Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Eine Plattform für die Wissenschaft: Bauingenieurwesen, Architektur und Urbanistik
Contracting describes what actually happens in construction markets when owners and contractors meet to sign a contract. Contracting is only possible, when dealing with contract goods. The nature of contract goods makes it impossible to have an independent supply. Supply on construction markets depends on demand. Contractors offer a possible performance in construction markets until they engage in bidding for a concrete project. Construction contracts are prime examples of incomplete contracts. Construction contracts are most often bilateral, incomplete because of project complexity, and based on asymmetric information. There are two major reasons for incomplete contracts, limited rationality and prohibitive costs. Bargaining power depends on how much more one party needs an agreement than the other party. The one with the lesser need has more bargaining power. The strength of this power accordingly depends on the difference in need.
Contracting describes what actually happens in construction markets when owners and contractors meet to sign a contract. Contracting is only possible, when dealing with contract goods. The nature of contract goods makes it impossible to have an independent supply. Supply on construction markets depends on demand. Contractors offer a possible performance in construction markets until they engage in bidding for a concrete project. Construction contracts are prime examples of incomplete contracts. Construction contracts are most often bilateral, incomplete because of project complexity, and based on asymmetric information. There are two major reasons for incomplete contracts, limited rationality and prohibitive costs. Bargaining power depends on how much more one party needs an agreement than the other party. The one with the lesser need has more bargaining power. The strength of this power accordingly depends on the difference in need.
Contracting
Brockmann, Christian (Autor:in)
Construction Microeconomics ; 297-328
28.02.2023
32 pages
Aufsatz/Kapitel (Buch)
Elektronische Ressource
Englisch
Contracting - Wann ist Contracting sinnvoll?
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