Minimum performance bounds for evaluating contractors performance during construction of highway pavement projects

Ahmed M. Abdel Aziz

Construction Management and Economics, 2008, vol. 26, issue 5, 507-529

Abstract: For project control during construction, evaluating the performance of contractors is usually established through progress measurement that compares the actual performance to the planned performance. Corrective actions and/or performance penalties are then established as relative measures that judge the actual performance based on current project plans without considering the performance of other similar projects or the lowest performance that projects could reach while still being successful. To establish a generalized benchmark measure and a non-project-specific project control tool, the concept of minimum performance bounds is explained in relation to their development for highway pavement projects. The bounds were developed using constrained-parameters polynomial regression and cluster analysis for a sample of 497 highway pavement projects in Washington State. Minimum bounds for small, medium and large projects were fairly distinguishable signifying the project size effect on the location and shape of performance bounds. Bounds were also developed for projects classified by asphalt quantities, contract values, project duration and project length, being the common criteria used by highway agencies. Owners would use the minimum performance bounds as control tools when requesting corrective actions, establishing incentives, imposing performance penalties, initiating a default clause for substandard performance, and/or in pre-qualifying contractors for new projects.

Keywords: Performance evaluation; regression analysis; highways; cash flow forecasting (search for similar items in EconPapers)
Date: 2008
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DOI: 10.1080/01446190801918748

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