• Title/Summary/Keyword: Incentive/Disincentive

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Factors That Affect Project Time and Cost Performance during Highway Construction Using Incentive/Disincentive Provisions

  • Pyeon, Jae-Ho;Park, Moonseo;Jung, Sangsun;Park, Taeho
    • Land and Housing Review
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    • v.11 no.4
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    • pp.115-124
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    • 2020
  • Incentive/Disincentive (I/D) contract is designed for minimizing any disruption of traffic flow in road construction projects. I/D contracting projects have been evaluated with regard to time and cost performance in various states, more than 35 states. However, construction project managers and planners have little understanding of the project factors that affect the project time and cost performance of highway construction projects using I/D regulations. Therefore, the purpose of this research is to find factors that affect I/D project success or failure to improve the decision-making process for the implementation of I/D projects. In order to achieve the objectives of this research, the researchers collected I/D road construction project data from FDOT and performed evaluation for each collected project. Then, project data analysis to identify key factors that affect I/D project performance was performed. In conclusion, five significant factors for project time performance and six significant factors for project cost perfornace were identified and summarized.

INCENTIVE/DISINCENTIVE PROJECT SUCCESS FACTORS DURING MACARTHUR MAZE I-580 BRIDGE SPAN REPLACEMENT

  • Jae-Ho Pyeon;Marc Zomoradi
    • International conference on construction engineering and project management
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    • 2013.01a
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    • pp.328-331
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    • 2013
  • Incentive/Disincentive (I/D) contracting experiences in many states have been evaluated in terms of time and cost performance and substantial project time savings were found in many project cases. However, there is little understanding on individual project success factors for I/D projects during construction. This paper explores the significance of I/D clause in the success of the MacArthur Maze reconstruction project and summarizes a list of group causes that explains and elaborates on the detailed factors. The methods used for carrying out this study started with a search of online media and news reports and contract documents were also obtained from Caltrans. After review of the preliminary information, Interviews were performed with the Caltrans Resident Engineer and the contractor's project manager who were in charge of the MacArthur Maze reconstruction. In conclusion, the evaluation of their responses hinted at six significant cause groups responsible for the project's success. These groups can be listed as: 1) Motivation, 2) Policy, 3) Teamwork, 4) Communication, 5) Expectation, and 6) Resource Management.

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EVALUATION OF COST-TIME RELATIONSHIPS FOR CONTRACTORS PARTICIPATING IN COST-PLUS-TIME BIDDING

  • Saeed Abdollahi Sean Pour;Hyung Seok David Jeong
    • International conference on construction engineering and project management
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    • 2013.01a
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    • pp.479-487
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    • 2013
  • State Highway Agencies (SHAs) have started utilizing cost-plus-time bidding (A+B bidding) since Federal Highway Agency (FHWA) declared it operational on May 4, 1995. Although this technique has successfully accelerated many projects by incorporating construction time in the bidding competition, a framework to illustrate the interactions of incentive/disincentive (I/D) rates on the competitiveness of contractors participating in the bid competition is yet to be developed. In a previous research, authors indicated that for each bid competition there is an efficient cap for I/D rates which are dictated by the capabilities of contractors in project acceleration. However, the results of previous study were based on the assumption that there is a statistically significant relationship between cost and time. In this study, the entire cost-plus-time projects implemented by the Oklahoma Department of Transportation (ODOT) were investigated. Then the significance of relationship between cost and time were analyzed for each contractor utilizing Analysis of Variance (ANOVA) technique, and the price-time function of each contractor was determined by regression analysis. The results of the analysis indicate that there is a significant relationship between cost and time for the majority of contractors. However, a quadratic relationship is not always significant and for some contractors a linear price-time relationship is significant. The results of this project can be used not only by ODOT to optimize the incentive/disincentive rates but also by contractors to determine the most competitive strategies of other bid participants.

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EVALUATING THE EFFECTIVENESS OF ECONOMIC INCENTIVES ON CONSTRUCTION CLIENTS' HEALTH AND SAFETY PERFORMANCE - A DELPHI STUDY

  • Innocent Musonda;Jan-Harm Pretorius;Theodore Conrad Haupt
    • International conference on construction engineering and project management
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    • 2013.01a
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    • pp.52-59
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    • 2013
  • The use of economic incentives to improve H&S performance in the construction industry in general, has been investigated by various scholars. However, few studies have looked at the impact of economic incentives on construction clients especially in the developing world. Therefore it was necessary to investigate specifically the impact of the economic incentive on client's H&S performance. Economic incentives are considered to be a proactive way of improving H&S performance. The investigation was conducted using a Delphi technique to determine the impact significance of the economic incentive or disincentive on construction clients' H&S performance. Findings from the study were that the economic factor had critical impact significance on clients' H&S performance. Further clients were 'very likely to' implement various H&S elements as a result of the economic incentive and disincentive. The paper will report on the findings from an analysis of impact significance of the economic incentives on clients. It will underscore the point that economic incentives or disincentives on construction clients are necessary to encourage them to actively participate in H&S performance improvement.

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Work Incentive Provisions in Benefit Structure of Social Assistance Program (공공부조 급여구조가 수급자의 근로동기에 미치는 효과)

  • Park, Neung-Hoo
    • Korean Journal of Social Welfare
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    • v.46
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    • pp.60-88
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    • 2001
  • This paper examined the impacts of the welfare reform program, California Work Pays Demonstration Program(CWPDP), implemented in 1992. CWPDP was designed to move welfare recipients into the labor market by reducing the amount of AFDC grants and one-third earned income disregard. The evaluation of the policy impacts on the welfare recipients was conducted in two areas: employment and earnings. This study used a subset of a database created by the California Department of Social Services, and University of California Data Archive and Technical Assistance. The subset is composed of 3,936 AFDC-FG cases selected in LA County: 1,311 control cases and 2,625 experimental cases. The control group was kept on the AFDC rules as of September 1992, while the experimental group was subject to AFDC rule changes implemented under CWPDP. The analyses of the employment and earnings using the random effects probit model and the random effects regression model, respectively, indicated that CWPDP did not effectively encourage female heads to participate in the labor market. It also revealed that CWPDP did not significantly increase the earnings of female heads. The findings imply that the disincentive structure of the public assistance program is not the main barrier preventing female heads from getting jobs and leaving the welfare rolls. Rather, participation in the labor market and exit from welfare is mainly determined by their own demographic characteristics and the economic cycle. Based on the findings, policy implications are suggested on the National Minimum Protection Program in Korea. Those include a flexible exemption rate for the earned income of beneficiaries, affordable child care services, and guaranteed public jobs.

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A Case Study of Balanced Scorecard(BSC) System Implementation in Public Procurement Service (조달청 BSC 시스템 구축사례)

  • Kim, Jae-Yeol
    • Information Systems Review
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    • v.9 no.1
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    • pp.259-282
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    • 2007
  • This paper provides a case for the comprehensive performance management system in Public Procurement Service. Public Procurement Service set up the BSC system at the beginning of 2006 by improving and complementing the earliest performance management system and made it possible to automatically connet the performance measurement and evaluation of the departmental and person by using CSF and KPI, which result from their mission and strategic assignments. Therefore, the public service of the adminstration is able to offer better customer service, as the private corporations do, apply the incentive and disincentive policies to the personnel and reward administration and contribute to changing the administration into an organization of competition and performance compensation. The application of the BSC system enables the strengthening of the individual evaluation system in the departmental, integration of various evaluations into one, and the establishment of a monitering system of achievement rate in the objective management in the periodic results. Such a case study of Public Procurement Service will determine the course of establishment of the BSC in other public institutions and suggest many successful methods and ideas for the performance management system.

Current Status and Future Prospects of the Population Control Policy in Korea (출산조절정책의 현황과 전망)

  • 조남훈
    • Korea journal of population studies
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    • v.11 no.1
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    • pp.14-31
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    • 1988
  • The national family planning program in Korea, which was instituted as an integral part of the nation's economic development plans since 1962, has contributed greatly to a reduction in the fertility and population growth rate. The total fertility rate dipped from 6.0 births per women in 1960 to 2.0 in 1985, and the population growth rate rom 2.84 percent per year to 1.25 percent during the same period, while the contraceptive practice rate for the 15-44 married women increased from 9 percent in 1965 to 70 percent in 1985. Study findings indicate that the fertility reduction in the past 26 years is largely attributed to the virgorous implementation of the national family planning program, rising age at marriage, wide-spread use of induced abortion, and the changes in attitude regarding the value of children that came into being in the wake of the rapid socio-economic development over the period. Among the strengths of the national family planning program are the following : 1) a pluralistic system of program manageent with active participation of various government and voluntary organizations, 2) utilization of a large corps of family planning field workers to conduct face-to-face communication and motivation activities, 3) use of private physicians with government support to provide contraceptive services, 4) a systematic program management system including program planning of traget allocation, evaluation, and supervision with a broad MIS and award system, 5) numerous incentive and disincentive schemes for stimulating the small family norm and contraceptive use, and 6) strong commitments to the family planning program by political leaders. The new demographic targets during the Sixth Five-Year Economic and Social Development plan period(1987-91) have been set for a further reduction in the population growth rate to 1.0 percent by 1993, assuming that the TFR will decline to 1.75 level in 1995. This target is, however, not easy to achieve due to anticipated unfavorable factors like the strong boy preference, high discontinuation rates of reversible contraceptive methods, fertility termination-oriented contraceptive use, a plateau level of contraceptive practice rate that has mostly accounted for a sterilization, shortened length of birth intervals, and the changing patterns of contraceptive mix. The recent changes in contraceptive and fertility behaviors clearly indicate that the past quantity-oriented management system of the national program should be redirected toward a quality-oriented approach. Particularly, program efforts should be expanded to recruit new contraceptive users in the 20s of younger age groups, both for birth spacing and controlling their fertility since the women aged 20 to 29 account for more than 80 percent of the total annual births in recent years. In addition, the current contraceptive fee system of the national family planning program should be gradually shifted from free contraceptive services to a acceptor's charge system, and the provision of contraceptive services through the medical insurance system, which will cover the entire population by 1989, should be accelerated as a means of integration of family planning program with other health programs.

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