How practitioners set share fractions intarget cost contracts
By: BROOME, Jon
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Contributor(s): PERRY, John.
Material type: 
ArticlePublisher: J. R. Turner, 2002Subject(s): Contract Strategy | Target Cost Contract | Incentive Contract | Utility TheoryInternational Journal of Project Management 20, 1, p. 59-66Abstract: Research into target cost contracts has been undertaken at The University of Birmingham to understand the choice of share profiles used in practice. The use of target cost contracts in increasing and the research has shown that share porfiles which vary with the extent of over or under run are more common today than constant share profiles. Seven examples of share profiles used in practice are described and the reason for their choice are explained. These choices are then dicussed in the context of key factors considered when choosing a contract strategy. The use of utility theory proposed by others for determining the share profile is briefly considered and the authors believe its is both insufficiently pragmatic and unable to deal with the complex interactions of the factors which should govern the choice of share profile
| Item type | Current location | Collection | Call number | Status | Date due | Barcode |
|---|---|---|---|---|---|---|
| Periódico | Biblioteca Graciliano Ramos | Periódico | Not for loan |
Research into target cost contracts has been undertaken at The University of Birmingham to understand the choice of share profiles used in practice. The use of target cost contracts in increasing and the research has shown that share porfiles which vary with the extent of over or under run are more common today than constant share profiles. Seven examples of share profiles used in practice are described and the reason for their choice are explained. These choices are then dicussed in the context of key factors considered when choosing a contract strategy. The use of utility theory proposed by others for determining the share profile is briefly considered and the authors believe its is both insufficiently pragmatic and unable to deal with the complex interactions of the factors which should govern the choice of share profile
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