Wamuziri, S (2013) Payment options in collaborative procurement of major construction projects. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 166(1), pp. 12-20. ISSN 17514304
Abstract
There are many options available for procurement of construction work. The main differences between the options include the payment mechanisms and risk allocation between the project participants. Payment options include fixed-price contracts, cost-reimbursable contracts and target-cost contracts. Use of collaborative procurement based on target-cost contracts is increasing in construction worldwide. Other innovative arrangements for procurement include early contractor involvement design and build. The key features and risk allocation inherent in different procurement methods are discussed. The characteristics of early contractor involvement contracts are assessed including evaluation of the payment mechanisms in a major rail project. It is concluded that experience of early contractor involvement design and build contracts is still limited. As a consequence, further theoretical research and empirical data analysis are required to collate information which will guide industry in designing effective incentives in collaborative procurement for infrastructure projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | contracts; law/procurement/risk; probability analysis |
| Index terms: | infrastructure project, option, payment mechanism, risk allocation, construction work, procurement method, railway construction, design and build, construction project, early contractor involvement, probability analysis, data analysis |
| Subjects: | economic analysis, contractual arrangements, operations management, financial risk, production management, data analysis and analytics, statistical analysis, infrastructure and transport systems, decision analysis, civil engineering |
| Topics: | Cost Management, Business Strategy, Research Practice, Risk Management, Procurement, Engineering Principles, Project Management |
| 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