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Payment Mechanisms for Integrated Teams in Construction


Medium: journal article
Language(s): English
Published in: Australasian Journal of Construction Economics and Building, , n. 2, v. 8
Page(s): 1-10
DOI: 10.5130/ajceb.v8i2.3001

The overwhelming consensus for process andteam integration has emerged as an enabler tomanage construction projects. Theperformance of integrated teams is highlyaffected by the adopted payment mechanism.However, the payment mechanisms availablefor a project may need the team tocompromise in order to agree on a fairmechanism for as many members as possible.This paper introduces a methodology tosimulate the profiles of alternative paymentmechanisms. The methodology aims to helpproject teams define the most appropriatemechanism for each member. The proposedmethodology is therefore novel and superior toexisting cash flow models where the focus hasbeen limited to main contractors only. Topromote its use as a performance enablingmechanism, the methodology utilizes “theproject process map”, “the stakeholders &supply chain”, “the pricing method” and “thepayment mechanism”. This will act as an aid todesign or “fine-tune” payment mechanisms toindividual projects characteristics consideringpayment for off-site materials andcomponents, which always concerns projectfabricators and supply chain.


This creative work has been published under the Creative Commons Attribution 4.0 International (CC-BY 4.0) license which allows copying, and redistribution as well as adaptation of the original work provided appropriate credit is given to the original author and the conditions of the license are met.

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