Case Studies
Oct 29, 2013

Programmatic Examination of Missouri Incentive/Disincentive Contracts for Mitigating Work Zone Traffic Impacts

Publication: Journal of Construction Engineering and Management
Volume 140, Issue 1

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.

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Acknowledgments

The authors gratefully acknowledge the assistance from the following individuals: Natalie Roark, Danica Stovall, Jeremy Kampeter and Jeff Campbell of the Missouri Department of Transportation (MoDOT) for their expertise on contracting and project cost estimation; John Miller and Myrna Tucker of (MoDOT) for their assistance with traffic and safety data; Tracy Scriba of FHWA for her help in discovering relevant experts and sources; and Jerry Ullman of TTI for his aid to the project through the TRB Work Zone Traffic Control Committee.

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Published In

Go to Journal of Construction Engineering and Management
Journal of Construction Engineering and Management
Volume 140Issue 1January 2014

History

Received: Jun 13, 2013
Accepted: Sep 6, 2013
Published online: Oct 29, 2013
Published in print: Jan 1, 2014
Discussion open until: Mar 29, 2014

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Authors

Affiliations

Carlos Sun, Ph.D., J.D. [email protected]
P.E.
Associate Professor, Univ. of Missouri-Columbia, E2509 Lafferre Hall, Columbia, MO 65201 (corresponding author). E-mail: [email protected]
Andrew Mackley [email protected]
Rhythm Engineering, 12351 W. 96th Terrace, Suite 107, Lenexa, KS 66215. E-mail: [email protected]
Praveen Edara, Ph.D. [email protected]
P.E.
Assistant Professor, Univ. of Missouri-Columbia, E2509 Lafferre Hall, Columbia, MO 65201. E-mail: [email protected]

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