Construction
The No
Excuse Bonus concept is intended to shorten the construction time
that would normally be required to perform the work by providing the
contractor with a substantial bonus to complete a project within a
specified time frame regardless of any problems or unforeseen
condition that might arise. An additional advantage of the use of
this technique is that it serves as a tool to motivate efficient
construction as it encourages the contractor to keep projects on
schedule. Bonuses are intended to reward a contractor for early
completion, thereby reducing disruption and inconvenience to the
public.
Bonuses may be placed on a specific milestone or on project
completion date in the contract specifications for the expressed
purpose of completing an element or project within the prescribed
time or by a certain date. The bonus can be tied to milestones, a
final completion date, or both.
Unforeseen conditions, weather delays, unforeseen site conditions or
other issues, which normally extend contract time, are not a
consideration when granting a bonus. Bonuses are tied to a
“drop-dead” date (timeframe) that is either met or not met. If the
bonus date or milestone is not met, the contractor will not receive
the bonus. • Time extensions are allowed only for catastrophic
events, such as a hurricane that directly impacts the contractor’s
performance
Utility schedules are crucial when using the No Excuse Bonus
technique. A contractor may have to accelerate work to get a bonus,
requiring the Construction Engineering and Inspection (CEI) parties
to also increase staffing or work overtime. FDOT may establish
contingency funds to cover the CEI’s increased workload.
Contractors may choose to share bonuses with utility companies,
subs, etc., in order to get these companies or groups to commit to
working towards a bonus. Developing and maintaining realistic
schedules are critical for contractors.
