Abstract Manager

Have collaborative contracting models, such as alliance, and progressive design build, been successful in delivering better contractor performance, quality, and cost and schedule certainty?

Market conditions have reduced the risk appetite for traditional, fixed price contracting models for capital delivery, especially for larger, complex transit and road projects. In recent years, many North American Transit and Transportation Delivery Agencies have shifted to collaborative contracting models (e.g., progressive design build, alliance, etc.) with aim to benefit from:

1. Collaboration between the owner, designer, and contractor to refine the project and determine the best value through a development phase before identified a construction price.
2. Flexibility to solve hurdles discovered during procurement and development.
3. Better cost and schedule certainty through iterative and open-book refinement of risk allocation/quantification, estimates, and schedules throughout the process.

This paper considers the early performance of these delivery models for major transit projects, drawing from interviews and sessions with senior representatives from delivery agencies across Quebec, Ontario, Alberta, British Columbia, and California.  A key finding of this work is that collaborative contracting models are still in the early stages of evolution for large, complex transit projects in North America. Many of the above benefits have yet to be demonstrated based on engagement with early adopter agencies.

This paper further explores several questions: What challenges have early adopter agencies in North America encountered? What are international best practices? What are some of the recent lessons learned to increase the likelihood of success when implementing a collaborative contracting model?