Convention Relating to a Uniform law on the Formation of Contracts for the International Sale of Goods

Many infrastructural projects have cost overruns and there has been a lot of research both on whythese cost overruns occur and what can be done to reduce cost overruns. Bent Flyvbjerg is the leadingresearcher in the area and in this article his proposals are also the starting point. Beside a literaturereview a questionnaire was also sent out to experienced Swedish project managers to find out whatthey thought could reduce cost overruns. This has been the foundation for the proposals formulated inthis article. Proposals concerns three areas 1. Organizational macro-structure, e.g. using more PPPprojectsbut also decentralization of budgets where cost-overruns in one project in a region leads toless other projects in the specific region. 2. Organizational quality: It should be easy to see when andwhere cost overruns occur and who was responsible. There should be an well-developed knowledgemanagement system in the organization and an organization culture of openness and a focus onimprovements. 3. Organizational processes, e.g. a systematic use of external reviewers in differentstages of a project.QC 20140819</p

Policies to Avoid Cost Overruns in Infrastructure Projects: Critical Evaluation and Recommendations

Many infrastructure projects have cost overruns and there has been a lot of research both on why these cost overruns occur and what can be done to reduce hem. Bent Flyvbjerg is the leading researcher in the area and in this article his proposals are used as the starting point. Besides a literature review, a questionnaire was sent out to experienced Swedish project managers to find out what they thought could reduce cost overruns. The literature review and the questionnaire were the foundation for the proposals formulated in this article. Proposals concerned three areas: (1). Organisational macro-structure, e.g. using more PPP projects but also decentralisation of budgets where cost overruns in one project in a region lead to less alternative projects in the specific region. (2). Organisational quality: It should be easy to see when and where cost overruns occur and who was responsible. There should be a well-developed knowledge management system in the organisation and an organisation culture of openness with a focus on improvements. (3). Organisational processes, e.g. a systematic use of external reviewers in different stages of a project. Keywords: Cost overruns, Infrastructure projects, Policy measure

Quantity choice in unit price contract procurements

A common approach for procuring large construction projects is through Unit Price Contracts. By the means of a simple model, we study the optimal quantity to procure under uncertainty regarding the actual required quantity given that the procurer strives to minimize expected total costs. The model shows that the quantity to procure in optimum follows from a trade-off between the risk of having to pay for more units than actually necessary and of having to conduct costly renegotiations. The optimal quantity increases in costs associated with possible renegotiations, decreases in expected per unit price, and, if a renegotiation does not increase per unit price too much, decreases in the uncertainty surrounding the actual quantity required. Older version: http://swopec.hhs.se/vtiwps/abs/vtiwps2011_004.ht

Overbuilding in office markets : are behavioural aspects important?

QC 2010112

Forskningsprocessen

QC 20141222</p

Essays on behavioural economics and cost overuns

This dissertation consists of five essays, four on cost overruns and one on behavioral economics witha focus on real estate investments. The main aim of the thesis was to answer the questions: • Is it common with cost overruns in infrastructure projects? • What explains the cost overruns? • What can be done to prevent cost overruns? This thesis contributes to the current state of knowledge within the field: • It is yet another evidence that cost overruns are a significant problem. • Optimism bias is an explanation of cost overruns. However, the thesis adds, by Article two, arationality explanation. • Dismisses in part the Successive method as a tool to reduce cost overruns. • Provide recommendations on how action against cost overruns can be systematized. The first article, which is a result of my Licentiate thesis deals with real estate investments and the fact that investors sometimes are influenced by behavioral aspects that make them deviate fromwhat is rational. The result is some what uncertain but shows that investors in these cases were influenced by myopic behaviour. The second article deals with cost overruns and rationality. The question is whether it can be rational in a procurement, using a unit‐price contract, to expect cost overruns. The result shows that it is possible in situations where the decision maker has to take renegotiation costs and monitoring costs into account. The third article examines how well the successive method can pvents cost overruns. Established results in research on cost overruns indicated that strategic factors, psychological factors (optimism bias) and technical factors are important to explain cost overruns. The review suggests that the Successive method has limitations as a method to reduce cost overruns because it cannot deal with strategic and psychological factors. The fourth article focus on why cost overruns incurred. The article presents a new framework based on microeconomic cost theory and also results based on a survey to project managers in infrastructure projects, suggesting that cost overruns are common and that cost overrun mainly aredue to the optimism bias. The issue addressed in the fifth article is what can be done to prevent cost overruns. The conclusion, based on questionnaire survey and literature review, suggests that a variety of policy measures are needed at different levels such as (1): Organizational macrostructure where e.g. cost overruns in a project in one region leads to less projects in that region.(2) Organizational quality: improved transparency within organizations to see where and when cost overruns occur. (3) Organizational processes: e.g. the use of external reviewers.QC 20150529</p

Essays on behavioural economics and cost overuns

This dissertation consists of five essays, four on cost overruns and one on behavioral economics witha focus on real estate investments. The main aim of the thesis was to answer the questions: • Is it common with cost overruns in infrastructure projects? • What explains the cost overruns? • What can be done to prevent cost overruns? This thesis contributes to the current state of knowledge within the field: • It is yet another evidence that cost overruns are a significant problem. • Optimism bias is an explanation of cost overruns. However, the thesis adds, by Article two, arationality explanation. • Dismisses in part the Successive method as a tool to reduce cost overruns. • Provide recommendations on how action against cost overruns can be systematized. The first article, which is a result of my Licentiate thesis deals with real estate investments and the fact that investors sometimes are influenced by behavioral aspects that make them deviate fromwhat is rational. The result is some what uncertain but shows that investors in these cases were influenced by myopic behaviour. The second article deals with cost overruns and rationality. The question is whether it can be rational in a procurement, using a unit‐price contract, to expect cost overruns. The result shows that it is possible in situations where the decision maker has to take renegotiation costs and monitoring costs into account. The third article examines how well the successive method can pvents cost overruns. Established results in research on cost overruns indicated that strategic factors, psychological factors (optimism bias) and technical factors are important to explain cost overruns. The review suggests that the Successive method has limitations as a method to reduce cost overruns because it cannot deal with strategic and psychological factors. The fourth article focus on why cost overruns incurred. The article presents a new framework based on microeconomic cost theory and also results based on a survey to project managers in infrastructure projects, suggesting that cost overruns are common and that cost overrun mainly aredue to the optimism bias. The issue addressed in the fifth article is what can be done to prevent cost overruns. The conclusion, based on questionnaire survey and literature review, suggests that a variety of policy measures are needed at different levels such as (1): Organizational macrostructure where e.g. cost overruns in a project in one region leads to less projects in that region.(2) Organizational quality: improved transparency within organizations to see where and when cost overruns occur. (3) Organizational processes: e.g. the use of external reviewers.QC 20150529</p

Explaining cost overruns in infrastructural projects : A newframework with applications to Sweden

Qc 20140321</p

Scope of the assignment of the right of claim.

Prasījumu tiesību cesija Civillikumā atrodama jau kopš tā pieņemšanas, taču to nav skāruši nevieni Civillikuma grozījumi, kas akcentē nepieciešamību šī tiesību institūta modernizācijai un Civillikuma normu papildinājumam. Prasījumu tiesību cesija ir kļuvusi par vienu no komercdarbības veidiem, līdz ar to šī tiesiskā darījuma aktualitāte mūsdienās un tā ekonomiskā vērtībā tikai turpina pieaugt. Maģistra darbs “Prasījumu tiesību cesijas tvērums” ir šī tiesību institūta pilnveides apskats, iezīmējot tā praktiskos piemērošanas problēmjautājumus, kas joprojām atrodami tiesu praksē, tajā skaitā arī Civillikuma lakoniskā regulējuma dēļ. Pētījuma mērķis ir ne tikai izpētīt prasījumu tiesību cesijas normatīvo regulējumu, bet arī tiesu praksi šajā jautājumā, kā arī juridisko literatūru un dažādu tiesībzinātnieku un juristu viedokļus prasījumu tiesību cesijas pilnīgākas izpratnes gūšanai, to starpā salīdzinot dažādu ārvalstu regulējumu ar Latvijas regulējumu. Maģistra darbā ir veikts plašs problēmjautājumu izklāsts un to iespējamie risinājumi, kas varētu būt efektīvi jautājuma atrisināšanā, tādi kā cesijas līguma pieļaujamība tikai rakstveidā, kā arī rosinājums Civillikumā iekļaut tādu tiesību institūtu kā subrogāciju. Ietverts arī ierosinājums papildināt prasījumu tiesību cesijas regulējumu attiecībā uz daļēju prasījumu cesiju un ierosinājums precizēt, kā saprast pienācīgu paziņojumu par cesiju.The assignment of the right of claim has been found in the Civil Law since its adoption, but it has not been affected by any amendments to the Civil Law, which shows the need to modernize this law institute and supplement the norms of the Civil Law. The assignment of the right of claim has become one of the types of commercial activity, thus the topicality of this legal transaction nowadays and its economic value only continues to grow. The Master's thesis “Scope of the Assignment of the Right of Claim” is a review of the improvement of this law institute, outlining the practical problems of its application that can still be found in case law, including due to the laconic regulation of the Civil Law. The aim of this study is not only to examine the regulatory enactments of assignment of the right of claim, but also to view case law regarding this issue, as well as legal literature and the opinions of various legal scientists and lawyers to gain a more complete understanding of the assignment of the right of claim, including the comparison of different laws of foreign countries. The Master's thesis presents a broad outline of the issues and possible solutions that could be effective in resolving these issues, such as the admissibility of the assignment agreement only in writing, as well as the proposal to include the institute of subrogation in the Civil Law. It also incorporates a proposal to supplement the rules on the assignment of the right of claim regarding partial assignment and a proposal to clarify how a proper notice of an assignment of the right of claim should be understood

Quantity Choice in Unit Price Contract Procurements

A common approach for procuring large construction projects is through Unit Price Contracts. By the means of a simple model, we study the optimal quantity to procure under uncertainty regarding the actual required quantity given that the procurer strives to minimize expected total costs. The model shows that the quantity to procure in optimum follows from a trade-off between the risk of having to pay for more units than actually necessary and of having to conduct costly renegotiations. The optimal quantity increases in costs associated with possible renegotiations, decreases in expected per unit price, and, if a renegotiation does not increase per unit price too much, decreases in the uncertainty surrounding the actual quantity required.Unit price contracts; procurement; construction