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Incentives in project contracts and their effects on Product Uncertainty
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics.
Blekinge Institute of Technology, Faculty of Engineering, Department of Industrial Economics.
2017 (English)Independent thesis Advanced level (degree of Master (Two Years)), 10 credits / 15 HE creditsStudent thesis
Abstract [en]

Industries across world use different methods to secure the quality of the contract deliverables. These deliverables are carefully defined in an agreement between project owner and agent (buyer and seller) however, there are several reasons that the quality of the outcome does not fulfill the desired pre-agreed quality. In aerospace as well as power & energy industries, the delivered products (outcome of the contracts) should endure a long lifespan. Although guarantee and warrantees are being used in contracts to secure the quality of the outcome for a short period of time after delivery, in several cases, the quality of the delivered product fails right after guarantee expiration date. Therefore, guarantee and warrantee are not considered to be a preventive means while the requirement for such preventive tool is undeniable. This case study gathers data from aerospace as well as power and energy industries on how these two industries shape up their agreements and what sort of incentives they use and if these applied incentives have assisted them to reach the target. These data will be analyzed in comparison to similar conducted research in this field.

Place, publisher, year, edition, pages
2017. , 80 p.
Keyword [en]
Incentive, Power and energy, Aerospace
National Category
Business Administration
Identifiers
URN: urn:nbn:se:bth-14623OAI: oai:DiVA.org:bth-14623DiVA: diva2:1112947
Subject / course
IY2578 Master's Thesis (60 credits) MBA
Educational program
IYABA MBA programme
Presentation
2017-06-01, Skype, 07:10 (English)
Supervisors
Examiners
Available from: 2017-06-27 Created: 2017-06-21 Last updated: 2017-06-27Bibliographically approved

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Type fulltextMimetype application/pdf

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CiteExportLink to record
Permanent link

Direct link
Cite
Citation style
  • apa
  • harvard1
  • ieee
  • modern-language-association-8th-edition
  • vancouver
  • Other style
More styles
Language
  • de-DE
  • en-GB
  • en-US
  • fi-FI
  • nn-NO
  • nn-NB
  • sv-SE
  • Other locale
More languages
Output format
  • html
  • text
  • asciidoc
  • rtf