Guide To Risk Assessment And Allocation For Highway Construction Management

In 2004, a team of representatives from the Federal Highway Administration, State highway agencies, industry, and academia visited Canada, Finland, Germany, the Netherlands, Scotland, and the United Kingdom. The purpose of this International Technology Scanning Program study was to identify practices that might be evaluated and applied in the United States to improve construction management. One significant scan finding was that the countries visited had an advanced awareness of risk assessment and allocation techniques that are just now evolving in U.S. highway agencies. This instructional report was developed as part of the scan team's implementation plan to raise awareness of risk management techniques and begin the process of incorporating risk management elements into the institutional structures of highway agencies. The report is designed to be used in conjunction with workshops on implementing risk management.

This guidebook provides guidance to state departments of transportation for using specific, practical, and risk-related management practices and analysis tools for managing and controlling transportation project costs. Containing a toolbox for agencies to use in selecting the appropriate strategies, methods and tools to apply in meeting their cost-estimation and cost-control objectives, this guidebook should be of immediate use to practitioners that are accountable for the accuracy and reliability of cost estimates during planning, priority programming and preconstruction.

Volume 1 addresses how to apply a methodology for estimating the life expectancies of major types of highway system assets. The methodology is designed for use in lifecycle cost analyses that support management decision making. Volume 2 describes the technical issues and data needs associated with estimating asset life expectancies and the practices used in a number of fields--such as the energy and financial industries--to make such estimates.

TRB’s National Cooperative Highway Research Program (NCHRP) Report 713: Estimating Life Expectancies of Highway Assets, Volume 2: Final Report describes the technical issues and data needs associated with estimating asset life expectancies and the practices used in a number of fields—such as the energy and financial industries—to make such estimates.

TRB’s National Cooperative Highway Research Program (NCHRP) Research Report 838: Guidelines for Optimizing the Risk and Cost of Materials QA Programs proposes guidelines for optimizing the risk and cost of materials quality assurance (QA) programs. It develops a methodology for establishing a materials QA program that optimizes risk and cost by providing appropriate types, levels, and frequencies of agency testing and inspection for transportation projects across their full range of type, size, complexity, and project-delivery method.

This report from the second Strategic Highway Research Program (SHRP 2), which is administered by the Transportation Research Board of the National Academies, describes suggested performance specifications for different application areas and delivery methods that users may tailor to address rapid highway renewal project-specific goals and conditions.

Underground construction is more complex than ever. Demand for space is increasing, new technologies are constantly evolving, and more stakeholders are asserting influence. Yet one of the most challenging and frustrating characteristics of underground construction remains: often, contract language does not account for the unique nature of building underground. Recommended Contract Practices for Underground Construction is the first industry-wide effort to improve contract procedures in more than 30 years. Commissioned by the Underground Construction Association of the Society for Mining, Metallurgy, and Exploration, this manual is an indispensable resource for contractors, consultants, suppliers, and owners anticipating underground projects. The authors suggest better practices during all stages of a project, when decisions are made that can affect the contract positively or negatively. Part one focuses on the practices and disciplines that build the foundation for effective contracts during the early phases of a project. Part two discusses best practices for contract provisions, payment mechanisms, and dispute resolution. By following these recommendations, you'll reduce the mistrust and costly disputes that often arise from the contract process. The result will be improved relationships, better contracts, and, most importantly, projects that are most cost-effective for owners and more profitable for contractors.