How to choose the agent construction mode in chinese government investment projects?

The complexity of managing government investment projects arrives, among others, from the fact it involves many stakeholders. Managerial problems in government investment projects resulting in inefficiencies, waste of resources, and delays often appear in China. Government departments used to control all the aspects of a project, including construction, investment, management, and use which result in waste and rent-seeking behaviors. On July 25, 2004, the state council published the document "Decision on Investment System Reform" which clearly put forward the requirements of using construction agents in non-profit government investment projects. Methods of selecting and managing construction agents are different in different regions in China. We adopted qualitative research methods. First, we analyzed the principal-agent relationships and the information asymmetry in construction agent models, and discussed the theory methods to abate information asymmetry and decrease the moral hazard problem. Then we investigated five construction agent modes in five regions of China, and analyzed the project process and management methods. We found that these modes could be split into two types of construction agent models: "market competitive agent" construction model and "administrative agent" construction model. Finally, we analyzed CIXI city’s construction agent model in non - profit government investment project, and found that CIXI also used an “administrative agent" construction model. Therefore, we thought that although market competitive construction agent model is better than administrative construction agent model in theory, the latter might be a contingent way to adapt to the environment in the transition economy period that China is living.A complexidade da gestão de projetos de investimento dos governosé inegável mormente tendo em conta os incontáveis “stakeholders” envolvidos. Na China sempre existiram problemas de gestãonos projetos de investimento do governo que motivaram ineficiências, desperdícios de recursos e demoras na concretização desses projectos. Dado que os departamentos do governo controlavam todos os aspectos relativos aos projetos, incluindo construção, investimento, agenciamento e gestão, o resultado consubstanciou-se em elevados desperdícios e na geração de comportamentos oportunísticos. Em 25 de julho de 2004, o Conselho do Estado da China publicou um documento acerca da gestão de investimentos governamentais - “Decisão sobre a reforma do sistema de gestão de investimentos”. Sob este novo sistema, claramente, o governo apresentou os requisitos de utilização de agentes de construção nos projectos sem fins lucrativos de investimento do governo. Contudo os métodos de seleção e gestão dos referidos agentes são diferentes nas várias regiões da China. Neste trabalho foi utilizado o método qualitativo de pesquisa. Primeiro, analisou-se as relações principal-agente e a assimetria de informação nos modelos de agênciaem construção civil. Além disso, discutiram-se os métodos teóricos para diminuir a assimetria de informação e o problema de risco moral. Segundo, investigou-se os cinco modos deagente naconstrução em cinco regiões da China, e analisou-se o processo de projeto e os métodos de gestão, tendo-se descoberto que estas formas podem ser divididas em dois tipos de modelos de agente na construção: o modelo de construção "market competitive agent" e o modelo de construção "administrative agent", conforme mencionado anteriormente. Finalmente, analisou-se o modelo de agente de construção da cidade de CIXI em projectos sem fins lucrativos de investimento do governo. Ficou evidenciado que o modelo de construção “administrative agent” também foi utilizado nesta cidade. Por isso, conclui-se que, embora em teoria o modelo de construção "market competitive agent" seja melhor do que o de construção "administrative agent ", o último pode ser uma solução contingente e intermédia que se adapta ao período da economia em transição da China

An analysis of incentive strategies for single-source suppliers to drive cost reduction

Thesis (M.B.A.)--Massachusetts Institute of Technology, Sloan School of Management; and, (S.M.)--Massachusetts Institute of Technology, Dept. of Electrical Engineering and Computer Science; in conjunction with the Leaders for Global Operations Program at MIT, 2011.Cataloged from PDF version of thesis.Includes bibliographical references (p. 54-55).An organization's decision on which aspects of its operations to outsource represents a key, strategic issue that should be based on maximizing performance throughout the entire value chain. In certain instances strategic outsourcing decisions make it ideal for firms to source from one particular supplier. Singlesource relationships, in particular, necessitate strategic contract development to ensure incentives are aligned throughout the value chain. Much of the existing research in contract development focuses on mitigating fluctuations in demand. Forecasting demand is highly uncertain and can lead to inefficiencies throughout the value chain that contracts can alleviate. However, the defense industry typically has low uncertainty in demand, which offers a unique environment to study contract development. This thesis focuses on contract development with certain demand through case studies in the defense industry. The essence of this thesis revolves around a strategic framework for developing contracts. This framework begins with a discussion of methods for performing a strategic analysis of suppliers. Next an overview of investigating supplier alternatives is provided. The framework then addresses the execution of a contract, which includes writing and negotiating the contract. Finally, contract maintenance is discussed, which includes contract validation as well as managing latent concerns. After the framework is laid out, four different single-source supplier relationships are analyzed. Each of these supplier relationships is investigated to understand the motivation for initiating these particular relationships. The four supplier case studies revolve around the issues of supplier investment costs, internal competition, commodity negotiations, and supplier power. After each case study, the pertinent aspects of the contract development framework are applied to the specific supplier relationship and conclusions are drawn.by Kevin Resch.S.M.M.B.A

COOPERATIVE CONSTRUCTION IN SCHOOLS IN CALIFORNIA

Cooperative Construction in Schools in California John M. Donley The construction industry has lost efficiency since 1964, while becoming increasingly more litigious. Schools in California can ill afford the time to allow the construction industry time to fully evolve. It may take years or decades to fully improve the efficiency of, and reduce the conflict within the construction industry. At the same time, the construction industry has developed new processes to improve efficiency and reduce conflict. These processes are beginning to be broadly embraced by the industry. They all contain cooperative elements. Taken together they represent a new organizing principle for the construction industry, cooperative construction. Also concurrently, a previously little-used provision of the California Education Code allows schools freedom to contract for school construction in nearly any reasonable contractual arrangement they see fit for their project and district needs. As a result, school districts in California have developed a new system of project delivery. They are borrowing from here and there and inventing new tools to make projects work for them. Again, cooperative elements at the hearts of the processes

The moderating effect of technology utilization on project management function and project performance

This study investigated the moderating effects of technology utilization on the relationship between project management function and project performance.The project management function element is operationalized by nine constructs and the technology utilization element examined in this study focuses on three factors. Data was collected using the questionnaire survey approach.This study employed the stratified random sampling procedure in selecting businesses and organizations, that included the construction industry in the sample.Four hundred and forty eight Aceh construction organizations participated in this study. Partial correlation analysis was utilized for hypotheses testing.In general, the result of the partial correlation analysis showed that technology utilization moderated the relationship between seven of the nine functions of project management and overall project performance.Individually, these three variables of technology utilization did not moderate the relationship between communication management and cost performance.The outcome of this study provided vital information on the relationship between project management function, technology utilization and project performance in the Aceh construction organizations.This study also provided an insight into further understanding of the issue of interface between project management function, technology utilization and project performance

Corruption in Hong Kong construction industry

Thesis (B.Sc)--University of Hong Kong, 2004.published_or_final_versio

How Megaprojects Are Damaging Nigeria and How to Fix It

Since 1960, two-thirds of very large governmental projects in Nigeria have not only failed, but been abandoned mid-course. This presents a bigger failure rate than mega projects elsewhere, and yet there is no available data or analysis to help us understand the reasons behind such failures. This book provides an authoritative examination into why very large projects in Nigeria have failed so badly, and provides practical recommendations on how the Nigerian government can improve its project performance. Drawing on data from 38 very large projects (19 completed and 19 abandoned) with a total budget of over $25B, this book presents detailed analysis of these projects and in-depth case studies 11 of the projects, and presents lessons for improvement. Through this, the authors have identified a small number of key success drivers, and argue that making moderate improvements on any of them would, on average, save hundreds of millions of dollars on one large project alone. This book is a game-changer in the management of government mega projects in Nigeria. With clear implications for other developing economies, this is a vital resource for project management practitioners, executives and civil servants. This is an open access book

On trade-offs between timber and biodiversity

For a long time the primary aim of forestry in Sweden has been the production of timber, but in recent decades other functions, such as biodiversity, have been increasingly recognised by society. Sweden has ambitious goals for forest management, aimed at serving public interests, providing valuable timber yields and preserving biodiversity. Achieving the level of various goods that forests shall provide, under such goals, is thus rather complex. This thesis focuses on trade-offs between production of timber and the maintenance of biodiversity in forests, and the effects of information on benefits, costs and biological traits. In Paper I the benefit of forest land protection was estimated based on a nation wide contingent valuation survey. Paper II examined and compared, through survey data, the attitudes among private forest owners and forest officers. Papers III and IV used data from a field inventory in old growth forests (>110 years of age) of Norway spruce (Picea abies [L.] Karst.) in the county of Gävleborg, Sweden. In Paper III the relative importance of information about costs and biological traits in reserve selection was examined. In Paper IV the cost-efficiency of different strategies for setting aside forests, using different biodiversity targets, were analysed. The thesis revealed a positive willingness to pay for forest land protection among Swedish citizens, and also a positive attitude among private forest owners to biodiversity as well as timber production. The views of forest owners and forest officers did not always coincide. Moreover, the relative importance of including data on costs and conservation benefits depended on how the conservation goal of the reserve network was formulated. There was also a difference in cost-effectiveness between different nature conservation strategies and biodiversity targets. The results emphasise the importance of achieving cost-effective solutions in biodiversity conservation through the proper use of information about biological traits and costs, as well as considering values and attitudes held by different interest groups in society

Risk management in capital project delivery : a value study of changing trends in contractual risk allocation

Thesis (M.S.)--Massachusetts Institute of Technology, Dept. of Civil and Environmental Engineering, 1996.Includes bibliographical references (leaves 113-136).by Umberto J. Donata.M.S