Fairly Apportioning Concurrent Delay Liability: A Game Theory Approach
Publication: Construction Research Congress 2022
ABSTRACT
Concurrent delay is a vexing problem at the intersection of construction scheduling and contract law that has long been studied to determine time extensions, compensable delays, and apportion liquidated damages among project participants. Nevertheless, there is no standard delay analysis method that fairly apportions such liabilities for activities that are parallel. This study presents a formal approach using game theory to transparently analyze and fairly apportion delays among stakeholders including owners, contractors, and especially subcontractors. Its four-steps employ the Shapley value, a cooperative game solution concept. Step 1 acquires as-planned and as-built schedules as input; step 2 classifies delayed activities; step 3 determines marginal contribution and probabilities; and step 4 calculates the Shapley value for each player to indicate its liability. Examples for two players and three players illustrate the detailed working of the new model. The contribution of this research is a comprehensive, fair, and simple solution for concurrent delays.
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Construction Research Congress 2022
Pages: 11 - 19
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Published online: Mar 7, 2022
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