ACT2: Time–Cost Tradeoffs from Alternative Contracting Methods: Fid-Bau Portal

ACT2: Time–Cost Tradeoffs from Alternative Contracting Methods

Choi, Kunhee / Bae, Junseo / Yin, Yangtian / Lee, Hyun Woo

Incentive/disincentive (I/D) and cost-plus-time (A+B) are two of the most widely used alternative contracting methods (ACMs) for accelerating the construction of highway infrastructure improvement projects. However, little is known about the effects of trade-offs in terms of project schedule and cost performance. This study addresses this problem by creating and testing a stochastic decision support model called accelerated alternative contracting cost-time trade-off ( ${ACT}^{2}$ ). This model was developed by a second-order polynomial regression analysis and validated by the predicted error sum of square statistic and paired comparison tests. The results of a descriptive trend analysis based on a rich set of high-confidence project data show that I/D is effective at reducing project duration but results in higher cost compared to pure A+B and conventional methods. This cost-time trade-off effect was confirmed by the ${ACT}^{2}$ model, which determines the level of cost-time trade-off for different ACMs. This study will help state transportation agencies promote more effective application of ACMs by providing data-driven performance benchmarking results when evaluating competing acceleration strategies and techniques.