This paper discusses incentives and disincentives in the construction industry. Incentives are defined as soft (intangible) or hard (tangible). Examples of soft incentives are participation, creativity, and recognition; and soft disincentives are idleness, boredom, and opprobrium. Examples of hard incentives are profit, growth, and rewards; and hard disincentives are loss, atrophy, and bankruptcy. The discussion includes explanations of bonus systems, incentive payments, cost control programs, the role of incentives, contractor performance incentives, and bonuses for quality.

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    • This paper appears in Transportation Research Circular No. 386, Innovative Contracting Practice. Distribution, posting, or copying of this PDF is strictly prohibited without written permission of the Transportation Research Board of the National Academy of Sciences. Unless otherwise indicated, all materials in this PDF are copyrighted by the National Academy of Sciences. Copyright © National Academy of Sciences. All rights reserved.
  • Corporate Authors:

    Transportation Research Board

    500 Fifth Street, NW
    Washington, DC  United States  20001
  • Authors:
    • Riley, O
  • Publication Date: 1991-12

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  • Media Type: Digital/other
  • Features: Figures; Tables;
  • Pagination: p. 57-64
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  • Accession Number: 00618792
  • Record Type: Publication
  • Files: TRIS, TRB
  • Created Date: Jan 31 1992 12:00AM