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What is Incentive Alignment about?

The paper explores why Integrated Project Delivery (IPD) is underutilized in construction, highlighting market failures associated with traditional methods like design-bid-build. It uses game theory to demonstrate that IPD mitigates moral hazard issues and externalities, leading to improved efficiency and reduced conflict among project participants. The authors argue that embracing IPD can enhance project outcomes and reduce costs for owners and developers by aligning incentives and fostering collaboration.

Author

rob

Language

EN