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.
Back to TOC
FULL TEXT(PDF)
|