A2−2: Public−Private Partnership Incentives for Early Completion
The Oklahoma Department of Transportation (ODOT) created a public−private partnership to facilitate early completion of a project. A food chain offered ODOT $300,000 if the project was completed prior to the grand opening of the new store. ODOT chose to offer the $300,000 to the contractor as an incentive for early completion of the project.
REASON(S) FOR ADOPTING:
This practice was originally begun when a large food chain was building a new store near an existing Interstate interchange that was being rehabilitated and expanded. This practice was received so well by the State government and public that ODOT decided to seek similar public−private partnerships in the future.
Besides reducing user delay, this practice encourages similar public−private partnerships, with the private sector realizing that they receive economic benefits from improved transportation facilities and that they can facilitate similar partnering arrangements at relatively minor expense to themselves and ODOT can offer these types of incentives with no additional risk or expenditure to themselves.
MOST APPLICABLE LOCATION(S)/PROJECT(S):
This type of public−private partnership will be used on a case−by−case basis.
STATE(S) WHERE USED:
Brian Schmitt, Oklahoma DOT
Phone: (405) 521−2625