Aug 26 Incentives Part Of New Bridge Effort

Minnesota's plan to replace the St. Anthony Bridge will take a page from California's expedited effort after the 1994 Northridge earthquake by incentivizing the contractors. They can earn an extra $27 million if they can complete the replacement by December 2008 -- and given the economic impact of the bridge's collapse, that may be a bargain:

In its push to replace the I-35W bridge by December 2008, the state on Thursday offered contractors up to $27 million in incentives if they finish the job early.

The team of contractors that will build the 10-lane bridge is expected to be announced three weeks from today, the Minnesota Department of Transportation said in issuing its official request for proposals on Thursday.

The cost of the bridge, which will be built strong enough to carry light-rail trains, is estimated at $220 million to $270 million. The incentives are budgeted into the project and can be paid from the $250 million in federal emergency funds allocated for bridge replacement.

Right now, MnDOT estimates that the lack of a bridge for I-35W into Minneapolis costs drivers $400,000 per day. They base that estimate on pre-collapse traffic levels and the rerouting of traffic through detours. That may overestimate the impact a bit in one sense, since at least a few travelers have started home officing more often, which actually saves money However, the lack of these people in downtown areas means secondary businesses, such as restaurants servicing lunchtime traffic, will suffer serious loss of business -- so the overall impact may be even larger.

At $400K as a standard, it doesn't take long to add up to the $27 million -- just 67.5 days. If the contractors can deliver a worthy bridge two months earlier than normal, it's paid for itself. The incentives will prompt the firms to keep working around the clock, which means good jobs and extra pay for the workers. As long as safety and quality remain high, it represents a win for everyone.

California has had no complaints from their expedited work, and the experiment there caused many of us to wonder why the state doesn't run all of its construction projects in a similar manner. Minnesotans may have the opportunity to ask the same question.