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Delay Fees in the Procurement of Construction Projects
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.ORCID iD: 0000-0002-5814-917X
Swedish National Road and Transport Research Institute, Society, environment and transport, Transport economics.ORCID iD: 0000-0001-9235-0232
2019 (English)In: Journal of Transport Economics and Policy, ISSN 0022-5258, E-ISSN 1754-5951, Vol. 53, p. 348-363Article in journal (Refereed) Published
Abstract [en]

This paper suggests Delay Fees (DF) to handle temporary congestion during road works. The DF is paid by the contractor based on road users' loss of travel time due to construction. This decentralises the trade-off between construction costs and user time to the contractor, increasing social welfare. The contractor not only will account for user time during each single project, but also is incentivised to develop innovative construction techniques. Compared to other means in the literature for reducing temporary construction, the DF is more general in its focus on user time rather than lane closure.

Place, publisher, year, edition, pages
UNIV BATH , 2019. Vol. 53, p. 348-363
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Economics
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URN: urn:nbn:se:vti:diva-14269ISI: 000489040900004OAI: oai:DiVA.org:vti-14269DiVA, id: diva2:1367562
Available from: 2019-11-04 Created: 2019-11-04 Last updated: 2019-11-04Bibliographically approved

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Nyström, JohanNilsson, Jan-EricBörjesson, Maria

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