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Establishing guidelines for incentive/disincentive contracting at ODOT.
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2007-02-01
[PDF-1.63 MB]
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Alternative Title:Establishing guidelines for incentive/disincentive contracting at Oregon Department of Transportation
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Edition:Final report.
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Abstract:This report describes the results of a research project which explored the use of Incentive / Disincentive (I/D) contracting at
the Oregon Department of Transportation (ODOT). The research found that I/D contracting is a relatively rare practice
within ODOT. When I/D contracting occurs, the special provisions and parameters (such as setting incentive amounts) are
managed on a centralized basis by a small group of individuals. These individuals have used engineering judgment to
develop these provisions and parameters in an environment of little historical data. Most of the knowledge of I/D
contracting resides with these individuals, and there is little summarized written information that others could use to also
develop similar provisions and parameters. Nationally, there is a wide mix in the use of I/D contracting amongst the
various departments of transportation (DOTs). FHWA and NCHRP have published reports that compile these experiences
and provide recommendations for I/D contracting. This work at the federal level is the basis for the development of an
ODOT methodology for identifying project conditions that could lead to the use of I/D contracts. ODOT’s Office of
Project Delivery uses Operational Notices to document and disseminate operational procedures. A draft I/D Operational
Notice is included in this report as a potential tool for implementation of the findings.
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