State Transportation Innovation

Council (STIC)
2015 Fact Sheet
A + Bx Bidding Method
Time-Based Bidding on Contracts Can Expedite Project Completion
The Federal Highway Administration and PennDOT have always
been supportive of innovative contracting methods and projects. One such
innovation is using a modified A + Bx bidding method to award contracts. Time-Based Bidding
Through this method, projects are typically awarded to the contractor whose
overall bid comes in less than the rest. This method provides an opportunity A + Bx
to have the project completed in less time than the department initially
A = Low bid for the contract items
scheduled. This new application of A + Bx, which is frequently used in such
states as Utah and California, is also referred to as time-based bidding. B = Total time required for project completion

Put into Practice: How it works x = Construct engineering liquidated damages

A + Bx bidding aims to expedite project (how much it will cost PennDOT if contractor
Using A + Bx completion through competitive bidding on goes over established construction time)
bidding on the Jim construction time in addition to price. In
Thorpe Bridge over breaking down the A + Bx formula, the A
the Lehigh River, is the low bid for the contract items, and B is the Pennsylvanias State Transportation Innovation
PennDOT estimated total time required for project completion. (This Council (STIC) has selected A + Bx bidding
completion in 1,299 differs from the old, commonly used application of method as an innovative method for awarding
A + Bx, where B represented the days/time
days at a cost of associated with lane closure.) The department will
contracts. Also referred to as time-based
$33.58 million. set a schedule, and if the schedule can be completed
bidding, the A + Bx bidding method provides
an opportunity to have a project completed in
The low bidder in less time, this will work in the contractors favor.
less time than PennDOT initially scheduled.
Finally, x is the construct engineering liquidated
determined that it damages (as per Publication 408), which is how
should only take much it will cost the department if the contractor
650 days and cost
$28.18 million,
goes over the established construction time.
Although A + Bx bidding is applicable to most What does the
providing a
savings of both
projects, it is most beneficial in projects when public
inconvenience must be held to a minimum. When all future hold?
of the numbers have been plugged in, the contractor
time and money. with the lowest price will be awarded the project. The A + Bx method is a tool that should
be used and evaluated since saving time
What are the benefits? and money as well as minimizing the
Encourages contractors to develop more thorough and well-thought-out plans
inconvenience to the traveling public
so that construction runs efficiently and quickly, thus taking advantage of
contractor innovation and creativity. is a mutually desirable goal. The STIC
Incentivizes contractors to minimize construction time. recommends continued deployment of
Minimizes public inconvenience.
this initiative and seeks opportunities to
Reduces congestion and related pollution and environmental impacts.
Provides a good check of the pre-bid schedule, and possibly introduces new showcase its success.
ways of completing projects in less time.
Introduces a formula so simplified that there are no calculations to be made.
Standard special provisions already exist.

State Transportation Innovation Council (STIC)

(717) 214-8685 RA-pdPennDOTSTIC@pa.gov
www.moderndot.pa.gov