. Furthermore, the contractor was able to offer a value added option that resulted in additional savings of approximately $1 million dollars. In all, a total savings of $7.5 million dollars was realized by the utilization of the value-based procurement method for this publicly funded heavy/civil construction project.
AB - The Queen Elizabeth II Highway provides the sole transportation link between the city of Edmonton and the city of Leduc. Over 35,000 vehicles commute between these areas on a daily basis, while the Edmonton International Airport is strategically positioned between them. The Canadian government has recognized the need for an alternative transportation corridor in this area. The necessary funding for Phase 1A of the 14.4 mi of new road construction was provided under the Building Canada Fund. The proposed Nisku Spine Road will be completed in four separate phases. The objective of this study was to draw analysis from a government's implementation of a value-based procurement model and risk management approach to minimize project cost. Under this procurement model, the overall project costs were reduced through past contractor experience, risk assessment plans, and value added options. The selected firm's proposal was 30% below the original anticipated cost of $21.8 million dollars. Furthermore, the contractor was able to offer a value added option that resulted in additional savings of approximately $1 million dollars. In all, a total savings of $7.5 million dollars was realized by the utilization of the value-based procurement method for this publicly funded heavy/civil construction project.
UR - http://www.scopus.com/inward/record.url?scp=84976412148&partnerID=8YFLogxK
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U2 - 10.1061/9780784479827.046
DO - 10.1061/9780784479827.046
M3 - Conference contribution
AN - SCOPUS:84976412148
T3 - Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016
SP - 448
EP - 456
BT - Construction Research Congress 2016
A2 - Perdomo-Rivera, Jose L.
A2 - Lopez del Puerto, Carla
A2 - Gonzalez-Quevedo, Antonio
A2 - Maldonado-Fortunet, Francisco
A2 - Molina-Bas, Omar I.
PB - American Society of Civil Engineers (ASCE)
Y2 - 31 May 2016 through 2 June 2016
ER -