Florida Administrative Code › 14 - DEPARTMENT OF TRANSPORTATION › 14 - Departmental › Chapter 14-93 - INCENTIVE/DISINCENTIVE PROCEDURE › Section 14-93.004 - Incentive/Disincentive Provisions

Current through Reg. 50, No. 138; July 16, 2024
(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.