doi:10.3850/978-981-08-7920-4_S1-CP06-cd


Coping with Incompleteness: An Approach using Time and Production Related Compensation


M. Werkl and D. Heck

Institute of Construction Management and Economics, Graz University of Technology, Graz, Austria.

ABSTRACT

During the past decades the rate of discord has risen in the construction industry. The inherent conflicts of interest between the parties involved are accentuated due to increasing competition, tense project sourcing and increased technical complexity. Customary confrontational contract forms in mainland Europe using established unit prices, lump sums and reimbursable mechanisms should be queried against the background of a transparent and fair risk allocation. Therefore, the scope of this research is to find a new approach in construction contracting using specific partnering principles which evolve inevitably from compensational regulations. With a focus on imperfectly described works; which the construction industry is often confronted with, this paper points out reasons for confrontation, specifies the objective of improvement and introduces a time and production related compensation model named StilfOs. We use a simple example of productivity changes during a construction project to demonstrate the application and principles of StilfOs. Requirements and advantages are generated.

Keywords: Imperfect description of works, StilfOs, Partnering, Incentive, Compensation schemes, Risk allocation.



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