The increasing adoption of adjustable payment plans in road construction has prompted the exploration of a performance-based pay factor for concrete pavement, focusing on the discrepancy between designed and actual pavement performance due to variations in material and construction factors. This research proposes a rational methodology to adjust contractors' bid prices based on the impact of quality deviations on the pavement's total life cycle cost, including initial construction, maintenance, rehabilitation, and user costs. Utilizing performance modeling to predict pavement performance, the study introduces a formula for calculating payment adjustments that consider predicted lifespan, annual maintenance costs, and the real discount rate. The approach centers on the American Association of State Highway and Transportation Officials (AASHTO) rigid pavement thickness design equation, which integrates the variance of input and output factors in performance prediction. By focusing on controllable construction variables like concrete thickness and strength, the methodology aims to equate the annualized life cycle costs of designed and constructed pavements, thereby determining the payment adjustment. Simulation data supports the proposed payment adjustment factor, indicating its effectiveness in generating reasonable estimates for as-constructed pavement value. While the study acknowledges the benefits of incorporating the time value of money and a comprehensive life cycle cost analysis, it emphasizes the fundamental fairness of its method, which is based on expected pavement performance. Applied on a shadow specification basis to concrete paving projects in Texas, the research demonstrates the potential of tying material variability to actual performance, offering a foundational method for adjusting contractor payments based on expected pavement outcomes. (Abstract generated by AI tool ChatGPT 4)
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