No Excuse Bonus

The No Excuse Bonus concept is intended to shorten the construction time that would normally be required to perform the work by providing the contractor with a substantial bonus to complete a project within a specified time frame regardless of any problems or unforeseen condition that might arise. An additional advantage of the use of this technique is that it serves as a tool to motivate efficient construction as it encourages the contractor to keep projects on schedule. Bonuses are intended to reward a contractor for early completion, thereby reducing disruption and inconvenience to the public.

Bonuses may be placed on a specific milestone or on project completion date in the contract specifications for the expressed purpose of completing an element or project within the prescribed time or by a certain date. The bonus can be tied to milestones, a final completion date, or both.

Unforeseen conditions, weather delays, unforeseen site conditions or other issues, which normally extend contract time, are not a consideration when granting a bonus. Bonuses are tied to a “drop-dead” date (timeframe) that is either met or not met. If the bonus date or milestone is not met, the contractor will not receive the bonus. • Time extensions are allowed only for catastrophic events, such as a hurricane that directly impacts the contractor’s performance

Utility schedules are crucial when using the No Excuse Bonus technique. A contractor may have to accelerate work to get a bonus, requiring the Construction Engineering and Inspection (CEI) parties to also increase staffing or work overtime. FDOT may establish contingency funds to cover the CEI’s increased workload.

Contractors may choose to share bonuses with utility companies, subs, etc., in order to get these companies or groups to commit to working towards a bonus. Developing and maintaining realistic schedules are critical for contractors.