Case Study: New Jersey Turnpike Widening – Design-Build Delivery and Scope Management Issues (2015)

Project Overview
• Name: New Jersey Turnpike Widening Project
• Location: New Jersey
• Year: 2015
• Project Size: $1.3 billion
• Scope: Widening of highway lanes and bridge rehabilitation using a Design-Build approach
• Lead Agencies/Contractors: New Jersey Turnpike Authority, Design-Build Contractor JV

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

Summary of the Issue, Problem, or Challenge
During construction, scope creep and late-stage design changes led to significant cost increases and schedule delays. Contract terms lacked mechanisms for effective scope change control, leading to disputes and inefficient resource allocation.

Root Cause Analysis

• Insufficient early scope definition and freeze.
• Lack of formal change management procedures embedded in the contract.
• Poor coordination between design and construction teams on change impacts.
• Inadequate contingency planning for scope growth.

Impacts Due to the Issue, Problem, or Challenge
• Schedule delays totaling 6 months.
• Cost overruns of approximately $50 million.
• Increased claims and contentious contract negotiations.

Corrective Actions Taken

1. Instituted formal change management and scope freeze protocols.
2. Improved integration between design and construction disciplines for change assessment.
3. Enhanced owner involvement in scope definition and approval.
4. Increased contingency budgeting to accommodate unforeseen changes.

Lessons Learned

• Early and clear scope definition prevents costly scope creep.
• Formal change management systems are critical in Design-Build projects.
• Coordination among disciplines helps manage change impacts.
• Owner engagement throughout helps control scope growth.

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

• Is the project scope well defined and frozen early?
• Are change management procedures clearly defined?
• Is design-construction coordination effective for managing changes?
• Are contingency budgets sufficient and well managed?