INDOT’s First CMGC Project

On April 8, INDOT posted on its website a draft request for proposals for the US 31 and I-465 Interchange Modification Project. This is INDOT’s first use of the Construction Manager/General Contractor (CMGC) progressive project delivery method. CMGC, along with Progressive Design-Build (PDB), were included in the 2023 Indiana House Enrolled Act 1049. The Indiana legislature passed House Enrolled Act 1196 in 2014 allowing Construction Manager as Constructor (CMc) for state education institutions. House Bill 1196 added that other public agencies could begin using CMc in 2017 except for highway construction contracts. The 2023 law makes INDOT work the last public construction area to embrace this new contracting method.

CMGC and PDB both revolve around two-phase project delivery. In both methods, an owner contracts with a contractor (CMGC) or contractor-designer team (PDB) for the first phase to provide and/or assist with preconstruction services such as project development, permitting, utility coordination, design, schedule and cost estimating. Phase I culminates in the development of one, or multiple, guaranteed maximum price (GMP) packages. Upon owner GMP approval, the CMGC or PDB will proceed with Phase II construction scope. INDOT plans to retain an independent cost estimator (ICE) to provide scope, schedule and cost verification services during Phase I. The main difference between CMGC and PDB is that the owner contracts with the designer of record under the CMGC method while a designer contracts directly with a contractor under the PDB method.

A key purported benefit of the progressive project delivery methods is early collaboration during Phase I or development that includes comprehensive risk identification, analysis of time and costs associated with each risk and assignment of responsibility to mitigate risks if they are realized during the construction phase. The contractual tool used to record and track risks is called a risk register. The risk register becomes part of the contract documents agreed upon prior to moving to Phase II.

INDOT must receive at least two proposals prior to entering into a CMGC or PDB contract under Indiana law. INDOT Major Projects Division staff and their consultants have worked to get industry feedback over the past year through online solicitation, public meetings and meetings with ICI member companies. Indiana law limits INDOT to enter into two progressive contracts per year until 2028.

Contact INDOT Major Projects Delivery Director Jeff Clanton with questions.

FHWA Requesting Comments – Implementation of IDIQ

The US DOT published an interim final rule authorizing IDIQ contracts for Federal Aid construction. IDIQ project delivery generally refers to a not-to-exceed contract for a set time period that requires a contractor to execute as-needed work orders based on agreed upon unit prices.

The Federal Highway Administration (FHWA) began a two-step rule-making process to authorize indefinite delivery/indefinite quantity (IDIQ) project delivery in May of 2018. The first step involved developing the implementation processes and procedures. Step 2 is initiation of the rule-making process. FHWA is soliciting comments to 13 questions. The questions are located on page 10 of 16 (Fed. Reg. pg. # 72928).

INDOT and other state departments of transportation have awarded IDIQ contracts since 2018 under a FHWA experimental project (SEP-14). FHWA and state DOTs found success using IDIQ stating that the project delivery method reduces administrative costs by eliminating the quantity of small project design-bid processes. INDOT has utilized IDIQ in several districts for small bridge and roadway repair and improvement projects. Beginning on Nov. 16, state DOTs may utilize the IDIQ project delivery method for select scopes of work without specific FHWA authorization.

You may submit comments, identified by the document number at the top of this document, by any of the following methods:

  • Federal eRulemaking Portal: http://www.regulations.gov. Follow the instructions for submitting comments.
  • Fax: 1-202-493-2251.
  • Mail: Docket Management Facility, U.S. Department of Transportation, 1200 New Jersey Ave. SE, West Building Ground Floor, Room W12-140, Washington, DC 20590.
  • Hand Delivery/Courier: West Building Ground Floor, Room W12-140, 1200 New Jersey Ave. SE, between 9:00 a.m. and 5:00 p.m., Monday through Friday, except Federal holidays. The telephone number is (202) 366-9329.

Lean Construction Summit set for June 15

AGC, the Construction Users Roundtable (CURT), the Lean Construction Institute and the Construction Industry Institute are jointly presenting the 7th Annual Lean Construction Summit. The Summit, set for June 15 in Henderson, Nev., will explore why and how owners can use Lean Construction to improve the delivery of their capital projects. Attendees include: owners, contractors, design professionals – just about anyone interested in driving change and promoting Lean Construction within their organization. AGC members receive special pricing on registration for this event with code “CURT2016LS”! For more information about the Summit and to register, please visit the CURT Events page. Any questions may be directed to the CURT office or (513) 981-2773.