Alternative contract mechanisms for environmental restoration

Remediation and investigation contracting mechanisms used by Billings and Associates, Inc. (BAI), for operations within New Mexico are described, and the advantages and disadvantages are considered. Methods discussed are: time and materials, unit pricing, and pay for performance. An emphasis is placed upon the pay for performance method. While there are alternative contracting mechanisms, the state has thus far been limited to traditional contract types, such as time and materials. While the undertaking of a pay for performance remediation scenario presents higher risk with an opportunity for comparable reward, application of this type of alternative contracting has been slow to materialize. The New Mexico Environment Department/Underground Storage Tank Bureau is mandated by regulation to seek complete remediation of petroleum contaminated soils and ground water within the shortest practicable period of time