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

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:
  Bids Construction Contracts Cost Overruns Costs Incentives Liquidation Damages Loss And Damage Claims Pay Planning
• 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
• Collection(s):
  US Transportation Collection
• Main Document Checksum:
  urn:sha-512:b09e712735a7368cb223dbdba1d6efefdd94bab523a4854dbd12a2a953561a8a7324b0f9d30e03f244f59aaf8a61e819b4da0908810bd2d02fe3572aef1f7355
• Download URL:
  https://rosap.ntl.bts.gov/view/dot/84956/dot_84956_DS1.pdf
• File Type:
  [PDF - 2.12 MB ]