Synthesis of Information Related to Highway Practices. Topic 57-12. Practices for Incentivizing Contractor Performance for Progressive-Design-Build and Construction Manager/General Contractor Highway Projects

State departments of transportation (DOTs) have developed a variety of approaches to incentivize contractors for progressive-design-build (PDB) and construction manager/general contractor (CM/GC) highway projects. Incentives for these procurement types encourage contractors to proactively address risks, innovate, and develop accurate estimates. Examples include financial incentives, collaborative workshops, early engagement, and public reporting. The goal is to ensure that contractors remain motivated to optimize the schedule and reduce costs, ultimately leading to successful project outcomes. The objective of this synthesis is to document state DOT practices related to incentivizing contractor performance for PDB and CM/GC highway projects. The synthesis will encompass incentive and disincentive strategies used throughout the life of a project to enhance contractor performance. Information to be gathered includes (but is not limited to): Financial incentives and disincentives tied to performance metrics; Practices to incentivize contractor identification of risk (e.g., collaborative workshops); Practices to incentivize contractors to innovate; The process for development of estimates; Practices to incentivize savings on guaranteed maximum price (GMP); Procedures for development and use of contingencies and allowances; Criteria for subcontractor selection; and State DOT metrics for evaluating the success of contractor incentivization practices. Information will be gathered through a literature review, a survey of state DOTs, and follow-up interviews with selected DOTs for the development of case examples. Information gaps and suggestions for research to address those gaps will be identified.

• Record URL:
  • http://apps.trb.org/cmsfeed/TRBNetProjectDisplay.asp?ProjectID=5989

Language

• English

Project

• Funding: $65,000.00
• Contract Numbers:

  20-05/Topic 57-12

• Sponsor Organizations:

  National Cooperative Highway Research Program (NCHRP) Synthesis

  Transportation Research Board
  500 Fifth Street, NW
  Washington, DC    20001

  American Association of State Highway and Transportation Officials (AASHTO)

  444 North Capitol Street, NW
  Washington, DC  United States  20001

  Federal Highway Administration

  1200 New Jersey Avenue, SE
  Washington, DC  United States  20590
• Project Managers:

  Li, Zhiye

• Start Date: 20241001
• Expected Completion Date: 20260119
• Actual Completion Date: 0

Subject/Index Terms

• TRT Terms: Construction projects; Contracting; Contractors; Design build; Incentives; State departments of transportation
• Subject Areas: Administration and Management; Construction; Highways;

Filing Info

• Accession Number: 01972949
• Record Type: Research project
• Source Agency: Transportation Research Board
• Contract Numbers: 20-05/Topic 57-12
• Files: TRB, RIP
• Created Date: Nov 26 2025 6:32PM