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July 1, 2022

Act(2): Time Cost Tradeoffs from Alternative Contracting Methods

Choi, Kunhee; Bae, Junseo; Yin, Yangtian; Lee, Hyun Woo. (2021). Act(2): Time Cost Tradeoffs from Alternative Contracting Methods. Journal Of Management In Engineering, 37(1).

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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. (C) 2020 American Society of Civil Engineers.


Highway; Construction; Model; Alternative Contracting Methods; Cost-plus-time; A Plus B; Incentive; Infrastructure Trend; Time-cost Trade-off