Model for Financial Renegotiation in Public-Private Partnership Projects and Its Policy Implications: Game Theoretic View

Ho, S. Ping

doi:10.1061/(asce)0733-9364(2006)132:7(678)

Cited by 120 publications

(66 citation statements)

References 11 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…Kassab et al (2010) used game theory to study the conflicts between participants of the construction projects, under uncertainty. Other researchers (Ho 2006;Tserng et al 2012Tserng et al , 2014Javed et al 2014;De Clerck, Demeulemeester 2016;Li et al 2017) used game theory to facilitate the condition of public-private partnership. Shen et al (2007), Chen et al (2012), Lv et al (2015) proposed recommendations to ease the bargaining process in BOT projects.…”

Section: Dispute Resolution Methodsmentioning

confidence: 99%

A model of discrete zero-sum two-person matrix games with grey numbers to solve dispute resolution problems in construction

Khanzadi

Turskis

Amiri

et al. 2017

Journal of Civil Engineering and Management

View full text Add to dashboard Cite

Abstract. Conflict between parties is a common issue in construction projects. In the present article, the conflicts between contractor and employer in delayed Design-Bid-Build projects have been studied. Defining a case study, a dispute resolution method has been proposed. This case has been considered as a MCDM problem. This problem has been assumed as a discrete zero-sum two-person matrix game with grey numbers. Among the four alternatives available for contractor and employer in the proposed case study, termination is the last alternative that decision makers choose. Based on different risk values, authors determined the optimal solution for both parties. This article integrates some linguistic criteria together with time and cost, providing the better conditions to avoid lengthy bargaining.

show abstract

Section: Dispute Resolution Methodsmentioning

confidence: 99%

A model of discrete zero-sum two-person matrix games with grey numbers to solve dispute resolution problems in construction

Khanzadi

Turskis

Amiri

et al. 2017

Journal of Civil Engineering and Management

View full text Add to dashboard Cite

show abstract

“… Enhanced maturation of contractual agreement (for instance ;Ho, 2006;Tranfield et al, 2005, Tang, L et al 2009.…”

Section: Development and Operation Process Of The Beijing National Olmentioning

confidence: 99%

Comprehensive Objectives for PPP Projects: Case of Beijing Olympic Stadium

Chinyere¹

2013

IJBM

View full text Add to dashboard Cite

This paper is concerned with issues relating to the need for clear and comprehensive objectives by parties to Public-Private Partnership Projects: the case of Beijing Olympic Stadium, which is the first Public-Private Partnership project (PPPs) sporting complex in china. The discussion is illustrated by reference to the numerous risks encountered throughout the development and construction of the project and also revealing the concessional agreement that lead to the use of public private partnerships in building the 2008 Beijing Olympic Stadium. The paper begins by discussing the definition of PPP, nature, development, competitive bidding, total investment and sharing formula of the project partners, structure, operation process of the Beijing Olympic Stadium (Bird's Nest), the disagreement between the Project Company and Beijing Municipal Government (BMG) and also elucidate the three major disputes associated with the project and then give an overview of the disputes resolution process in China.This case study also highlighted the intricacies seen, both in the implication of cancelling the retractable roof and the critical lessons learnt from the PPP project, as regards to the 2008 Beijing Olympic Stadium. However, even with all the numerous disputes, risks , negotiation and re-negotiation, the project was completed within the stipulated period with a touch of unimaginable structural design at a reasonable cost, which happens to go a long way in assisting the successful hosting of the 2008 Beijing Olympic Games.The recommendation and lessons learnt from this case study includes that government support and commitment are very vital for any unique project especially in innovative and complex design structure such as the Beijing National Stadium (Bird's Nest). Hence, during the signing of the preliminary agreement any project, a well-defined project scope must be visibly stated, formulated and clearly defined prior before signing the agreement. That the sharing of comprehensive common project aims and objectives must be the ultimate priority of all stakeholders associated in the venture. And also the importance of engaging in a proper and effective risk management strategy because private and public sector interests must work together at all times, for successful completion of the project such as hosting the 2008 Beijing Olympic Games.

show abstract

“…The economic behavior of distributing resources by contractors of projects was discussed by Sacks and Harel (2006). Ho (2006) provided a theoretical model as the basis for G to renegotiate to be rescued from difficulties. Medda (2007) analyzed the bargaining process and the distribution of risk between the public and private sectors for transportation infrastructures.…”

Section: Reviewing the Documents Relevant To Taiwan High-speed Rail Pmentioning

confidence: 99%

“…If G wins the lawsuit, new conditions will be included in the bidding; the cost of preparing new bidding should be higher than the cost of renegotiation. Under these two situations, G cannot bear the political fallout (Ho 2006), and G will not force TH to take the "competition" strategy. If G wins the lawsuit, new conditions will be included in the bidding; the cost of preparing new bidding should be higher than the cost of renegotiation.…”

Section: St Dt or St Dtmentioning

confidence: 99%

The Analysis of Bot Strategies Based on Game Theory – Case Study on Taiwan's High Speed Railway Project

Chen

Lin

Wang

2012

Journal of Civil Engineering and Management

View full text Add to dashboard Cite

Abstract. Uncertainty in a contract for some BOT (Build-Operate-Transfer) projects may allow an opportunistic developer to take advantage of information asymmetrical factors, long-term external changes, and agency dilemma to request renegotiation and to alter the contact after it has been awarded. Such requests often entrap the government in hold-up problems and result in improper payments to the developers and may even create general public dissatisfaction with a project. In this paper, the Game Theory model is used to analyze the Taiwan High Speed Railroad project to examine how developers implement different strategies at the various stages of a project to alter the contract's conditions in order to continually creating competitive advantage after they have been awarded the contract. This project developer is now facing serious financial difficulties. In this study, the financial information on the Taiwan High Speed Railroad operations was used as the foundation for conducting a simulation to calculate the project's value after this project began operation. The results will serve as reference to the best decision-making strategy for renegotiating costs in competition and cooperation so that a developer can select the optimum project offering the maximum reward. Also, the result will be offered to industries involved in market competition or act as an approach to establish future BOT policies on renegotiation.

show abstract

Model for Financial Renegotiation in Public-Private Partnership Projects and Its Policy Implications: Game Theoretic View

Cited by 120 publications

References 11 publications

A model of discrete zero-sum two-person matrix games with grey numbers to solve dispute resolution problems in construction

A model of discrete zero-sum two-person matrix games with grey numbers to solve dispute resolution problems in construction

Comprehensive Objectives for PPP Projects: Case of Beijing Olympic Stadium

The Analysis of Bot Strategies Based on Game Theory – Case Study on Taiwan's High Speed Railway Project

Contact Info

Product

Resources

About