Incentive/Disincentive Provisions in Highway Contracts
Publication: Journal of Construction Engineering and Management
Volume 123, Issue 3
Abstract
The objective of the study reported in this paper is to compare contracts that include incentive/disincentive (I/D) provisions against contracts that do not include I/D provisions, with regard to the consequences of these measures. The study involves both completed and ongoing highway and bridge renovation/rehabilitation projects undertaken by the Illinois Department of Transportation (IDOT). After a general overview of I/D implementation, the results of a study that covered 28 I/D contracts (contracts that included I/D provisions) and 29 non-I/D contracts undertaken by IDOT during the five-year period 1989–93 are presented. The major finding of this study is that the majority of the I/D contracts are completed on time or sooner, which supports the use of I/D provisions in these contracts. However, this saving in contract duration seems to be accompanied by increased project costs most of the time.
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References
1.
Ibbs, C. W., and Abu-Hijleh, S. F. (1988). “Unique features of construction contract incentive plans, report no. 12.” The Univ. of California at Berkeley, Dept. of Civ. Engrg., Berkeley, Calif.
2.
“Incentive/Disincentive (I/D) for early completion.” (1989). FHWA technical advisory T 5080.10, Federal Highway Administration (FHWA), Washington, D.C.
3.
“Incentive/disincentive guidelines.” (1990). Design memorandum no. 90-53, Illinois Dept. of Transp. (IDOT), Springfield, Ill.
4.
Standard and Supplemental Specifications for Road and Bridge Construction. (1993). Ill. Dept. of Trans., Springfield, Ill.
5.
Yasamis, F. (1994). “Effectiveness of incentive/disincentive clauses in contracts,” MS thesis, Civ. Engrg. Dept., Illinois Inst. of Technol., Chicago, Ill.
Information & Authors
Information
Published In
Journal of Construction Engineering and Management
Volume 123 • Issue 3 • September 1997
Pages: 302 - 307
Copyright
Copyright © 1997 American Society of Civil Engineers.
History
Published online: Sep 1, 1997
Published in print: Sep 1997
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