Capital Improvement & Infrastructure

Best Practices in Construction Procurement Contracts In Reserve

Outreach interviews should be conducted with procurement and contracts representatives from large transit agencies and Departments of Transportation (DOTs) throughout the country to inform the development of recommendations regarding best practice construction contracting processes for large and small construction projects, including identification of contracting vehicles. A review of the standard terms and conditions language utilized by large transit agencies and DOTs should be conducted to determine best practices and identify items that should be included in the standard terms and conditions along with specific details. For example, what are appropriate insurance levels for large and small contracts, what is a reasonable change order process, what are effective incentive and liquidated damages clauses, etc. In addition to speaking with agency representatives, a literature review should be conducted of professional organization sources like the Transportation Research Board (TRB), American Public Transportation Association (APTA), etc. and discussions should be conducted with representatives of committees like APTA's Procurement Terms and Conditions Working Group. A review Federal Transit Administration (FTA) and other federal regulations that are required in transit-related construction contracts should also be conducted along with a legal review of the best practices found in other states to make sure they meet with and New Jersey-specific laws. The final product should be a template (or templates for different size or types of construction contracts) of standard construction terms and conditions that can be used in contracts with vendors.

Idea Submitted by Susan O'Donnell

List your Agency /Division / Bureau, County, City Univ. or Other NJ TRANSIT Market Research

Idea Champion - Who at NJDOT, NJ Transit or NJ Motor Vehicle? (if known) Kerry Donovan, NJT Chief of Construction Management

Why is this a priority and what are the benefits for the State/County/City?

Having an updated standard set of construction contract terms and conditions will help expedite the procurement process and get projects moving forward faster.

Archive: 2018 Ideas
Archive: 2018 Ideas
Idea No. 102