Model Development for Cost-plus-time Bidding Applied to Florida Department of Transportation Highway Construction

Book excerpt: Currently, most SHAs and contractors use traditional methods. However, more exact time estimates and closer cost predictions are necessary to enable the use of these innovative methods. This research will explore the following topics. For the Florida Department of Transportation (FDOT) (1) how to determine a reasonable range of B in an A + B contract, and (2) how to determine a maximum incentive and maximum days of incentive in an I/D contract. For contractors interested in FDOT projects, (1) what is the best strategy to determine a bid price in an I/D contract, and (2) what is the best strategy to determine a bid price using an A + B + I/D contract. Data from the Florida Department of Transportation (FDOT) are used to verify models to respond to the topics above.