A+B Bidding Method—Hidden Success Story for Highway Construction

Abstract

In the last decade, many departments of transportation around the United States have experimented with using the A+B bidding method. In this method contractors bid on the cost (part A) and on the time (part B), and the lowest combined bidder (A+B) is awarded the project. This paper analyzes 101 projects that have been awarded using this method and compares the results to the cost and the time of similar projects that were bid using conventional methods (cost only). The conclusions from the research show that substantial savings in construction time have been achieved when using the A+B method with almost no addition in cost. This was achieved by better planning and management of motivated contractors that were using the time element as part of their bidding strategy. The paper includes details on several case studies that demonstrate these results.