11D-4: No Excuse Bonus – District Driven Incentive

• The “No Excuse Road Opening Bonus” is an innovative contracting method to provide the contractor a predetermined lump sum incentive for re-opening the roadway to traffic by a specified calendar date.
• Letting guidelines at: https://iowadot.gov/media/2492/download?inline=
• Bonus amount is usually 1-2% of the estimate.

• Specifications say the following about bonuses:

  1108.02. K. Accelerated Work Schedule.

• The proposal form may specify a completion bonus. An accelerated work schedule, as provided in this article, is allowed for work necessary to earn the bonus.
• Non-federally participating unless an agreement is reached with the FHWA.
• Like all bid items, this should be in the plans and details worked out before turn-in.

Example:

• 2528-5160000 NO EXCUSE ROAD OPENING BONUS, ONE LANE OF TRAFFIC IN BOTH DIRECTIONS ON OR BEFORE NOVEMBER 15, 2026. LUMP SUM 1.000

• ERI Note:

  The contractor will be paid the predetermined lump sum amount shown in the proposal schedule of prices for the bid item ‘NO EXCUSE ROAD OPENING BONUS, ONE LANE OF TRAFFIC IN BOTH DIRECTIONS ON OR BEFORE NOVEMBER 15, 2026’ for completing construction so that one lane of traffic in each direction on I-29 and all IA 2/ I-29 Ramps are open on or before the calendar date shown.

• Compliance requires that the contractor must have one lane in each direction of I-29 and all IA 2/ I-29. Ramps open to traffic with no further closures of these lanes or ramps. One lane traffic in both directions means median separated and shall not be accomplished through head-to-head traffic or cross-overs unless otherwise directed by the Engineer.

• Any other delays due to weather, change orders, overruns of quantities, utility delays, or any other delays will not be considered as justification to modify the calendar date.

How to Apply a Bonus:

1. Before turn-in to Contracts, Assistant District Engineers or other personnel in charge, will direct the designers to add the bonus to the plans as a non-federally participating item 2528-5160000.
2. The bid item should have a supplemental description that briefly describes what condition will receive a bonus and the date that those conditions must be met to obtain the bonus (In the example above this would be: “ONE LANE OF TRAFFIC IN BOTH DIRECTIONS ON OR BEFORE NOVEMBER 15, 2026”)
3. This is a lump sum item and will always be 1.000
4. Provide language for the ERI note, similar to the example above, it should contain the description, the conditions that must be met and a statement that delays will not constitute a reason to move the bonus date.
5. A fixed price for this bonus should be given via email to the proposal engineers in the Contracts Bureau to put in the proposal for this item at turn-in time.

Chronology of Changes