 Optimum sharing in project delivery methodsS. Mahdi Hosseinian and David G. Carmichael International Journal of Engineering Management and Economics, 2014, vol. 4, issue 2, 151-175 Abstract: Establishing a gain/pain sharing arrangement tailored to a project's delivery method is regarded as being essential for achieving a project's goals. However, no guidelines exist in the literature on what the sharing arrangement should be for different delivery methods. The paper is a first in dealing with optimal sharing arrangements within project delivery methods. The paper shows for the delivery methods considered, assuming cooperative behaviour: the proportions of the optimal gain/pain sharing to the contractor and design consultant are affected by the owner, contractor, and design consultant levels of risk aversion; the choice of delivery method has no effect on the optimal sharing to the design consultant; however, the delivery method used affects the optimal sharing to the contractor. A designed exercise is used to validate the paper's propositions. For application purposes, in both delivery methods, recommended sharing proportions to contractors and design consultants are presented. Keywords: optimal sharing; gain; pain; target cost; delivery methods; risk aversion; contractors; design consultant; cooperative contracting; traditional delivery; contractor delivery management; project delivery. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijemec:v:4:y:2014:i:2:p:151-175 Access Statistics for this article More articles in International Journal of Engineering Management and Economics from Inderscience Enterprises Ltd |
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