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Session III: Major Construction Contract Models

July 19, 2007

Session III

Session III: Major Construction Contract Models
Thursday, July 19, 2007 2:30 PM

Comparing Contract Models
Posted By: TxDOT_Chris at July 19, 2007 4:59:16 PM

Jim Dannenbaum raises a question Thursday afternoon.

The session compared various contract models (Comprehensive Development Agreements), their differences and advantages. The message is that Design-Build is alive and well, as demonstrated by the Katy Freeway/IH-10 project in Houston, and SH 130 Segments 1-4 and SH 130 Segments 5-6 in the Austin and San Antonio area.

Each project carried the CDA concept a step further. Katy utilized a TxDOT design but took greater responsibilities than a traditional contract. The result was significant time savings, laudable traffic control, and a project with acclaimed aesthetics. Doug Pitcock, Jr. of Williams Brothers highlighted TxDOT cooperation and preferential treatment to getting work done ahead of schedule.

Doug Fuller, the project manager for Lone Star Infrastructure, noted the CDA for SH 130 Segments 1-4 offered a deviation...to include concepts, design and environmental clearance. SH 130 put greater control and risk in the hands of contractors, and is also under-budget and ahead of schedule.

SH 130-Segments 5-6 offers the fullest development of a CDA yet, with virtually all risk borne by the SH 130 Concession Company. The deal requires the company to complete ROW acquisition as well as design, construction and operation of the road for 50 years. CEO Diego Marin says this contract is more of a finance agreement than a simpler Design-Build.

One other significant difference will be visible on each project.

Katy will be a completed lane project, while SH 130 1-4 allows room to add capacity. But SH 130 5-6 makes the contractor responsible for ensuring enough capacity to maintain benchmarks, such as travel speed, at their cost.

Look for details on the different projects in a separate entry.

Amadeo Saenz capped the session with a review of SB 792.

Major Construction Contract Models
Posted By: txdot_kap at July 20, 2007 1:31:23 PM

The design-bid-build process is alive and well.

Katy Freeway Project - Houston District - I-10 from Katy to I-610. Project length: 25 miles west of Houston Project cost: $2.54 billion (total current-estimate cost) One of the largest highway-construction projects in Texas history. Project consisted of 9 major construction contracts. Public says "Traffic flows better during construction than it did prior to construction."

SH 130, Segments 1-6 - Austin design-build vs. traditional approach 91-mile project from Georgetown to Seguin is project length; segments 1-4 approximately 50 miles; segments 5-6 approximately 40 miles Segments 1-4 use a design-build approach and segments 5-6 use a concession model. This benefits the public sector and shifts risk to private sector. More project info: www.sh130.com.