Innovative Contracting Methods Implementation Studies

The main objective of this study is to determine the effectiveness of alternative contracting strategies on aspects of project performance such as schedule and cost, in order to promote ways to apply the strategies effectively. A quantitative analysis that draws on 1,372 infrastructure improvement projects completed in California from 2000 to 2008 was conducted; alternative projects contracted with I/D (incentive/disincentive) and A+B (cost-plus-time) represented 7% of all project establishments and 23% of all project allotment costs. The results of one-way ANOVA analyses show that I/D projects held a decisive schedule-saving advantage over A+B and conventional projects, but that I/D also increased project costs significantly more than the others because of a higher frequency of contract change orders. The results of statistical analyses reveal a severe effectiveness problem with use of the A+B contracting strategy. When compared with conventional projects, A+B not only included extreme severe schedule overruns, but it also increased project costs far above the levels seen in conventional projects; both of these resulted from inaccuracies created by allowing contractors to bid on contract time. According to the analysis, the additional cost growth for utilizing I/D was recouped by reduced construction time, but this tradeoff was not seen in A+B projects.

• Record URL:
  http://www.its.ucdavis.edu/?page_id=10063&pub_id=1719
• Record URL:
  http://www.ucprc.ucdavis.edu/PDF/UCPRC-TM-2008-11.pdf
• 
• Availability:
  • Find a library where document is available. Order URL: http://worldcat.org/oclc/818658221
• Corporate Authors:

  California Department of Transportation

  Office of Pavement Preservation, Division of Maintenance
  1120 N Street, MS-5
  Sacramento, CA  United States  95814

  University of California, Davis

  Pavement Research Center, One Shields Avenue
  Davis, CA  United States  95616

  University of California, Berkeley

  Institute of Transportation Studies, Pavement Research Center
  1353 South 46th Street
  Richmond, CA  United States  94804
• Authors:
  • Choi, Kunhee
  • Lee, Eul-Bum
• Publication Date: 2008-11

Language

• English

Media Info

• Media Type: Digital/other
• Features: Figures; Tables;
• Pagination: 26p
• Serial:
  • University of California Pavement Research Center Technical Memorandum

Subject/Index Terms

• TRT Terms: Construction scheduling; Contract administration; Contracts; Costs; Disincentives; Incentives; Project management; Time
• Identifier Terms: California Department of Transportation
• Subject Areas: Administration and Management; Economics; Highways; I10: Economics and Administration;

Filing Info

• Accession Number: 01454421
• Record Type: Publication
• Source Agency: UC Berkeley Transportation Library
• Report/Paper Numbers: UCPRC-TM-2008-11, CA131889A, UCD-ITS-RR-2008-53
• Files: CALTRANS, TRIS, STATEDOT
• Created Date: Nov 20 2012 1:04PM