Framework for Estimating Quality-Related Incentive and Disincentive in Construction Projects
Publication: Journal of Construction Engineering and Management
Volume 149, Issue 5
Abstract
Having provisions in contracts that incentivize “better” performance has been identified as an effective means to encourage the contractor to perform better. In the construction industry, such incentive-disincentive (I/D) schemes have more widely been used for time, cost, and safety performance goals, they are conspicuous in their absence for quality-related performance. In fact, there is only limited literature available on the latter. This study presents a framework to estimate the quality I/D amounts in construction projects. The relationship between the cost of conformance and a “project defect score” has been used to estimate the I/D amount. The proposed framework for quality I/D has been validated for its effectiveness from the data of three actual recently completed projects. The findings clearly show that the proposed quality I/D scheme helped achieve a win–win situation between client and contractor. Though this study is based on data from the building industry, the proposed framework can be fine-tuned with more data and extended to other areas of construction.
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Data Availability Statement
Some or all data, models, or codes that support the findings of this study are available from the corresponding author upon reasonable request.
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Published In
Journal of Construction Engineering and Management
Volume 149 • Issue 5 • May 2023
Copyright
© 2023 American Society of Civil Engineers.
History
Received: Jan 11, 2022
Accepted: Dec 13, 2022
Published online: Feb 20, 2023
Published in print: May 1, 2023
Discussion open until: Jul 20, 2023
ASCE Technical Topics:
- Bibliographies
- Business management
- Construction costs
- Construction engineering
- Construction industry
- Construction management
- Contracts and subcontracts
- Defects and imperfections
- Engineering fundamentals
- Information management
- Materials characterization
- Materials engineering
- Occupational safety
- Practice and Profession
- Project management
- Public administration
- Public health and safety
- Safety
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