Next Article in Journal
Responsible Research and Innovation in Industry—Challenges, Insights and Perspectives
Previous Article in Journal
Wide Strip Backfill Mining for Surface Subsidence Control and Its Application in Critical Mining Conditions of a Coal Mine
Article Menu
Issue 3 (March) cover image

Export Article

Open AccessArticle
Sustainability 2018, 10(3), 701; https://doi.org/10.3390/su10030701

Ensuring Efficient Incentive and Disincentive Values for Highway Construction Projects: A Systematic Approach Balancing Road User, Agency and Contractor Acceleration Costs and Savings

1
Graduate Institute of Ferrous Technology & Graduate School of Engineering Mastership, Pohang University of Science and Technology (POSTECH), 77 Cheongam-Ro, Nam-Ku, Pohang 37673, Korea
2
Construction Engineering and Management, Department of Civil, Environmental and Architectural Engineering, University of Colorado, Boulder, CO 80309-0428, USA
*
Author to whom correspondence should be addressed.
Received: 8 February 2018 / Revised: 24 February 2018 / Accepted: 1 March 2018 / Published: 5 March 2018
(This article belongs to the Section Sustainable Use of the Environment and Resources)
View Full-Text   |   Download PDF [2098 KB, uploaded 5 March 2018]   |  

Abstract

United States State Highway Agencies (SHAs) use Incentive/Disincentives (I/D) to minimize negative impacts of construction on the traveling public through construction acceleration. Current I/D practices have the following short-comings: not standardized, over- or under-compensate contractors, lack of auditability result in disincentives that leave SHAs vulnerable to contractor claims and litigation and are based on agency costs/savings rather than contractor acceleration. Presented within this paper is an eleven-step I/D valuation process. The processes incorporate a US-nationwide RUC and agency cost calculation program, CA4PRS and a time-cost tradeoff I/D process. The incentive calculation used is the summation of the contractor acceleration and a reasonable contractor bonus (based on shared agency savings) with an optional reduction of contractor’s own saving from schedule compression (acceleration). The process has a capability to be used both within the US and internationally with minor modifications, relies on historical costs, is simple and is auditable and repeatable. As such, it is a practical tool for optimizing I/D amounts and bridges the gap in existing literature both by its industry applicability, integrating the solution into existing SHA practices and its foundation of contractor acceleration costs. View Full-Text
Keywords: incentives and disincentives; road user cost; highway rehabilitation and reconstruction; schedule analysis; agency cost; time-cost tradeoff; optimizing model; CA4PRS incentives and disincentives; road user cost; highway rehabilitation and reconstruction; schedule analysis; agency cost; time-cost tradeoff; optimizing model; CA4PRS
Figures

Figure 1

This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. (CC BY 4.0).
SciFeed

Share & Cite This Article

MDPI and ACS Style

Lee, E.-B.; Alleman, D. Ensuring Efficient Incentive and Disincentive Values for Highway Construction Projects: A Systematic Approach Balancing Road User, Agency and Contractor Acceleration Costs and Savings. Sustainability 2018, 10, 701.

Show more citation formats Show less citations formats

Note that from the first issue of 2016, MDPI journals use article numbers instead of page numbers. See further details here.

Related Articles

Article Metrics

Article Access Statistics

1

Comments

[Return to top]
Sustainability EISSN 2071-1050 Published by MDPI AG, Basel, Switzerland RSS E-Mail Table of Contents Alert
Back to Top