scholarly journals Ambiguous adaptation: The effect of contract duration and investments in relational mechanisms on premature relationship termination

2017 ◽  
Vol 50 (6) ◽  
pp. 794-808 ◽  
Author(s):  
Marcus M. Larsen ◽  
Jacob Lyngsie
Keyword(s):  
Relationship Termination ◽  
Contract Duration

scholarly journals Contracting on Time

2005 ◽  
Vol 95 (5) ◽  
pp. 1369-1385 ◽  
Author(s):  
Sergei Guriev ◽  
Dmitriy Kvasov
Keyword(s):  
Detailed Analysis ◽  
Continuous Time ◽  
Contract Theory ◽  
Bilateral Trade ◽  
Incomplete Contract ◽  
Optimal Contracts ◽  
Contract Duration ◽  
Unilateral Termination ◽  
Advance Notice ◽  
The Relationship

The paper shows how time considerations, especially those concerning contract duration, affect incomplete contract theory. Time is not only a dimension along which the relationship unfolds, but also a continuous verifiable variable that can be included in contracts. We consider a bilateral trade setting where contracting, investment, trade, and renegotiation take place in continuous time. We show that efficient investment can be induced either through a sequence of constantly renegotiated fixed-term contracts; or through a renegotiation-proof “evergreen” contract—a perpetual contract that allows unilateral termination with advance notice. We provide a detailed analysis of properties of optimal contracts.

scholarly journals On contract duration of royalty licensing contracts

2009 ◽  
Vol 11 (4) ◽  
pp. 301-301
Author(s):  
Manel Antelo
Keyword(s):  
Contract Duration

scholarly journals Comparison of DB to DBB on highway projects in Washington State, USA

2018 ◽  
Vol 8 (2) ◽  
pp. 73-86 ◽  
Author(s):  
George Okere ◽  
Keyword(s):  
Quantitative Methods ◽  
Washington State ◽  
The Body ◽  
Project Delivery ◽  
Delivery Methods ◽  
Highway Projects ◽  
Change Orders ◽  
Contract Duration ◽  
Comparative Results ◽  
Washington State Department

Comparative evaluations of design-build (DB), to design-bid-build (DBB), aredocumented in literature. However, a recent study suggests that even though several studies have been completed to compare DB and DBB, there are few statistically significant comparative results. Comparative analyses of highway projects of the same scope, size, and type could provide the basis to make the argument for the use of either DB or DBB on highway projects. The objective of this research is to compare DB to DBB on highway projects. The basis of comparison includes project cost, contract duration, number and type of contract change orders. Projects used for this research were obtained from the Washington State Department of Transportation (WSDOT). The projects were subsequently selected based on project scope,size, and type, and then analysed using quantitative methods. The research found that there is enough evidence to support the use of DB over DBB on highway projects. The findings of this study have significant implications for practitioners and policymakers on highway projects and should inform decisions on the choice of project delivery method. The main limitation of the research is that the study used only 14 projects due to the difficulty of finding matching projects,and as such the results could not be generalized. However, the findings add to the body of research on criteria for comparing DB to DBB. To enhance understanding of how project scope, size, and type might affect or be affected by project delivery methods,the research recommends the standardization of project types classification for highway projects

Supplier Internal Control Quality and the Duration of Customer-Supplier Relationships

2017 ◽  
Vol 93 (3) ◽  
pp. 59-82 ◽  
Author(s):  
Andrew M. Bauer ◽  
Darren Henderson ◽  
Daniel P. Lynch
Keyword(s):  
Supply Chain ◽  
Internal Control ◽  
Information Quality ◽  
Reverse Causality ◽  
Supplier Relationships ◽  
Relationship Termination ◽  
Control Quality ◽  
Operational Quality ◽  
And Performance ◽  
Matching Techniques

ABSTRACT Internal controls influence information quality, thus affecting the ability of supply chain partners, who rely on collaborative systems of information sharing, to reliably contract. Using SOX-related internal control assessments as a proxy for internal control quality and U.S. GAAP-mandated major customer disclosures, we find that supplier internal control quality influences supply chain relationship duration. Specifically, our evidence demonstrates that: (1) poor internal control quality increases the likelihood of subsequent customer-supplier relationship termination; (2) timely control weakness remediation attenuates termination likelihood; and (3) weaknesses affecting customer contracting drive the effect of internal control quality on relationship termination. Our results control for supplier operational quality and performance, and are robust to propensity score matching techniques, controls for reverse causality, and alternative proxies for relationship termination and internal control quality. Overall, our findings are consistent with customers viewing strong supplier controls as important, albeit overlooked, contracting elements with significant implications for supply chain relationships.

Contract Development

2011 ◽  
pp. 168-183
Author(s):  
P. Gottschalk
Keyword(s):  
Risk Sharing ◽  
Contract Negotiations ◽  
Contract Duration ◽  
Key Issues ◽  
Contract Structure ◽  
Duration Relationship ◽  
Outsourcing Contracts ◽  
Technology Upgrading ◽  
Is Outsourcing

According to Graham (2003), one of the games lawyers play in negotiation meetings relating to outsourcing is to bet how long it will be until one party describes the outsourcing as a “partnership.” Nothing could be farther from the truth: the parties’ interests overlap, but they are not congruent, and neither party will put its existence on the line for the other. A relevant approach in contract negotiations is to see the outsourcing as the creation of a long-term, flexible relationship, but one that exists within a framework of rules that support its success while addressing failures practically. The contract, therefore, has a sophisticated role not only as the passive record of the parties’ agreement, but also as the guidebook for the evolving transaction. This chapter considers the structure of the contractual documents and the key issues that need to be reflected in them. Elizur and Wensley (1998) apply game theory in their study of IS outsourcing contracts. They find six typical issues arising in an outsourcing situation: the transfer of IS assets, risk sharing, technology upgrading, contract duration, relationship management, and fee arrangements. In addition, we have added the important topics of due diligence and dispute resolution. We will consider each of these issues separately after our discussion of contract structure.

Joint Optimization of Economic Project Life and Well Controls

SPE Journal ◽  
2017 ◽  
Vol 23 (02) ◽  
pp. 482-497 ◽  
Author(s):  
Mehrdad G. Shirangi ◽  
Oleg Volkov ◽  
Louis J. Durlofsky
Keyword(s):  
Production Optimization ◽  
Rate Of Return ◽  
Joint Optimization ◽  
Time Varying ◽  
Outer Loop ◽  
Loop Optimization ◽  
Contract Duration ◽  
Hurdle Rate ◽  
Project Life ◽  
The Impact

Summary A new methodology for the joint optimization of optimal economic project life (EPL) and time-varying well controls is introduced. The procedure enables the maximization of net present value (NPV) subject to satisfaction of a specified modified internal rate of return (MIRR). Knowledge of the economic project life enables the operator to plan for infill drilling or some other type of field development in the case that the lease/contract duration is longer than the optimal project life. This will enable NPV to be maximized, and the hurdle rate to be honored, over the entire duration of the lease. The optimization is formulated as a nested procedure in which economic project life is optimized in the outer loop, and the associated well settings [time-varying bottomhole pressures (BHPs) in the cases considered] are optimized in the inner loop. The inner-loop optimization is accomplished by use of an adjoint-gradient-based approach, while the outer-loop optimization entails an interpolation technique. The successful application of this framework for production optimization for 2D and 3D reservoir models under waterflood is demonstrated. The tradeoff between maximized NPV and rate of return is assessed, as is the impact of discount rate on optimal operations. In the second example, we illustrate the advantages of initiating a new project (that satisfies the hurdle rate) once the EPL is reached. Taken in total, the results in this paper demonstrate the importance of explicitly incorporating both NPV and rate of return in production-optimization formulations.

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