Mitigating the legal challenges of imposing disincentives on nonperforming transportation projects

2020 ◽  
Vol 27 (10) ◽  
pp. 2859-2891
Author(s):  
Douglas Alleman ◽  
Eul-Bum Lee
Keyword(s):  
Case Studies ◽  
Subject Matter Experts ◽  
Pavement Rehabilitation ◽  
Content Type ◽  
Transportation Projects ◽  
Legal Challenges ◽  
Liquidated Damages ◽  
Valuation Process ◽  
The Cost ◽  
Transportation Agencies

PurposeThe publication presents an analysis of the cost and schedule performance of incentive/disincentive projects and case studies toward developing a systematic disincentive valuation process, with Construction Analysis for Pavement Rehabilitation Strategies (CA4PRS) software integration that aids agencies in minimizing the likelihood of court challenges of disincentives.Design/methodology/approachFrom a California transportation database, the authors performed cost and schedule analyses of 43 incentive/disincentive (I/D) projects and case studies on four of those I/D projects. Interviewees included subject matter experts from transportation organizations to ensure applicability and maximum value-adding, and the process was implemented on ten California transportation projects and monitored for performance.FindingsThe presented process mitigates the contractor's ability to claim disincentives as penalties in a court of law through the following: (1) all calculations are performed using project-specific bases, backed by estimations of actual incurred costs; (2) the CA4PRS software allows for estimation transparency and (3) the clarity of cost inclusions reduces any chances of “double-dipping” between disincentives and liquidated damages.Practical implicationsTransportation agencies have historically faced legal challenges to their enforcements of disincentives. As agencies continue to apply disincentives on more megaprojects, contractors will likely attempt to pursue legal challenges more frequently. The presented process mitigates the likelihood of these challenges going to court and increases the accuracy and efficiency of disincentives.Originality/valueWhile there have been publications that discuss the legal challenges of imposing disincentives, they mainly provide guidelines and lack applicable processes. Existing literature that does present incentive/disincentive valuation process focuses on incentive valuations and neglects the disincentives' legal challenges. The following publication fills this gap by presenting an applicable disincentive valuation process for transportation projects which incorporates the guidelines for legal mitigation.

Investigating the causes preventing the fulfillment of construction contract requirements

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fadi A. Fatayer ◽  
Amjad Z. Issa ◽  
Mohammed Abunemeh ◽  
Mohammed A.M. Dwikat
Keyword(s):  
Construction Projects ◽  
Subject Matter Experts ◽  
Structured Interviews ◽  
Building Projects ◽  
Content Type ◽  
Road Projects ◽  
The Subject ◽  
The Mean ◽  
Spss Software ◽  
The Cost

PurposeConstruction contractors in Palestine, as in many other developing countries, suffer from many problems. One of their main problems is their inability to meet contractual requirements, such as completing projects within time, at the agreed cost and to the desired quality. Therefore, this paper aims to investigate the causes of the non-fulfillment of contractual requirements in three different types of projects: building, road and electro-mechanical projects.Design/methodology/approachTwo methods were adopted to collect the data – qualitative and quantitative. In total, 65 causes were identified from the literature and qualitative semi-structured interviews with professional experts. These causes were classified into five categories: managerial, financial, contractor capabilities, regulations and laws and political. In the quantitative approach, a questionnaire was developed and then distributed to 50 professional experts: 20 building experts, 15 road experts and 15 experts in electro-mechanical projects. A five-point Likert scale was used to assess the importance, from the perspective of the subject matter experts, of the causes that had been identified. About 35 responses, which represent a combined response rate of 70%, were received. The quantitative data were analyzed using descriptive statistics, with the mean, standard deviation and degree of importance for each of the identified causes being determined, and the SPSS software platform used to rank them.FindingsThe results reveal that the most important reasons why contractors did not fulfill their contractual requirements in building projects were that contracts were awarded to the contractor offering the lowest price, and the profit margin was low because of intense competition among contractors. In road projects, the most important causes were the poor estimation of the equipment required and a lack of standardized conditions in the construction sector, while in electro-mechanical projects, the most important causes were the inability of the contractor to estimate the cost of the project accurately because of unclear bid documents and a lack of contractor capital.Originality/valueThe results of this study will be useful to stakeholders and Palestinian contractor unions. They can be disseminated to give guidance so that contractors can avoid these problems in future construction projects and enhance their compliance with contractual requirements. Moreover, knowing about these causes may lead to the reduction of conflicts and disputes between contractual parties (owners and contractors), which in turn will be reflected in the work quality and reputation of contractors.

scholarly journals Low carbon buildings: a solution to landlord-tenant problems?

2014 ◽  
Vol 32 (4) ◽  
pp. 415-423 ◽  
Author(s):  
Richard Greenough ◽  
Paolo Tosoratti
Keyword(s):  
Energy Efficiency ◽  
Case Studies ◽  
Energy Efficient ◽  
International Energy Agency ◽  
Added Value ◽  
Existing Buildings ◽  
Content Type ◽  
Commercial Property ◽  
Energy Efficient Buildings ◽  
The Cost

Purpose – The purpose of this paper is to identify the factors present in successful energy efficiency investments that might indicate how to resolve the landlord-tenant dilemma in existing and new commercial property. Design/methodology/approach – The paper reviews literature to indicate the importance of energy efficiency in buildings and to explore the barriers to such investments, including problematic landlord-tenant relationships. Such relationships have been investigated by the International Energy Agency, and a similar approach is used here in two case studies in new and existing buildings. These studies explore the nature of landlord-tenant relationships and the importance of policy and standards of building performance. Findings – In neither case did landlord-tenant issues constitute barriers to investments in energy efficiency, however, these investments were made for other reasons than simple cost savings. Construction of new commercial property to Passivhaus standards ensures a high-build quality and a comfortable building with low-energy costs. The added value to tenants may justify the cost of construction. The cost of investments in energy efficient buildings can also be justified by the enhanced reputation of landlords which may be more valuable than a DEC rating. In neither case was the commercial Green Deal felt to be an attractive funding mechanism. Practical implications – Conclusions based on these case studies must be regarded as tentative, so future studies of successful energy efficient buildings should be undertaken to explore the motivation to invest, particularly the relative importance of indirect benefits of energy efficiency. Originality/value – One of the case study buildings is exceptionally energy efficient and is the result of a particularly open and effective contractual relationship. Further study of such cases may suggest a new approach to landlord-tenant problems of energy efficiency, even in refurbishment of existing buildings.

Restoration of historical timber building: a Malaysian case study

2015 ◽  
Vol 33 (4/5) ◽  
pp. 309-321 ◽  
Author(s):  
Umi Kalsum Zolkafli ◽  
Zahiriah Yahya ◽  
Norhanim Zakaria ◽  
Farid Wajdi Akashah ◽  
Azlan Shah Ali
Keyword(s):  
Case Studies ◽  
Unesco World Heritage ◽  
Content Type ◽  
World Heritage Sites ◽  
Factors Affecting ◽  
Heritage Sites ◽  
Questionnaire Surveys ◽  
The Cost ◽  
Restoration Cost

Purpose – The purpose of this paper is to identify the most influential buildings elements in term of the cost for timber restoration works. Design/methodology/approach – The research employed the case studies methods with questionnaires surveys. Two case studies were chosen and questionnaire surveys were distributed to contractors and consultation companies. The cost was identified based on the elemental cost analysis of historic timber buildings. Findings – The restoration of historic timber buildings in Malaysia has grown rapidly, especially in the UNESCO world heritage sites, Melaka and Penang. Data obtained on the restorations of timber buildings show that the most influential elements were upper floors, roofs and walls. Termites’ invasions and the lack of building analysis were found to be the major issue in timber restoration works. In addition, the availability of timber material contributed significantly to the increase of cost for restoration works. Originality/value – The cost for every element was identified and was used as a reference for new restorations projects of historical, timber buildings. This paper also highlighted the causes for the problems and the factors affecting the cost of timber restoration works. These data are useful information, especially for surveyors and contractors who are involved in the restoration of historic timber buildings. Maintaining or replacing these elements with other material can help to minimise the restoration cost of timber buildings in Malaysia.

Premises recovery through adoption of alternative dispute resolution (ADR) techniques

2019 ◽  
Vol 11 (1) ◽  
pp. 67-80
Author(s):  
Daramola Thompson Olapade ◽  
Biodun Olapade ◽  
Bioye Tajudeen Aluko
Keyword(s):  
Dispute Resolution ◽  
Case Studies ◽  
Alternative Dispute Resolution ◽  
Design Methodology ◽  
Content Type ◽  
Study Approach ◽  
Alternative Approach ◽  
The Cost ◽  
Property Markets

Purpose This paper aims to explore the use of alternative dispute resolution (ADR) techniques as a legitimate means of ejection of recalcitrant tenant in property. This is with a view of providing information that will improve property investment and management. Design/methodology/approach The paper adopts a case study approach using five selected case studies where ADR approach was used to recover premises. Findings The experience from the case studies shows that the use of ADR in premises recovery is effective but has its challenges. In the five case studies, consent judgment, mediation and negotiation were used to recover premises in less than three months compared to an average of 18 months using litigation. Also, the cost in all the cases were lower where they exist at all than when litigation are used. The paper provides useful information to practitioners on the use of the effective alternative approach to recover premises from recalcitrant tenants. Originality/value The paper provides practical ways through which recovery of premises could be achieved through non-adversarial technique in developing property markets, which hitherto was not available in literature.

Staffing needs and utilization for alternative contracting methods in highway design and construction

2020 ◽  
Vol 27 (9) ◽  
pp. 2163-2178 ◽  
Author(s):  
Dai Q. Tran ◽  
Christofer M. Harper ◽  
Adi M. Smadi ◽  
Mamdouh Mohamed
Keyword(s):  
Case Studies ◽  
National Survey ◽  
Public Transportation ◽  
The United States ◽  
Primary Data ◽  
Successful Implementation ◽  
Appropriate Use ◽  
Content Type ◽  
Staffing Needs ◽  
Transportation Agencies

PurposeThis research investigates procedures and effective practices on staffing needs and utilization for successful implementation of alternative contracting methods (ACMs) in the United Sates, including design–build (D–B) and construction manager/general contractor (CM/GC) delivery methods.Design/methodology/approachThe review of published empirical studies, a national survey of transportation agencies and case studies of highway agencies form the basis of the conclusions in this research. In addition to the national survey, with 46 of 50 agencies participating, the research presents case studies from five highway agencies in the United States including the following: California, Florida, Georgia, Minnesota and Virginia. These five case studies were selected from agencies that have extensive experience in delivering ACM projects. The case studies involved a thorough procedural review and structured interviews of agency personnel. The agencies then validated the results and conclusions.FindingsThe results showed that implementing ACM projects requires different knowledge, skills and management and coordination efforts than traditional design–bid–build (D–B–B) projects. The study found that the key success factors of implementing ACMs are the following: (1) establishment of an ACM champion; (2) active involvement of key staff throughout the ACM project development process; (3) appropriate use of consultants and (4) ACM training and staff development.Research limitations/implicationsThe issue on how to attract and retain talented staff and a committed core workforce with appropriate skills and competences for ACM implementation is vital for highway agencies, but it lacks information and guidance. The chief limitation of this research is that the primary data were collected from highway agencies in the United Sates. Any future research should include more data to enhance the validity of this study outside of the public transportation sector.Practical implicationsDeveloping a sustainable level of core staff plays an important role in implementing an ACM program. The result of this research will help transportation agencies and other public owners to develop effective staffing strategies for successful implementation of ACMs. The findings of this research also address the appropriate use of consultants to supplement core staff with regard to delivery of ACM projects.Originality/valueThis research is the first attempt to examine the staffing needs and utilization for ACM projects.

The disastrous consequences of the Ikea Effect: Apple, Intel and Wang Labs learning the cost of true love

2015 ◽  
Vol 32 (1) ◽  
pp. 8-10
Author(s):  
Mark Thomas ◽  
Jayanth-Reddy Alluru
Keyword(s):  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Rational Behavior ◽  
Content Type ◽  
True Love ◽  
Pertinent Information ◽  
Strategic Foresight ◽  
The Cost ◽  
Practical Implications

Purpose – This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach – This briefing is prepared by independent writers who add their own impartial comments and place the articles in context. Findings – Falling in love with one’s own product is not rational behavior and could be misleading, as it blinds people to strategic foresight. Products should be designed with a strategic focus that is both innovation- and customer-centric. Practical implications – The paper provides strategic insights and practical thinking that have influenced some of the world’s leading organizations. Originality/value – The briefing saves busy executives and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

Implementation of best-value procurement for highway design and construction in the USA

2017 ◽  
Vol 24 (5) ◽  
pp. 774-787 ◽  
Author(s):  
Dai Q. Tran ◽  
Keith R. Molenaar ◽  
Bharath Kolli
Keyword(s):  
Case Studies ◽  
National Survey ◽  
Public Transportation ◽  
Selection Process ◽  
Content Type ◽  
Best Value ◽  
The Usa ◽  
The Impact ◽  
Transportation Agencies ◽  
Design And Construction

Purpose The purpose of this paper is to investigate procedures and practices to promote transparency in best-value procurement for the design and construction of highway projects with the goal of improving this evolving procurement method. Design/methodology/approach The review of published empirical studies, a national survey of transportation agencies, and case studies of highway agencies form the basis of the conclusions in this research. In addition to the national survey, with 46 of 52 agencies participating, the research presents case studies from seven highway agencies in the USA including: California, Florida, Michigan, Minnesota, New York, Oregon, and Utah. These seven case studies were selected from agencies that employ mature best-value procurement methods. The case studies involved a thorough procedural review and structured interviews of agency personnel. The agencies then validated the results and conclusions. Findings The results showed that evaluation committees should include technical members who do not have a personal interest in the outcome of the selection to maintain transparency in best-value projects. The committees should receive best-value procurement training, which necessitates the development of consistent and transparent best-value selection procedures. Debriefing meetings should be conducted to provide comments about strengths and weaknesses of each proposal to enhance fairness and transparency of the best-value selection process. Research limitations/implications Knowledge of the best-value procurement procedure will allow researchers to better understand the impact of procedures and practices on transparency in selecting best-value projects. The chief limitation of this research is that the primary data were collected from highway agencies in the USA. Any future research should include more data to enhance the validity of this study outside of the public transportation sector. Practical implications The result of this research will help transportation agencies and other public owners to improve their best-value procurement procedures. The findings of this research also address the construction and consulting industry’s concern about transparency and fairness of a best-value selection process. Originality/value This research is the first attempt to examine the impact of the evaluation committee, best-value training, and debriefings on transparency of best-value selection.

The cost-effectiveness of insulin analogs and regular insulin for diabetes control: a case study in Iran

2020 ◽  
Vol 33 (4/5) ◽  
pp. 323-331
Author(s):  
Mohsen pakdaman ◽  
Raheleh akbari ◽  
Hamid reza Dehghan ◽  
Asra Asgharzadeh ◽  
Mahdieh Namayandeh
Keyword(s):  
Cost Effectiveness ◽  
Cost Effective ◽  
Regular Insulin ◽  
Diabetes Control ◽  
Diabetic Patients ◽  
Insulin Analogs ◽  
Content Type ◽  
Patients With Diabetes ◽  
The Government ◽  
The Cost

PurposeFor years, traditional techniques have been used for diabetes treatment. There are two major types of insulin: insulin analogs and regular insulin. Insulin analogs are similar to regular insulin and lead to changes in pharmacokinetic and pharmacodynamic properties. The purpose of the present research was to determine the cost-effectiveness of insulin analogs versus regular insulin for diabetes control in Yazd Diabetes Center in 2017.Design/methodology/approachIn this descriptive–analytical research, the cost-effectiveness index was used to compare insulin analogs and regular insulin (pen/vial) for treatment of diabetes. Data were analyzed in the TreeAge Software and a decision tree was constructed. A 10% discount rate was used for ICER sensitivity analysis. Cost-effectiveness was examined from a provider's perspective.FindingsQALY was calculated to be 0.2 for diabetic patients using insulin analogs and 0.05 for those using regular insulin. The average cost was $3.228 for analog users and $1.826 for regular insulin users. An ICER of $0.093506/QALY was obtained. The present findings suggest that insulin analogs are more cost-effective than regular insulin.Originality/valueThis study was conducted using a cost-effectiveness analysis to evaluate insulin analogs versus regular insulin in controlling diabetes. The results of study are helpful to the government to allocate more resources to apply the cost-effective method of the treatment and to protect patients with diabetes from the high cost of treatment.

Negotiation and corporate strategy

2019 ◽  
Vol 35 (2) ◽  
pp. 4-6
Keyword(s):  
Competitive Advantage ◽  
Case Studies ◽  
Design Methodology ◽  
Reading Time ◽  
Corporate Strategy ◽  
Organizational Strategy ◽  
Content Type ◽  
Pertinent Information ◽  
Practical Implications ◽  
Consistent Approach

Purpose This paper aims to review the latest management developments across the globe and pinpoint practical implications from cutting-edge research and case studies. Design/methodology/approach This briefing is prepared by an independent writer who adds their own impartial comments and places the articles in context. Findings Negotiation is a key tool in delivering competitive advantage but requires a clear and consistent approach closely linked to organizational strategy. Originality/value The briefing saves busy executives, strategists and researchers hours of reading time by selecting only the very best, most pertinent information and presenting it in a condensed and easy-to-digest format.

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