The impact of disruption and delay when compressing large projects: Going for incentives?

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Abstract

Demands by clients for earlier delivery after a project has started are increasing. This paper investigates the consequential disruption and delay that follows from the contractor accepting these demands. Explorations are carried out using a System Dynamics model based upon a large model constructed to represent the complexity of a claim for disruption and delay in relation to a specific mega-project. The model used for the explorations has been validated further using information gathered during work on other claim projects. The model enables the impact of disruption and delay resulting from the holistic and dynamic impact of a compressed delivery date to be assessed in relation to two specific and typical options. Use of the model suggests that the probability seems slight of finding the highly specific circumstances where there is any certainty in an outcome of early delivery at little extra cost.
LanguageEnglish
Pages26-34
Number of pages8
JournalJournal of the Operational Research Society
Volume52
Issue number1
DOIs
Publication statusPublished - 2001

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Contractors
Dynamic models
Incentives
Disruption
Costs
System dynamics model

Keywords

  • system dynamics
  • operational research
  • probability
  • management theory
  • statistics
  • project management

Cite this

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title = "The impact of disruption and delay when compressing large projects: Going for incentives?",
abstract = "Demands by clients for earlier delivery after a project has started are increasing. This paper investigates the consequential disruption and delay that follows from the contractor accepting these demands. Explorations are carried out using a System Dynamics model based upon a large model constructed to represent the complexity of a claim for disruption and delay in relation to a specific mega-project. The model used for the explorations has been validated further using information gathered during work on other claim projects. The model enables the impact of disruption and delay resulting from the holistic and dynamic impact of a compressed delivery date to be assessed in relation to two specific and typical options. Use of the model suggests that the probability seems slight of finding the highly specific circumstances where there is any certainty in an outcome of early delivery at little extra cost.",
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