TY  - CONF
TI  - Partial Remuneration for Capacity to Stabilize Subcontractor Resource Allocations
AU  - Sacks, Rafael
AU  - Harel, Michael
AD  - Associate Professor, Faculty of Civil and Env. Engineering, Technion – Israel Institute of Technology, Haifa 32000, Israel, cvsacks@techunix.technion.ac.il
AD  - PhD Student, Faculty of Civil and Env. Engineering, Technion – Israel Institute of Technology, Haifa 32000, Israel, harelm@techunix.technion.ac.il
ED  - Tzortzopoulos, Patricia
ED  - Kagioglou, Mike
PY  - 2008
DA  - 2008/07/16
T2  - 16th Annual Conference of the International Group for Lean Construction
C3  - 16th Annual Conference of the International Group for Lean Construction
CY  - Manchester, UK
SP  - 109
EP  - 120
AB  - A novel formula for payment to subcontractors, which shifts some of the risk for reduced productivity due to plan instability from the subcontractor to the general contractor, is proposed. The formula requires that a price for capacity be set as well as a price for product, with a single weighting parameter to balance between them. Using a three player game theory based simulation, use of the formula has been shown to lead to resource allocation behaviours that benefit all parties in unstable or average conditions, but has no effect under stable conditions.
KW  - economic game theory
KW  - production system design
KW  - remuneration for capacity
KW  - resource allocation
KW  - subcontracting
L1  - https://www.iglc.net/papers/details/607/pdf
UR  - https://www.iglc.net/papers/details/607
DB  - IGLC.net
LA  - English
N1  - Export date: 04 October 2026
ER  -