Eccles, S; O'Reilly, M and Stovin, V (1997) Numerical modelling of contract strategy evaluation. In: Stephenson, P (ed.) Proceedings of 13th Annual ARCOM Conference, 15-17 September 1997, Cambridge, UK.
Abstract
There is considerable subjective evidence that supports the view that the contract strategy which is used to procure a construction project influences the project's cost, time and quality performance. Assuming this view is correct, the client of a construction project should aim to select the contract strategy that is most likely to enable the achievement of the client's particular price, time and quality objectives. However, this selection process presents a very complex decision problem. This paper reports on a numerical model that can be used in conjunction with human expertise to assist in the contract strategy selection process. The research has focused on the price and elements of the decision problem, but the same principles could also be applied to the quality aspect. The model uses probabilistic techniques (i.e. Monte Carlo Simulation). It provides a framework which can be used to calculate the impact that different contract strategies are likely to have on a project's price and duration. The paper highlights the advantages and insights that can be gained by taking this quantitative approach to contract strategy evaluation.
| Item Type: | Conference Paper (Paper) |
|---|---|
| Uncontrolled Keywords: | contract strategy selection; quantitative assessments; clients' price and time objectives |
| Index terms: | duration, Monte Carlo simulation, quality performance, construction project, evidence, modelling, numerical model, contract strategy |
| Subjects: | contractual arrangements, project delivery, analytical methods, modelling and simulation, evaluation and assessment methods, production management, project controls |
| Topics: | Procurement, Time Control, Quality Management, Project Management, Engineering Principles, Research Practice |
| Descriptive scope: | 3 PCA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here