State of Alaska Department of Transportation Professional Services Agreement: Chapter 7 and 8 Update and Enhancement

Abstract

This project aimed to improve the price estimate preparation process for resurface and rehabilitation highway projects for the Alaska Department of Transportation and Public Facilities by updating the Professional Service Agreement Manual Chapters 7 and 8, which offer price estimates and figures that engineers need for calculations prior to negotiation for highway projects. This project was initiated due to the ongoing rapid market variation caused by the COVID-19 pandemic. The inaccuracy of cost estimates in the post-pandemic era has impacted Alaska highway projects, contributing to longer negotiations and higher project costs. To address these challenges, the revised Manual chapters provide detailed guidelines and updated templates for price estimates, incorporating industry standard methodologies and best practices for negotiation, technical issues, and cost price analysis. Insights from the procurement agency, lessons from previous projects, project manager evaluations, and feedback from the highway design team and consultants were incorporated into the Manual revisions. Four pillars of effective project management also guided the revisions: critical success factors, key performance indicators, communications management, and quality management. The project required a thorough assessment of the existing challenges within the Manual, identification of areas for improvement, and the development of new exhibits for the Highway Design Section. This update to the Manual should streamline the price estimate preparation process and establish a consistent framework for the Statement of Services during the negotiation phase. These enhancements aim to improve project budgeting and resource allocation, as well as facilitate the successful delivery of high-quality projects on schedule and within budget. Docusign Envelope ID: C1F10F3E-9FB7-4672-9737-74041A7E0673