Is incentivisation significant in ensuring successful partnered projects

Purpose – This research aimed to test the hypothesis “The use of incentivisation with a gain/pain share of about 15 per cent is a precursor to the achievement of successful infrastructure partnering projects in South Wales”. This hypothesis arose from Egan's speech in 2008 discussing the success of partnering.Design/methodology/approach – Two infrastructure projects in South Wales were chosen for the study. This research demonstrates that partnering is not suitable for all projects. Incentivisation places a focus on cost that can have a detrimental effect on the other aspects that exist within the oft quoted triangle of time, cost and quality.Findings – Neither of the two case projects can be judged a success from the perspective of both parties. What represents success to one client would not equal success to the other. Overall it must be concluded that the hypothesis was not proven. Egan's view appears to be too simplistic to apply in all situations and is not always the key to success as he suggests.Or...

[1]  Ulrika Badenfelt,et al.  The selection of sharing ratios in target cost contracts , 2008 .

[2]  Akintola Akintoye,et al.  An analysis of success factors and benefits of partnering in construction , 2000 .

[3]  D. Sappington.  Incentives in Principal-Agent Relationships , 1991 .

[4]  Ulla Espling,et al.  Part II. Partnering in a railway infrastructure maintenance contract: a case study , 2004 .

[5]  Per Erik Eriksson,et al.  Procurement effects on trust and control in client-contractor relationships , 2007 .

[6]  P. James,et al.  A review of the progress towards the adoption of supply chain management (SCM) relationships in construction , 2002 .

[7]  Per Erik Eriksson,et al.  The influence of partnering and procurement on subcontractor involvement and innovation , 2007 .

[8]  T. Das,et al.  A risk perception model of alliance structuring , 2001 .

[9]  M. Bresnen,et al.  Motivation, commitment and the use of incentives in partnerships and alliances , 2000 .

[10]  Patricia Milne,et al.  Motivation, incentives and organisational culture , 2007, J. Knowl. Manag..

[11]  Sai On Cheung,et al.  Behavioral aspects in construction partnering , 2003 .

[12]  Kamal M. Al‐Subhi Al‐Harbi.  Sharing fractions in cost-plus-incentive-fee contracts , 1998 .

[13]  Sai On Cheung,et al.  Effective partnering tools in construction: a case study on MTRC TKE contract 604 in Hong Kong , 2004 .

[14]  Shamil Naoum.  An overview into the concept of partnering , 2003 .

[15]  J. G. Perry,et al.  How practitioners set share fractions in target cost contracts , 2002 .

[16]  Steve Rowlinson,et al.  Relationship contracting in Australia , 2005 .

[17]  Zuraidah Mohd-Sanusi,et al.  Audit judgment performance: Assessing the effect of performance incentives, effort and task complexity , 2006 .