The quest for developing a payment adjustment plan for contractors consider
ing several distress indicators simultaneously is hindered by three issues:
(1) different measurement units for the distress indicators; (2) possible
correlation among those indicators; and (3) variation in each of the indica
tors. In this study, three procedures are compiled together to cope with th
e preceding issues. First, normalization of each distress indicator is empl
oyed to create a dimensionless indicator. Second, principal components anal
ysis, a multivariate statistical technique, is applied to eliminate the pos
sible correlation among the distress indicators. Finally, through a propose
d reliability analysis procedure, the pay factor is determined by the ratio
of the reliability of the uncorrelated principal components of the as-buil
t pavement over that of the as-designed pavement. Reliability refers to the
level of confidence that exists in the distress indicators, not to exceed
a certain limit. The results showed that pay factors based on multiple dist
ress indicators are usually lower than those based on one single indicator
when the variation in influencing factors such as asphalt concrete thicknes
s is large.