Abstract
Traditional design–bid–build guidelines suggest that engineering estimates should be within of the lowest contractor bid and recommend this value as a reference to identify anomalies in the bidding process. This guidance, however, neglects delivery approaches such as design–build (D–B). This research examines 305 D–B highway projects procured using best-value and identifies the underlying reasons for bid dispersion and cost estimates inaccuracies. This study found an average bid dispersion of 27%, suggesting that a larger threshold (i.e., 25%) is needed to account for the inherent variability of D–B projects. This study also found that engineering estimates are on average 2% more than the awarded price. This result contradicts findings in existing literature and suggests that current practice in D–B best-value may be more conservative than other procurement methods. The study explores four potential reasons for bid dispersion and engineering estimate inaccuracies and suggests strategies for improvement. By providing a better understanding of bid dispersion and engineering estimate accuracy, this study will ultimately assist in the development of new policies and processes for D–B best-value projects.
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Data Availability Statement
Some or all data, models, or codes that support the findings of this study are available from the corresponding author upon reasonable request.
Acknowledgments
The authors appreciate the assistance received from all the DOTs around the United States in conducting this research.
Disclaimer
The views expressed in the paper are exclusive of the authors and do not reflect the official policy or position of any US DOT.
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Published In
Journal of Construction Engineering and Management
Volume 147 • Issue 7 • July 2021
Copyright
© 2021 American Society of Civil Engineers.
History
Received: Jul 13, 2020
Accepted: Feb 24, 2021
Published online: May 7, 2021
Published in print: Jul 1, 2021
Discussion open until: Oct 7, 2021
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