Sun, C; MacKley, A and Edara, P (2014) Programmatic examination of missouri incentive/disincentive contracts for mitigating work zone traffic impacts. Journal of Construction Engineering and Management, 140(1): 05013004, ISSN 0733-9364
Abstract
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. Conditions during construction were compared to after construction. Delay costs and crash costs were computed using published data. For every dollar paid in incentives, approximately 5.3 dollars of RUC savings resulted from the use of I/D. Also, I/D projects had a higher on-time completion percentage and a higher number of bids per call than average projects. However, I/D projects resulted in 4.52% higher deviation from programmed costs and possibly more changes made after the award.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contracting; incentive/disincentive; innovative contracting; road user cost; work zone impacts |
| Index terms: | deviation, operating cost, completion time, savings, traffic impact |
| Subjects: | economic analysis, transportation engineering, financial and cost management, project controls |
| Topics: | Engineering Principles, Cost Management, Time Control, Business Strategy |
| Descriptive scope: | 1 C |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here