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1 – 10 of 105
Article
Publication date: 5 May 2020

Douglas Alleman and Eul-Bum Lee

The publication presents an analysis of the cost and schedule performance of incentive/disincentive projects and case studies toward developing a systematic disincentive valuation…

270

Abstract

Purpose

The publication presents an analysis of the cost and schedule performance of incentive/disincentive projects and case studies toward developing a systematic disincentive valuation process, with Construction Analysis for Pavement Rehabilitation Strategies (CA4PRS) software integration that aids agencies in minimizing the likelihood of court challenges of disincentives.

Design/methodology/approach

From a California transportation database, the authors performed cost and schedule analyses of 43 incentive/disincentive (I/D) projects and case studies on four of those I/D projects. Interviewees included subject matter experts from transportation organizations to ensure applicability and maximum value-adding, and the process was implemented on ten California transportation projects and monitored for performance.

Findings

The presented process mitigates the contractor's ability to claim disincentives as penalties in a court of law through the following: (1) all calculations are performed using project-specific bases, backed by estimations of actual incurred costs; (2) the CA4PRS software allows for estimation transparency and (3) the clarity of cost inclusions reduces any chances of “double-dipping” between disincentives and liquidated damages.

Practical implications

Transportation agencies have historically faced legal challenges to their enforcements of disincentives. As agencies continue to apply disincentives on more megaprojects, contractors will likely attempt to pursue legal challenges more frequently. The presented process mitigates the likelihood of these challenges going to court and increases the accuracy and efficiency of disincentives.

Originality/value

While there have been publications that discuss the legal challenges of imposing disincentives, they mainly provide guidelines and lack applicable processes. Existing literature that does present incentive/disincentive valuation process focuses on incentive valuations and neglects the disincentives' legal challenges. The following publication fills this gap by presenting an applicable disincentive valuation process for transportation projects which incorporates the guidelines for legal mitigation.

Article
Publication date: 11 February 2019

Abid Hasan and Kumar Neeraj Jha

Delays in construction projects can be very expensive due to their adverse effects on project cost and profit margin. To overcome this problem, clients in the construction…

Abstract

Purpose

Delays in construction projects can be very expensive due to their adverse effects on project cost and profit margin. To overcome this problem, clients in the construction industry sometimes use schedule incentive/disincentive (I/D) contracting strategy. However, previous studies have shown that inadequate understanding and wrong implementation of schedule I/D provisions could result in unintended results. Moreover, the use of the I/D contracting method is in its initial stages in many countries such as India. The purpose of this paper is to identify various factors that are essential for schedule I/D success in construction projects.

Design/methodology/approach

A questionnaire survey was conducted among experienced professionals (clients, contractors and consultants) from across the Indian construction industry.

Findings

Top success factors related to clients in the descending order of their importance are: realistic targets; detailed guidelines for I/D implementation; close coordination with other stakeholders; correct estimation of I/D duration and amount; and imposing disincentives after due consideration. Meanwhile, factors related to contractor organisations are: continuous monitoring and control; thorough understanding of schedule I/D targets; specific considerations in appointing senior project personnel; effective communication; and proper labour management.

Research limitations/implications

This empirical research was conducted in the Indian construction industry. Similar studies from developed construction markets may provide more insights into the successful use of schedule I/D provisions in construction projects.

Practical implications

The uptake of these recommendations is likely to increase the success of schedule I/D provisions in construction projects, especially in developing countries where the use of I/D contracting strategy is not very popular.

Originality/value

This research highlights the specific roles of both clients and contractors in the success of schedule I/D projects in developing countries such as India.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 3
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 20 February 2018

Vieri Maestrini, Davide Luzzini, Federico Caniato, Paolo Maccarrone and Stefano Ronchi

The purpose of this paper is to provide a conceptual framework of the supply chain performance measurement system (SCPMS) lifecycle (highlighting key activities of the design…

1916

Abstract

Purpose

The purpose of this paper is to provide a conceptual framework of the supply chain performance measurement system (SCPMS) lifecycle (highlighting key activities of the design, implementation, use and review phases) and to investigate how the different actors involved in the SCPMS perceive the system and can act to allow for an effective adoption.

Design/methodology/approach

The SCPMS lifecycle framework is developed grounding on performance measurement and supply chain (SC) management literature. To answer the two theory-building research questions, an in-depth case study involving seven firms across three tiers of the mass retail SC has been conducted.

Findings

The empirical evidence highlighted potential SCPMS benefits (including operational performance improvement, higher control, lower information overloading and higher SC integration) and criticalities/barriers to an effective adoption (lack of industry standards, lack of trust regarding data reliability, SCPMS as a tool of power, lack of interest in the system and the performance metrics). Several elements characterizing the SCPMS lifecycle could increase its effective adoption: engaging SC partners in the design phase; relying on a rigorous primary data collection and performance measures calculation; and actively exploiting the tool through a systematic discussion on performance and establishing incentive/disincentives plans.

Originality/value

The paper contributes to the conceptualization of SCPMSs and to clarify how to ensure an effective SCPMS adoption: apart from relationship-specific attributes, SCPMS lifecycle phases are suggested to have a key role.

Details

International Journal of Operations & Production Management, vol. 38 no. 4
Type: Research Article
ISSN: 0144-3577

Keywords

Article
Publication date: 1 January 1990

Gary M. Crow

While school reform literature calls attention to incentives forteachers, little research or policy making has focused on schooladministrators′ incentives. Career incentives…

Abstract

While school reform literature calls attention to incentives for teachers, little research or policy making has focused on school administrators′ incentives. Career incentives perceived by a sample of elementary school principals and the influence of career background on those incentives are examined. It was found, using both qualitative and quantitative methods of analysis, that principals perceive their career as having economic, ancillary and task‐related rewards. However, principals varied in the kinds of incentives they preferred and the nature of their future goals. Principals who have moved among several school districts in their administrative careers are more likely to be satisfied and to emphasise incentives, such as contact with school constituencies, which come from staying in the principalship. In contrast, principals who have remained in the same district throughout their administrative careers are more likely to prefer those incentives which advancement to central office can offer.

Details

Journal of Educational Administration, vol. 28 no. 1
Type: Research Article
ISSN: 0957-8234

Keywords

Article
Publication date: 29 November 2018

David C. Novak, James L. Sullivan, Jeremy Reed, Mladen Gagulic and Nick Van Den Berg

The ability to measure and assess “quality” is essential in building and maintaining a safe and effective transportation system. Attaining acceptable quality outcomes in…

Abstract

Purpose

The ability to measure and assess “quality” is essential in building and maintaining a safe and effective transportation system. Attaining acceptable quality outcomes in transportation projects has been a reoccurring problem at both the federal and state levels, at least partially, as a result of poorly developed, inefficient or nonexistent quality assurance/quality control (QA/QC) processes. The purpose of this paper is to develop and implement a new QA/QC process that focuses on a novel double-bounded performance-related specification (PRS) and corresponding pay factor policy that includes both lower and upper quality acceptance and payment reward boundaries for bridge concrete.

Design/methodology/approach

The authors use historical data to design different payment scenarios illustrating likely industry responses to the new PRS, and select the single scenario that best balances risk between the agency and industry. The authors then convert that payment scenario to a pay factor schedule using a search heuristic and determine statistical compliance with the PRS using percent-within-limits (PWL).

Findings

The methodology offers an innovative approach for developing an initial set of pay factors when lifecycle cost data are lacking and the PRS are new or modified. An important finding is that, with a double-bounded PRS, it is not possible to represent pay factors using the simplified table PWL currently employed in practice because each PWL value occupies two separate positions in the payment structure – one above the design target and one below it. Therefore, a more detailed set of pay factors must be employed which explicitly specify the mean sample value and the design target. The approach is demonstrated in practice for the Agency of Transportation in state of Vermont.

Research limitations/implications

The authors demonstrate a novel approach for developing a double-bounded PRS and introduce a payment incentive/disincentive policy with the goal of improving total product quality. The new pay factor policy includes both a payment penalty below the contracted price for failing to meet a specified performance criterion as well as a payment premium above the contracted price that increases as the sample product specification approaches an “ideal” design value. The PRS includes both an upper and lower acceptance boundary for the finished product as opposed to only a lower tail acceptance boundary, which is the traditional approach.

Practical implications

The authors illustrate a research collaboration between academia and a state agency that highlights the role academic research can play in advancing quality management practices. The study involves the use of actual product performance data and is operational as opposed to conceptual in nature. Finally, the authors offer important practical insights and guidance by demonstrating how a new PRS and pay factor policy can be developed without the use of site-specific historical lifecycle cost (LCC) data that include detailed manufacturing, producing and placement cost data, as data related to product performance over time. This is an important contribution, as the development and implementation of pay factor policies typically involve the use of historical LCC data. However, in many cases, these data are not available or may be incomplete.

Social implications

With the new PRS and pay factor schedule, the Agency expects shrinkage and cracking on bridge decks to decrease along with overall maintenance and rehabilitation costs. A major focus the new PRS is to actively involve industry partners in quality improvement efforts.

Originality/value

The authors focus on a major modification to an existing QA/QC process that involves the development of a new PRS and an associated pay factor policy undertaken by the Vermont Agency of Transportation. The authors use empirical data to develop a novel double bounded PRS and payment schedule for concrete and offer unique operational/practical insight and guidance by demonstrating how a new PRS and pay factor policy can be developed without the use of site-specific historical LCC. Typically, PRS for in-place concrete have only a lower tail acceptance boundary.

Details

International Journal of Quality & Reliability Management, vol. 35 no. 10
Type: Research Article
ISSN: 0265-671X

Keywords

Article
Publication date: 6 June 2016

Lei Guo, Huimin Li, Peng Li and Chengyi Zhang

The purpose of this paper is to find how those uncertainty factors influence transaction costs generated and to identify ways to minimize the transaction costs borne by the…

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Abstract

Purpose

The purpose of this paper is to find how those uncertainty factors influence transaction costs generated and to identify ways to minimize the transaction costs borne by the construction owner.

Design/methodology/approach

The literature indicates that there is no consensus on a standard definition of transaction costs in the construction industry. A detailed literature review of research work on transaction costs in construction is conducted in order to identify the determinants of transaction costs in construction projects. A structural equation model is tested on data collected by means of a survey administered to construction owners.

Findings

The findings indicate that the transaction costs borne by the owner can be minimized if the owner minimizes the uncertainties inherent in the construction project by making sure the engineering design is as complete as possible before bids are sought from contractors; harmonious relationships between project participants; fair risk allocation; have experience in similar type projects; and contractor selection practices that routinely detect irregular behavior.

Research limitations/implications

The data used in this research are primarily based on the experiences of public owners and the markets in which they operate; a larger representation of private owners could make the conclusions more general. Another limitation of the study is that it relies on a survey of opinions rather than actual records of costs and other hard data.

Practical implications

No empirical study has ever been conducted of transaction-related issues in the construction industry because of the lack of a common understanding of transaction cost. This paper provides the groundwork for such a study.

Originality/value

This paper attempts to reconcile the many determinants of transaction costs in construction projects under uncertainty considered by different researchers in a multitude of research studies.

Details

Kybernetes, vol. 45 no. 6
Type: Research Article
ISSN: 0368-492X

Keywords

Article
Publication date: 1 December 2003

Ekambaram Palaneeswaran, Mohan Kumaraswamy and Thomas Ng

Procuring best value should be one of the key objectives in public sector construction projects. Best value depends upon sound “selection” strategies which ensure that the…

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Abstract

Procuring best value should be one of the key objectives in public sector construction projects. Best value depends upon sound “selection” strategies which ensure that the outlined project procurement objectives, including client/user demands are met. Examples of “best value” procurement are presented to demonstrate their usefulness and acceptance in principle. Further conceptualizations of various aspects of best value and the “dominance vectors” influencing the ultimate value definitions are developed, in accordance with basic public sector procurement principles. Presents a structured best value based contractor selection framework to optimize realizable value in public sector construction projects.

Details

Engineering, Construction and Architectural Management, vol. 10 no. 6
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 4 January 2016

Dominic Wettstein and L. Suzanne Suggs

– This paper aims to describe the comparison of two tools in assessing social marketing campaigns.

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Abstract

Purpose

This paper aims to describe the comparison of two tools in assessing social marketing campaigns.

Design/methodology/approach

Using data collected from the campaign planners of 31 alcohol misuse prevention campaigns, two tools were compared; the Social Marketing Indicator (SMI) and Andreasen’s Benchmark Criteria.

Findings

In the case of the benchmarks, 26 per cent of the campaigns fulfilled four or more criteria and no criterion was fulfilled by more than 70 per cent. The main differences between current practices and social marketing are the often-missing segmentation and an explicit exchange. The SMI found a lower degree of resemblance between current practices and social marketing. In this case, the major differences lie in the use of behavioral theory and the absence of an exchange.

Research limitations/implications

The SMI allows a more precise description of an intervention. This represents an advantage, as a campaign’s resemblance to social marketing can be reported by directly pointing out the process steps that make the difference. This is important for understanding the research evidence base in social marketing.

Practical implications

Although the benchmark criteria are based on a conceptual approach, the SMI is built around a core procedure. The SMI can thus help program planners from the onset of a project to make sure they do social marketing as it is defined.

Originality/value

This is the first empirical test comparing a new tool against the well-established, frequently critiqued, Benchmark Criteria, in gauging “social marketing” practice in health campaigns.

Details

Journal of Social Marketing, vol. 6 no. 1
Type: Research Article
ISSN: 2042-6763

Keywords

Article
Publication date: 5 October 2012

Dominic Wettstein, L. Suzanne Suggs and Christiane Lellig

Despite social marketing being widely adopted in English-speaking countries, there is limited evidence of it being adopted in German language countries. Alcohol misuse is a social…

1002

Abstract

Purpose

Despite social marketing being widely adopted in English-speaking countries, there is limited evidence of it being adopted in German language countries. Alcohol misuse is a social problem that has been the topic of health campaigns globally. The purpose of this paper is to understand the level of knowledge and adoption of social marketing among alcohol misuse prevention campaign planners, to understand current practices in campaigns, and to examine the use adoption of social marketing in such campaigns in Austria, Germany and Switzerland.

Design/methodology/approach

Campaigns were identified through bibliographic databases, online search engines, and expert inquiry. A survey was administered to campaign planners to retrieve primary data about campaigns. Data were analyzed using descriptive statistics. Practices were compared to social marketing using Andreasen's six social marketing benchmark criteria.

Findings

In total, 31 campaigns were included in the review. Some 55 per cent of planners reported knowing about social marketing and 52 per cent reported using it in the reviewed campaign. Relative to the benchmark criteria, social marketing was rarely adopted, with one campaign attaining all six criteria and eight meeting at least four of them.

Originality/value

The paper is the first to provide an overview of the use of social marketing in alcohol misuse prevention campaigns in German language countries. It generates information on knowledge and adoption of social marketing and contributes to understanding the diffusion of social marketing in a sample of European countries.

Details

Journal of Social Marketing, vol. 2 no. 3
Type: Research Article
ISSN: 2042-6763

Keywords

Article
Publication date: 1 July 2019

Grace C.-M. Hsu, Peter Clarkson and Annabelle X. Ouyang

The purpose of this study is to investigate whether biotechnology and health-care firms in Australia have poorer continuous disclosure (CD) practices as reflected in Australian…

Abstract

Purpose

The purpose of this study is to investigate whether biotechnology and health-care firms in Australia have poorer continuous disclosure (CD) practices as reflected in Australian Securities Exchange (ASX) queries relative to other firms.

Design/methodology/approach

Univariate tests and multivariate logit regressions are used to examine whether the frequency and nature of ASX queries and firms’ replies to price queries differ between biotechnology/health-care firms and the control firms.

Findings

Results suggest that biotechnology/health-care firms are more likely to receive volume queries and ASX Listing Rule 4.10 queries. They are also more likely to respond to price queries with new information relative to the control firms. However, biotechnology/health-care firms do not otherwise have statistically significantly different CD practice compared to the control firms, as reflected by the frequency and attributes of various types of ASX queries and by the way firms reply to price queries.

Practical implications

Evidence from this study can help evaluate the adequacy and enforcement of CD requirements and the need for further improvement. Investors can also use the evidence to better understand the information risks associated with investment in the biotechnology/health-care industry.

Originality/value

Prior research has not used multivariate methods to examine biotechnology/health-care firms’ CD practice in Australia or to examine accounting determinants of different types of ASX queries and firms’ responses to price queries.

Details

Accounting Research Journal, vol. 32 no. 2
Type: Research Article
ISSN: 1030-9616

Keywords

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