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Article
Publication date: 5 May 2020

Mitigating the legal challenges of imposing disincentives on nonperforming transportation projects

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…

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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.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 10
Type: Research Article
DOI: https://doi.org/10.1108/ECAM-04-2019-0188
ISSN: 0969-9988

Keywords

  • Construction planning
  • Scheduling
  • Risk management
  • Information and communication technology applications
  • Road user costs (RUC)
  • Liquidated damages (LD)
  • Incentive/disincentive (I/D)

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Article
Publication date: 15 April 2019

Client and contractor roles in schedule incentive/disincentive projects: An empirical study from India

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…

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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
DOI: https://doi.org/10.1108/ECAM-06-2017-0104
ISSN: 0969-9988

Keywords

  • Scheduling
  • Schedule
  • Construction
  • Construction industry
  • Construction planning
  • Questionnaire survey
  • Incentive/disincentive

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Article
Publication date: 1 January 1990

Perceived Career Incentives of Suburban Elementary School Principals

Gary M. Crow

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

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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
DOI: https://doi.org/10.1108/09578239010006901
ISSN: 0957-8234

Keywords

  • Administration
  • Career development
  • Education
  • Incentives
  • USA

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Book part
Publication date: 26 November 2020

The Neoliberal Politics of Otherness in Italian Psychiatric Care: Notes on a Team Ethnography in Six Acute Psychiatric Wards1

Mario Cardano and Luigi Gariglio

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Details

Health and Illness in the Neoliberal Era in Europe
Type: Book
DOI: https://doi.org/10.1108/978-1-83909-119-320201009
ISBN: 978-1-83909-119-3

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Article
Publication date: 15 October 2018

The development of a collaborative framework for commissioning health and social care

Kayleigh M. Nelson, Aimee I. McKinnon, Angela Farr, Jaynie Y. Rance and Ceri J. Phillips

The purpose of this paper is to present an evaluation of a collaborative commissioning approach to improve quality and experience and reduce cost within integrated health…

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Abstract

Purpose

The purpose of this paper is to present an evaluation of a collaborative commissioning approach to improve quality and experience and reduce cost within integrated health and social care.

Design/methodology/approach

A multi-method approach is used involving qualitative interviews, documentary analysis and non-participant observation.

Findings

The findings suggest that the approach provides a suitable framework for the collaborative commissioning of integrated health and social care services.

Research limitations/implications

Further research is now needed to provide a definitive evaluation of its value outside of Wales.

Practical implications

With the significant scrutiny on health systems, the approach demonstrates effectiveness in securing quality improvements, achievement of recognised care standards and patient outcomes, while providing scope for financial gains and a goal for stakeholders to engage in effective communication.

Originality/value

This research presents an innovative method for collaborative commissioning and reveals activities that appear to contribute to more effective commissioning processes.

Details

Journal of Integrated Care, vol. 26 no. 4
Type: Research Article
DOI: https://doi.org/10.1108/JICA-01-2018-0001
ISSN: 1476-9018

Keywords

  • Organizational development
  • NHS
  • Integrated care
  • Multi-disciplinary teamwork
  • Health and social care
  • Commissioning of care services

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Article
Publication date: 18 October 2011

Preferred risk allocation in target cost contracts in construction

Joseph H.L. Chan, Daniel W.M. Chan, Patrick T.I. Lam and Albert P.C. Chan

The purpose of this paper is to identify the party most preferred to take the risks associated with the target cost contracts and guaranteed maximum price contracts…

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Abstract

Purpose

The purpose of this paper is to identify the party most preferred to take the risks associated with the target cost contracts and guaranteed maximum price contracts (TCC/GMP) in the Hong Kong context.

Design/methodology/approach

An empirical questionnaire survey was conducted with the relevant industrial practitioners to solicit their preferences of risk allocation in TCC/GMP construction projects in Hong Kong.

Findings

The survey findings indicated that risks on tender documentation and project design are better borne by clients, while construction related risks are perceived to be taken by contractors. The research findings are consistent with other similar studies on risk allocation in construction projects in general.

Practical implications

This paper has developed a preferred risk allocation scheme for the delivery of future TCC/GMP projects, taking Hong Kong as an example. It can serve as a useful guide for decision makers to determine an optimal risk allocation at the planning stage of a TCC/GMP scheme.

Originality/value

The paper can benefit both academic researchers and industrial practitioners in generating an equitable risk sharing mechanism for TCC/GMP projects. It provides sufficient empirical evidence, added to the growing body of knowledge and lays a solid foundation for further research such as an international comparison of various risk allocation schemes associated with this kind of contractual arrangement.

Details

Facilities, vol. 29 no. 13/14
Type: Research Article
DOI: https://doi.org/10.1108/02632771111178364
ISSN: 0263-2772

Keywords

  • Target cost contracts
  • Guaranteed maximum price contracts
  • Procurement
  • Risk allocation
  • Construction industry
  • China
  • Contract costs

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Article
Publication date: 6 February 2017

Greening of a campus through waste management initiatives: Experience from a higher education institution in Thailand

Siwaporn Tangwanichagapong, Vilas Nitivattananon, Brahmanand Mohanty and Chettiyappan Visvanathan

This paper aims to describe the effects of 3R (reduce, reuse and recycle) waste management initiatives on a campus community. It ascertains the environmental attitudes and…

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Abstract

Purpose

This paper aims to describe the effects of 3R (reduce, reuse and recycle) waste management initiatives on a campus community. It ascertains the environmental attitudes and opinions of the residents and investigates their behavioral responses to waste management initiatives. Practical implications for enhancing sustainable waste management are discussed in this paper.

Design/methodology/approach

Demonstration projects on waste segregation and recycling, as well as waste a reduction campaign, were set up on the campus to ascertain people’s attitudes and investigate their behavioral responses toward 3R practices. Data were collected through a questionnaire survey, observations, interviews and the project’s document review. A waste audit and waste composition analysis was carried out to assess waste flows and actual waste management behaviors and measure the change in the recycling rate.

Findings

3R waste management initiatives had positive effects on people’s attitudes about resources, waste management and consciousness of the need to avoid waste, but these initiatives did not affect recycling and waste management behavior. A voluntary approach-only cannot bring about behavioral change. Incentive measures showed a greater positive effect on waste reduction to landfills. Nevertheless, the demonstration projects helped to increase the overall campus recycling from 10 to 12 per cent.

Originality/value

This paper addresses a literature gap about the 3R attitudes and resulting behavior as part of campus sustainability of higher education institutions in a developing country. The authors’ results revealed hurdles to be overcome and presents results that can be compared to behavioral responses of people from other developed countries. These findings can be used as a guide for higher education institution’s policy-makers, as they indicate that voluntary instruments alone will not yield effective results, and other mechanisms that have an impact on people's behavior are required.

Details

International Journal of Sustainability in Higher Education, vol. 18 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/IJSHE-10-2015-0175
ISSN: 1467-6370

Keywords

  • Thailand
  • Recycling
  • Campus sustainability
  • Higher education institution
  • 3R
  • Packaging waste

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Article
Publication date: 2 August 2013

Rural infrastructure development in the Volta region of Ghana: barriers and interventions

Edward Badu, De‐Graft Owusu‐Manu, David J. Edwards, Michael Adesi and Scott Lichtenstein

Although a high proportion of the Ghanaian population live and work in under‐developed areas, research on rural infrastructure development is scarce. The purpose of this…

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Abstract

Purpose

Although a high proportion of the Ghanaian population live and work in under‐developed areas, research on rural infrastructure development is scarce. The purpose of this paper is to explore the challenges confronting rural infrastructure development and the requisite incentives needed to boost it.

Design/methodology/approach

An inductive methodological approach was adopted using a structured questionnaire to survey the perceptions of rural contractors.

Findings

Incentive systems identified include the provision of mobilization funds for projects; a plant pool for rural contractors; special allowance for rates of project items; and provision of letters of credit to secure loans for projects. Key challenges confronting rural construction were identified as a lack of financial institutions willing to support projects with funds; lack of potable water; lack of good health care systems; and lack of a goods market to supply materials.

Research limitations/implications

Identification of challenges and incentive systems for rural infrastructure development provides an opportunity to reinvigorate rural infrastructural development in sub‐Saharan Africa.

Practical implications

The study will be of value to all project partners throughout the supply chain who contemplate rural infrastructure development.

Originality/value

The paper presents a novel epitome of rural infrastructure delivery in the developing country of Ghana.

Details

Journal of Financial Management of Property and Construction, vol. 18 no. 2
Type: Research Article
DOI: https://doi.org/10.1108/JFMPC-11-2012-0040
ISSN: 1366-4387

Keywords

  • Developing countries
  • Ghana
  • Construction industry
  • Rural regions
  • Contractors
  • Infrastructure development
  • Innovations
  • Rural projects

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