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Time-Related Incentive and Disincentive Provisions in Highway Construction Contracts (2010) / Chapter Skim
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Appendix C - Research Results
Pages 55-67

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From page 55...
... . Written comments provided in the e-mail interview forms regarding the primary method used to estimate contract duration include the following: • California -- "Although CPMs are utilized during project development to estimate project duration in many cases, it is not standard practice for all projects.
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From page 56...
... . 0.0 2.01.0 3.0 4.0 Public/Political Input Anticipated Feedback Special Events User Cost Most ImportantLeast Important Figure C.3.
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From page 57...
... Sequencing schedule activities to avoid conflicts that are inherent in the plans requires a complete understanding of highway construction. Contract Time Extensions Almost one-third of the STA respondents indicated that contract time is not subject to adjustment for any reason.
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From page 58...
... This response is further validated by Figure C.6 and the fact that 13 of 17 STAs stated that at least 75% of all I/D projects in their state over the last 2 fiscal years had resulted in the contractor earning the maximum incentive allowed. Budgeting for I/Ds The majority of STAs budget for I/Ds in some manner, with only one-fourth of the responding STAs indicating they do not specifically budget for I/Ds (Figure C.7)
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From page 59...
... Recommendations for agency staffing issues on I/D projects identified by Petring and Helgeson include the following: • Limit project managers to oversight of one A+B project at a time and avoiding consecutive assignments on A+B projects. • Train project managers regarding limitations on agency personnel work hour limitations.
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From page 60...
... The one exception was the contractor field group, which indicated that none of them had actually completed a project under a liquidated savings I/D provision. One section of the ranking form asked interviewees to contrast projects of similar scope and size that used time-related I/D provisions with non-I/D projects and rate their level of agreement or disagreement with a specific statement.
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From page 61...
... I/D Provision Impacts on Project Factors In-depth Interviewees were asked to rank the degree to which time-related I/D provisions impact seven different project factors. The project factors considered were construction time, project cost, project quality, safety, innovation, contract administration and project staffing.
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From page 62...
... Items with the lowest or highest level of agreement (I/D provision impacts) : average and upper and lower quartiles (n  42)
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From page 63...
... One probable explanation for the difference between this group's ranking and the other group's is the manner in which quality is defined. Agency and contractor administration personnel measure quality almost exclusively from a specification perspective; however, contractor field personnel have a personal connection to the construction 63 Rank I/D Degree of Impact on Project Factors 5 significant beneficial impact 4 considerable beneficial impact 3 moderate beneficial impact 2 slight beneficial impact 1 or -1 neutral impact -2 slight detrimental impact -3 moderate detrimental impact -4 considerable detrimental impact -5 significant detrimental impact Table C.2.
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From page 64...
... . all contractor field contractor admin.
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From page 65...
... Based on feedback that was received during the Q&A interview sessions, it is likely that the contractor field group identifies the agencies prompt resolution of issues on I/D projects as a beneficial impact with respect to contract administration. Time-Related I/D Provision Impacts on Project Staffing Contractor administration and field group rankings indicate that these groups perceive a slight to moderate beneficial 65 all contractor field contractor admin.
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From page 66...
... . all contractor field contractor admin.
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From page 67...
... Lane Rental provisions were not deemed effective for reducing construction time. 67 all contractor field contractor admin.
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Key Terms

  • detrimental impact
  • contractor field
  • time extensions
  • lower quartiles
  • provision impacts

  • ranking form
  • lane rental
  • construction time
  • moderate beneficial
  • project quality

  • cost growth
  • considerable beneficial
  • slight beneficial
  • moderate detrimental
  • considerable detrimental

  • slight detrimental
  • significant beneficial
  • contract time
  • agency field
  • liquidated savings

  • contract duration
  • average cost
  • ranking forms
  • provision types
  • stas indicated

  • estimate project
  • time charges
  • project factors
  • contractor administration
  • project cost


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