A+B contracting,6 also known as cost-plus-time bidding, is a procurement approach that selects the lowest bidder based on consideration of both (A) the proposed price for the contract bid items and (B) the value associated with the time needed by the contractor to complete the project. This procedure is intended to provide a contractual incentive for the A+B contractor to minimize delivery time for high priority and congested highways by offering incentives for early completion and assessing penalties for late completion.7 A+B contracting shifts the risk of failing to meet project dead-lines to the private contractor.
One related technique that is designed to expedite project completion and minimize road user impacts is the practice of assessing "lane rental" fees against the contractor for every traffic lane that needs to be taken out of service during construction on an existing facility. A lane-rental fee typically is based on the estimated cost of delay or inconvenience to the road user during the rental period, assessed for the period of time that the contractor occupies or obstructs part of the roadway, and deducted from monthly progress payments.
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6 Id. at 14.
7 A+B contracting is a technique supported by the Federal Highway Administration (FHWA) under its experimental SEP-14 program, which is discussed in further detail below.