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Title:

ANALYSIS OF CONTRACTOR PAY ADJUSTMENT SCHEDULE USING SIMULATION

Accession Number:

00731098

Record Type:

Component

Availability:

Transportation Research Board Business Office

500 Fifth Street, NW
Washington, DC 20001 United States

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Order URL: http://worldcat.org/isbn/0309059534

Abstract:

A common provision in quality control/quality assurance construction contracts is the adjustment of the contractor's pay on the basis of the quality of the construction. The expected impact of the provision on the pay should be examined to ensure that the adjustments are neither unduly severe nor excessively lenient. Most pay adjustment plans have been developed around a quality index by using a percent defective approach. Analyses of these plans are complex but reasonably well defined. Other plans, however, are more complex and do not lend themselves to direct analysis. These plans can be examined by computer simulation. The use of computer simulation to examine a complex pay adjustment provision is demonstrated. The analyses show that simulation can reveal that a pay adjustment schedule behaves differently than it appears on the surface. For example, the schedule examined bases pay solely on averages and appears to ignore construction variability. The analyses, however, demonstrate that the pay adjustments are at least as sensitive to construction variability as they are to construction averages. It is also shown that the simulation process can provide a better, more detailed examination of the pay schedule than is possible by simply determining the expected pay. In particular, the simulation process can provide an indication of the variability of pay at various quality levels and can identify the factors most responsible for pay adjustments.

Supplemental Notes:

This paper appears in Transportation Research Record No. 1544, Portland Cement Concrete Pavements, Bridges, and Quality Management.

Language:

English

Corporate Authors:

Transportation Research Board

500 Fifth Street, NW
Washington, DC 20001 United States

Authors:

Elliott, R P
QIU, Y

Pagination:

p. 109-115

Publication Date:

1996

Serial:

Transportation Research Record

Issue Number: 1544
Publisher: Transportation Research Board
ISSN: 0361-1981

ISBN:

0309059534

Features:

References (2) ; Tables (10)

Old TRIS Terms:

Subject Areas:

Administration and Management; Construction; Finance; Highways; I52: Construction of Pavements and Surfacings

Files:

TRIS, TRB

Created Date:

Feb 3 1997 12:00AM

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