In Colorado, cash incentives give contractors a reason to accelerate completion of a project. Restrictions are placed on when contractors can disrupt traffic. This may require work being done at night or more efficiently during the day. To prevent contractors from setting lengthy deadlines then beating them to collect the bonus, a special bidding formula is used. Contractors must compute their bid by adding the dollar amount for the work items to the total number of calendar days multiplied by the daily user cost. This amount determines who has the lowest bid. A shorter project schedule gives contractors a better chance of being awarded the project.
Disincentives are also used to accelerate project completion time. A late completion disincentive is equal to the estimated daily cost to the public.
Their use of incentives has been so successful that they are increasing the number of projects with incentive clauses. In the past, three to four projects out of about 120 have had incentive clauses. With the success, this number has doubled.State/Agency: Colorado
Where Documented: "CDOT Rewards Early Completion of Construction Work"