Incentive mechanisms in infrastructure projects: A case-based comparison between Australia and the Netherlands

Incentive mechanisms in infrastructure projects: A case-based comparison between Australia and the Netherlands

Volker, L.
Rose, T.M.

Technology, Policy and Management

Energy and Industry

2012-12-31

Despite a general belief that incentive mechanisms can improve value for money during procurement and performance during project execution, empirical research on the actual effects is nascent. This research focuses on the design and implementation of incentive mechanisms in four different infrastructure projects: two road reconstructions in the Netherlands and two building constructions in Australia. Based on an analytical framework of key motivation drivers, a cross cases analysis is conducted in view of performance on the contract assumptions, selection phase, execution phase and project contract performance. It was identified that despite significant differences in the project characteristics, results indicate that they experience similar contextual drivers on the incentive effectiveness. High value was placed on risk allocation and relationship building in the selection and construction phase. The differences can be explained from both contextual and project related characteristics. Although there are limitations with this research in drawing generalizations across two sets of case projects, the results provide a strong base to explore the nature of incentive systems across different geographical and contextual boundaries in future research.

incentives, collaboration, infrastructure projects, Australia, the Netherlands, project performance

http://resolver.tudelft.nl/uuid:0b71ec78-2a7d-4651-82ee-ef6ae73a7449

Engineering Project Organizations Conference

2012 Engineering Project Organizations Conference - Global Collaboration (EPOC 2012), 10-12 juli 2012, Rheden, Nederland

Institutional Repository

conference paper

(c) 2012 Volker, L., Rose, T.M.