A platform for research: civil engineering, architecture and urbanism
A platform for research: civil engineering, architecture and urbanism
Multi-agent Incentivizing Mechanism for Integrated Project Delivery
Integrated project delivery (IPD) has been able to optimize the value for money for the owner by integrating diverse talents from the earliest design stage. The nucleus that contributed to the superior IPD performances is multi-agent risk/reward sharing incentive (RRSI). By overviewing the RRSI, four issues (i.e. setting target cost, incentives for non-cost performances, sharing ratios and caps of risk/reward) are important to IPD participants who involve RRSI. Moreover, a closer inspection of the multi-agent RRSI for IPD revealed that compared to any other procurement strategy, IPD has designed its RRSI with (1) a larger size of risk/reward pool, and (2) a greater amount of incentive pool. This explains why IPD empowers to achieve an effective multidisciplinary integration. However, not all the parties are inclined to join the RRSI, due to risk aversion or the concern of “inequity”. To increase the participants’ willingness to join the multi-agent RRSI, an optimum sharing model is proposed. With the application of concepts from cooperative game theory and prospect theory, the model can competently incorporate fairness in an optimum sharing of risk/reward. This chapter is helpful for the industry practitioners who are interested in the use of multi-agent RRSI in IPD projects.
Multi-agent Incentivizing Mechanism for Integrated Project Delivery
Integrated project delivery (IPD) has been able to optimize the value for money for the owner by integrating diverse talents from the earliest design stage. The nucleus that contributed to the superior IPD performances is multi-agent risk/reward sharing incentive (RRSI). By overviewing the RRSI, four issues (i.e. setting target cost, incentives for non-cost performances, sharing ratios and caps of risk/reward) are important to IPD participants who involve RRSI. Moreover, a closer inspection of the multi-agent RRSI for IPD revealed that compared to any other procurement strategy, IPD has designed its RRSI with (1) a larger size of risk/reward pool, and (2) a greater amount of incentive pool. This explains why IPD empowers to achieve an effective multidisciplinary integration. However, not all the parties are inclined to join the RRSI, due to risk aversion or the concern of “inequity”. To increase the participants’ willingness to join the multi-agent RRSI, an optimum sharing model is proposed. With the application of concepts from cooperative game theory and prospect theory, the model can competently incorporate fairness in an optimum sharing of risk/reward. This chapter is helpful for the industry practitioners who are interested in the use of multi-agent RRSI in IPD projects.
Multi-agent Incentivizing Mechanism for Integrated Project Delivery
Digital Innovations in
Cheung, Sai On (editor) / Zhu, Liuying (editor) / Ma, Qiuwen (author)
2023-05-24
25 pages
Article/Chapter (Book)
Electronic Resource
English
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