Innovative Contracting Methods
Innovative Contracting incorporates new practices to supplement traditional low-bid, design-bid-build contracting. Innovative contracting can decrease project delivery time, reduce construction time, improve safety, incorporate innovation, and reduce costs.
MnDOT has developed some tools to assist in planning and implementing innovative contracting:
Design-build
Design-build brings designers and contractors together early in the detail design portion of a project. It can significantly deliver projects faster than traditional methods.
A + B Bidding
Cost plus time (A + B) bidding factors cost and time to determine the low bid.
Project Controls
Once monthly meetings to be held on topics relating to project management. (Calendar to be published.)
Lane Rental
Lane rental encourages contractors to minimize road-user impacts. Contractors pay a rental fee for closing lanes and shoulders to do work.
Incentives
- Traditional Incentives can accelerate contract time.
- No Excuse Bonus incentives can be used to help insure on-time or early completion of complex projects.
Constructability Reviews
Constructability Reviews allow designers to ask potential contractors questions about complex construction issues during the design process. Constructability reviews typically occur at approximately 50% design.
Best-Value Contracting
Best-Value contracting is a procurement process where price and other key factors are considered in the evaluation and selection process.
- Best-Value Procurement Guide (TBP)
Warranties
Warranties guarantee quality and durability for selected work items for a specific time period after construction.
Partnering
Partnering is an informal team building concept that involves MnDOT, the contractor, stakeholders and other third party facilitators.
Pay for Performance
Pay for performance specifications rely on final outcomes measured against performance criteria in the contract.

