scholarly journals Application of Game Theory to Conflict Management in a Construction Contract

2019 ◽  
Vol 11 (7) ◽  
pp. 1983 ◽  
Author(s):  
Beata Grzyl ◽  
Magdalena Apollo ◽  
Adam Kristowski

Interest has recently grown in the application of game theory (GT) to solve a number of diverse problems in the field of construction. The use of GT by a general contractor (GC) of construction works to indicate the best strategy leading to winning court proceedings in a situation of conflict with investor (IN), has not been investigated until now. Thus the aim of this paper is to indicate the optimal strategy from the GC viewpoint in a conflict situation with the IN. The article presents a list of the most common causes of conflict between parties of a construction work contract, defines the background of the problem and the cause of the dispute, and subsequently the authors generate a theoretical model of the game. Based on the analyzed game model, the expected payoffs for players were calculated and the probability boundary value determined in making the GC apply the indicated strategy. The study results show that while the probability of issuing a judgment favorable for the GC is at least equal to 0.69 it is justified to use an aggressive strategy. The analysis also confirms that from the financial perspective, litigation in most cases of conflicts in the area of construction should be the ultimate choice.

Author(s):  
Beata Grzyl ◽  
Magdalena Apollo ◽  
Adam Kristowski

Recently there has been growing interest in the application of game theory (GT) to solve many diverse problems in the field of construction, including i.a.: tender preparation, selection of a contractor for construction works, negotiating terms and conditions of cooperation of the parties to the contract, analysis and modeling of investment risk. In the authors opinion, the use of GT by general contractor (GC) of construction works to indicate the best strategy leading to winning court proceedings in a situation of conflict with investor (IN), so far has not been the subject of research. Taking into account the above, the aim of the presented paper is to indicate the optimal strategy from the GC point of view in the conflict situation with IN. The article presents a list of the most common causes of conflicts between parties of the construction works' contract, defines the background of the problem and the cause of the dispute, and on its basis, the authors generate the theoretical model of the game. Based on the analyzed game model, expected payoffs for players were calculated and the probability border value at which GC should apply the indicated strategy determined. The results of the study show that in the case when the probability of issuing a judgment favorable for GC is at least equal to 69.23%, it is justified to use an aggressive strategy. The analysis also confirms that from the financial perspective, litigation in most cases of conflicts in the area of construction should be the last choice.


Games ◽  
2020 ◽  
Vol 11 (1) ◽  
pp. 13 ◽  
Author(s):  
Isamu Okada ◽  
Hitoshi Yamamoto ◽  
Satoshi Uchida

Intensive studies on indirect reciprocity have explored rational assessment rules for maintaining cooperation and several have demonstrated the effects of the stern-judging rule. Uchida and Sasaki demonstrated that the stern-judging rule is not suitable for maintaining cooperative regimes in private assessment conditions while a public assessment system has been assumed in most studies. Although both assessment systems are oversimplified and society is most accurately represented by a mixture of these systems, little analysis has been reported on their mixture. Here, we investigated how much weight on the use of information originating from a public source is needed to maintain cooperative regimes for players adopting the stern-judging rule when players get information from both public and private sources. We did this by considering a hybrid-assessment scheme in which players use both assessment systems and by using evolutionary game theory. We calculated replicator equations using the expected payoffs of three strategies: unconditional cooperation, unconditional defection, and stern-judging rule adoption. Our analysis shows that the use of the rule helps to maintain cooperation if reputation information from a unique public notice board is used with more than a threshold probability. This hybrid-assessment scheme can be applied to other rules, including the simple-standing rule and the staying rule.


2019 ◽  
Vol 78 ◽  
pp. 153-168
Author(s):  
Izabela Hasińska

The paper discusses pursuing claims for damages for losses resulting from the implementation of public investments. The crop losses resulting from the construction of power transmission lines have already been a subject matter of court proceedings. Due to a variety of those proceedings no course of action has been developed yet. In the paper the Author focuses on the procedure of estimating the loss and determining the amount of damages for losses listed in the Act and for the other ones that the Act does not expressly define. Apart from the loss estimation procedure, the paper raises also other issues relating to a legal situation of a farmer in the court proceedings, such as the costs of private expert opinions and evidentiary proceedings or tax issues. The Author concludes that including a given loss in the investment act gives an injured party a privileged position and the obligations relating to a compensation procedure are passed on to an institution and an investor. This, however, does not apply to the persons whose losses have not been specified in the act. Thus, it is necessary for the investment acts to clarify the concept of “other losses” connected with carrying out a particular investment. Nevertheless, at this stage it would be advisable if public announcements informing about investments specified the dates of construction works and, as a result, indicated possible difficulty in getting access to farmlands.


2019 ◽  
Author(s):  
Clemens Bushart

Choosing the appropriate conflict resolution procedure is paramount to proper and effective conflict management. An important impetus for the choice of the most suitable procedure is provided by § 278a of the ZPO (Germany’s Code of Civil Procedure), which enables judges to suggest a range of out-of-court alternative dispute resolution procedures, including mediation. In this study, the author analyses the regulatory content of § 278a of the ZPO as well as the function and potential of the provision to act as an interface between court proceedings and extrajudicial mediation. Using the finding that judges rarely propose that litigants switch to extrajudicial mediation, the author empirically examines the reasons for the cautious application of § 278a of the ZPO and develops a set of comprehensive recommendations to optimise the procedural interface.


2018 ◽  
Vol 8 (1) ◽  
pp. 109
Author(s):  
Sophie E. Etomes ◽  
Ernest L. Molua

This study investigates strategies used by principals for enhancing the productivity of secondary school teachers in selected government secondary schools in Cameroon. Four major strategies were examined. These include motivation, conflict resolution, supervisory and communication strategies and the extent to which they influence teachers’ productivity. Four research questions and hypotheses guided the study. Questionnaire was used to collect data from 350 teachers selected from a population of 1400 teachers in government secondary schools in Fako Division of the South West Region of Cameroon. The multi-stage sampling technique was used to select teachers for the study. Results showed that, principals’ communication, conflict management, supervisory and motivation strategies influence the productivity of teachers in Government Secondary Schools. Of the four strategies examined, conflict management strategy was found to have more influence on the productivity of teachers. Principals’ strategies have a direct relationship with teachers’ productivity. Therefore, there is a possible correlation between principals’ leadership and management strategies, teachers’ productivity and school effectiveness. In addition, effective collaboration amongst teachers is necessary for teachers’ effectiveness. It is recommended that principals should put in strategies that will enhance effective communication, conflict management, motivation and supervision to improve on the productivity of teachers.


2021 ◽  
Vol 263 ◽  
pp. 04054
Author(s):  
Mukhammet Fakhratov ◽  
Ibrahim Fadhil

The article deals with the organizational and technological features of construction. The organization of construction production for the installation of facade systems with an air gap during the construction of buildings is associated with coordination with general construction works. Often, construction management projects developed at the design stage are adjusted taking into account the current conditions. These changes can occur both before the start of work and during the production of work. The introduction of organizational and technological changes in the production process of work can lead to a significant decrease in technical and economic indicators. In this regard, it is relevant to resolve the issues of assessment and selection of effective organizational and technological solutions for the device of facade systems. The difficulty is the assessment of factors with different dimensions of quantitative and qualitative indicators. Installation of facade systems is a work performed in the open air, in connection with which there are factors that have a rather strong influence on the complexity of the work. In addition, as with any other construction work, it depends on the completion of other construction work. Another important feature of the organization of facade work is the orientation of the work front in the unfamiliar plane of the building. The study of this type of work is relevant and is of interest from a scientific point of view, not only in matters of constructive solutions for and organization of work and the use of appropriate machines and mechanisms. A well-grounded choice of technological equipment and the number and qualification of workers will increase the performance of work.


Author(s):  
S.E. Manzhilevskaya ◽  

The article analyzes methods for calculating the cost of environmental damage from construction work. Under the damage caused to the national economy by dust emissions from local construction and from other sources, they mean the additional costs necessary to eliminate the effects of air pollution. The analysis of the influence of fine dust particles emitted during repair, construction and decoration works air in the urban environment and the working area. Calculation methods and methods for the economic assessment of the cost of harm caused by construction production to the environment are proposed.


2014 ◽  
Vol 12 (4) ◽  
pp. 352-354
Author(s):  
Sv. Dimitrova ◽  
G. Petrova ◽  
J. Marinova ◽  
B. Parashkevova ◽  
G. Chamova

2021 ◽  
Vol 23 (1) ◽  
pp. 236-245
Author(s):  
T. Dudnyk ◽  
L. Chintea

Currently, forensic methods and regulations in the field of construction do not explain how quality of work affects the procedure of forensic examinations and research related to determining the work scope. While carrying out building and renovation services, it is possible to control provided construction and renovation services,  establish their physical volume and quality. While research, forensic expert can identify violations of building codes, as well as determine the cost of refurbishment or elimination of defects made providing services. The scoop of performed works is determined by geometric parameters of construction elements, established during field surveys using design and as-built documentation. While carrying out field surveys, it is necessary (along with the determination of service scope) to pay attention to the compliance of the work performed with the requirements of building codes. The article outlines problematic issues and provides a list of basic indicators determining the scoop and quality of the construction works carried out, indicated in the reporting documentation drawn up by contractors based on results of activities in the field of construction. Actual issue arising in the establishment of the scoop and cost of construction work is considered  that quality does not meet the requirements of regulatory documents in the field of construction. It is explained how the quality of the work performed affects the results of research related to the determination of the actually completed volumes of repair, building and renovation and construction work.


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