Incentives - Early Completion
Early completion incentives are often used to encourage completing a project earlier than the time specified in the contract. Incentives can be used on a variety of projects, but are typically used on projects with high road-user cost or business impacts. Typical candidate project types include:
- Urban reconstruction
- Interstate and high volume projects with major traffic impacts
- A+B Projects
- Projects with lengthy detours
- Bridge Replacement or Rehabilitation
Incentive Guidelines
- Should be based on Road-User-Cost calculations
Must be sufficient to encourage contractor interest - Maximum incentive should not exceed 5% of the total contract amount
- Include a maximum incentive amount
- Consider using a CPM schedule
- Include in 1806 Determination of Contract Time Special Provision