A+B Bidding
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A+B bidding, also known as cost-plus-time bidding, involves time (with an associated cost) in the low bid determination. Bids consist of two components:
1.)The “A” component is the traditional bid for the contract items and is the dollar amount for all work to be performed under the contract.
2.)The “B” component is a “bid” of the total number of calendar days required to complete the project, as estimated by the bidder. The bid for award consideration is based on a combination of the bid for the contract items and the associated cost of the time, according to the following formula: (A) + (B x Road User Cost per Day)
The formula is only used to determine the lowest bid for award and is not used to determine payment to the contractor. A disincentive provision, that assesses road user costs, is incorporated into the contract to discourage the contractor from overrunning the time “bid” for the project. In addition, an incentive provision should be included to reward the contractor if the work is completed earlier than the time “bid.” A+B bidding should be considered for critical projects having high road user delay costs.

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