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Is incentivisation significant in ensuring successful partnered projects?

Deborah Hughes (Built Environment Division, Glamorgan University, Pontypridd, UK)
Trefor Williams (Built Environment Division, Glamorgan University, Pontypridd, UK)
Zhaomin Ren (Built Environment Division, Glamorgan University, Pontypridd, UK)

Engineering, Construction and Architectural Management

ISSN: 0969-9988

Article publication date: 27 April 2012

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Abstract

Purpose

This research aimed to test the hypothesis “The use of incentivisation with a gain/pain share of about 15 per cent is a precursor to the achievement of successful infrastructure partnering projects in South Wales”. This hypothesis arose from Egan's speech in 2008 discussing the success of partnering.

Design/methodology/approach

Two infrastructure projects in South Wales were chosen for the study. This research demonstrates that partnering is not suitable for all projects. Incentivisation places a focus on cost that can have a detrimental effect on the other aspects that exist within the oft quoted triangle of time, cost and quality.

Findings

Neither of the two case projects can be judged a success from the perspective of both parties. What represents success to one client would not equal success to the other. Overall it must be concluded that the hypothesis was not proven. Egan's view appears to be too simplistic to apply in all situations and is not always the key to success as he suggests.

Originality/value

This paper makes an original contribution by exploring if incentivisation can provide success within infrastructure projects in South Wales. The content of the paper will be of interest to clients, contractors and consultants engaged in formulating partnering contracts.

Keywords

Citation

Hughes, D., Williams, T. and Ren, Z. (2012), "Is incentivisation significant in ensuring successful partnered projects?", Engineering, Construction and Architectural Management, Vol. 19 No. 3, pp. 306-319. https://doi.org/10.1108/09699981211219625

Publisher

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Emerald Group Publishing Limited

Copyright © 2012, Emerald Group Publishing Limited

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