Description

 Design-Build

Design-Build is a project delivery method that combines two (usually separate) services into a single contract. With design-build, owners enter into a single contract for both architectural/engineering services and construction. The design-build entity may be a single firm, a partnership, joint venture or other organizations that come together for a project.

 Tolling

A fixed charge for passage across a bridge or along a road. On a toll road, only those who choose to use the facility and pay the toll benefit from the convenience, safety and higher level of service. On non-toll roads, users and non-users fund the costs of the road through taxes. While a toll is a more visible and direct way to fund a road, removing tolls from a road shifts the financial responsibility from its users to taxpayers.

 Shadow Tolling

A private contractor who has the responsibility to Design, Build, Finance and Operate a facility. The administrator pays the contractor depending on the amount of vehicles using the road. The term "shadow tolling" is used as there are no visible tollbooths and the users do not actually pay charges to the operators.

 Asset Management

Asset Management Services are a form of Public Private Partnership through which the Department of Transportation would enter into a long-term, performance-based contract with one or more private entities to assure that its assets (roads, striping, bridges, pavement, guardrail, etc.) are properly maintained and managed. Many states have found efficiencies in contracting out routine maintenance for certain projects or facilities.

With the Design-Build-Finance-Operate (DBFO) approach, the responsibility for designing, building, financing and operating are bundled together and transferred to a private sector partner. DBFO arrangements vary widely in the degree of financial responsibility that is transferred to the private sector. Direct user fees (tolls) are the most common revenue source. However, others ranging from lease payments to shadow tolls and vehicle registration fees.

The traditional project delivery approach that was used for most of the 20th century to procure public works. The design-bid-build model divides design and construction responsibilities by awarding them to an independent private engineer and a separate private contractor. By doing so, design-bid-build separates the delivery process into three phases: 1) Design, 2) Bid, and 3) Construction.

An arrangement involving private construction, private operation for given period of time, and eventual transfer to public ownership.

A project delivery approach in which a private company is granted the right to develop, finance, design, build, own, operate, and maintain a transportation project. The private sector partner owns the project outright, assumes the operating revenue risk, and retains all of the surplus operating revenue. While this approach is more common in the power and telecommunications industries, it has also been used in transportation.

Traditionally, private sector participation in transportation projects has been limited to separate planning, design or construction contracts on a fee for service basis. An increasing number of public agencies are expanding the role of the private sector by transferring responsibility for services to private sector companies that would typically be performed in-house. The project is often awarded to the bidder providing the best value, determined by both price and technical qualifications.