Guidebooks for Post-Award Contract Administration for Highway Projects Delivered Using Alternative Contracting Methods, Volume 1: Design–Build Delivery (2020) / Chapter Skim
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24 Incentive/Disincentive Program for Superior Quality A‐99 24 Incentive/Disincentive Program for Superior Quality This tool is an incentive/disincentive program to encourage superior performance by the contractor in quality. It can also be used for safety performance, cost, environmental compliance, disruption to the travelling public, or other areas that align with the agency's priorities.
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24 Incentive/Disincentive Program for Superior Quality A‐100 Table A24 Recommended uses for incentive/disincentive program for superior quality Contract administration phase Project complexity Project size A lig nm en t D es ig n C on st ru ct io n Cl os eo ut N on -c om pl ex M od er at el y co m pl ex C om pl ex ≤ $1 0 M $1 0 M - $5 0 M > $5 0M 24 Incentive/disincentive program for superior quality = Recommended; = Consider Case-by-Case; = Not Recommended How to use it? The criteria for incentives should be objective, definable, and quantifiable, so they serve as accurate indicators of achievement by the contractor.
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24 Incentive/Disincentive Program for Superior Quality A‐101 increments in order to encourage high performance throughout an activity. Additionally, in both the ADOT and WSDOT examples, the responsibilities of project team members involved in the incentive program are clearly defined, and the steps for evaluating and awarding incentives are clearly described.
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24 Incentive/Disincentive Program for Superior Quality A‐102 1. Items of Work selected for checklists will be based on the Department's inspection personnel identification of potentially Nonconforming Work for more detailed inspection (judgment sampling)
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24 Incentive/Disincentive Program for Superior Quality A‐103 calculations will be performed immediately upon checklist completion. If rework for any checklist is not performed, the reason should be stated in the space provided on the checklist for comments.
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