ACT2: Time–cost tradeoffs from alternative contracting methods

Kunhee Choi*, Junseo Bae, Yangtian Yin, Hyun Woo Lee

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)
40 Downloads (Pure)


Incentive/disincentive (I/D) and cost-plus-time (A+B) are two of the most widely used alternative contracting methods (ACMs) for accelerating the construction of highway infrastructure improvement projects. However, little is known about the effects of trade-offs in terms of project schedule and cost performance. This study addresses this problem by creating and testing a stochastic decision support model called accelerated alternative contracting cost-time trade-off (ACT2). This model was developed by a second-order polynomial regression analysis and validated by the predicted error sum of square statistic and paired comparison tests. The results of a descriptive trend analysis based on a rich set of high-confidence project data show that I/D is effective at reducing project duration but results in higher cost compared to pure A+B and conventional methods. This cost-time trade-off effect was confirmed by the ACT2 model, which determines the level of cost-time trade-off for different ACMs. This study will help state transportation agencies promote more effective application of ACMs by providing data-driven performance benchmarking results when evaluating competing acceleration strategies and techniques.
Original languageEnglish
JournalJournal of Management in Engineering
Issue number1
Early online date26 Sept 2020
Publication statusPublished - 1 Jan 2021


  • regression analysis
  • construction costs
  • project management
  • scheduling
  • construction methods
  • infrastructure construction
  • contracts and subcontracts


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