Incentives/disincentives

Use of incentives/disincentives has been in practice in West Virginia for 7 or 8 years. It is now a design directive (DD). From DD 708: “An incentive/disincentive (I/D) contract provision used in a project is a method to compensate a contractor a fixed amount of money for each day identified critical work is completed ahead of schedule. Also, it assesses a deduction for each day the contractor overruns the time allotted for the completion of identified critical work.”