Product Demonstration Showcase

Highways for LIFE: M - 115 Performance Contracting for Construction (PCfC)

Date: September 30, 2008

Clare, Michigan

This Highways for LIFE sponsored showcase was a panel discussion of MDOT’s M-115 Project. The showcase included an overview presentation of the PCfC framework, the formation of the PCfC solicitation package, a discussion of the DOT’s experience and lessons learned in establishing project performance goals and measures, the administration of the construction contract and the contractor’s perspective in constructing the project. Attendees participated in a site visit of the M-115 project to view the innovative techniques used to build the project.

By using Performance Contracting for Construction (PCfC) as an innovative approach on the M-115 roadway construction project, Michigan DOT took advantage as a pilot state of the special consideration offered to funding applicants under the U.S. Department of Transportation’s (USDOT) Highways for LIFE (HfL) program and technical assistance provided by USDOT for the Implementation Framework. In addition to receiving targeted assistance from subject matter experts, Michigan also expects to expand its contracting toolset in light of anticipated declines in the availability of capital funding between FY07 and FY11 coupled with increasing construction and maintenance requirements. Michigan DOT and its contractors are anticipating that performance contracting can offer a more flexible and cost-effective way to accomplish specific goals while helping the state reduce administrative costs and maintenance requirements through the use of warranties requiring contractors to guarantee their materials and workmanship.