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    Characteristics of Stipends and Their Value-Adding Potential in Design-Build US Highway Construction

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    Name:
    LADR_ECAM_STIPEND_PAPER.vSubmit.pdf
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    PDF
    Description:
    Final Accepted Manuscript
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    Author
    Alleman, Douglas
    Stanford, M. Scott
    Papajohn, Dean
    Jobidon, Gabriel
    Molenaar, Keith R.
    Affiliation
    Univ Arizona, Dept Civil Engn & Engn Mech
    Issue Date
    2020-05
    Keywords
    Innovation
    Project management
    Construction
    Estimating
    
    Metadata
    Show full item record
    Publisher
    ASCE-AMER SOC CIVIL ENGINEERS
    Citation
    Alleman, D., Stanford, M. S., Papajohn, D., Jobidon, G., & Molenaar, K. R. (2020). Characteristics of Stipends and Their Value-Adding Potential in Design-Build US Highway Construction. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 12(2), 04520011.
    Journal
    JOURNAL OF LEGAL AFFAIRS AND DISPUTE RESOLUTION IN ENGINEERING AND CONSTRUCTION
    Rights
    © 2020 American Society of Civil Engineers.
    Collection Information
    This item from the UA Faculty Publications collection is made available by the University of Arizona with support from the University of Arizona Libraries. If you have questions, please contact us at repository@u.library.arizona.edu.
    Abstract
    A best practice tool to enhance design-build best-value procurements is stipends, yet there is very little literature dedicated to this topic. Cited benefits of stipends include incentivizing the level of effort put forth by proposers in preparing their technical proposal, encouraging the number of proposers and thereby increasing competition, and mitigating risk. This paper presents cross-validated findings from the literature, agency policies, a survey of 53 US design-build projects, six agency representative interviews, and 13 design-build industry professional interviews. This paper investigates four aspects of stipends: (1) stipend value and calculation processes; (2) impact on a contractor's decision to propose; (3) impact of stipend amount on an offeror's proposal development, and (4) stipends' ability to aid agencies in achieving best value for highway construction projects. Stipends were found to be a necessary process to achieve best value because they increase competition and often can increase the quality of a proposal based on the stipend amount. Stipends typically cover one-third to one-half of a contractor's proposal costs. Agencies should use stipends when proposal costs are expected to be high and should estimate the stipend amount on a project-by-project basis. Properly valued stipends demonstrate that an agency is serious about going forward with the project, and understands both the work required and the design-build process. Finally, stipends were found to promote a fair procurement process, building trust with contractors leading to a more collaborative and innovative project execution.
    ISSN
    1943-4162
    EISSN
    1943-4170
    DOI
    10.1061/(asce)la.1943-4170.0000388
    Version
    Final accepted manuscript
    ae974a485f413a2113503eed53cd6c53
    10.1061/(asce)la.1943-4170.0000388
    Scopus Count
    Collections
    UA Faculty Publications

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