Design-Build, innovation, and competition: The role of smaller contractors
Paper i proceeding, 2017

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

competition

construction

contracts

innovation

infrastructure

Författare

Jan Bröchner

Chalmers, Teknikens ekonomi och organisation, Service Management and Logistics

Svante Mandell

Proceedings ICCREM 2017, Guangzhou, November 10-12, 2017

11-18

Ämneskategorier

Produktionsteknik, arbetsvetenskap och ergonomi

Samhällsbyggnadsteknik

Företagsekonomi

Styrkeområden

Building Futures

Drivkrafter

Innovation och entreprenörskap

DOI

10.1061/9780784481080

ISBN

978-0-7844-8108-0