Incentives Matter

Hurricane Katrina slammed a barge into a bridge on Interstate 10 in Jackson County, Mississippi. Motorists prepared for many weeks of delays, but the repairs were made much faster than expected. How did it happen? “The bridge was repaired in record time thanks to a flexible bidding process and incentives in the contract,” said U.S. Secretary of Transportation Norman Mineta “We slashed red tape and got the job done.” The Mississippi Business Journal reports that T.L. Wallace Construction won the $5.2-million contract and earned a $1 million bonus for getting traffic flowing ahead of schedule. Article here.