With incentives or liquidated savings, contractors can receive an incentive equal to the amount of Mn/DOT's contract administration fees for early completion. Typically, there is no cap on the maximum amount of liquidated savings a contractor can receive.
Mn/DOT has recently incorporated the use of incentive/disincentives on several roadway projects to expedite construction timelines.
- Reduced construction time
- Potential for lower contract administration costs
- May require additional funding
- Contract changes can lead to disputes regarding innovative projects