Contracts and incentives in the construction sector
Hughes, W., Kwawu, W. and Hillig, J.-B. (2010) Contracts and incentives in the construction sector. In: Caldwell, N. and Howard, M. (eds.) Procuring complex performance. Studies of Innovation in Product-Service Management. Routledge, New York, pp. 59-77. ISBN 9780415800051
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The aim of this chapter is to examine what the construction sector brings to our understanding of the procurement of complex performance. The chapter is divided into the following parts: fi rst, an overview of the various matters that contribute to the complexity of construction procurement is provided. Second, the most important contractual incentive schemes found in construction contracts are discussed, and this is followed by, third, an examination of the changes associated with the shift towards procuring complex performance (PCP) (service provision). Fourth, the main findings of the authors’ recent research on PCP contracts are summarised, followed by the conclusion. It should be noted that the procurement of services is referred to as ‘PCP’ in this chapter.
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