The Electricity Deregulation Contracting Process

Author(s):  
John Studebaker
1984 ◽  
Vol 2 (1) ◽  
pp. 12-32 ◽  
Author(s):  
James M. Buchanan ◽  
Loren E. Lomasky

There are no first principles etched in stone from which all moral philosophers must take their bearings. We must deliberately choose our point of departure in any attempt to respond to the question: “Must any defensible theory of justice incorporate both a commitment to personal liberty and to economic equality?” Basic to our own approach is a suspicion of seers and visionaries who espy an external source of values independent from human choices. We presuppose, instead, that political philosophy commences with individual evaluation.1 A near-corollary of this presupposition is that each individual's preferences ought to be taken into account equally with those of others. That is, we suppose that there is no privileged evaluator, whose preferences are accorded decisive weight. Conceptual unanimity as a criterion for institutional evaluation follows naturally from the other two presuppositions. If there is neither an external standard of value nor a corps of resident value experts, only unanimity can ultimately be satisfactory as a test of social desirability. Our perspective then is subjectivist, individualist, and unanimitarian.These presuppositions inform our contractarian analysis. There are, however, two separate contractarian traditions that we shall find useful to distinguish, the “Hobbesian” and the “Rawlsian.” In the first, persons find themselves in the anarchistic war of each against all. They contract away their natural liberties in exchange for the order that civil society – through its sovereign – affords. In this contracting process, individuals are assumed to possess full self-knowledge; they know who they are, what conceptions of the good they hold, and what their endowments are.


2015 ◽  
Vol 8 (1) ◽  
pp. 92-106 ◽  
Author(s):  
Jaakko Kujala ◽  
Soili Nystén-Haarala ◽  
Jouko Nuottila

Purpose – The purpose of this paper is to increase the understanding of the main challenges of the contracting process and project contracts in the context of project business characterized by a high level of complexity and uncertainty. The authors argue that understanding contracting as a flexible process and as a business tool will contribute to creating more value in projects which are implemented in constantly changing circumstances or which require gradual and iterative development. Design/methodology/approach – This is a conceptual paper with illustrative examples from the software industry. Findings – A prevailing approach for both managing contracts and the contracting process focuses on careful planning and drafting of contracts that protect each party in the case of conflicts and disagreements. The underlying assumption is that all activities can be planned and documented in a formal contract. According to this approach, the contracting process is seen only as a bargaining negotiation and the project contract as a detailed agreement of the responsibilities and safeguarding clauses to protect one’s position in the event of conflicts and failures. However, in the context of project business characterized by complexity and uncertainty, there is a need for flexible project contracts. The authors suggest that there are two fundamentally different approaches to implementing flexibility in both the contracting process and the project contract: postponing the decision until there is adequate information for decision making or making decisions that allow flexible adaptation to changes during the project lifecycle. Practical implications – The authors suggest that organizations in project business should pay closer attention to how contracts are formed and how flexibility is introduced to projects. Organizations are encouraged to see contracts as a business tool, not as rigid documents which are taken into use in case something goes wrong. Originality/value – This paper contributes to the understanding of how to adapt the contracting process to overcome challenges related to uncertainty, especially during the early phases of the project lifecycle. The authors provide a novel perspective on contracting as a process that extends over the lifecycle of a project and on the project contract as an agreement between parties formed during the contracting process. This perspective includes formal contract documents as well as various other documents, oral communication, commitments, actions and incidents.


Energy ◽  
2006 ◽  
Vol 31 (6-7) ◽  
pp. 1067-1083 ◽  
Author(s):  
J SWISHER ◽  
M MCALPIN

2012 ◽  
Vol 15 (3) ◽  
pp. 364-382
Author(s):  
Dennis M. Daley

The contracting process is fraught with difficulties. While successful completion of a contract is the goal, problems and challenges often arise. This requires skills in negotiation or mediation. Dealing with these problems, even if it means recommending contract termination, is part of the job of the contract representatives who oversee the specific projects. Data from the Contracting Officer Representatives survey conducted by the U.S. Merit Systems Protection Board (2005) is used. An index of perceived outcomes (deliverables or services were timely, of high quality, complete, contributed to the agency mission, fair and reasonable, and of good value) was constructed. Roughly, half the respondents indicated that they had had to deal with a problem or challenge. Problem-solving actions (discussions with contactors and other governmental officials, the submission of official documentations, and the recommendation of non-payment or termination sanctions) were submitted to a regression analysis (R2 = .19). From a dozen options, only discussion of the problem with contractors and with their own supervisors along with the recommendation of contract termination registered some meaningful importance (Standardized Betas .1 to .2).


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