Boukendour, S (2007) Preventing post-contractual opportunism by an option to switch from one contract to another. Construction Management and Economics, 25(7), pp. 723-727. ISSN 1466433X
Abstract
This article proposes a pre-emptive mechanism that prevents a self-interested contractor from taking benefits resulting from any post-contractual opportunism. The mechanism is based on an option to switch from one contract to another. The client and the contractor must simultaneously enter into two (or more) contracts with an option given to the client to decide which one will apply once the work has been completed. The client's advantage lies in the power of preventing the contractor's opportunistic behaviour. The contractor's advantage lies in the possibility to demonstrate good faith.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | construction contracts; contract incompleteness; opportunism; residual rights; switching option; transaction costs |
| Index terms: | good faith, option, construction contract, opportunistic behaviour, transaction cost, opportunism |
| Subjects: | contract type, business, decision analysis, financial analysis, professional ethics |
| Topics: | Cost Management, Procurement, Risk Management, Legal Issues, Organizational Design |
| Descriptive scope: | 3 PCT |
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