Optimum sharing in project delivery methods Online publication date: Tue, 03-Mar-2015
by S. Mahdi Hosseinian; David G. Carmichael
International Journal of Engineering Management and Economics (IJEME), Vol. 4, No. 2, 2014
Abstract: Establishing a gain/pain sharing arrangement tailored to a project's delivery method is regarded as being essential for achieving a project's goals. However, no guidelines exist in the literature on what the sharing arrangement should be for different delivery methods. The paper is a first in dealing with optimal sharing arrangements within project delivery methods. The paper shows for the delivery methods considered, assuming cooperative behaviour: the proportions of the optimal gain/pain sharing to the contractor and design consultant are affected by the owner, contractor, and design consultant levels of risk aversion; the choice of delivery method has no effect on the optimal sharing to the design consultant; however, the delivery method used affects the optimal sharing to the contractor. A designed exercise is used to validate the paper's propositions. For application purposes, in both delivery methods, recommended sharing proportions to contractors and design consultants are presented.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Engineering Management and Economics (IJEME):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com
Our Blog 
Follow us on Twitter 
Visit us on Facebook