Aligning project stakeholder motivation through incentivisation : a client-driven approach

Rose, Timothy M. & Manley, Karen (2010) Aligning project stakeholder motivation through incentivisation : a client-driven approach. In Proceedings of the 6th International Conference on Innovation in Architecture, Engineering & Construction, Pennsylvania State University, Pennsylvania, PA.

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The use of appropriate financial incentives within construction projects can contribute to strong alignment of project stakeholder motivation with project goals. However, effective incentive system design can be a challenging task and takes skillful planning by client managers in the early stages of a project. In response to a lack of information currently available to construction clients in this area, this paper explores the features of a successful incentive system and identifies key learnings for client managers to consider when designing incentives. Our findings, based on data from a large Australian case study, suggest that key stakeholders place greater emphasis on the project management processes that support incentives than on the incentive itself. Further, contractors need adequate time and information to accurately estimate construction costs prior to their tender price submission to ensure cost-focused incentive goals remain achievable. Thus, client managers should be designing incentives as part of a supportive procurement strategy to maximize project stakeholder motivation and prevent goal misalignment.

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ID Code: 38404
Item Type: Conference Paper
Refereed: Yes
Keywords: Construction Projects, Contracts, Financial Incentives, Motivation
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 (please consult the authors).
Deposited On: 10 Nov 2010 02:18
Last Modified: 29 Feb 2012 14:30

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