Research Project Description

IMPROVING TRANSPORTATION CONSTRUCTION PROJECT PERFORMANCE: DEVELOPMENT OF A MODEL TO SUPPORT DECISION-MAKING PROCESS FOR INCENTIVE/DISINCENTIVE CONSTRUCTION PROJECTS

Project Number: 2801

Research Project: In 2006, at the Transportation Research Boards 85th Annual meeting, the Construction Subcommittee announced that their first research priority would be the evaluation of Incentive/Disincentive (I/D) contracting projects. Responding to the committees decision, in March 2006, the Florida Department of Transportation (FDOT) sponsored a research project entitled Evaluation of Alternative Contracting Techniques on FDOT Construction Projects, and, in July 2007, delivered a comprehensive evaluation of their innovative contracting efforts to refine and improve their usage. The necessary next step for highway construction project planners and managers is the development of a decision-making model in order to improve the efficiency of assigning I/D contracts using key factors in highway construction projects, the focus of this study.

Principal Investigator:

Principal Investigator: Jae-Ho Pyeon, Ph.D., Assistant Professor, San Jose State University

Team Member: Taeho Park, Ph.D., Professor, San Jose State University

Institution:
Mineta Transportation Institute

Telephone Number:
(408) 924-7560
Email Address: mineta-institute@sjsu.edu

Project Objective:

To develop a model to enhance decision-making processes for Incentive/Disincentive transportation construction projects and to provide guidelines for appropriate Incentive/Disincentive project selection as well as improve efficiencies in spending public funds.

Project Abstract:

As the volume of highway traffic in the United States continues to increase, there is a concomitant need to improve and repair transportation infrastructure. The United States Department of Transportation (USDOT) encouraged state highway agencies to maintain a proactive highway work program. Transportation construction activity often requires a reduction in road capacity, so motorists as well as adjacent businesses must endure the delays, costs, and inconveniences associated with transportation construction. Recognizing the problems that construction can produce, the Federal Highway Administration has continuously sought ways to minimize the negative impacts from construction operations. One key aspect has been to seek improvements in construction project performance and, more specifically, to accelerate project completion whenever possible. Incentive/Disincentive contracting has played an important role in this effort to improve project performance. However, in many cases, inappropriate I/D project selection and control has resulted in inefficiencies in spending public funds. These inefficiencies are attributed to a poor understanding of the factors that affect the suitability of using incentive contracts. Therefore, a better understanding of the relationships among such factors as contract types, project types, project sizes, project locations, traffic impacts, incentive amounts, and other similar factors is key to providing clear guidance for the proper use of incentive contracting methods. This project would build on the 2006 Florida Department of Transportation Evaluation of Alternative Contracting Techniques on FDOT Construction Projects by developing a model to enhance decision-making processes for the selection of I/D projects.

Milestones Dates:

Task 1: Literature Review

Task 2: Collection of Project Data

Task 3: Analysis and Evaluation

Task 4: Model Development and Validation

Task 5: Prepare and Submit Final Report

Total Budget: $70,739 (Includes $9,450 for MTI costs) 

Student Involvement: 2 Student Research Assistants, San Jose State University, TBA

Technology Transfer Activities:

Upon publication, a pdf version will be available on the Mineta Transportation Institute site. The project experience and data will be available for community meetings. Authors are encouraged to submit articles based on the research to relevant journals and to present the information to end-users at conferences.

Potential Benefits of the Project:

This project will provide a better understanding of the factors that separate more routine projects from I/D projects; deliver a systematic model to enhance and strengthen project decision-making process; and enable project planners and managers to better identify suitable I/D projects and refine the application and use of I/D contracting. The model will also improve efficiencies in spending public funds

TRB Keywords:

Construction; Design; Planning; Administration & Management

Primary Subject:

Construction project performance

Goals:

This project will develop a model to support decision-making process for the selection of Incentive/Disincentive projects.

Enabling Research:

Step 1: Review and analysis of literature

Step 2: Collect, analyze and evaluate project data

Step 3: Develop and validate decision-making model to improve I/D project performance.

Modal Orientation:

Highways