Analysis of Liquidated Damages Provisions of Highway Standard Specifications in the USA

Abstract

A construction schedule is a plan outlining the order and timing of the activities ofconstruction in a project. Specifications may stipulate a course of action or penalties if the progress of work falls short of the defined Schedule. To ensure uniform state-wide guidelines in construction, each Department of Transportation (DOT) developed a set of Standard Specifications throughout the United States of America. The analysis of Standard Specifications developed by DOTs in each State reveals stark differences in their implementation of schedule requirements and the consequences of nonconformance to the schedules. This research work investigates the scheduling provisions implemented by all the state DOTs. Using content analysis and statistical analysis, the research objectives are to identify the various forms of schedule non-conformances, consequences of non-conformances, and Liquidated Damages as specified in all 50 Department of Transportation Standard Specifications. The data obtained from the review are analyzed and put into charts and tables to show how the states differed or agreed on the non-conformances, LDs, and the impact of non-conformance. Descriptive and regression analyses of the states' liquidated damages are undertaken to show the various data points, the ranges of liquidated damages, and to uncover an LD model that captures the estimated LDs charges from aggregated