Project Completion Times and Evaluation of Bidding Strategies with Bonuses and Liquidated Damages

McFarland, William F.; Rollins, John B.; Krammes, Raymond A.; Buffington, Jesse L.; Memmott, Jeffery L.

i

Project Completion Times and Evaluation of Bidding Strategies with Bonuses and Liquidated Damages

1987-05-01
By McFarland, William F. ; Rollins, John B. ; Krammes, Raymond A.

File Language:

English

Details

Creators:

McFarland, William F. ; Rollins, John B. ; Krammes, Raymond A. ; Buffington, Jesse L. ; Memmott, Jeffery L.
Corporate Creators:

Texas Transportation Institute. Texas A&M University
Corporate Contributors:

Texas State Department of Highways and Public Transportation ; United States. Department of Transportation. Federal Highway Administration
Subject/TRT Terms:
Publication/ Report Number:

FHWA/TX-87/412-lF
Resource Type:

Tech Report
Geographical Coverage:

Texas ; United States
Edition:

Final Report: September 1984 - May 1987
Corporate Publisher:

Texas Transportation Institute. Texas A&M University
Abstract:

This study presents new estimates of project completion times, construction engineering costs for project overruns, and motorist costs for project overruns. A theoretical model is developed for evaluating alternative strategies for using bonuses and liquidated damages. Research results indicate that the preferred strategy is to use a procedure whereby contractors bid working days. For critical projects it is recommended that a bonus be paid. For other projects, it is recommended that contractors also be required to bid project working days and pay liquidated damages for overruns but receive no bonus for early completion. It is estimated that the total cost for completing projects will be decreased substantially by using improved bidding strategies and larger liquidated damages.
Format:

PDF
Funding:

2~6-85-412
Download URL:

https://rosap.ntl.bts.gov/view/dot/84956/dot_84956_DS1.pdf
File Type:

[PDF - 2.12 MB]
Collection(s):

US Transportation Collection
Main Document Checksum:

urn:sha-512:b09e712735a7368cb223dbdba1d6efefdd94bab523a4854dbd12a2a953561a8a7324b0f9d30e03f244f59aaf8a61e819b4da0908810bd2d02fe3572aef1f7355

File Language:

English

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