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Ball, M and Chambers, M (2009) An incentivisation scheme for a major transportation infrastructure project in the UK. In: Dainty, A R J (Ed.), Proceedings 25th Annual ARCOM Conference, 7-9 September 2009, Nottingham, UK. Association of Researchers in Construction Management, Vol. 1, 605–14.

  • Type: Conference Proceedings
  • Keywords: behaviours; critical success factors; incentivisation; key performance indicators; pain/gain; partnering
  • ISBN/ISSN: 978-0-9552390-1-4
  • URL: http://www.arcom.ac.uk/-docs/proceedings/ar2009-0605-0614_Ball_and_Chambers.pdf
  • Abstract:
    Much of the discussion of key performance indicators (KPIs), quantitative benchmarks and other performance measures is concerned with engendering a new culture of collaborative working and partnerships in the construction industry with the ultimate objective of improving performance, predictability, and efficiency on individual projects. However, there can only be an effective implementation of these measures if constructors are truly engaged in the process of collaborative working. Therefore this research analyses the development and implementation of an incentive framework that is aimed at motivating both the Client and the Construction Partner to adopt new methods of working. A case study of a major infrastructure project in the UK is used to outline one such incentive framework. The principles of the incentive framework are analysed. The constraints, critical success factors, environment, and key deliverables of the project are examined. These aspects are then evaluated to show how they collectively informed behaviours and the potential to realise the incentivisation. The research has identified a two stage incentive scheme. The incentive scheme ensures the Delivery Partner Organisation (DPO) can gain from meeting performance criteria at stage 1. In addition the DPO will also share in any cost savings made at final account up to a capped limit. The DPO is prepared to share the in risk of financial loss at final account up to a capped limit.