Project Finance & Procurement - how will the project be financed and built?
Project constraints such as source of funding, schedule, federal/state/local laws, third party agreements with railroads, right of way, and others
Delivery schedule (construction timing)
Complexity of the project design and construction
Level of design (at the time of the project delivery selection)
Traditional methods used by CDOT over the last decade to deliver Projects:
Two different teams are hired for the project based on lowest price bids. The teams are selected by CDOT from a pool of prequalified consultants and contractors.
1. A design consultant is hired to design the project and produce construction plans.
2. Following design, the plans are advertised and constructors bid their best price to build the Project.
3. The low bid contractor builds the project according to the plans. This method is reliable and everyone understands what is expected. However it is very lengthy, restrictive on innovation and costly in design and oversight.
Alternative methods used by CDOT over the last decade include:
One contractor team (designer and contractor) is hired, under one contract, to design and build the project concurrently based on a preliminary design or concept.
Construction Manager/General Contractor (CM/GC):
Similar to Design Bid Build but the designer and contractor are hired separately.
1. A design consultant is hired to design the project.
2. Construction contractor is hired at the same time to provide constructability input to the design consultant and develops a "guaranteed maximum price" to build the project.
3. If CDOT agrees with the maximum price – the contractor builds the Project These methods provide the opportunity for a larger project for a fixed amount of money, innovative design partnerships between the contractor and CDOT, and allows for potential schedule improvements. Overall delivery is quickest with these methods.
This CM/GC provides the opportunity for the contractor to influence the design and match their skills and resources to the Project. Overall delivery time is in-between Design-Bid-Build and Design-Build.
Innovative Finance and Construction Methods:
The Colorado High Performance Transportation Enterprise (HPTE) was formed to pursue innovative ways to finance, construct or operate and maintain transportation projects. Innovative financing is needed to offset the limited transportation funding available. The HPTE operates as a government owned business within the Colorado Department of Transportation.
The Colorado Transportation Commission has asked the High Performance Transportation Enterprise (HPTE) to explore financial options for the I-70 East project. For more information on the HPTE, visit www.ColoradoHPTE.com.