Two Approaches to the Problem of Sharing Delay Costs in Joint Projects

AMS classifications: 90D12; 90B35activity graph;bankruptcy problem;taxation problem;serial cost sharing method;delay cost

FrAmework for Multi-Agency Environments (FAME) : Final Report of the Learning & Evaluation Strand

Framework for Multi-agency Environments (FAME) was one of the Local Government On-Line funded National Projects sponsored by the Office of the Deputy Prime Minister (ODPM). Within FAME there were six local projects (known as strands) led by English local authorities in partnership with service providers. Each strand aimed to improve a particular set of services (for example, to vulnerable older people or disabled children) through effective and appropriate exchange of information. These local projects worked with IT suppliers (known as technology partners) to produce a technical system to facilitate the exchange and management of client / patient information across agency boundaries. Not all the outputs of FAME were in the form of IT systems. Improvements to business processes and information sharing practices were also expected. Newcastle University led two further strands, the Generic Framework and Learning & Evaluation. The Generic Framework identifies and describes nine building blocks that are essential to effective multi-agency working. The FAME website http://www.fame-uk.org contains details of these building blocks, together with a ‘how to’ guide and a toolkit to support local authorities and their partners in assessing their ‘readiness’ for multi-agency working. This is the report of the Learning & Evaluation strand. The Learning & Evaluation team worked closely with the local FAME project teams, who were supportive of our work and generous with their time. Throughout the project we reported back to the local teams both individually and collectively. Evaluation was thoroughgoing and critical, not an exercise in public relations or advocacy. It is important to stress that learning is likely to be gained from what did not work as well as from what did. Problems and setbacks, as well as successes, are therefore documented and analysed in the report

Project alliancing at National Museum of Australia: Collaborative process

Project alliancing is a new alternative to traditional project delivery systems, especially in the commercial building sector. The Collaborative Process is a theoretical model of people and systems characteristics that are required to reduce the adversarial nature of most construction projects. Although developed separately, both are responses to the same pressures. Project alliancing was just used successfully to complete the National Museum of Australia. This project was analyzed as a case study to determine the extent to which it could be classified as a “collaborative project”. Five key elements of The Collaborative Process were reviewed and numerous examples from the management of this project were cited that support the theoretical recommendations of this model. In the case of this project, significant added value was delivered to the client and many innovations resulted from the collective work of the parties to the contract. It was concluded that project alliances for commercial buildings offer many advantages over traditional project delivery systems, which are related to increasing the levels of collaboration among a project management team

Parallel R&D Paths Revisited

This paper revisits the logic of pursuing parallel R&D paths when there is uncertainty as to which approaches will succeed technically and/or economically. Previous findings by Richard Nelson and the present author are reviewed. A further analysis then seeks to determine how sensitive optimal strategies are to parameter variations and the extent to which parallel and series strategies are integrated. It pays to support more approaches, the deeper the stream of benefits is and the lower is the probability of success with a single approach. Higher profits are obtained with combinations of parallel and series strategies, but the differences are small when the number of series trial periods is extended from two to larger numbers. A "dartboard experiment" shows that when uncertainty pertains mainly to outcome values and the distribution of values is skew-distributed, the optimal number of trials is inversely related to the cost per trial.

A new governance approach for multi-firm projects: lessons from Olkiluoto 3 and Flamanville 3 nuclear power plant projects

We analyze governance in two contemporary nuclear power plant projects: Olkiluoto 3 (Finland) and Flamanville 3 (France). We suggest that in the governance of large multi-firm projects, any of the prevalent governance approaches that rely on market, hierarchy, or hybrid forms, is not adequate as such. This paper opens up avenues towards a novel theory of governance in large projects by adopting a project network view with multiple networked firms within a single project, and by simultaneously going beyond organizational forms that cut across the traditional firm–market dichotomy. Our analysis suggests four changes in the prevailing perspective towards the governance of large projects. First, there should be a shift from viewing multi-firm projects as hierarchical contract organizations to viewing them as supply networks characterized by a complex and networked organizational structure. Second, there should be a shift in the emphasis of the predominant modes of governance, market and hierarchy towards novel governance approaches that emphasize network-level mechanisms such as self-regulation within the project. Third, there should be a shift from viewing projects as temporary endeavors to viewing projects as short-term events or episodes embedded in the long-term sphere of shared history and expected future activities among the involved actors. Fourth, there should be a shift from the prevailing narrow view of a hierarchical project management system towards an open system view of managing in complex and challenging institutional environments

Transaction Costs in Aid: Case Studies of Sector Wide Approaches in Zambia and Senegal

human development, aid, trade, security