Minnesota Department of Transportation
Jump to main content.
picture of paving project

Locked Incentive Date (LID) Contracts

Also known as a "no excuse bonus", this type of contract offers contractors an incentive for reaching a project milestone.
Construction Tools Home | Innovative Contracting Home | A+B | Design-Build | IDIQ | Lane Rental | Pay for Performance | Warranties | Contacts

No Excuse Bonus (Locked Incentive Date)


A Locked Incentive Date (LID) contract, also known as a “no excuse bonus”, offers contractors an incentive for reaching a project milestone.   Unlike traditional incentives, the LID does not allow a contractor to receive a time extension and receive the incentive payment.  The LID also requires the contractor to waive all claims if they accept the incentive.


Use of the LID requires approval from OCIC (see Project Screening Checklist and Form below).



  • Additional insurance that a key project milestone will be met
  • No claims if the incentive is accepted



  • Incentive values are typically higher compared to traditional incentives