Use of Incentive/Disincentive Contracting to Mitigate Work Zone Traffic Impacts

Use of Incentive/Disincentive Contracting to Mitigate Work Zone Traffic Impacts
Author: Andrew R. Mackley
Publisher:
Total Pages: 58
Release: 2012
Genre: Electronic Dissertations
ISBN:

Incentive/disincentive clauses (I/D) are designed to award payments to contractors if they complete work ahead of schedule and to deduct payments if they exceed the completion time. A previously unanswered question is, "Did the costs of the actual work zone impacts that were avoided justify the incentives paid?" This paper answers that question affirmatively based on an evaluation of 20 I/D projects in Missouri from 2008 to 2011. Road user costs (RUC) were used to quantify work zone impacts and included travel delays, vehicle operating costs, and crash costs. These were computed using work zone traffic conditions for partial-closure projects and detour volumes and routes for full-closure projects. Conditions during construction were compared to after construction. Crash costs were computed using Highway Safety Manual methodology. Safety Performance Functions produced annual crash frequencies that were translated into crash cost savings. In considering an average project, the percentage of RUC savings was around 13% of the total contract amount, or $444,389 of $3,464,620. I/D provisions were very successful in saving RUC for projects with full-closure, projects in urban areas, and emergency projects. Rural, non-emergency projects successfully saved RUC but not at the same level as other projects. The I/D contracts were also compared to all Missouri Department of Transportation contracts for the same time period. The results show that I/D projects had a higher on-time completion percentage and a higher number of bids per call than average projects. But I/D projects resulted in 4.52% higher deviation from the project budget and possibly more changes made after the award. A survey of state transportation departments and contractors showed that both agreed to the same issues that contribute to the success of I/D contracts. Overall, in terms of work zone impact mitigation, I/D contracts are very beneficial at a relatively low cost.

Time-related Incentive and Disincentive Provisions in Highway Construction Contracts

Time-related Incentive and Disincentive Provisions in Highway Construction Contracts
Author: Gary J. Fick
Publisher: Transportation Research Board
Total Pages: 76
Release: 2010
Genre: Business & Economics
ISBN: 0309154782

This report will be of interest to state and local highway agency construction managers and contractors with regard to learning about best practices of time-related incentive and disincentive contract provisions and their effect on staffing levels, productivity, project cost, quality, contract administration, and the contractor's operations and innovations. The report also presents a decision process guide to use as a template for crafting the incentive/disincentive provisions.

Reducing and Mitigating Impacts of Lane Occupancy During Construction and Maintenance

Reducing and Mitigating Impacts of Lane Occupancy During Construction and Maintenance
Author: Stuart D. Anderson
Publisher: Transportation Research Board
Total Pages: 72
Release: 2000
Genre: Roads
ISBN: 9780309069021

TRB's National Cooperative Highway Research Program (NCHRP) Synthesis 293: Reducing and Mitigating Impacts of Lane Occupancy During Construction and Maintenance describes the current state of the practice for reducing and mitigating the impacts of lane occupancy during construction and maintenance.

Incentive-Disincentive Clause

Incentive-Disincentive Clause
Author: Thomas McDonald
Publisher:
Total Pages: 4
Release: 1985
Genre: Roads
ISBN:

There is an urgent need to complete projects in high traffic urban areas in the shortest possible time. These road user benefits resulting from faster construction will minimize public inconvenience, safety hazards and a total cost to the public. The incentive - disincentive clause in the contract will encourage the contractor to expedite all phases in the contract. A copy of this special provision is part of this work plan and other details of construction are included in the plan and specification of Project F-65-4(34)--20-77.