This study was initiated to take an in-depth look at the current time and material incentive/disincentive program associated with highway construction projects in Kentucky. The current incentive/disincentive program was first initiated in the mid to late 90’s. However, not until recently had some of the original mechanisms of the program been revisited and/or up-dated.

From the early stages of this study it was anticipated that many of the concerns regarding the use of both time/material incentives and disincentives on highway construction projects in Kentucky would be addressed. Therefore, at the onset of this project the study advisory committee made a tremendous effort to devise a working plan for this study that would evaluate both the time and material incentive and disincentive program. In addition to the evaluation of the program, tremendous effort was also undertaken to answer some age old questions regarding the quality of projects that have received time incentive bonuses in the past.

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The contents of this report reflect the views of the authors, who are responsible for the facts and accuracy of the data presented herein. The contents do not necessarily reflect the official views or policies of the University of Kentucky, the Kentucky Transportation Cabinet, nor the Federal Highway Administration. This report does not constitute a standard, specification, or regulation. The inclusion of manufacturer names or trade names is for identification purposes only and are not to be considered as endorsements.