Fla. Admin. Code Ann. R. 14-93.004 - Incentive/Disincentive Provisions

(1) Purpose. This rule governs the use of incentive/disincentive provisions in contracts. Procedures pertaining to incentive/ disincentive provisions, including criteria for the selection of projects on which incentive payments and additional damages may be provided for by contract, are set forth in this rule.

(2) Background. Sections 337.18(4)(a) and (b), F.S., authorize the use of incentives/disincentive provisions in contracts where the Department determines and adequately documents that the project will provide a substantial benefit to the public health, safety, or welfare; will limit the disruptive effect of construction on the community; or is cost beneficial on a revenue producing project. Incentive/disincentive provisions in a contract compensate the contractor a predetermined amount of money for each day identified work is completed ahead of schedule and assess an equal deduction for each day the contractor is late in meeting the time specified.

(3) Procedure. All contracts containing incentive/disincentive provisions shall be approved by the District Secretary (District Projects) or the Secretary of Transportation (Central Office Projects), or designee, based upon a finding that the requirements of this rule have been met.

(a) Monetary and Time Limitations. The monetary and time requirements for incentive/disincentive provisions should be established based on the facts supporting each project. For revenue producing projects, the incentive amount per calendar day may be greater if an analysis indicates that additional revenues projected to be received upon completion of the project will exceed the cost of the incentive payments. To determine the project per day incentive/disincentive amount the Department will consider maintenance of traffic cost, road users' cost, detour impacts to the public, and cost of construction engineering inspection and administration of the project. To determine the project maximum number of incentive/disincentive days the Department will consider the expected length of project time, compared to project time with possible use of extended shifts, for both work day and work week, and dedication of increased personnel and construction resources. Liquidated damages shall be separate from any calculation of disincentive amounts under this rule.

(b) Criteria for Project Selection. Projects determined to be capable of accelerated construction will be considered eligible for inclusion of an incentive/disincentive provision. Project documentation shall include factors supporting the necessity to encourage an accelerated, and discouraging delayed, completion of project or critical phases of work. Such factors will be economic and business impacts, disruption to the traveling public, community and residential impacts, and safety.

Notes

Fla. Admin. Code Ann. R. 14-93.004

Specific Authority 334.044(2), 337.18(4)(b) FS. Law Implemented 337.18(4) FS.

New 11-21-00, Amended 8-1-04.

New 11-21-00, Amended 8-1-04.