7-Year Pavement Warranties TEA, Omaha September 24, 2009 Paul Sosney Head Capital Award Ministry of Transportation Ontario

Thunder Bay North Bay Sudbury Windsor KingstonToronto Ottawa Hamilton London Nebraska Texas Ontario

Topography

Downsview

QEW/Redhill Creek Expressway

Southern Rural Highway (Hwy 6)

Northern Freeway (Hwy 69)

Northern Highway (2-Lane)

LT Warranty Concept

Why 7-Year Pavement Warranties? Move toward performance specifications Reduce contract administration, pay items, inspection and testing costs Encourage innovation Reduce overall project and lifecycle costs “7” years provides confidence that the year service life will be achieved

Project Selection 2 lane and 4 lane rural highways with less than 5,000 AADT/design lane Uniform pavement performance without extensive problematic soils/swamp conditions left untreated Normally less than 100 km from a permanent HMA plant

Categories of Warranty Projects Two Categories –Rehabilitation –Reconstruction

Pavement “Rehabilitation” Treatment of some or all the existing materials from the top to the bottom of the existing bituminous layers Includes: –Partial or full depth asphalt removal with resurfacing –Cold in-place recycling with asphalt resurfacing

Pavement “Reconstruction” Treatment of all existing bituminous layers and a minimum of 150 mm of the underlying granular material Includes: –removal of all bituminous layers and some or all of the granular material and replacement with new or recycled materials –full depth in-place reclamation to a minimum depth of 150 mm into the granular, with or without milling or stabilization, with asphalt resurfacing

MTO Design Responsibilities The usual ground survey and geotechnical field data is collected MTO designs: –the alignment and final cross-section of the hwy –special treatments to widen the roadway subgrade or stabilise shoulders and embankments –ditches, culverts, frost heave treatments –any other non-pavement work included in the project

Principles of Pavement Warranty Projects The contractor is responsible for the pavement design, materials and workmanship The warranty is on pavement performance for a fixed period of 7 years Minimal material requirements are specified. Standard specifications are not specified MTO’s pavement design is for internal use only The Contractor’s design is reviewed for compliance

Principles cont’d One “Pavement with Warranty” lump sum item includes all costs within pavement design envelope Info provided to Bidders: traffic level for design, surveys, soil borings, pavement cores, X–sections if applicable, past contracts if available Soils and pavement data is not guaranteed to be sufficient Field investigation by bidders allowed, preferably with no snow in ditches, during minimum 6 week advertising period

LT Warranties – Estimating Cost

Warranty - Estimating Template Refer to Notes page for additional definitions Designer to provide values in blue cells Contract Number2009-xxxx Highway419 Length of Contract (kms)10 Date Prepared January 12, 2009

$65, Sub Total - Design/Engineering $ 0.00 Additional Requirements Expenses which contractor is responsible for under the Special Provision for the Tender Item - Pavement with Warranty. $35,000.00Default value of $35,000Pavement Design Report Allowable expenses for additional Geotechnical Investigation either before or after award. $30,000.00$3, Enter per kilometre value ($3,000 or $5,000) based on pavement condition - Geotechnical Investigation Design/Engineering (Contractor)

$18, Sub Total - Quality Control Insert estimated number of working days in Cell F22 $18,000.00$ Additional QC Allowable expenses for additional Quality Control to ensure completed work complies with pavement design. Rate/day Working Days Additional Staff Additional Quality Control - (Design Consultant employed by Contractor)

Construction Value - (Based on Region's Original Pavement Design Report) Item CodeItem DescriptionUnitQuantity Revised Quantity* Estimator s Unit Price Extension Earth ExcavationM $11.24$332, Hot Mix Misc.M $14.18$40, Superpave 9.5T $244.98$17, Superpave 12.5T $102.77$1,302, Superpave 19.0T $80.63$3,750, Tack CoatM $0.29$62, Granular AT $18.68$1,422, Granular B, Type IIIT $15.17$560, Full depth reclamation with expanded asphalt stabilization M $1.80$146, Rout and SealM $7.50$10, Removal of Asphalt Paving (Full Depth)M $6.60$29, Removal of Asphalt from Concrete (Bridges) M $14.00$6, Removal of Asphalt (Partial Depth)M $2.20$175, *Overrun factor on Quantities5%This value used to calculate "Revised Quantity" column Sub Total - Items $7,285, **Inflation Factor3% If Applicable - Value not required if estimate is finalized near Tender Opening Date $218, Sub Total - Construction Value $7,503,886.90

Contractor Initiated Improvements on Design (Additional quantity added by contractor ) Comments / Reference Item Unit QuantityAdj. Quant. Unit Price Extension These costs are to cover an additional 50 mm lift of binder and 100 mm of Granular 'A' that the contractor may include during initial construction phase to insure that pavement structure will not crack over the 7 year warranty period SuperPave 12.5 T 6,037$107.00$645, Tack Coat M2 M2 68,333$0.29 $19, Granular A T 11,892$12.71 $151, $816,922.99

$156, Sub Total - Rout and Seal Insert Regional Estimate if available in cell H85. $ LS Regional Estimate (to be used instead of calculation if available) Estimated Region's Estimated Value $24, $20, LSTraffic Control* $132,314.40$8.16$ mRegional Historical Repair Quantity *Traffic Control = Number of days x $3,000/day + $5,000 for signs and barrels Extension Inflated Unit Price Base Unit Price QuantityUnitsDescription of Item & Notes 5Number of days to complete work 4Year the work will be done => Values only required if using "Calculated Value" Values used to calculate Inflated Unit Price 5%Inflation per Year => Calculated Value Warranty Repair - Rout and Seal: (Use only one - Calculated or Region's Estimated Value.)

$490, Sub Total Mill and Pave $40, LS Traffic Control $1,840.00$ m Pavement Marking $2,401.20$0.35 6,900 m2m2 Tack Coat $443,966.40$ ,800 t Superpave 12.5 $2,000.00$2.00 1,000 t Reclaim Asphalt Pavement - partial depth 50 mm 7 Year the work will be done 5%Inflation per year Selective Resurfacing - Year 7 Comments / Reference Warranty Repair - Mill & Pave

$60, Sub Total - Warranty Work $25, Road side inspection, re-testing of QA testing to confirm results. Also includes as-built drawings and final verification. Final Inspection Reasonable expenses contractor may incur over warranty period $35, Assume $5,000 per year for road side inspection and QC testing. Warranty Administration Administration During Warranty Period

$375, Sub Total - Unknowns and Risk Acceptable allowance for unforeseen expenses that contractor may incur and/or Acceptable Premium for new tendering concept. Note: % is only applied to warranty items 5% Enter value up to 5% of warranty work Unknowns and Contractor Risk

$8,178,395.65TOTAL VALUE FOR TENDER ITEM $375, Unknowns or Risk $60, Administration $0.00 Mill & Pave $156, Rout & Seal $7,503, Contract Work $18, Additional QC Total Value of Tender Item for Pavement with Warranty shall be entered in Regional's HiCo Estimate prior to submission to CRO. (Attach Spreadsheet to the Tender Item - "Pavement with Warranty" in HiCo.) $65, Design Costs Summary: Tender Item - Pavement with Warranty

Contracts to Date

Contract EstimateLow BidEstimate to Low Bid %Treatment 1 $11,013, $ 14,907, %Full Depth Pulverizing 2 $12,793, $ 12,354, %Cold In Place 3 $ 4,846, $ 6,551, %Full Depth Pulverizing 4 $ 3,058, $ 2,611, %Rem Asphalt, Add Gran, Pave 5 $ 4,731, $ 4,969, %In Place FD Recl 6 $ 7,415, $ 6,953, % Pulverize existing asphalt to 115mm 7 $ 8,765, $ 11,420, %In Place FD Recl 8 $ 5,529, $ 7,919, % Cold In Place Recl w/Expanded Asp Average Estimate to Low Bid % =-8.1%

ContractLow Bid Estimate to Low Bid %2nd Bidder3rd Bidder No. of Bidders 1 $14,907, % $19,715, $12,354, % $12,538, $12,562, $ 6,551, % $ 6,657, $ 7,738, $ 2,611, % $ 2,639, $ 3,463, $ 4,969, % $ 7,514, $ 9,378, $ 6,953, % $ 7,890, $ 8,104, $11,420, % $15,497, $19,496, $ 7,919, % $ 8,443, $10,916,