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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…

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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.

Article
Publication date: 12 April 2022

Mohammad Nafe Assafi, Md. Ikramul Hoque and Md. Mehrab Hossain

Construction delay always causes massive damage to the advancing construction industries, which is no different in the case of Bangladeshi construction industries. This paper aims…

Abstract

Purpose

Construction delay always causes massive damage to the advancing construction industries, which is no different in the case of Bangladeshi construction industries. This paper aims to investigate the major delay factors causing construction delays in public-funded, mixed and private-funded construction projects of Bangladesh. Also, it offers preventive suggestions from expert stakeholders to reduce the recurrence of delays.

Design/methodology/approach

At first, an extensive literature review was conducted to identify the thirty-seven major delay factors categorized under seven groups. A questionnaire was then developed for survey at ongoing construction projects at a different division of Bangladesh. Next, data from 110 respondents were collected, and the delay factors were ranked based on the Relative Importance Index (RII); lastly, probable solutions were suggested for top-ranked delay factors based on opinions from expert stakeholders in the construction sector of Bangladesh.

Findings

The overall RII ranking of the 37 delay factors showed “Construction mistakes and defective work,” “Contract modifications by the client” and “Adverse weather condition” as the top three factors causing the delay. For public-funded projects, “Construction mistakes and defective work” and “Slow decision making by a consultant” are the top delay factors. For mixed projects, “Slow decision making of the client” and “Construction mistakes and defective work ranked top, and for private-funded projects, “Financial problems and payment delay of the client” and “Adverse weather condition” ranked top. These nuances of ranking in individual project types ascertain that the causes of delay vary in terms of project features.

Practical implications

The outcome of this project will help identify the significant delay factors based on their severity of effectiveness associated with public-funded, mixed and private-funded projects in Bangladesh. The suggestions regarding preventing these delay factors obtained through the opinions of expert stakeholders can help reduce the effect of these delays in the context of Bangladesh and in countries where the similarity in construction environment prevails.

Originality/value

Previously, studies on construction delays in Bangladesh focused mainly on identifying the delays using qualitative analysis techniques. This study is based on a unique methodology of integrating quantitative research on delay factor identification and qualitative research on preventive measures following the opinions gathered from expert stakeholders in the construction sector.

Details

International Journal of Building Pathology and Adaptation, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-4708

Keywords

Article
Publication date: 18 May 2020

Jan Emblemsvåg

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…

1301

Abstract

Purpose

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.

Design/methodology/approach

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.

Findings

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.

Research limitations/implications

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.

Practical implications

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.

Social implications

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.

Originality/value

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.

Details

The TQM Journal, vol. 32 no. 4
Type: Research Article
ISSN: 1754-2731

Keywords

Content available
Book part
Publication date: 26 April 2017

Prince Boateng, Zhen Chen and Stephen O. Ogunlana

Abstract

Details

Megaproject Risk Analysis and Simulation
Type: Book
ISBN: 978-1-78635-830-1

Article
Publication date: 1 August 2005

David Greenwood, Keith Hogg and Stanley Kan

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…

1217

Abstract

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.

Details

Journal of Financial Management of Property and Construction, vol. 10 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 1 January 1978

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…

1374

Abstract

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:

Details

Managerial Law, vol. 21 no. 1
Type: Research Article
ISSN: 0309-0558

Book part
Publication date: 15 August 2002

James Boyd

Financial assurance rules, also known as financial responsibility or bonding requirements, foster cost internalization by requiring potential polluters to demonstrate the…

Abstract

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.

Details

An Introduction to the Law and Economics of Environmental Policy: Issues in Institutional Design
Type: Book
ISBN: 978-0-76230-888-0

Article
Publication date: 1 June 1971

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…

Abstract

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.

Details

British Food Journal, vol. 73 no. 6
Type: Research Article
ISSN: 0007-070X

Article
Publication date: 1 May 2001

ADEKUNLE SABITU OYEGOKE

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…

1683

Abstract

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.

Details

Engineering, Construction and Architectural Management, vol. 8 no. 5/6
Type: Research Article
ISSN: 0969-9988

Keywords

Book part
Publication date: 19 May 2009

Thomas W. Joo

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…

Abstract

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.

Details

Law & Economics: Toward Social Justice
Type: Book
ISBN: 978-1-84855-335-4

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