The objective of this study is to identify the causes of delays that slow or prevent construction project closeouts and to identify the variety of problems that can occur when NYSDOT includes improvements for local governments as part of State highway construction projects. The findings will present recommendations for actions that resolve the causes of the delays or prevent the closeouts and will recommend alternate approaches to resolve the problems and contain the advantages and disadvantages of these approaches.

Project Abstract

Several issues are discussed in the literature that generally effects the termination of an infrastructure contract and transfer of project ownership to the government agency. Several of these issues are project construction claims, dispute resolution and cost overruns. Research studies have analyzed the nature of such claims and specific insights are offered into the fundamental causes of claims that delay projects. Dispute resolution in the construction industry is another concern for project delay. Disputes can be expensive and litigation can cause even longer delays. Research sources offer solutions into both the classification and frequency of disputes and claims with respect to damage type, highway project element and fundamental causes. Alternative dispute resolutions methods are available in the literature for further reference.

Although specific research references to project closeout procedures appear to be few, one research source discusses concession strategies for deciding when the project ownership will be transferred from the contractor to the government agency. Project closeout procedures generally determine the contract deliverables, authorities of the contractor and the agency, and the responsibilities between the parties. Some studies have produced techniques and methods for organizational structural, contracting procedures, methods of project funding, and risk allocation strategies. Contract closeouts periods can be established for critical reviews that protect the interests of both the contractor and the agency.

Government agencies have developed procedures for administering multi-jurisdictional infrastructure projects, and for capital planning and funding of these Municipal infrastructure systems. Agencies have developed empirical approaches to these problems that may be useful in optimizing the functional effectiveness of publicly financed projects. In the contest for optimizing public transportation funds and for political decision making process, methods were developed as a framework for project funding and utilizing interagency metropolitan planning organizations.

As the problems in this study become clear, additional research from contract management sources and other State agencies will provide guidance for the final recommendations. The services of a contract manager with legal credentials will provide additional insights into the problem solutions. 

Task Descriptions

Phase 1: Speed Project Closeouts Task 1: Advisory Group - The Advisory Group and the researchers will meet to discuss the NYSDOT contract provisions for project closeouts and local financing of betterment projects. The group will provide guidance for the review of files, contracts and discussions of contract problems with Regional engineers and central office engineers, and the review of NYSDOT policy and procedures for betterments. At the request of the Advisory group, the researchers will meet to discuss the progress of the study. Task 2: Review List of Open Contracts - Using a criteria developed by the Advisory group, the researchers will review the list of open contracts and select contracts which have a delayed closeout. Task 3: Identify Reasons for Delayed Closeout - The source of the problem will be identified for analysis by reviewing contract files and discussions with Regional engineers and central office engineers for closeout problems. Task 4: Review the Problem and Source of the Problem - The problems will be categorized to facilitate the analysis of the problem source, contract restrictions and procedures, which may cause delay. This task will include Interim Report of the analysis of problems and sources of the problem. Task 5: Contact other Highway Agencies and Literature Search - Highway agencies in the Mid-Atlantic Region and New England Region will be contacted to determine their procedures for project closeout and their solution to mitigate contract closeout problems. A literature search will be conducted of the Civil Engineering Database, Journal of Management Engineering, Journal of Construction and Management, and Transportation Research Board Publications including contacts with TRB Committees. Task 6: Analysis the Problems and Recommend Solutions - Using the findings from the agencies and literature, analysis each problem category and determine a solution for the contract closeout. This task will provide suggested policy and procedure changes as well as legal advise and legal language for contract modifications. This task will include a memorandum report to the Advisory group. The Advisory group will review the recommendation before presentation of the final report. Task 7: Final Phase Report - From the results of the Advisory group review, a final report will be prepared to document the study and recommendations for reducing the delay of project closeouts.

Phase 2: Improve Local Financing Task 8: Review Current NYSDOT Policies and Procedures - With the assistance of the Advisory group, the researchers will review policies and procedures for betterment projects which are performed in conjunction with State Highway Contracts. The review will include an analysis of consistent and rational policies and procedures for completion of betterment projects. Task 9: Identify and Analysis Problems - The source of the problem will be identified for analysis by reviewing contract files and discussions with Regional engineers and central office engineers for problems with the betterment project. Task 10: Review the Problem and Source of the Problem - The problems will be categorized to facilitate the analysis of the problem source, contract restrictions and procedures, which may cause problems with betterment projects. This task will include Interim Report of the analysis of problems and sources of the problem. Task 11: Contact other Highway Agencies and Literature Search - Highway agencies in the Mid-Atlantic Region and New England Region will be contacted to determine their procedures for local-Aid and betterments projects and their solution to mitigate such problems including policy and procedures. A literature search will be conducted of the Civil Engineering Database, Journal of Management Engineering, Journal of Construction and Management, and Transportation Research Board Publications including contacts with TRB Committees. Task 12: Analysis the Problems and Recommend Solutions - Using the findings from the agencies and literature, analysis each problem category and determine a solution for the improvement of betterment projects. This task will provide suggested policy and procedure changes as well as legal advise and legal language for contract modifications. This task will include a memorandum report to the Advisory group. The Advisory group will review the recommendation before presentation of the final report. Task 13: Final Phase Report - From the results of the Advisory group review, a final report will be prepared to document the study and recommendations for reducing the delay of project closeouts. Task 14: Final Report and Implementation - The Phase reports will be consolidated to present one final report for the study. The researchers will present the final report to the Advisory group. The researchers will be available for meeting to provide expertise and guidance for the implementation of the results.

Budget

$111,547 

Student Involvement

This project will involve several undergraduate and graduate and doctoral students in data collection, presentations, literature documentations and report preparation.
Relationship with Other Research Activities
None

 

Technology Transfer Activities

None

Benefits of the Project

The researchers will present a final report, which will document the findings and results of the study. Two-phase reports will document the individual phases. The phase reports will contain the literature search, and detailed data collection information including NYSDOT interviews. The final report will contain recommendation for policy and procedure changes as well as legal advise and legal language for contract modifications. The UTRC researchers will be available for implementation meetings and discussions of the results and recommendations with the NYSDOT during and after completion of the project.

Key Words

Contract administration, financing, closeout project