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Design-Build, innovation, and competition: The role of smaller contractors

Johan Nyström ; Jan Bröchner (Institutionen för teknikens ekonomi och organisation, Service Management and Logistics) ; Svante Mandell
Proceedings ICCREM 2017, Guangzhou, November 10-12, 2017 p. 11-18. (2017)
[Konferensbidrag, refereegranskat]

Design-build (DB) contracting can be used to promote innovation in the infrastructure sector. Alongside innovation, public clients often wish to encourage competition. At a first glance, these two ambitions could be conflicting. More risk on the contractors stemming from DB might not appeal to small and medium-sized enterprises (SMEs), as they, ceteris paribus, have a risk disadvantage compared to larger firms. The research question is how more DB contracting will affect competition from a SME perspective. A simple model is provided to show how DBB stimulates competition and DB encourages innovation. Supported by semi-structured SME interviews from Sweden, it is discussed how the hybrid version of a controlled DB contract is inferior to alternative contract designs. The controlled DB contract does not stimulate competition nor provide incentives for innovation

Nyckelord: construction, contracts, infrastructure, competition, innovation



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Denna post skapades 2017-12-19. Senast ändrad 2018-01-15.
CPL Pubid: 253911

 

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