Search results1 – 9 of 9
The publication presents an analysis of the cost and schedule performance of incentive/disincentive projects and case studies toward developing a systematic disincentive…
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.
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.
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.
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.
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.
Project-based industries seem ignored in the quality management literature. These industries have some peculiarities that warrant attention, and the purpose of this paper is to discuss some of the critical aspects of project-based industries concerning quality management and particularly Quality 4.0.
The approach is based on reviewing the literature and then developing the paper using basic definitions, literature, logic and experience. It should be noted that the type of literature review is so-called “integrative” due to the fact that the topic of this paper is new. Furthermore, for this paper, as for integrative literature reviews in general, the purpose is to create initial and preliminary conceptualizations and theoretical models, rather than review old models. Creative collection of data is therefore key to combine perspectives and insights from different sources. This paper is therefore more a discussion piece rather than a paper presenting results per se. The relevant literature is only a starting point from which the argument is developed.
The paper demonstrates that quality management in project-based industries is outdated, driven by adversarial and legalistic interpretations of contracts, which results in manual work and reactive quality management. Initially, this can be a stumbling block for Quality 4.0. However, the greater credibility and transparency of Quality 4.0 technologies can enable relational contracting such as partnering. This will subsequently result in major improvements in total quality.
The research was initially triggered by industry experience over years. The empirical aspect of the paper is therefore related to the construction, shipbuilding and the oil and gas industry. Because contracting regimes are similar across these industries, the findings are arguably applicable to other project-based industries. However, this is not demonstrated. Furthermore, as the topic is new to both literature and practice it is likely that the paper has not covered all relevant aspects that will emerge as the ideas are implemented.
The paper supports the argument for developing the contracting into a relational approach away from the adversarial and legalistic approach of today. It is illustrated how Quality 4.0 technologies can help in this transition. Therefore, the practical implications can become substantial in how industry works and the research about it.
If the ideas were implemented, they could change contract management in project-based industries from the adversarial approach of today to genuine cooperation. It would therefore be relevant for teaching future contract managers. The project outcomes would also result in improved quality and reduce the loss to society.
The combination of Quality 4.0, new contracting regimes and project-based industries is according to the knowledge of this author, an original contribution that can help people improve the management of quality in project-based industries. With these industries constituting a large and growing share of an economy, the value can also become significant once practical issues concerning implementation are sorted out.
The normal way of dealing with damages for delay in a construction contract is to use a Liquidated and Ascertained Damages clause. Such clauses specify a preset sum to be…
The normal way of dealing with damages for delay in a construction contract is to use a Liquidated and Ascertained Damages clause. Such clauses specify a preset sum to be due to the client for every day, week or month by which the contractor fails to meet the works completion date. However, the greater part of the value of construction work is actually carried out by subcontractors, and there is little or no published evidence as to how their contractual responsibilities for delays are determined and pursued. Theoretically, there are a number of possibilities (none of which is entirely satisfactory to both parties) and the logic and implications of each is discussed. A survey was conducted to discover the methods that are actually used, their incidence, and whether it was possible to relate the different approaches to the attributes of particular subcontractors or to specific situations. The most commonly encountered approach was for subcontract damages to be based upon a proportion of those set under the main contract. Interestingly, this is neither the approach incorporated within industry‐standard subcontract conditions, nor is it the one preferred by subcontractors. Furthermore, this method places considerable risks on the main contractor due to the possibilities of under‐recovery and the creation of secondary risks. This method, indeed all the methods that were encountered, seems to be the result of a rather uneasy compromise between the parties, the outcome of which may be related to their relative bargaining power.
The Equal Pay Act 1970 (which came into operation on 29 December 1975) provides for an “equality clause” to be written into all contracts of employment. S.1(2) (a) of the 1970 Act (which has been amended by the Sex Discrimination Act 1975) provides:
Financial assurance rules, also known as financial responsibility or bonding requirements, foster cost internalization by requiring potential polluters to demonstrate the…
Financial assurance rules, also known as financial responsibility or bonding requirements, foster cost internalization by requiring potential polluters to demonstrate the financial resources necessary to compensate for environmental damage that may arise in the future. Accordingly, assurance is an important complement to liability rules, restoration obligations, and other regulatory compliance requirements. The paper reviews the need for assurance, given the prevalence of abandoned environmental obligations, and assesses the implementation of assurance rules in the United States. From the standpoint of both legal effectiveness and economic efficiency, assurance rules can be improved. On the whole, however, cost recovery, deterrence, and enforcement are significantly improved by the presence of existing assurance regulations.
At each New Year we stand at the threshold of fresh scenes and hopes, of opportunities and pastures new. It is the time for casting off shackles and burdens that have weighed us down in the old year; almost a new chapter of life. We scan the prevailing scene for signs that will chart the year's unrolling and beyond, and hope profoundly for a smooth passage. The present is largely the product of the past, but of the future, who knows? Man therefore forever seems to be entering upon something new—a change, a challenge, events of great portent. This, of course, is what life is all about. Trends usually precede events, often by a decade or more, yet it is a paradox that so many are taken by surprise when they occur. Trends there have been and well marked; signs, too, for the discerning. In fields particular, they portend overall progress; in general, not a few bode ill.
This study provides a framework for comparing construction management contracts in the UK and the US construction practices. It starts by reviewing previous studies on UK…
This study provides a framework for comparing construction management contracts in the UK and the US construction practices. It starts by reviewing previous studies on UK and US contracting practices and explores the main delivery methods, inform of comparison with construction management contracting systems. It examines construction management contracting types, processes and procedures and interaction between the construction manager and other stakeholders. This study was based on a literature review and the result shows the similarities and differences between the American and British CM systems within each practice and between both practices; the distribution of responsibilities and risks both in pre‐construction and during the construction stages; and allocation of responsibility in both practices.
Marriage is often compared to a “contract.” This analogy purports to proceed from a settled concept called “contract,” under which legitimate obligations derive from…
Marriage is often compared to a “contract.” This analogy purports to proceed from a settled concept called “contract,” under which legitimate obligations derive from consent. The analogy creates confusion when applied in the legal context. In law, “contract” refers to a broad category of legal obligation. Many legal theorists believe “contractual” enforceability should be based solely on consent. But as a matter of positive legal doctrine, consent is neither necessary nor sufficient to establish enforceability. A contract's enforceability also depends on its relationship to public welfare.
Thus the “contract” analogy does not constitute a legal justification for an approach to marriage based solely on the consent of the parties. It merely expresses a normative preference for a consent-based approach. The chapter illustrates this point using examples of current marriage-related issues, such as covenant marriage, prenuptial agreements, and same-sex marriage.