Case Study: New Jersey Turnpike Widening – Design-Bid-Build Delivery and Change Order Management Issues (2013)

Project Overview
• Name: New Jersey Turnpike Widening
• Location: New Jersey
• Year: 2013
• Project Size: $1.5 billion
• Scope: Widening of New Jersey Turnpike using Design-Bid-Build delivery
• Lead Agencies/Contractors: New Jersey Turnpike Authority, Multiple Contractors

Category of the Issue, Problem, or Challenge
• Project Delivery Method
• Design-Bid-Build

Summary of the Issue, Problem, or Challenge
During construction, numerous change orders due to design omissions and unforeseen subsurface conditions led to cost escalation and delays. The traditional delivery method lacked flexibility in managing these changes effectively.

Root Cause Analysis

• Incomplete design documentation before bidding.
• Poor geotechnical site investigations.
• Rigid contract change order processes.
• Fragmented communication between designer and contractor.

Impacts Due to the Issue, Problem, or Challenge
• Project delay of 9 months.
• Cost overruns exceeding $70 million.
• Increased contractor claims and disputes.

Corrective Actions Taken

1. Enhanced design completeness before bidding.
2. Improved site investigation standards.
3. Streamlined change order approval workflows.
4. Fostered closer designer-contractor collaboration.

Lessons Learned

• Comprehensive design reduces change orders.
• Rigorous site investigations are critical.
• Flexible change management processes improve delivery.
• Strong communication between design and construction teams mitigates risks.

Audit & Prevention: Project Control Questions to Ask on Future Projects to Help Control the Situation

• Is design documentation fully complete before bidding?
• Are site investigations sufficiently thorough?
• Are change order procedures flexible and efficient?
• Is there ongoing collaboration between design and construction?