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Pavement Management: Getting the Right Contractor

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By Chris Evers for FACERS Fall Conference

By Chris Evers for FACERS Fall Conference

Published in: Education, Business

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  • Intro: Hello, my name is Chris Evers. Thank you for inviting me. I am the Regional Manager for the Southeast Division of E.J. Breneman, L.P.. I have over 15 years experience in the heavy highway construction industry. I am currently the President-Elect of the American Public Works Association Florida Chapter. I am a member of FACERS, FPPC, FAC and ARRA. In 2010 I assisted in the founding of the Florida Pavement Preservation Council and I currently sit on the Cold In-Place Recycling Sub-Committee for the Asphalt Reclaiming and Recycling Association. I have been an active speaker for FACERS, APWA, ASCE, ARRA and Florida Airports Council in addition to teaching classes for the Florida T2 Center.
  • EJB is a nationally recognized Heavy Highway Construction company specializing in the placement of alternative paving processes designed to stretch Agency’s funds. Over the last 30 years the company has focused on diversification from our days as a paving contractor to becoming an innovator in the arena of alternative processes. Reusing existing materials and cold technology has been a focus of ours since well before the start of the Green movement. Many of our processes are effective at reducing GHG emissions significantly. These cold technologies form the cornerstone for the diversification strategy proposed in this presentation.
  • After nearly 70 years building roads, EJB employs a host of alternative tools in the proverbial “toolbox”. During the late 70’s and early 80’s we began to add new capabilities which at the time were all in their infancy. What sets EJB apart is our ability to provide solutions for nearly any road regardless of it’s spot on the “Curve”.
  • Over the last 30 years the company has focused on diversification from our days as a paving contractor to becoming an innovator in the arena of alternative processes. Reusing existing materials and cold technology has been a focus of ours since well before the start of the Green movement. Many of our processes are effective at reducing GHG emissions significantly. These cold technologies form the cornerstone for the diversification strategy proposed in this presentation. Many agencies have begun to use Design Build contract delivery or used CCNA to negotiate a Turnkey Pavement Management contract combining asset management and construction. The example would be the Town of Lady Lake in 2009 awarded it’s first Turnkey Pavement Management contract to EJB. Nassau County also attempted to approach their network in this way with a slightly different result. If you are interested in the video it is archived on the Nassau County website!
  • 1-29 The New York DOT found preventive maintenance to be 3.65 times more cost-effective than a “do nothing” strategy. A Corps of Engineers study show chip seals to be four times more cost-effective than allowing a pavement to deteriorate.
  • What is the effect of preventative maintenance on the performance curve? It can both improve the pavement condition index (PCI) and extend the life of the pavement. This graph illustrates this concept of performing PM before the PCI drops significantly. The first 40% drop in the quality of a pavement happens over 75% of the life of the pavement. The next 40% drop occurs in only 12% of the life of the pavement.
  • What is the effect of maintenance on the performance curve? It can both improve the pavement condition index (PCI) and extend the life of the pavement. This graph illustrates this concept for the case where maintenance is performed before the PCI drops significantly.
  • 30 Michigan — Due to declining resources, Michigan DOT implemented a preventive maintenance program in 1992 to protect pavement and bridge structures, slow the rate of deterioration on these facilities, and correct minor pavement deficiencies. Surface treatments were used to correct pavement surface defects caused by the environment and deficiencies in pavement materials. Included in the process was the introduction of warranty specifications for surface treatments. The graph here shows the remaining life of a typical highway network that does not have a preventive maintenance program. The unequal distribution of remaining life indicates the agency will have large variations in rehabilitation activities each year. Each remaining life category numbered I-VI represents the number of years the road is calculated to last prior to requiring major rehab or reconstruction. Each year every road in the network moves 1 year to the left, closer to the last category. To move roads from category I to category V or VI takes as much as 10X the amount as it does to move the same road up 1 category at the top of the curve. The next slide illustrates a strategy that incorporates preventive maintenance which can alter the distribution of pavement remaining life to help equalize projected workloads.
  • 31 This strategy creates a network equilibrium of remaining life and insures manageable workloads. The effect of the program is to redistribute the remaining life for the pavement network such that the need for major rehabilitation/reconstruction are reduced. The goal is to create a network equilibrium of remaining life to insure manageable workloads for available resources.
  • You can see here that by utilizing PM you can flatten the deterioration curve and thereby lower life cycle costs. This will allow the agency to stretch existing $ and cover more ground in shorter amounts of time.
  • It’s not the Afghan war strategy!
  • Here is an example of a County I’ve been working with down in Florida. During these times of extreme budgetary constraints they were interested in looking at other ways to maintain their network at diminished funding levels.
  • Here’s a look at the impact of diversifying their $1M investment.
  • You can see by this slide how much more cost effective “top of the curve” technology is.
  • Those $ saved at the bottom of the curve are then reinvested at the top of the curve where the rate of return is greater.
  • Like any good Money Manager, we look forward to getting to work using Diversification to maximize ROI and make a substantial impact for taxpayers. Thank you!
  • Transcript

    • 1. Pavement Management: Getting the Right Contractor
    • 2. Challenging topic when stuck with the low bid system
      • Introduction to techniques to evaluate contractors
      • What kinds of things will protect the agency against bad contractors
      • How do I use acceptable criteria without hampering competition
      • What is my role in educating decision makers and the public?
      • How many contractors should I have?
    • 3. There are 4 types of selection criteria commonly used
      • Awards Method
      • Experience Method
      • Best Bid Method
      • Low Bid Method
    • 4. Awards Method Result: E.J. Breneman, L.P.
    • 5. Experience Method Result: E.J. Breneman, L.P.
    • 6. Best Bid Method Result: E.J. Breneman, L.P.
    • 7. Low Bid Method Result: Asphalt Paving Systems
    • 8. Number of different companies capable of doing quality work
    • 9. The perils of the Low Bid System
    • 10. Remember, you can’t take the Con out of Contractor!
    • 11. Which is why we have specifications!
    • 12. You’re assuming all bidders read the specifications
      • Think about how many bids the average estimator has to look through each week
        • If something has changed since the last bid, point it out
        • Pre-Bid Meetings are the perfect avenue to make sure everyone has the same information
        • But isn’t that the contractor’s responsibility? About that…
      • As an agency you want all contractors to have the same knowledge about your project
        • Do you want one guy ducking an item you never use?
        • Do you want an unbalanced bid to potentially cost you more money for the same work?
        • Do you like protests?
      • Partnership approach will yield results
    • 13. What qualifications are you requiring contractors to meet?
      • FDOT Pre-Qualification in Flexible Paving
        • The process of Pre-Qualifying by FDOT adds some protection
        • Companies not capable of getting Pre-Qualified by FDOT likely have financial “issues”
      • Experience clause
        • Are you willing to allow on the job training on your project?
        • Contractor should provide references of successfully completed projects in order to be awarded the project
        • Don’t forget to confirm the type of process
      • Management Plan
        • Some Counties require a document explaining the companies capabilities and the crew’s experience
    • 14. Now you’ve got a contractor, how do you proceed?
      • Pre-construction meeting
        • Don’t you have something for me?
        • Are you sure this is a “real” mix design
        • Okay well, is this a “real” lab?
        • Meet our inspector, his name is Dave
      • Now can we start?
        • Sure, promise you’ll do a good job for us though
        • No you can’t skip the prime coat
        • What change orders
    • 15. Now you’ve got a contractor, how do you proceed?
      • Inspectors
        • If it’s an alternative process, have you trained the inspectors?
        • What resources are available out there?
        • What is the inspectors role?
      • The Dirty word – Profit and it’s role
        • Agencies that routinely make life rough on the contractor unnecessarily pay higher prices
        • Quality contractors deserve to make money for the risk they are taking on when constructing your project
        • Does your inspection team understand the value of the Win-Win?
    • 16. What if there are problems?
      • There will be and it’s what defines a good contractor
        • Anyone can build a good project, it takes real skill to turn a bad project into a good one
        • Communicate early and often
        • Never assume anything
      • The Contractor has a responsibility to build a good project
        • You are right to make them follow the specs
        • Are they giving you what you asked for?
      • The Agency has a responsibility to be fair
        • Is the Contractor held to a reasonable standard?
        • Have we set him up to fail?
    • 17. Did we test it? The materials that is?
    • 18. Great, it passed
    • 19. Did we put the contractor on the “Right” Road?
    • 20. “ Right Road, Right Treatment at the Right Time” by the Right Contractor Condition Time $1 for preventive maintenance here Is 3 to 10 times more cost effective than here
    • 21. “ The Right Time” Preservation and Rehab Strategies 0 20 40 60 80 100 Years PCI Rejuvenation Crack Seal Chip Seal Micro-Surfacing Cape Seal Asphalt Overlay Cold In-Place Recycling Full Depth Reclamation
    • 22. The Right Time Preservation and Rehab Strategies 0 20 40 60 80 100 Years PSI (Pavement Serviceability Index) A. Routine Maintenanc e B. Preventive Maintenance C. Defer action D. Rehabilitation E. Reconstruction
    • 23. Current network distribution Michigan DOT 0 10 20 30 40 50 Current Condition % of Network Pavement Pavement Remaining Life Categories 10% 19% 40% 8% 6% 17% I II III IV V VI (0-2) (3-7) (8-12) (13-17) (18-22) (23-27) (Years)
    • 24. Ideal network distribution Michigan DOT 10 20 30 40 50 Ideal Condition % of Network Pavement Pavement Remaining Life Categories 11% 18% 18% 16% 17% 20% 0 I II III IV V VI (0-2) (3-7) (8-12) (13-17) (18-22) (23-27) (Years)
    • 25. Strategy to Minimize Costs Pavement condition Time or traffic Preventive maintenance treatments Conventional overlay
    • 26. The Volusia County Example
    • 27. The Volusia County Example
    • 28. What about competition?
    • 29. Diversification doesn’t have to be complicated
    • 30. Does this look diversified? This is probably one contractor
      • Lane Miles per $1M
      • HMA – 10 Miles
      • Mill & Overlay – 8 Miles
      • Total = 18.3 Miles
    • 31. Diversification in an Urban/Rural County, how many contractors now
      • Lane Miles per $1M
      • HMA – 4 Miles
      • Mill & Overlay – 3.3 Miles
      • Micro – 9.5 Miles
      • CIR/FDR – 1.2 Miles
      • Chip Seal – 9.1 Miles
      • Rejuvenation – 20 Miles
      • Crack Seal – 16.7 Miles
      • Total = 63.8 Miles
    • 32. Lane Miles per $1 Million Spent
      • Process Lane Mileage
      • HMA – 20 Miles
      • Mill & Overlay – 16.7 Miles
      • Micro – 47.6 Miles
      • CIR/FDR – 8 Miles
      • Chip Seal – 91 Miles
      • Rejuvenation – 200 Miles
      • Crack Seal – 333 Miles
    • 33. My role in educating decision makers and the public?
    • 34. Saving $ at the bottom of the curve enables us to invest more at the top of the curve
    • 35. Process Diversification Results
      • Lane Miles for a $50M Alternative Process Program
      • Rejuvenation – 10% @ $4,900/mile = 1,014 Miles
      • Crack Seal – 10% @ $3,000/mile = 1,014 Miles
      • Chip Seal – 15% @ $11,000/mile = 681 Miles
      • Micro – 25% @ $21,000/mile = 595 Miles
      • BACFC – 20% @ $44,000/mile = 227 Miles
      • CIR/FDR – 20% @ $125,000/mile = 80 Miles
      • Total = 4,264 Lane Miles or 20% of the 21,000 miles in Non-Federal Aid category
    • 36. We look forward to working with you to maximize your return on investment! Questions?