Financial incentives and advanced construction procurement systems

Rose, Timothy M. & Manley, Karen (2010) Financial incentives and advanced construction procurement systems. Project Management Journal, 41(1), pp. 40-50.

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Construction clients often use financial incentives to encourage stakeholder motivation and commitment to voluntary higher-order project goals. Despite the increased use of financial incentives, there is little literature addressing means of optimizing outcomes. Using a case study methodology, the examination of a successful Australian construction project demonstrates the features of a positively geared procurement approach that promotes the effectiveness of financial incentives. The research results show that if the incentive system is perceived to be fair and is applied to reward exceptional performance, and not to manipulate, then contractors are more likely to be positively motivated.

Impact and interest:

3 citations in Scopus
2 citations in Web of Science®
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417 since deposited on 04 May 2010
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ID Code: 32098
Item Type: Journal Article
Refereed: Yes
Additional URLs:
Keywords: goal commitment, financial incentives, contracts, motivation, construction projects, built environment
DOI: 10.1002/pmj.20145
ISSN: 8756-9728
Subjects: Australian and New Zealand Standard Research Classification > BUILT ENVIRONMENT AND DESIGN (120000) > BUILDING (120200) > Building Construction Management and Project Planning (120201)
Divisions: Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Past > Schools > School of Urban Development
Copyright Owner: Copyright 2010 Project Management Institute
Deposited On: 04 May 2010 22:29
Last Modified: 29 Feb 2012 14:03

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