Alternative Delivery Offramp

“Taking the offramp” sounds like a detour, but in alternative delivery projects, it’s a deliberate pivot—terminating the process and shifting to competitive bidding when the road ahead looks rocky. So, how do you spot the warning signs that your project’s veering toward the exit?

  Often you can tell from the behavior of your Contractor (CM), but not always.  If the CM is not engaged in identifying risk mitigation solutions and actively participating in innovations vetting, and instead they just want to tell you how much everything is going to cost (without demonstrating much concern about your budget), then you’re probably headed for the exit.  An alternative delivery team should feel like a partnership.  If your partnership feels like a one-way street, then you probably don’t have the right dance partner.  However, we have seen CMs turn things around mid-project.  If you find yourself in this situation, the best thing you can do as the owner is to frequently define your expectations that the CM should focus their efforts on the preconstruction services (risk management, innovations development, schedule optimization…and then pricing). 

But don’t always pin it on the CM..  We worked on a project in 2022-23 that was off ramped.  This project started with a Volkswagen sized budget, but it had an offroad articulated dump truck size scope of work!  To make matters worse, the budget was established pre COVID19, and the preconstruction services were being priced in 2022.  Cost escalations and supply chain issues killed any chance of that project going all the way to GMP.  However, all’s well, that ends well.  When that Owner put the project out for competitive bidding, that contractor was permitted to bid, and they won the project.

Here's some good news.  This doesn’t happen very often.  Over the almost 200 projects that ICE Teams has worked on since 2016, only 2 of them have taken the offramp.  So, roughly 1% of projects don’t go the distance.  And here’s more good news, you’re not alone.  Although taking the offramp on an alternative delivery project is infrequent, it does happen.  You have counterparts at other DOTs, Port Authorities, Counties and Cities who have been there and done that.  You can reach out to them to find out how their experience went.  Additionally, I know several of our clients who have taken the offramp and I can connect you with them.  Finally, there is a group of alternative delivery specialists who meet quarterly to exchange information on their alternative delivery projects.  Contact me if you want information on ACM or if you need a lifeline or just want to talk offramps.

One last thing: hitting the offramp isn’t a failure of alternative delivery, it’s a feature. It’s the escape hatch in your toolbox, ensuring your project goals stay within reach, no matter the terrain. With ICE Teams in your corner, we’ll help you spot the signs, steer the course, or exit smartly—because success isn’t about avoiding the offramp, it’s about knowing when to take it.