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APPENDIX B
Summary of I/D Provisions
The following table presents a summary of 49 I/D specifi- the other two-thirds are boilerplate templates. These specifi-
cations that were gathered during the research project. Ap- cations represent a wide cross section of STAs and their dif-
proximately one-third of these provisions are project specific, fering approaches to time-related I/Ds.
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I/D Specifications Obtained
State/Province Title and Key Features
Site Use (A+C Method)
o C = working days x daily RUC
o No work allowed on Sundays and holidays
o Time extensions allowed for quantity overruns, change orders, delays resulting
Arkansas
from acts or omissions of the agency
o Incentive is capped
o Disincentive accrued based on working days in excess of those established by
the contractor
o Liquidated damages are separate and in addition to disincentive
A+B
o B does not include plant establishment period
o Maximum B is set by the agency, any bids which exceed this maximum B are
considered non-responsive
California
o One example from District 7 has an incentive of $50,000 per day capped at
$3,000,000 and a disincentive of $16,500 per day
o A second example from District 7 uses A+B for the entire duration but also has
an interim milestone I/D of 40 calendar days for the completion of a bridge
Incentive-Disincentive, & "Bonus" Payment and Waiver of Contractor Claims
o Completion date(s) set by the agency
o No-excuse, except for catastrophic events and appeals to the Chief Engineer
for impacts that exceed 15% of the remaining time
o The contractor waives all rights to any claims if incentive payments are accepted
o Incentive payments are capped
o Disincentives are capped
Incentive-Disincentive for A+B
o All of the same features as above except the contractor determines contract time
Liquidated Savings for Early Completion
Florida
o Payment for early completion is not considered an incentive, but
liquidated savings related to Construction Engineering Inspection and Contract
Administration costs
o Contract time includes all adjustments in accordance with standard specifications
Incentive-Disincentive for Lane Rental Days
o Maximum lane rental days is set by the agency
o Lane rental days are measured in ½ day increments
o The difference between allowable lane rental days established by the agency and
the actual lane rental days used by the contractor is paid to the contractor or
deducted from contractor earnings
o Recovery costs are assessed for every 30 minutes that all lanes are not open in
accordance with the traffic control plans
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I/D Specifications Obtained
State/Province Title and Key Features
Special Provision 108--Prosecution and Progress, De Kalb Co.
o Fixed completion date set by the agency
o $10,000 per day incentive capped at $1,000,000
o No time extensions except for catastrophic events
o Waiver of all claims if incentive payment is accepted by the contractor
Georgia
o Disincentive calculations are adjusted for delays in accordance with standard
specifications
o Disincentive of $10,000 per day is clearly defined as a liquidated damage and
not a penalty
o Interim milestones related to specific maintenance of traffic conditions have
separate liquidated damages
Rental Fees for Unauthorized Lane Closure or Occupancy
o Lane rental fees charged in 1 to 15 minute increments for each lane that is closed
Hawaii
beyond the specified time frames in the contract
o Lane rental can be waived for factors beyond the contractors control
o "Equipment breakdown is not a cause to waive liquidated damages"
Project Acceleration (Incentive/Disincentive)
o Bidder determines time (A+B)
o Calendar days bid should not include holidays
o Maximum B is set by the agency
o 5% maximum incentive and disincentive
Idaho
o Additional liquidated damages begin to accrue 30 days after the completion date
set by the contractor
o Time extensions based on CPM analysis
o Time extensions allowed for overruns, changes, differing site conditions, utilities,
owner delays in approving submittals, any day when weather prevents work on
the critical path for more than ½ of the day
Incentive for Opening Project to Traffic Ahead of Schedule
o Fixed date set by the agency
Indiana
o Daily incentive rate with a cap
o Time extension granted for agency delay in issuing the notice to proceed and if
the work is materially changed
Incentive/Disincentive for Early Completion
o Closure days is defined as a calendar day occurring during a critical closure
activity
o Allowable closure days are set by the agency and include normal adverse
weather
o Time is adjusted for non-weather related items: overruns, strikes, legal stoppages,
material shortages, and natural disaster
o Time extensions are based on CPM analysis
Iowa
o Weather delays must exceed 5 consecutive days to be considered for time
extension
o Incentive/Disincentive based on actual closure days compared with
allowable closure days--incentive is capped
A+B Bidding
o Daily RUC defined as average daily cost of interference and inconvenience to the
road user
o No I/D associated with this specification
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I/D Specifications Obtained
State/Province Title and Key Features
Lane Rental (Hourly)(A+B Bidding with Incentive/Disincentive)
o Bidder determines lane rental days (B)
o Lane rental I/D is based on actual lane closures compared with the lane rental
Iowa
estimated by the contractor
(continued)
o Lane rental charges may be adjusted for extraordinary circumstances after the
contractor has absorbed the first 10 consecutive hours of delay
o Time extensions granted for circumstances similar to I/D for Early Completion
specification
Additional Bidding Requirements and Contract Conditions
o I/D rate = $25,000 per day
o Work allowed 24-7 except for work near the hospital (pier #5 to abutment #2)
Incentive/Disincentive for Early or Late Completion for the B Portion of the Work
o B work cannot begin before 11FEB2006 and must be complete by 31MAY2006
(109 days)
Maine
o $25,000 incentive for completing before the B time established by the contractor
o $25,000 disincentive is increased to $35,000 per day after 90 days elapse
o Time and I/D adjustments are made based on standard specifications
Time
o CPM schedule must be submitted with the bid
o Detailed CPM requirements
o Pay items for initial schedule and bi-weekly updates
Extension of Time and Extra Cost for Incentive/Disincentive Projects
o No time extensions except for labor disputes and material shortages
o Cost increases related to keeping the project on schedule may be considered
for no access to right-of-way, utility conflicts, interference from related contracts,
suspension of the work, increased quantities and extra work
Michigan
Lane Rental
o Contractor bids estimated lane rental
o Lane rental is measured in hours
o Lane rental is charged against the contractor's estimated amount--any balance
remaining is paid to the contractor, if lane rental exceeds the estimate, it is
deducted from earnings due on other items
o Lane rental may be adjusted for increased work
A+B Calendar Day and A+B Working Day
o Agency sets both a Minimum B and a Maximum B--contractor time bids outside
this range will be rejected
o Incentive is capped
Minnesota o If B encompasses the entire project, liquidated damages are added to daily RUCs
Incentive-Disincentive
o Fixed completion date set by the agency
o Daily incentive rate
o Capped incentive
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I/D Specifications Obtained
State/Province Title and Key Features
Lane Rental Method
o Bidder estimates lane rental--incentive or disincentive is based on actual lane
rental charges
o Lane rental is not charged for extra work
Minnesota o No lane rental charges for lane restrictions that are left in place during shut downs
(continued) due to adverse weather or major equipment breakdowns unless the situation
could have been avoided by reasonable planning
Liquidated Savings
o Liquidated savings are capped
Incentive/Disincentive
o Multiple I/D periods may exist on a single project--they are uniquely identified by
maximum calendar days to complete, start and end dates, daily rate, maximum
incentive, and time frames allowed
o Time and I/D extensions are allowed in accordance with standard specifications,
based on CPM
o Liquidated damages do not apply to I/D portions of the work; however, actual
engineering and inspection costs may be charged
Incentive Payments/Disincentive Assessments for Work Subject to the Special
Note Incentive/Disincentive Clause
New York o I/Ds shall be paid on completion of the I/D portion of the project
Provisions for A+B Bidding
o Multiple B portions may be specified
o Incentive is capped
o Time and I/D extensions are allowed in accordance with standard specifications,
based on CPM
Provisions for Lane Rental
o Bidder estimates lane rental
o Lane rental overruns are deducted from the contractor
o Lane rental may be modified for extra work and delays
Contract Time for Completion--Incentive/Disincentive
o Fixed completion date set by the agency (22SEP2006)
o Limitations on when work may commence
o Interim milestones with disincentive only: $2,500 per day
North Dakota o No extension for changes, increased quantities or delays; but, the incentive date
may be moved up if quantities underrun or the scope of work is decreased
o Incentive capped
o Time extensions may be considered for adjustment to the disincentive only
o No work on Sundays
Incentive/Disincentive Contract
o Fixed date(s) set by the agency--multiple I/D periods may be specified
Ohio o Incentive capped at 5% of contract
o Incentive does not have to be equal to the disincentive
o Daily I/D accrual
o No time extensions for weather, except flooding, blizzard, tornado, etc.
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I/D Specifications Obtained
State/Province Title and Key Features
Lump Sum Minus Incentive
o Fixed completion date(s) set by the agency
o Lump sum incentive paid if milestone dates are met
o Daily disincentive accrual if milestones are not met
o Time is extended for weather
A+B Bidding
o Maximum B set by the agency
o Time extensions considered in accordance with agency policy
o Incentive is capped
o Agency sets maximum days to finish the entire project after the B milestone
has been met
Ohio Lane Value Contract
(continued)
o Disincentive for lane closures
o Contractor must estimate lane closure charges and be included in other items
of work
Unauthorized Lane Use
o Disincentive for lane closures
o Contractor must estimate lane closure charges and be included in other items
of work
Window Contract
o Interim milestones have maximum calendar days set by the agency
o The contractor has the flexibility to schedule the milestones at any time during
the project
A+B Bidding
o Maximum B set by the agency
o Incentive is capped
o The B time sets a complete-by-date that the contractor is expected to
Oklahoma "overcome all" to reach
o Incentive is not adjusted for any reason
o Disincentive may be reduced due to delays caused by unforeseen subsurface
utilities
o Unusually severe weather impacts are only considered for liquidated
damages which are separate from I/D
Multiple Project I/D Specifications (11)
o Many project specifications include capped disincentives
Oregon
o Many combinations of calendar day and fixed date completion times set by the
agency
o Multiple interim milestones all subject to I/Ds
Project Completion and Incentive/Disincentive Payments: Davidson Co.
o Fixed completion date set by the agency
Tennessee o Daily incentive of $7,500 capped at $2,500,000
o Time extensions in accordance with standard specifications
o Very restrictive lane closure requirements--only allowed nights and weekends
o Rolling roadblocks specified for blasting operations and bridge beam erection
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I/D Specifications Obtained
State/Province Title and Key Features
Bidding Contract Time
o A+B can be used with multiple milestones
o Agency sets: start milestone, finish milestone, I/D rate, minimum and maximum
calendar days allowed
o Incentives are capped
o Agency sets maximum calendar days for the contractor to achieve final completion
after substantial completion has been accepted
Utah o Time extensions are in accordance with standard specifications
Lane Rental
o Bidder estimates lane rental--incentive or disincentive is based on actual lane
rental charges
o Lane closure outside the allowable times are assessed a liquidated
damage 1.5 times the highest lane rental rate for that day of the week
o Lane rental measured to the nearest ¼ hour
Operational Constraint--Incentive/Disincentive
o I/D tied to very specific milestone--all surface course completed within xx days of
Ontario, the start of pavement milling operations
Canada o Lump sum incentive of $30,000 for meeting calendar day requirement set by the
agency
o Also daily incentive of $2,000 per day for early completion--capped at $30,000
o Disincentive is lump sum and daily, too
