• Skip to primary navigation
  • Skip to main content
Logo

Work Zone Safety Information Clearinghouse

Library of Resources to Improve Roadway Work Zone Safety for All Roadway Users

  • About
  • Join Listserv
  • Contact
  • Twitter
  • Facebook
  • LinkedIn
  • Work Zone Data
    • At a Glance
    • National & State Traffic Data
    • Work Zone Traffic Crash Trends and Statistics
    • Worker Fatalities and Injuries at Road Construction Sites
  • Topics of Interest
    • Commercial Motor Vehicle Safety
    • Smart Work Zones
    • Transportation Management Plans
    • Accommodating Pedestrians
    • Worker Safety and Welfare
    • Project Coordination in Work Zones
  • Training
    • Flagger
    • Online Courses
    • Toolboxes
    • FHWA Safety Grant Products
    • Certification and
      Accreditation
  • Work Zone Devices
  • Laws, Standards & Policies
    • COVID-19 Guidance
  • Public Awareness
  • Events
  • About
  • Listserv
  • Contact
  • Search
Practice

Incentives/disincentives

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.

Assessment:

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"
Topics: Incentives

Copyright © 2023 American Road & Transportation Builders Association (ARTBA). The National Work Zone Safety Information Clearinghouse is a project of the ARTBA Transportation Development Foundation. It is operated in cooperation with the U.S. Federal Highway Administration and Texas A&M Transportation Institute. | Copyright Statement · Privacy Policy · Disclaimer
American Road and Transportation Builders Association Transportation Development Foundation, American Road and Transportation Builders Association U.S. Department of Transportation Federal Highway Administration Texas A&M Transportation Institute