3. Incentivization or Disincentivisation

Construction Incentives and Disincentives (I/D hereafter) arrangements are common project control measures. This study aims to investigate the attributes and scope of application of I/D. Comparatively, incentivisation is more about encouragement of performance improvement by reward provisions. It is objective-driven and generates pressure toward smaller and elite actions. Disincentivisation is less costly and can function well when monetary reward is not the sole performance motivator. It takes effect by penalties to force contractor to comply with their requirements. The analysis of these two mechanisms is further conducted based on two set of case studies in construction industry. It was found that some incentive strategies are attractive for contractor for further negotiation. Moreover, some financial rewards balance the unequal risks and encourage innovation. The proposition of disincentivisation is discussed and illustrated through a case study on the Hong Kong Zhuhai Macau Bridge (HZMB) project (Hong Kong Zhuhai Macau Bridge Authority (2009). Through focus group discussions, it is found that disincentivisation is successful for mega project controlling and unanimous cooperation for multi-agents. The importance of maintaining reputation a signature that disincentivisation is a less costly and viable project control measure.