Quantifying the Impact of I/D Contracting on the Time/Cost Trade-Off for Pavement Rehabilitation Projects

The current deteriorating state of the highway system in the Unites States is shifting the balance of highway construction projects towards maintenance and rehabilitation works on the expense of new construction. Hence, state highway agencies (SHAs) are now challenged to complete a substantial scope of highway rehabilitation work while controlling and reducing the negative impacts on the travelling public. Therefore, alternative contracting methods that are aimed at reducing highway projects' durations, such as the incentive/disincentive (I/D) method, are gaining popularity among SHAs. For instance, the value of the ID assigned in a highway project has a significant effect on expediting the completion of the project while saving tax dollars. However, the current practice of estimating and assigning the ID value is not adequate and is frequently either overestimated or underestimated. This paper presents the development of a new model to accurately estimate ID value in highway rehabilitation projects based on the desired level of duration reduction. The model quantifies the impact of the I/D contracting method on the trade-off between time and cost of highway rehabilitation projects which should prove useful to SHAs in determining and assigning values of ID that are proper for the required project duration reduction together with the likelihood of achieving it.