Trail Contracting Resources

 

Photo: Allegra Trails

Introduction

Contracting for a trail-related project typically begins with the development of a project bid and ends when the scope of work is complete. This web resource provides an overview of multiple solicitation tools, contractual elements, and processes as they vary with scope of work, resources, and timelines. Many agencies have specific required elements that may not be included in the information below. This resource was developed as part of this 2021 webinar posted on YouTube: From IDIQ to SOQ, Trail Contracting models and a Trail Contracting presentation delivered in 2024.

Photo: Great Lakes Trailbuilders, Patagonia

Solicitation Tools + Models

The type of tool should be tied to project’s scope of work, resources, timelines.

Request for Proposal (RFP) or Quotation (RFQ)

  • Statement of Work (SOW) and Goals are clearly defined, but process to accomplish may vary

  • Contractor proposes an approach and demonstrates understanding of effort and resources needed to accomplish

Request for Qualifications (RFQ)

  • Provides information of competency and quality of contractor

  • Can be phased part of RFP, or IDIQ - BPA 

Indefinite Deliverables Indefinite Quantity (IDIQ) or Blanket Purchase Agreement (BPA)

  • Longer term - typically multi-year awards

  • Builds or establishes a pool of qualified vendors/contractors who can bid on specific elements of the project

  • Statement of Work and timelines may vary

  • Retains competition (if more than one vendor is qualified)

Sole Source

  • One contractor is uniquely qualified for a specialty project.

  • Often used after previous successful projects with the contractor or well vetted referrals and portfolio. 

  • Common for projects with non-standard items requiring high level craftsmanship.

  • May be restricted in some government procurement processes. 

Typical Solicitation Elements

  • Project Description

    • Project Location

    • Partners

    • Vision

    • Timelines/History

  • Scope of Work

    • Desired Outcomes

    • Deliverables Required

    • Project Timeline

  • Proposal Format & Limits

  • Deadline For Submittal

  • Proposal Elements

    • Project Approach

    • Staff

    • Similar Experience

    • References

    • Price

  • Selection Methodology and Timeline

    • Review process

    • Scoring rubric (if available)

    • Points allocated by category

    • Important dates (deadline, review period, notification)

  • Insurance and/or Bonding Requirements

    • Insurance Requirements:

      • Professional Liability

      • General Liability

      • Auto insurance

      • Other policies needed

    • Bond Types (if applicable)

      • Performance Bond (guarantees that the work is completed as promised)

      • Payment Bond (ensures that subcontractors, suppliers, and laborers are paid for their work)

  • Available Maps/Resources

    • Links to partner organizations

    • Additional detail on project background

    • News/articles/archives

    • GIS data and static mapping resources

  • If construction, may include planning and design deliverables: 

    • Conceptual plan

    • Trail master plan

    • Construction documents

Scope of Work:
Types of Trail Planning Projects

Feasibility Study
Is a trail possible and what may be the hurdles and general costs involved? 
Deliverable - Conceptual Plan

Planning
What kind of trail/trail system do “we” want, how can it be developed, and at what cost? 
Deliverable - Master Plan

Design
Where will the contractor build the trail and what will be involved? 
Deliverable - Construction Documents

Assessment
What are the problems and how are they resolved?
Deliverable - Maintenance or Redevelopment Plan

Photo: Ptarmigan Trails, Alaska

 Type of Construction Projects

 Small Construction Projects

  • Price ranges vary- $10,000 (USFS Micro), $50,000.00 (State of Maine as example), $250,000 (Federal)

  • Often has a clearly defined scope of work (bridge, staircase, skills park, etc.)

  • Frequently is a Lump Sum, Time and Materials, or Cost Plus contract 

  • Contracts may be only a few pages long, but need to cover the client and contractor

Large Construction Projects

  • Generally more detailed contracts, but the fundamentals remain the same

  • Bonding requirements, subcontractors, change orders, etc. are common 

  • Design team should remain involved during construction when possible

  • Qualified client representative recommended to oversee scope, may be 3rd party

Design/Build Projects

  • Preferred when a detailed design plan is lacking

  • Success relies on trusting relationship between client and contractor

  • May be able to modify scope of work without a change order

  • Site visits and/or periodic reports are essential

  • Potential cost savings by allowing flexibility during construction

Hybrid Construction

  • Combining labor resources (professional, agency, nonprofit, youth corps, volunteers, etc)

  • Labor resources vary in efficiency and skill; can present challenges

  • Can increase access to funding sources

  • Community benefits can include bolstered stewardship, workforce, engagement

  • Typically high ‘soft’ costs

  • Accountability and warranty can be a challenge

  • Need adequate training and construction management

Photo: Nature Trails, Utah

 Elements of Trail Construction Contract

The elements in a construction contract are typically set by the client and dictated by the agency/land manager.  This is a list of typical items that can be included.

Description of parties
Location
Scope of work
Payments and compensation
Completion schedule
Contractor’s responsibilities
Owner/Client’s responsibilities
Change Order Process
Termination
Indemnification
Insurance Requirements
Dispute Resolution
Arbitration
Disbarment/Suspension
Equal Employment Opportunity
Force Majeure
Governing Law
Schedule/Sequence of Work
Equipment Specifications
Construction Methods
Construction Drawings and Specifications
Qualifications/Licensing
Subcontractor details
Bonding
Warranty/Guarantee
Retainage/Contingency

Photo: Oregon Woods

 Construction Pricing

There are multiple models used in trail construction pricing which have both pros and cons for contractors and clients.

  • Lump Sum

    • All risk on the contractor

    • Most likely to have change orders

  • Unit Price

    • Estimated final cost, but may be +/-

    • Units can be cost per foot (of trail, bridge, armoring, steps etc. or cost per item (i.e. technical trail feature)

  • GMP - Guaranteed Maximum Price

    • Unit price with a limit

    • Should generally be 10-20% over estimated cost

    • Minimizes paperwork for change orders

  • Time and Materials (Cost Plus)

    • Shared risk between contractor and client

    • Potential cost savings with the right contractor

    • Often needed for ‘what if’ visionary projects

  • Day rates

    • Need well defined deliverables and timelines

    • Project oversight and construction management ensures efficiency

 Payment Do’s and Don’ts

DO:

  • Be transparent about payment terms 

  • Pay scheduling deposit or mobilization fee (1-10%), not both.

  • Process invoices promptly

  • Approve invoices with well documented work corrections

DON’T:

  • Pay large deposits (30-50%) in advance without recourse or trust

  • Agree to payment terms you cannot meet (be transparent)

    • Limited capital, grant reimbursements, internal bureaucracy

  • Withhold invoices for minor corrections mid-project

  • Process new invoices if corrections from previous cycle aren’t complete

  • Pay final invoice until all written punch list items are complete

 Elements of Successful Projects

  • Planning + design process achieves goals

    • The level of design is appropriate for construction approach(es)

  • Clear, enforceable expectations that are appropriate for the scope and procurement process

  • Agreed upon line item costs regardless of contract format

    • Be covered legally, but focus on deliverables and transparent costing

    • Set expectations for payment terms and project timeline

  • Continuity from planning + design through implementation

  • Collaborative, trusting and open dialogue

  • Cost effective and profitable

Photo: TrailScapes Pty Ltd, South Australia

Thanks to Jed Talbot (OBP Trailworks), Jeremy Wimpey (Applied Trails Research), Scott Linnenburger (Kay-Linn Enterprises), Scott Gordon (ContourLogic), and Matt Malone (Nature Trails) for developing the original resources.