Review of Alternate Bid Tenders for Canadian Highway Construction Projects with Life Cycle Cost Component

The use of alternate bids with life cycle cost as part of the tender process for pavement choice evaluation has been evolving in Canada since the first contract tendered in 2001. This paper will review the history of how alternate tenders with a life cycle cost component were started in Ontario based on the initial Life Cycle Cost study of 1995. The paper will identify the key points to consider when performing a life cycle cost analysis (LCCA) including: use of equivalent bids, selection of accurate maintenance and rehabilitation (M&R) schedules, selection of discount rate, inclusion of user costs, and inclusion of sustainability issues. The advantage of utilizing a two pavement system (asphalt and concrete) is also discussed in this paper. Details will be provided on the nine (9) alternate bid tenders called in Canada since 2001 including: Highway 101 in Nova Scotia; Highway 410, Highway 417 East and West, and three sections of Highway 401 in Ontario; and Deerfoot Trail and Anthony Henday Drive in Alberta. Some of the details that will be provided on the alternate tender projects are as follows: asphalt and concrete pavement structures, maintenance and rehabilitation schedules, tender costs for the two pavement structures, life cycle cost analysis period and discount rates used in the analysis. For comparison, information will also be provided on Quebec’s White Grey Black policy for pavement selection.