OVERVIEW

What is A+B Bidding  
What are the Benefits of A+B Bidding? 
Criteria For Selection of A+B Bidding 
Criteria for Selection: A+B bidding without I/D provisions  
 
What is A+B Bidding?

A+B Bidding is a cost-plus-time bidding procedure that selects the low bidder based on a monetary combination of the contract bid items (A) and the time (B) needed to complete the project or a critical portion of the project. 

 What are the Benefits of A+B Bidding?

Time Savings  
A+B Bidding is used to motivate the contractor to minimize the overall time on high prority and high usage projects. This encourages contractors to finish early by (1) offering bounses for early completion and (2) assessing fines for late completion. 
 

Criteria for Selection  
 A. Criteria for Selection: A+B bidding with I/D provisions  

 1. Traffic restrictions, lane closures, or detours result in high road user costs (RUC). Some agencies specify a minimum threshold RUC level ($2,000 - $3,000 per day). If the monetary benefits to the highway user equals or exceeds the Contractor's costs to finish early and earn the maximum incentive.

2. Safety concerns, or significant impacts to the local community or economy during construction warrant expediting the project. 

3. Traffic control phasing can be structured to maximize a contractor's ability to reduce the duration of construction. 

4. The project is relatively free of utility conflicts, design uncertainties, or right-of- way issues which may impact the bid letting date or the critical project schedule. 

5. It is in the public interest to complete the project as soon as possible, or by a specific completion date and the agency seeks contractors expertise to facilitate an earlier completion. 

B. Criteria for Selection: A+B bidding without I/D provisions  

1. The project is not required to finish by a specific completion date.

2. RUC is not severe but other special concerns warrant expediting the project.