Case Study: I-95 Express Lanes Expansion – Design-Build Delivery and Risk Sharing Issues (2017)
Project Overview
• Name: I-95 Express Lanes Expansion
• Location: Virginia
• Year: 2017
• Project Size: $750 million
• Scope: Expansion of express toll lanes on I-95 using Design-Build delivery
• Lead Agencies/Contractors: Virginia Department of Transportation (VDOT), Design-Build Joint Venture
Category of the Issue, Problem, or Challenge
• Project Delivery Method
• Design-Build
Summary of the Issue, Problem, or Challenge
The project encountered construction delays and cost overruns linked to unclear risk-sharing clauses in the Design-Build contract. Disputes arose over unforeseen geotechnical conditions and utility relocations, impacting the project’s schedule and budget.
Root Cause Analysis
- Ambiguous contract language on risk allocation for subsurface conditions.
- Insufficient pre-construction site investigation.
- Lack of a formal dispute resolution process embedded in contract.
- Delays in utility relocation coordination with third parties.
Impacts Due to the Issue, Problem, or Challenge
• Schedule delays of 5 months.
• Cost overruns approximately $30 million.
• Increased conflict and claims between owner and contractor.
Corrective Actions Taken
- Clarified contract language related to geotechnical risk and utility coordination.
- Improved site investigation protocols pre-construction.
- Established formal dispute resolution procedures.
- Enhanced coordination processes with utility companies.
Lessons Learned
- Clear risk allocation is critical in Design-Build projects.
- Comprehensive site investigations reduce surprises.
- Defined dispute resolution mechanisms improve issue management.
- Early utility coordination prevents delays.
Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation
- Is risk allocation for subsurface and utilities clear?
- Has the site been adequately investigated pre-construction?
- Are dispute resolution methods defined contractually?
- Is there an early and effective utility coordination plan?