Pay adjustment in construction engineering

High performance and asset management are becoming key factors in modern infrastructure projects and constructions. Research is needed to have reliable contracts and acceptance criteria. The goal of this paper is confined to the formalization and validation of a model for the determination of pay adjustment on the basis of mechanical and functional performance of transportation infrastructures. An algorithm for the estimation of pay adjustment (PA, negative or positive), based on life cycle cost analysis, when both structural and non-structural deficiencies/surplus in characteristics are detected, is proposed. As a part of this study, a simple excel spread sheet is used for the model implementation and calibration. Analyses and validation demonstrate that the proposed model can efficiently overcome typical problems in PA determination and in contract administration, where decisions based upon objective and sound criteria are needed.