Effects of Flexible Notice-to-Proceed Provisions on the Performance of Transportation Infrastructure Projects

Abstract

When alternative contracting techniques are considered, one innovative approach for assuring the performance of a transportation infrastructure project is offering contractors flexibility about when they start the project. Although such flexible notice-to-proceed (NTP) provisions are becoming more common, quantitative studies examining their impact on project performance are nonexistent. This study investigates the likely effects of flexible NTP provisions on competitive bidding, bid prices, and contract time. A dataset gathered from the North Carolina Department of Transportation, United States, was carefully stratified by type and size of project to allow for unbiased analysis. The results from the hypothesis testing revealed that projects with flexible NTP provisions were more competitive in relation to bidding. The results also indicated a positive correlation between the length of flexible time window and award growth. This study is the first of its kind and will help state transportation agencies make better-informed decisions by providing a point of reference when adopting NTP provisions for alternative contracting projects.