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Aziz, A M A (2007) A survey of the payment mechanisms for transportation DBFO projects in British Columbia. Construction Management and Economics, 25(05), 529–43.

  • Type: Journal Article
  • Keywords: Contracting; infrastructure; payment mechanism; project delivery; DBFO
  • ISBN/ISSN: 0144-6193
  • URL: http://www.informaworld.com/openurl?genre=article&issn=0144-6193&volume=25&issue=5&spage=529
  • Abstract:
    In traditional project delivery systems, payment mechanisms provide compensation for the work performed using construction capital payments. In the alternative public-private partnership (PPP) systems, payment mechanisms follow the selected PPP system. For example, the build-operate-transfer system provides compensation based on project demand using real-tolls usage payments; the design-build-finance-operate (DBFO) system provides shadow-tolls usage payments; and the performance-based DBFO system provides compensation based on contractor's performance using service availability payments. Designing the payment structure is an important task where several factors have to be considered. This paper analyses the implementation of payment mechanisms in a number of DBFO transportation projects in BC, Canada, in terms of payment structure, payment types and characteristics, determination and funding. The analysis provides insights for the design of payment mechanisms. The analysis shows that more payment types are being used and that the mechanisms are designed to achieve specific government objectives. The analysis refers to a new 'hybrid' payment mechanism with elements derived from the traditional and the PPP systems. The hybrid system may have potential to minimize the overall project cost; however, agencies have to be flexible in the delivery concepts as combinations of payments for inputs, usage and services might have to be used.

Cameron, I and Duff, R (2007) A critical review of safety initiatives using goal setting and feedback. Construction Management and Economics, 25(05), 495–508.

Che Ibrahim, C K I, Costello, S B and Wilkinson, S (2018) Making sense of team integration practice through the “lived experience” of alliance project teams. Engineering, Construction and Architectural Management, 25(05), 598–622.

Cooper, I (1997) The UK's changing research base for construction: the impact of recent government policy. Building Research & Information, 25(05), 292–300.

Courtney, R (1997) Building Research Establishment: past, present and future. Building Research & Information, 25(05), 285–91.

Davidson, C H (1997) The Building Centres: CIB's information allies. Building Research & Information, 25(05), 313–7.

El-Sayegh, S (2018) Resource levelling optimization model considering float loss impact. Engineering, Construction and Architectural Management, 25(05), 639–53.

Gann, D M (1997) Should governments fund construction research?. Building Research & Information, 25(05), 257–67.

Harty, C, Goodier, C I, Soetanto, R, Austin, S, Dainty, A R J and Price, A D F (2007) The futures of construction: a critical review of construction future studies. Construction Management and Economics, 25(05), 477–93.

Kose, S (1997) Building Research Institute in Japan: past, present and future. Building Research & Information, 25(05), 268–71.

Krima, N A, Wood, G, Aouad, G F and Hatush, Z (2007) Assessing the performance of Libyan supervising engineers. Construction Management and Economics, 25(05), 509–18.

Lansley, P R (1997) The impact of BRE's commercialization on the research community. Building Research & Information, 25(05), 301–12.

Leppavuori, E K M (1997) Commercial building research: threat or opportunity for customer satisfaction?. Building Research & Information, 25(05), 272–8.

Ling, F Y Y, Ning, Y, Chang, Y H and Zhang, Z (2018) Human resource management practices to improve project managers’ job satisfaction. Engineering, Construction and Architectural Management, 25(05), 654–69.

Mason, J R (2007) The views and experiences of specialist contractors on partnering in the UK. Construction Management and Economics, 25(05), 519–27.

Prakash, A and Phadtare, M (2018) Service quality for architects: scale development and validation. Engineering, Construction and Architectural Management, 25(05), 670–86.

Seaden, G (1997) The future of national construction research organizations. Building Research & Information, 25(05), 250–6.

Skitmore, M and Cheung, F K T (2007) Explorations in specifying construction price forecast loss functions. Construction Management and Economics, 25(05), 449–65.

Tran, D H and Long, L D (2018) Project scheduling with time, cost and risk trade-off using adaptive multiple objective differential evolution. Engineering, Construction and Architectural Management, 25(05), 623–38.

Tsai, H, Wang, L and Lin, L (2007) A study on improving the ranking procedure for determining the most advantageous tender. Construction Management and Economics, 25(05), 545–54.

Watts, G (1997) The National Centre for Construction in the UK. Building Research & Information, 25(05), 279–84.

Widén, K and Hansson, B (2007) Diffusion characteristics of private sector financed innovation in Sweden. Construction Management and Economics, 25(05), 467–75.