Recently, pay adjustment regulation (PAR) has been developed to induce better performing road pavements around the country. This regulation was successfully applied during rehabilitation of highway flexible pavements for the first time, and their results are the focus of this paper. For highway pavements, a lot has been defined by typical amount of works a day. This lot was further divided into several sublots depending on field conditions. According to AASHTO Quality Assurance Guide Specification, pay factors for each lot were statistically determined with field measurements of five performance indicators. And composite pay factors were calculated by accounting for the impact of individual performance indicators on a long-term performance of pavement. In 2008, the PAR was tested with asphalt overlays conducted at all six local headquarters of Korea Expressway Corporation. Also, concerns raised during implementation are discussed in this paper. Limited data used in this study showed that if all performance indicators fall within the construction limits with less variances final construction costs may increase by 50%, whereas 10% reduction in construction costs could be necessary if key performance indicators such as density do not meet the construction quality requirements.