Utilization of Value and Risk Assessments in Transportation Procurement: A Case Study of a New Highway Corridor

Anthony Pesek, Jake Smithwick, Kristen Hurtado, Kenneth Sullivan

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

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.

Original languageEnglish (US)
Title of host publicationConstruction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016
PublisherAmerican Society of Civil Engineers (ASCE)
Pages448-456
Number of pages9
ISBN (Electronic)9780784479827
DOIs
StatePublished - 2016
EventConstruction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan, CRC 2016 - San Juan, Puerto Rico
Duration: May 31 2016Jun 2 2016

Other

OtherConstruction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan, CRC 2016
CountryPuerto Rico
CitySan Juan
Period5/31/166/2/16

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ASJC Scopus subject areas

  • Civil and Structural Engineering
  • Building and Construction

Cite this

Pesek, A., Smithwick, J., Hurtado, K., & Sullivan, K. (2016). Utilization of Value and Risk Assessments in Transportation Procurement: A Case Study of a New Highway Corridor. In Construction Research Congress 2016: Old and New Construction Technologies Converge in Historic San Juan - Proceedings of the 2016 Construction Research Congress, CRC 2016 (pp. 448-456). American Society of Civil Engineers (ASCE). https://doi.org/10.1061/9780784479827.046