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Ahadzie, D K, Proverbs, D G, Olomolaiye, P O and Ankrah, N (2009) Towards developing competency-based measures for project managers in mass house building projects in developing countries. Construction Management and Economics, 27(01), 89–102.

Al-Kharashi, A and Skitmore, M (2009) Causes of delays in Saudi Arabian public sector construction projects. Construction Management and Economics, 27(01), 3–23.

Bageis, A S and Fortune, C (2009) Factors affecting the bid/no bid decision in the Saudi Arabian construction contractors. Construction Management and Economics, 27(01), 53–71.

Burford, N K and Smith, F W (1999) Developing a new military shelter system: a case study in innovation. Building Research & Information, 27(01), 35–55.

Daget, Y T and Zhang, H (2019) Decision-making model for the evaluation of industrialized housing systems in Ethiopia. Engineering, Construction and Architectural Management, 27(01), 296–320.

Du, J, Jing, H, Castro-Lacouture, D and Sugumaran, V (2019) Multi-agent simulation for managing design changes in prefabricated construction projects. Engineering, Construction and Architectural Management, 27(01), 270–95.

Durdyev, S, Hosseini, M R, Martek, I, Ismail, S and Arashpour, M (2019) Barriers to the use of integrated project delivery (IPD): a quantified model for Malaysia. Engineering, Construction and Architectural Management, 27(01), 186–204.

Han, J, Rapoport, A and Fong, P S (2019) Incentive structures in multi-partner project teams. Engineering, Construction and Architectural Management, 27(01), 49–65.

  • Type: Journal Article
  • Keywords: Optimization; Methodology; Project management; Decision support systems;
  • ISBN/ISSN: 0969-9988
  • URL: https://doi.org/10.1108/ECAM-09-2018-0410
  • Abstract:
    The purpose of this paper is to investigate the impact of incentive contracts in multi-partner project teams (MPPTs) on the agents’ effort expenditure and project performance, analyze how the agents allocate their efforts between production and cooperation and offer suggestions for project managers on how to design incentive contracts. Design/methodology/approach The paper proposes a model of MPPT in which agents are inequity-averse and their effort expenditures are exogenously bounded. An extensive numerical example is presented in online Appendix 2 to illustrate the theoretical results. Findings The paper suggests that if the potential benefit of the agents’ cooperation in MPPT is high or if both agents exhibit inequity aversion and the efforts’ marginal costs are low, then group-based incentive contracts outperform individual-based incentive contracts. It also shows that the impact of the incentive contract on the agents’ effort expenditure and project team performance is correlated with several critical project attributes. Originality/value Fulfilling a need to study the design of incentive structures in MPPTs, the paper complements the existing literature in three ways. First, in contrast to single-partner project teams, it considers projects with multiple partners where cooperation between them enhances the project outcome. Second, rather than focusing on individual production problems, it considers multi-task projects with constrained efforts that must be allocated between production and cooperation. Third, it analyzes the effects of changes in the project attributes, incentive intensities and information transparency on the effectiveness of the contract.

Hossain, L (2009) Communications and coordination in construction projects. Construction Management and Economics, 27(01), 25–39.

Hwang, B, Zhao, X and Lim, J (2019) Job satisfaction of project managers in green construction projects. Engineering, Construction and Architectural Management, 27(01), 205–26.

Lam, P T I and Wong, F W H (2009) Improving building project performance: how buildability benchmarking can help. Construction Management and Economics, 27(01), 41–52.

Leaman, A and Bordass, B (1999) Productivity in buildings: the 'killer' variables. Building Research & Information, 27(01), 4–19.

Liao, X, Lee, C Y and Chong, H (2019) Contractual practices between the consultant and employer in Chinese BIM-enabled construction projects. Engineering, Construction and Architectural Management, 27(01), 227–44.

Liu, S, Jin, H, Liu, C, Xie, B and Mills, A (2019) Government compensation and costs of non-competition guarantee for PPP rental retirement villages. Engineering, Construction and Architectural Management, 27(01), 128–49.

Mahamadu, A, Manu, P, Mahdjoubi, L, Booth, C, Aigbavboa, C and Abanda, F (2019) The importance of BIM capability assessment. Engineering, Construction and Architectural Management, 27(01), 24–48.

Moohialdin, A S M, Lamari, F, Miska, M and Trigunarsyah, B (2019) Construction worker productivity in hot and humid weather conditions. Engineering, Construction and Architectural Management, 27(01), 83–108.

Ozyurt, B, Dikmen, I and Birgonul, M T (2019) Clustering of host countries to facilitate learning between similar international construction markets. Engineering, Construction and Architectural Management, 27(01), 66–82.

Papamichael, K (1999) Application of information technologies in building design decisions. Building Research & Information, 27(01), 20–34.

Sang, L, Xia, D, Ni, G, Cui, Q, Wang, J and Wang, W (2019) Influence mechanism of job satisfaction and positive affect on knowledge sharing among project members. Engineering, Construction and Architectural Management, 27(01), 245–69.

Sarhan, J G, Xia, B, Fawzia, S, Karim, A, Olanipekun, A O and Coffey, V (2019) Framework for the implementation of lean construction strategies using the interpretive structural modelling (ISM) technique. Engineering, Construction and Architectural Management, 27(01), 1–23.

Sezer, A A and Bröchner, J (2019) Site managers’ ICT tools for monitoring resources in refurbishment. Engineering, Construction and Architectural Management, 27(01), 109–27.

Wang, D, Fu, H and Fang, S (2019) The efficacy of trust for the governance of uncertainty and opportunism in megaprojects. Engineering, Construction and Architectural Management, 27(01), 150–67.

Wang, Y, Liu, J, Zuo, J and Rameezdeen, R (2019) Ways to improve the project management efficiency in a centralized public procurement system. Engineering, Construction and Architectural Management, 27(01), 168–85.

Yun, S and Caldas, C H (2009) Analysing decision variables that influence preliminary feasibility studies using data mining techniques. Construction Management and Economics, 27(01), 73–87.