The influence of trust on risk allocation in chinese PPP projects

In order to improve the performance of PPP project management, remarkable numbers of work has been done by theorists and practitioners. However, the incentive of PPP partners has not fully been interrogated. When looking for an incentive approach of project governance, we found proper risk allocation as a motivating factor. It suggests that proper risk allocation allows contractor control construction costs reasonably, and gain compensation from the contract status changes, to ensure the profits expected at the end of the construction process. Currently, despite the fact that proper risk allocation has been recognized by practitioners to have a positive impact on the performance of project management, however, due to the lack of trust and trust insufficient supplies from PPP partners when designing risk allocation. Therefore, the purpose of this research is to explore the impact mechanism of PPP partners’ trust on proper risk allocation scheme formation and mechanism chain in which contractor achieves compensation as the contract status changed to form "trust-PPP partners proper risk allocation-PPP partners act dutifully while obtaining compensation when contract status changed positive loop adaptive process has become an important key scientific problem. Specifically, this thesis is discussed in the following four areas: 1. Theoretical sort of trust and risk allocation in PPP project: we analyzed research progress of risk allocation in PPP project from the perspectives of technology, organization and contract paradigms. Based on the sorting existing literature of trust, we analyzed fit of trust and risk allocation with paradigm tension as foothold, and proposed the potential impact of trust on the formation of risk allocation scheme. 2. Research design employed qualitative and quantitative study for reliability: Trust in construction project involves characteristics of scenarios dependency and moral risk, where data reliability issue has become a bottleneck of development of trust research in PPP project. Therefore, by having focus groups to explore on the optimal projection and ‘scenario into’ semi-structured interview process design module, we designed targeting approaches for trust and risk allocation study. 3. Building of ‘trust, proper risk allocation and contract status changes compensation’ theoretical assumptions model based on exploratory analysis with grounded theory and interpretation of literature: due to the gap in the literature which explores the relationship between trust and risk allocation, initial exploratory analysis model along with grounded theory and the analysis of social exchange based on reciprocity, social capital, and incomplete contract theories, we build driver, moderating theoretical assumptions model between trust, proper risk allocation and contract status changes compensation. 4. Empirical Analysis from questionnaire: by fixing existing scales of trust and proper risk allocation, hypothesis testing were answered through questionnaire survey, where it revealed driving action of trust on the formation of proper risk allocation and risk-sharing non-moderating act of trust on the relationship between proper risk allocation and contract status changes compensation.Nos últimos anos temos assistido ao aparecimento de um grande número de trabalhos realizados quer por académicos quer por gestores sobre como melhorar o desempenho da gestão de projetos das PPPs. Contudo, somos da opinião que os incentivos dos parceiros não foram totalmente analisados em especial no que respeita à alocação do risco enquanto fator motivador. Apesar da alocação do risco ter sido reconhecida pelos gestores como tendo um impacto positivo no desempenho da gestão de projetos, aquando da definição da alocação existe uma falta de confiança ou esta é insuficiente entre os parceiros das PPPs, o que prejudica o resultado final. O propósito desta tese é pois investigar o mecanismo do impacto da confiança entre os parceiros das PPPs na formação do sistema de alocação do risco adequado e na cadeia de compensações para o contratante quando ocorrem mudanças contratuais. Mais especificamente, esta tese abordará as seguintes quatro áreas: 1. Tipo teórico de confiança e alocação do risco adequado em projetos de PPPs: analisamos a investigação realizada na alocação do risco nas perspetivas da tecnologia, organização e contrato. Com base nos tipos de confiança existentes na literatura, analisamos de que forma a confiança se adequa à alocação do risco. 2. A nossa pesquisa combina métodos qualitativos e quantitativos. Considerando que a confiança envolve cenários de dependência e de risco moral e que, em projetos PPPs, a fiabilidade dos dados é um problema para a investigação da variável confiança utilizámos um método qualitativo - a discussão em grupo - como método de aferição desta variável. 3. Com base numa análise exploratória e utilizando o modelo da teoria fundamentada investigámos a construção da “confiança, alocação de risco adequado e compensação derivada de mudanças contratuais”. Considerando a lacuna existente na literatura no que concerne à relação entre confiança e alocação de risco, realizamos uma análise exploratória com base na teoria fundamentada (grounded theory) relevando as questões relacionadas com o capital social. 4. Análise empírica com base em questionários: utilizando escalas de confiança e escalas de alocação de risco já existentes, testamos hipóteses através da recolha de dados provenientes de questionários. Com os questionários pretendemos estudar a relação entre a alocação de risco adequado e a compensação devido a mudanças contratuais

A Multi-Disciplinary Approach For Determining Adoption Of Agricultural Price Risk Management Strategies

Australian wool producers have been slow to adopt price risk management strategies to stabilise the income from their wool sales. The highly volatile auction system accounts for 85% of raw wool sales while the remainder is sold by forward contract, futures and other hedging methods. Qualitative analysis was used to find behavioural factors associated with the adoption of price risk management strategies (specifically futures and forward contracts) for selling raw wool. Consideration was given to Diffusion of Innovations and the Theory of Planned Behaviour as theoretical frameworks in order to answer the research question: Are there any non-traditional behavioural factors that need to be incorporated into existing frameworks to determine adoption of price risk management strategies for selling raw wool? In contrast to these prominent theories, data from four focus groups conducted with wool producers in regional Western Australia showed that trust, habit and social cohesion were the major behavioural determinants that governed the adoption of price risk management strategies. The significance of this paper lies in its multi-disciplinary approach to understanding the dimensions of farm-level decision making.Qualitative analysis, trust, habit, social cohesion, forward contracts, wool., Agricultural Finance, Risk and Uncertainty,

Physician-hospital alignment : economic, administrative and professional aspects

Hospitals face challenging times. Currently many Western countries are seeking ways to increase the efficiency of care delivery and improve the quality care. Physicians have a major impact on hospital performance. This doctoral dissertation focuses on alignment of self-employed physicians. Economic, administrative and professional aspects are considered. The first chapter discusses the context and main characteristics of hospital-physician relationships in Belgium. The following chapters present five academic studies. We conclude with the general discussion of our findings. In a first study we developed an integrative conceptual framework of physician-hospital alignment including economic and noneconomic exchange. Building on the available literature and the theoretical insights of agency theory and social exchange theory, risk and trust were identified as two key antecedents. Since the payment framework cannot be neglected when studying physician-hospital alignment we continued with a second study focusing on the relationship between provider financial risk bearing and physician-hospital integration. These first two studies were followed by three empirical studies. In the third study two comparative case-studies were performed to investigate the contractual mechanisms in physician-hospital exchanges. Besides the contract, the relationship established on the basis of the transactions taking place was studied. The fourth study comprises a qualitative study of administrative and professional aspects of the noneconomic relationship between physician and hospital. Drawing on the concepts of the psychological contract we developed a rich understanding how mutual obligations and areas of ambiguity are perceived. In the fifth study we quantitatively investigated the impact of noneconomic exchange (administrative and professional psychological contract breach) and economic exchange (distributive and procedural organizational justice) on physicians’ organizational attitudes and organizational citizenship behaviours. In addition we focus on the moderating role of the Chief Medical Officer and organizational trust in these relationships. The final chapter summarises the theoretical, methodological and practical implications of this dissertation

Musyârakah: Antara Fikih Dan Perbankan Syariah

: Musyârakah: Between fiqh and Syariah banking. Musyârakah is one of the profit and lost-sharing (PLS) models which is parallel with Islamic bank concept. At the practical level of syariah banking, musyârakah is not purely legal construction but it is a social adaptation to the real circumstances which are based on contemporary local fiqh (Islamic law). Classical fiqh does not require the guarantee to be embodied in a musyârakah contract, because the partner is a trustworthy person. Moreover, on the basis of trust, one partner cannot require a guarantee from the other party. Otherwise, local fiqh gives concessions to Islamic bank, i.e., it requires partners to provide assurance in order to reduce risk in the musyârakah financing

Science communication for social inclusion: exploring science & art approaches

Engaging communities at risk of social exclusion poses a big challenge for science communicators. We schematize a framework for projects using science & art to promote social inclusion, composed of 3 phases — design, plan and collaboration; implementation; and evaluation. We present a case study that aimed to engage with a community of migrant senior women, mostly illiterate. Our findings suggest high engagement was achieved by building trust, involving emotions, choosing a relatable topic and following participatory practices. Inclusive activities occurred on the short-term, but for medium-term impact, community insiders need to be regarded as a second audience.Supported by Investigator Programme, IF/00354/2012 and institutional contract under the D.L. n. 57/2016 changed by Law n. 57/2017 all financed by Fundação para a Ciência e a Tecnologia (FCT)info:eu-repo/semantics/publishedVersio

Opportunism and Trust in the Negotiation of Commercial Contracts: Toward a New Cause of Action

In a complex economy, many business transactions take place sequentially-one party performs in part or in full before the other side executes its side of the bargain. Sequencing has many advantages, but it creates an unfortunate incentive. Having received its benefit from the bargain, the party who is to perform last may be tempted to renege on its obligations. Law and economics scholars often describe the conduct of a reneging party in these situations as opportunistic. The reneging party, perceiving an opportunity to increase its gain, yields to temptation and refuses to perform. The law of contract helps to diminish the danger of opportunism by providing assurance to those performing first that their contracting partners can be held accountable if they renege. Accountability reduces the risk of entering business transactions and facilitates an atmosphere of confidence conducive to exchange. Recently, scholars have explored the dangers of opportunism even after a contract is formed. If performance under the contract requires one side to invest in assets specially tailored to the transaction, the other side may be tempted to exploit this postcontractual situation by renegotiating the original terms to capture more of the bargaining surplus.\u27 The same postcontractual opportunistic incentives exist when one side becomes dependent on unique skills or knowledge acquired by the other side after performance has begun. This scholarly interest in postcontractual opportunism has not extended to the precontractual stage of business dealings. Law and economics scholars have assumed that parties in the precontractual stage are not likely to invest heavily in contract-specific assets and that the costs of finding suitable substitutes for performance are relatively low. More traditional doctrinal scholars likewise have failed to explore the concept of opportunism in their analyses of precontractual legal regulation. Both groups\u27 approaches reflect traditional doctrinal distinctions, which sharply differentiate between precontractual and postcontractual dealings. This Article challenges the assumptions of law and economics scholars regarding precontractual opportunism and seeks to fill a significant gap in the doctrinal analysis of commercial negotiation. First, the Article argues that the dangers of opportunism arise in the precontractual stages of business relations more frequently than law and economics literature has recognized. Opportunism often is more subtle in initial negotiations than in long-term contracts, and precontractual losses usually are more modest than those in the postcontractual cases. Nevertheless, a case survey reveals recurring fact patterns that point strongly toward the presence of opportunism in the initial negotiation of agreements. Second, as a normative matter, the Article posits that legal doctrines regulating the precontractual stage can be made more precise and effective by directly introducing the concept of opportunism into the law. Third, the Article argues that regulation of precontractual opportunism is appropriate because opportunistic behavior during bargaining undermines one of the fundamental psychological conditions for the successful coordination of complex commercial transactions--interpersonal trust. Social psychologists, sociologists, economists, philosophers, and legal scholars all have recognized that trust is central to the efficient coordination of human goals. Once trust is established, commercial parties are better able to take risks that are necessary to coordinate transactions. Without trust, parties must resort to costly mechanisms such as simultaneous exchanges, precontractual contracts, or deposits to reduce suspicion of one another\u27s motives to manageable levels. If these mechanisms are unavailable, parties may forego transactions altogether. Until now, scholarship regarding the relationship between law and trust has been lacking. Legal economists have discounted trust in their analyses of legal regulation. At the opposite extreme, more traditional scholars have treated trust as a self-evident necessity of commercial dealings without examining the social psychological mechanisms for creating and maintaining trust. This Article addresses the shortcomings of both law and economics theorists and traditional scholars. It does so by exploring theoretical and empirical research on trust from the fields of sociology and social psychology and linking that research to the judicialy imposed legal penalties for precontractual opportunism. Part II of this Article first discusses and defines commercial opportunism. Part II then describes the landscape of complex commercial negotiations. By exploring the wide variety of doctrines that courts have manipulated to compensate victims of precontractual opportunistic conduct, this section demonstrates that transaction-specific investments are common in complex negotiations. Part III explores why precontractual opportunism is socially and economically undesirable. Part III examines sociological and social psychological literature on the dynamics of interpersonal trust and asserts that precontractual transaction-specific investments are part of a vital trust-building process that undergirds many commercial relationships. Part IV looks at the role of law in supporting the construction of trusting commercial relationships. After analyzing nonlegal methods of deterring opportunistic conduct and reviewing the costs of legal intervention, Part IV concludes that legal rules proscribing opportunism in negotiation are justified as a means to reinforce and support the process of building trust. Part IV then extends this analysis by suggesting a new cause of action to improve deterrence of precontractual opportunistic conduct. Part V concludes with a summary and a suggestion for further research

Expertise as social institution : internalising third parties into the contract

Deutsche Fassung: Expertise als soziale Institution: Die Internalisierung Dritter in den Vertrag. In: Gert Brüggemeier (Hg.) Liber Amicorum Eike Schmidt. Müller, Heidelberg, 2005, 303-334

Rethinking Consumer Protection Policy in Financial Markets

Financial products for consumers usually are characterized by complexity and incomprehensibility. Consumers typically find themselves defeated when attempting to control their financial destiny by understanding these products. This Article explores the economic and social factors that lead to this reality, analyzes its highly negative private and social ramifications and proposes an appropriate policy response. I argue that the current market structure creates a reality in which financial institutions are motivated to produce complex financial products for consumers in order to maximize their profits. This market structure, combined with inadequate policy, induces inefficiency by allocating the comprehension costs of financial products to the consumer.   My thesis is that a fundamental change in risk allocation policy will steer the market toward consumer comprehension of financial products and, therefore, will reduce private and social costs, increase consumer trust in financial institutions and promote social cohesion. I propose a new default liability rule under which financial institutions would be required to introduce internal procedures and mechanisms to ensure product comprehension among all of their consumers. To encourage maximum compliance with my proposal, I suggest implementing a reputation-based incentives method that would require every financial institution branch to publicly post a service quality ranking assigned by the regulator. I also support a trust-oriented licensing policy that would encourage the inclusion of new trustworthy financial institutions in the market and offer the implementation of a new regime for supervising financial product contract terms.                &nbsp

Factors influencing utilisation of ‘free-standing’ and ‘alongside’ midwifery units for low-risk births in England: a mixed-methods study

Background Midwifery-led units (MUs) are recommended for ‘low-risk’ births by the National Institute for Health and Care Excellence but according to the National Audit Office were not available in one-quarter of trusts in England in 2013 and, when available, were used by only a minority of the low-risk women for whom they should be suitable. This study explores why. Objectives To map the provision of MUs in England and explore barriers to and facilitators of their development and use; and to ascertain stakeholder views of interventions to address these barriers and facilitators. Design Mixed methods – first, MU access and utilisation across England was mapped; second, local media coverage of the closure of free-standing midwifery units (FMUs) were analysed; third, case studies were undertaken in six sites to explore the barriers and facilitators that have an impact on the development of MUs; and, fourth, by convening a stakeholder workshop, interventions to address the barriers and facilitators were discussed. Setting English NHS maternity services. Participants All trusts with maternity services. Interventions Establishing MUs. Main outcome measures Numbers and types of MUs and utilisation of MUs. Results Births in MUs across England have nearly tripled since 2011, to 15% of all births. However, this increase has occurred almost exclusively in alongside units, numbers of which have doubled. Births in FMUs have stayed the same and these units are more susceptible to closure. One-quarter of trusts in England have no MUs; in those that do, nearly all MUs are underutilised. The study findings indicate that most trust managers, senior midwifery managers and obstetricians do not regard their MU provision as being as important as their obstetric-led unit provision and therefore it does not get embedded as an equal and parallel component in the trust’s overall maternity package of care. The analysis illuminates how provision and utilisation are influenced by a complex range of factors, including the medicalisation of childbirth, financial constraints and institutional norms protecting the status quo. Limitations When undertaking the case studies, we were unable to achieve representativeness across social class in the women’s focus groups and struggled to recruit finance directors for individual interviews. This may affect the transferability of our findings. Conclusions Although there has been an increase in the numbers and utilisation of MUs since 2011, significant obstacles remain to MUs reaching their full potential, especially FMUs. This includes the capacity and willingness of providers to address women’s information needs. If these remain unaddressed at commissioner and provider level, childbearing women’s access to MUs will continue to be restricted. Future work Work is needed on optimum approaches to improve decision-makers’ understanding and use of clinical and economic evidence in service design. Increasing women’s access to information about MUs requires further studies of professionals’ understanding and communication of evidence. The role of FMUs in the context of rural populations needs further evaluation to take into account user and community impact. Funding This project was funded by the National Institute for Health Research (NIHR) Health Services and Delivery Research programme and will be published in full in Health Services and Delivery Research; Vol. 8, No. 12. See the NIHR Journals Library website for further project information

Report a review of the concepts and definitions of the various forms of relational contracting

Partnering has been defined in many ways. It can be considered as an individual project mechanism or can be considered as a long term strategy. Alliancing is normally assumed to be a long term business strategy linking together client, contractor and supply chain. Relational contracting goes further than this and brings in the whole philosophy of the value chain and the linking of the interdependent parts within the construction project as a key business objective. This document aims to review existing definitions of these three concepts and present and overview of the current state of-the-art in terms of their use and implementation. The document should be useful for all of those project team members looking to sharpen their understanding of the various concepts and will also provide a platform for debating the current state of the definitions and implementations being used in Main Roads and Public Works Departments