ON THE EFFECTS OF PAIN/GAIN SHARE IN A TARGET COST CONTRACT: A BARGAINING THEORITICAL PERSPECTIVE

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  • SONG Jeongsoo
    東京大学大学院 工学系研究科社会基盤学専攻
  • HORITA Masahide
    東京大学大学院 新領域創成科学研究科国際協力学専攻

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  • ターゲットコスト契約におけるペインゲイン方式導入の効果に関する理論分析
  • ターゲットコスト ケイヤク ニ オケル ペインゲイン ホウシキ ドウニュウ ノ コウカ ニ カンスル リロン ブンセキ

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 There have been an increasing number of attempts to introduce the new contracting schemes in construction projects in Japan, among which is target cost contracting with a pain/gain share mechanism. This paper aims at building a theoretical model that formally evaluates the effects of a risk share on the behaviors of the project owner and the contractors. A numerical illustration is made based on the cost breakdown of a real project. Our analysis shows that the effect of introducing a target cost contract depends primarily on the cost variance and the contractor's potential capability towards cost reduction. From a stochastic simulation, it has also been suggested that stepwise risk shares set according to the level of cost variance have significant merits.

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