01658565

Component

Construction, rehabilitation, and maintenance of roads, highways, and bridges are necessary activities for social and economic growth in the U.S. Highway construction often requires disruption of traffic due to lane closures and detours often impacting the motoring public. Contractual provisions (i.e., liquidated damages (LDs), incentive/disincentives (I/Ds) and road user costs (RUCs)) are essential in construction contracts to ensure timely completion and minimal disruption to road users. A survey was administered to establish a state-of-the-practice regarding the application, development, project staffing requirements, audit and review, and enforceability of LDs, I/Ds, and RUCs. The survey response rate was 88% (45 out of 51) and almost all the responding agencies have experience with high value contract administration. ‘Construction’ and ‘Engineering Design’ were identified as the departments most often charged with developing LD, I/D, and RUC rates. Most responding agencies stated that they do not have a project staffing plan or methodology in place. Every responding agency has a similar definition and common requirements to achieve substantial completion including installation of signage, striping, guardrail, and other safety systems. Most agencies do not conduct cost-analysis audits and reviews on projects to compare LD rates with actual costs, which could lead to possibly not recovering all damages. Assessed damages are rarely challenged in court, as most respondents stated their LD, I/D, and RUC provisions have never been challenged.

This paper was sponsored by TRB committee AFH10 Standing Committee on Construction Management.

18-01271

English

5p

2018

Transportation Research Board 97th Annual Meeting

Digital/other

References

Construction projects; Contract administration; Project delivery; Project management; Road construction

Construction; Highways; Law

Transportation Research Board Annual Meeting 2018 Paper #18-01271

TRIS, TRB, ATRI

Jan 8 2018 10:19AM