01025769

Component

https://doi.org/10.3141/1946-07

http://scholar.google.com...jafi&publication_year=2006

Statistical quality assurance specifications containing pay adjustment provisions for quality let the contractor decide what levels of quality to target during construction. A procedure and accompanying computer program have been developed to address the optimization of target quality levels. This dual-purpose procedure will help contractors intelligently set target quality levels and help highway agencies validate their quality assurance specifications and pay adjustment provisions. By using the proposed procedure, a contractor can answer the question, “What target quality levels will lead to maximum profit in my specific situation?” The informal procedure contractors currently use does not consider probability and risk. Also, by following the same proposed procedure by using its own data, an agency can answer the question, “What quality levels are the specifications forcing our contractors to deliver?” This important question must be properly answered for the agency to determine the impact of its pay adjustment provisions on contractors. An exercise is presented to compare the current and proposed procedures. The two procedures may identify different optimal target values, leading to sizeable differences in a contractor’s profit.

01031140

English

pp 55-62

2006

Transportation Research Record: Journal of the Transportation Research Board

0309099544

Print

Figures (1) ; References (7) ; Tables (5)

Adjustment factors; Computer programs; Construction projects; Contractors; Optimization; Pay; Quality assurance; Salaries; Statistical quality control

Pay adjustments; Probabilistic methods; Quality levels

Administration and Management; Construction; Highways; I10: Economics and Administration; I50: Construction and Supervision of Construction

PRP, TRIS, TRB

Mar 3 2006 10:40AM

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