"LABOR PEACE" PRICING FOR MASS. ROUTE 3

The pricing of long-term guarantees for labor harmony and roadway maintenance will probably determine the outcome of the competition among three finalists for the private development and tax-exempt lease financing for a $200-million-plus widening of Route 3 from Boston, Massachusetts' Interstate 95/128 beltway to New Hampshire. The request for proposal (RFP) provides that Massachusetts Highways will handle snow and ice removal on the completed road. However, the developer must warranty maintenance and repairs during both the 30-year operating lease and for 10 years after it turns the road over to the state. The lack of prescriptive detail on the warranty subjects the private developer to significant maintenance risks, says one of the bidders. Yet, the selection process is heavily weighted toward the firm offering the lowest first cost. Further complicating the selection, the state's Route 3 enabling law passed in August 1999 requires that the developer selected by the Highway Department "provide for the assurance of labor harmony during all phases of development, including construction, reconstruction, and capital and routine maintenance" during the 30-year term of the private operation and maintenance contract.

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  • Corporate Authors:

    Public Works Financing

    147 Elmer Street
    Westfield, NJ  United States  07090-2433
  • Publication Date: 2000-4

Language

  • English

Media Info

  • Pagination: p. 4-6
  • Serial:

Subject/Index Terms

Filing Info

  • Accession Number: 00792341
  • Record Type: Publication
  • Files: TRIS
  • Created Date: May 15 2000 12:00AM