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Delay Fees in the Procurement of Construction Projects
Statens väg- och transportforskningsinstitut, Transportekonomi, TEK.
Statens väg- och transportforskningsinstitut, Transportekonomi, TEK.ORCID iD: 0000-0002-5814-917X
Statens väg- och transportforskningsinstitut, Transportekonomi, TEK.ORCID iD: 0000-0001-9235-0232
2019 (English)In: Journal of Transport Economics and Policy, ISSN 0022-5258, E-ISSN 1754-5951, Vol. 53, p. 348-363Article in journal (Refereed) Published
Abstract [en]

This paper suggests Delay Fees (DF) to handle temporary congestion during road works. The DF is paid by the contractor based on road users' loss of travel time due to construction. This decentralises the trade-off between construction costs and user time to the contractor, increasing social welfare. The contractor not only will account for user time during each single project, but also is incentivised to develop innovative construction techniques. Compared to other means in the literature for reducing temporary construction, the DF is more general in its focus on user time rather than lane closure.

Place, publisher, year, edition, pages
University of Bath , 2019. Vol. 53, p. 348-363
Keywords [en]
Road construction, Congestion (traffic), Contractor, Tariff, Journey time, Incentive (reward)
National Category
Economics
Research subject
00 Road: General works, surveys, comprehensive works, 02 Road: Economics
Identifiers
URN: urn:nbn:se:liu:diva-177014ISI: 000489040900004OAI: oai:DiVA.org:liu-177014DiVA, id: diva2:1570906
Available from: 2019-11-04 Created: 2021-06-22

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Nyström, JohanNilsson, Jan-EricBörjesson, Maria

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