Contract Renewals Research Articles

Rigidity in public contracts: Implications for renewal dynamics

We investigate how the rigidity of public contracts influences the frequency of their renewal. Using a dataset of contracts for public–private car parks and employing machine-reading techniques to assess contract rigidity, we find that heightened contract rigidity, particularly in litigation clauses, significantly raises the probability of contract renewal. Our findings indicate that procedural sunk costs and the competitive advantage conferred to incumbents by contract rigidity are key factors contributing to more frequent renewals. This study enhances our comprehension of public contract renewals by emphasizing the significance of political contestability and rigidity, providing valuable insights into optimal strategies for contract renegotiation.

Strategic Sourcing and Performance of Lake Region Economic Bloc, Kenya

The devolved governments in Kenya undertake projects that make up over 50% of government spending and are important to the economy. To improve the performance of projects and efficiency in service delivery, Kenyan county governments commonly award bids using strategic sourcing. However, despite the adoption of strategic sourcing, the performance of devolved systems of government remains poor. The general objective of this study was to determine the effect of strategic sourcing on performance of devolved systems of government in the Lake Region Economic Bloc, Kenya. The specific objectives were to establish the effect of supplier relationship management, market research, analytics, and multiple sourcing on the performance of devolved systems of government in the Lake Region Economic Bloc, Kenya. The study is significant to the administration of County governments in the Lake Region Economic Bloc, the policy makers as well as other researchers and academicians. The study adopted a cross sectional research design. The target population of the study was all the 47 county governments in Kenya, which are categorized into 6 regional blocs. The target population of the study was all the 47 county governments in Kenya, which are categorized into 6 regional blocs. The respondents included heads of departments in finance, procurement, public relations and information and communication technology as well as their assistants in 14 Counties in the Lake Region Economic Bloc (LREB). A semi-structure questionnaire was used in the collection of data. Data was analyzed using qualitative data and quantitative methods. Qualitative data was analyzed using content analysis and the results were presented in a narrative form. Descriptive and inferential statistics were used in analyzing quantitative data with the help of the Statistical Package for Social Sciences (SPSS version 25) statistical software. Quantitative results were presented in the form of tables and figures. The study found that supplier relationship management has a positive and significant effect on performance in devolved systems of government in the Lake Region Economic Bloc, Kenya. The study also established that market research has positive and significant effect on performance in devolved systems of government in the Lake Region Economic Bloc, Kenya. The study further revealed that analytics has positive and significant effect on performance in devolved systems of government in the Lake Region Economic Bloc, Kenya. Also, the study found that multiple sourcing has positive and significant effect on performance in devolved systems of government in the Lake Region Economic Bloc, Kenya. The study recommends that County government should develop training programs and workshops for government procurement officers and suppliers to enhance their understanding of procurement processes, compliance requirements, and best practices. County governments should regularly update market information related to various goods and services required by the government. In addition, County governments should create a dedicated analytics department or unit within the government structure to focus on data collection, analysis, and interpretation. In addition, County governments should monitor supplier performance regularly and use data-driven insights to make decisions about contract renewals or terminations

Navigating An LMS Review Process: Harnessing Next-Generation Digital Learning Through Evidence-Based Decision-Making

Universities across Australasia regularly evaluate their Learning Management Systems (LMS) to meet the increasing digital teaching and learning demands. LMS reviews conducted approximately every five years or so are driven by factors such as pandemics, contract renewals, fiscal considerations, and the pursuit of optimal student online learning experiences. Recent trends show that Australian universities are conducting LMS reviews more frequently and transitioning to new LMSs at an accelerated pace (Phil, 2022; Sankey, 2023a). This is to ensure the LMS of choice meets the Next Generation Digital Learning Environment (NGDLE) functionality (Educause, 2018), is affordable, reliable and is still fit for purpose. While ongoing LMS reviews are common, there is a lack of published information on how higher education institutions undertake them. There was little available to unpack how best to engage in open, transparent, and aspirational conversation with staff and students about their experience with the LMS. As part of the review, even less was published about the dialogue on the future teaching and learning needs and the future of the LMS. To help address this gap in the literature, this practice-based paper reports on our approach and the steps taken to propose a unique two-phase / multi-stage model for reviewing an LMS and offers a useful checklist for those who may want some help getting started.

KnowAll Matrix: Designed by a UK Legal Librarian to Future-Proof Your Legal Library

AbstractIn an era where efficient information management is crucial, KnowAll Matrix stands out as a transformative tool for legal informational professionals. It was developed by an experienced UK legal library consultant, Penny Bailey, and here Bailey Solutions explains how this innovative platform goes beyond standard library management systems to offer a future-proof solution, revolutionising access to legal knowledge. Utilised by large law firms, barristers' chambers, government libraries, European agencies, a European parliament, and other organisations, KnowAll Matrix supports information staff to proficiently manage all traditional library functions, including cataloguing, subject indexing, classification, circulation, loans, acquisitions, and serials management. Furthermore, it offers essential features for modern electronic resources management. Its user-friendly interface ensures seamless discovery of both print and digital resources in a single search, prioritising user convenience. Over two decades, as the legal and technological landscapes have evolved, so too has the product, with innovative features like multi-hierarchical taxonomies, practice group resources, single sign-on, and contract renewals. This article delves into these new features and their utilisation by clients to make the library and information centre a primary resource for legal professionals seeking information.

How Do Mortgage Rate Resets Affect Consumer Spending and Debt Repayment? Evidence from Canadian Consumers

AbstractOne of the most important channels through which monetary policy affects the real economy is changes in mortgage rates. This paper studies the effects of mortgage rate changes resulting from monetary policy shifts on homeowners' spending, debt repayment, and defaults. The Canadian institutional setting facilitates the design of identification strategies for causal inference, since the vast majority of mortgages in the country experience predetermined, periodic, and automatic contract renewals with the mortgage rate reset based on the prevailing market rate. This allows us to exploit quasi‐random variation in the timing of the rate reset and to present causal evidence for both rate declines and increases using detailed, representative consumer credit panel data. We find asymmetric effects of rate changes on spending, debt repayment, and defaults. Our results can be rationalized by the conventional cash‐flow effect in conjunction with changes in consumer expectations about future interest rates upon the reset. Given the pervasiveness of Canadian‐type mortgages in many other OECD countries, our findings have broader implications for the transmission of monetary policy to the household sector.

CEO employment contract heterogeneity and acquirer risk-taking

This study analyses a hand-collected, unique dataset on chief executive officer (CEO) employment contract details for S&P 500 companies over the period of 1993–2005. To control for the sample selection issue associated with firms granting a CEO contract, the study estimates the Heckman Selection model. The study finds substantial heterogeneity in contract provisions and their impact on acquirer risk-taking in mergers and acquisitions (M&As). More specifically, contract provisions that provide job and compensation security and equity incentives appear to encourage valuable risk-taking. In contrast, bureaucratic type provisions (automatic contract renewals; lack of equity incentives) motivate risky but value-decreasing deals. Further, more refined definitions of just cause for dismissal enhance valuable risk-taking, possibly by reducing contract ambiguities and the resulting disputes, whereas just causes based upon personal conduct reduce valuable risk-taking. This paper shows how heterogeneous contract provisions reflect the optimal contracting process in a competitive market for CEO talent versus managerial power over complacent boards, highlighting the importance of understanding contract complexity and heterogeneity in designing efficient contracts to enhance shareholder value and achieve strategic corporate goals.

An apologia for using journal prestige in academic employment decisions: An asymmetric information perspective

Using journal prestige to gauge the quality of research articles has been criticized by some scholars in the academic research assessment literature. These critics argue that citation-based metrics, while imperfect, are better suited to assessing article quality. This paper counters these beliefs by describing specific research assessment contexts where journal prestige is likely to be the superior mode of assessment. To do so, academic employment decisions are framed as asymmetric information problems wherein the research evaluating body has less information about a scholar’s true abilities than the scholar. Signaling Theory therefore offers a logical explanation for using journal prestige as a measure of research quality during academic contract renewals and promotions wherein recent research accomplishments are of preeminent importance. While journal prestige is an imperfect measure of article quality (as are citation counts), understanding it as a credible signal in an asymmetric information environment proffers a fundamental explanation for its applicability in academic assessment decisions.

Service Contract Renewals through Artificial Intelligence

Service Contract Renewals through Artificial Intelligence

새로운 임대인의 실거주를 이유로 한 갱신거절권(수원지방법원 2022. 4. 22. 선고 2021나89299 항소심 판결)

As housing costs rise and the housing market becomes unstable, there is an accelerated transition from Chonse to monthly rent, causing housing instability and increasing the burden of housing costs on lessees. By ensuring the lessee's right to renew the lease, the lease guarantee period has been increased from two years to four years. Increases in rent or security deposits upon contract renewal are limited to 1/20 of the agreed amount. Consequently, the lessor has a great deal of complaints.
 In the lessee's situation, Chonse is hard to find, and the Chonse price increases sharply. The lessor also finds it difficult to raise the lease fee. Moreover, even after the lessor purchases the house, the lessor has difficulty moving in due to the lessee's application for contract renewal.
 The lessor also suffers greatly. The timely sale of a home as needed, the completion of residence requirements that are exempt from transfer taxes, and the retroactive application of two rental laws (the 「Housing Lease Protection Act」 and Real Estate Transaction Reporting Act). Therefore, the lessor's property rights are being violated. Both parties express concern about tax burden due to actual transaction report of Chonse and monthly fee.
 It may not be possible for the assignee to reside in their newly acquired home if the lessee residing there applies to renew their lease to the lessor (a seller) prior to registration of ownership transfer.
 In accordance with current law, the transfer of ownership takes effect only after registration, and the assignee inherits the status of the lessor. Due to this, the assignee of the leased house had the right to refuse contract renewals.
 The lessor's right to refuse renewal does not expire, even if ownership of the leased object changes after the application right to renewal is exercised. The lessor can also refuse to renew the lease. Consequently, the lessor is legally and effectively entitled to refuse renewal within the period stipulated by law. The lessor can also exercise the renewal refusal right of the previous lessor. The lease contract will thus be terminated in the non-renewal state during the original contract expiry period.
 The amended 「Housing Lease Protection Act」 led to many disputes over the rights of lessees to renew their leases. A typical situation is when a lessee exercises their right to renew their lease where the new lessor acquires ownership of the house from the previous lessor, and on the basis of the actual residence, the new lessor rejects the lessee's renewal application.
 Although the purpose of the amendment of the 「Housing Lease Protection Act」 was to protect the lessee, the only effect was to increase the pain of the lessee as the Chonse price increased at once for four years. The amended 「Housing Lease Protection Act」 has only been enacted recently, and a number of lower court decisions have been issued, but This was first Supreme Court ruling. If there is a legitimate reason under the「Housing Lease Protection Act」After exercising the Application right of contract renewal, within the renewal refusal period of the old lessor the transferee who has succeeded to the leasehold status must be able to exercise the right of refusal of contract renewal for the purpose of Actually Reside.
 A full review of the 「Housing Lease Protection Act」 is also necessary in the future, as well as a discussion about the need for a 「Housing Lease Protection Act」

Dynamics in the Pursuance of Higher Education’s Mandate Amidst Workload Policy: The Optimism for Academics’ Career Growth

The paper explores multiple challenges encountered by academics in an attempt to fulfil the mandate of higher education institutions in Uganda of; teaching, research and service to community. Whereas teaching is the core function of any university, research and the third mission had majorly been used to inform most personnel decisions, thereby threatening not only quality but academics’ enthusiasm and growth. Two HEIs; Makerere University and Uganda Management Institute (UMI), were purposively selected to unravel the underlying dynamics using a descriptive design. It was revealed that university teaching was the most gratifying profession, and a cardinal role why universities exist, but research was a prerequisite for exception instructional delivery, evidence based teaching, institutional and individual visibility. Similarly, masterly through research was provided effective service to the community. Nonetheless, as individual academics strive to balance the three roles of teaching, research and service, the policy on minimum workload that majorly focuses on teaching load, has remained a hurdle, thereby jeopardizing academics’ career growth and progression. Paradoxically, even those who have endeavored to publish, suffer not only serious burnout and lack of adequate time to prepare for teaching, but their contract renewals that are constantly in jeopardy due to workload deficits. These stringent benchmarked evaluation tools, is threatening not only individual and institutional profiling, but also, diminished professorial collegiate. Further, it is recommended that institutions review their workload perimeters to take into consideration other aspects such as; number of students one has supervised, program development and review, representation on professional bodies and leadership.

Developing a Multicriteria Decision-Making Model Based on a Three-Layer Virtual Internet of Things Algorithm Model to Rank Players’ Value

This paper proposes a multicriteria decision-making model based on a three-layer virtual internet of things (IoT) algorithm to automatically track and evaluate professional football players’ performance over the Internet. The three layers were respectively related to (1) automated data reading, (2) the players’ comprehensive grey relational degree calculation, and (3) the players’ classification. The methodology was applied in the context of the COVID-19 pandemic to investigate the performance of the top 10 defenders (according to The Sun, an internationally renowned sports website) in the European leagues, participating in the knockout phase of the 2019–20 UEFA Champions League. The results indicate that Virgil van Dijk of Liverpool FC was the best defender, followed by Harry Maguire of Manchester United, and Sergio Ramos of Real Madrid in the second and third positions, respectively. However, this ranking contradicted that of The Sun’s, which ranked these defenders in the seventh, tenth, and eighth positions, respectively. These results can help club management, coaches, and teams negotiate price positioning and future contract renewals or player transfers.

Renegotiations and Renewals of Public Contracts

This paper examines the impact of renegotiations on contract renewals. Using an original dataset of procurement contracts in the French car park sector, we show that there exists an optimal level of renegotiations that positively affects the probability of renewing a contract with the same partner. This result holds only when public authorities have discretionary power during the awarding procedure. Such findings suggest that what is usually interpreted as a sign of weakness – frequent renegotiations – might well be good news that indicates that the contracting parties can make contracts adaptable over time.

Contract renewals, prices and deprivatizations: The case of water in France

ABSTRACT In this paper, we studied the influence of contract renewals on water prices in France. When studying French water contracts in force between 2008 and 2018, we found that contract renewals have little influence on the prices paid by consumers. However, at contract renewal times, the share of the price that goes to the firms decreases. This price decrease is compensated by an increase in the share of the price that is retained by the municipalities. We interpret this result as a willingness by municipalities to retake control of water services. In addition, we show that the higher the municipalities’ shares are, the higher the probability of switching to direct public management at contract renewal times. This suggests that local authorities increasing their responsibilities in providing water services (i.e., increasing their price shares) may switch later to direct public management more easily.

Contract Renewals, Prices and Deprivatizations: The Case of Water in France

In this paper, we studied the influence of contract renewals on water prices in France. When studying French water contracts in force between 2008 and 2018, we found that contract renewals have little influence on the prices paid by consumers. However, at contract renewal times, the share of the price that goes to firms decreases. This price decrease is compensated by an increase in the share of the price that is retained by the municipalities. We interpret this result as a willingness by municipalities to retake control of water services. In addition, we show that the higher the municipalities’ shares are, the higher the probability of switching to direct public management at contract renewal times. This suggests that local authorities increasing their responsibilities in providing water services (i.e., increasing their price shares) may switch later to direct public management more easily.

Renegotiations and Renewals of Public Contracts

This paper examines the impact of renegotiations on contract renewals. Using an original dataset of procurement contracts in the French car park sector, we show that there exists an optimal level of renegotiations that positively impacts the probability of renewing a contract with the same partner. This result holds only when public authorities have discretionary power during the awarding procedure. Such findings suggest that what is usually interpreted as a sign of weakness, i.e. frequent renegotiations might well be good news indicating that the contracting parties can make contracts adaptable over time.

Predictive data analytics for contract renewals: a decision support tool for managerial decision-making

PurposePredictive analytics and artificial intelligence are perceived as significant drivers to improve organizational performance and managerial decision-making. Hiring employees and contract renewals are instances of managerial decision-making problems that can incur high financial costs and long-term impacts on organizational performance. The primary goal of this study is to identify the Major League Baseball (MLB) free agents who are likely to receive a contract.Design/methodology/approachThis study used the design science research paradigm and the cognitive analytics management (CAM) theory to develop the research framework. A dataset on MLB's free agents between 2013 and 2017 was collected. A decision support tool was built using artificial neural networks.FindingsThere are clear links between a player's statistical performance and the decision of the player to sign a new offered contract. “Age,” “Wins above Replacement” and “the team on which a player last played” are the most significant factors in determining if a player signs a new contract.Originality/valueThis paper applied analytical modeling to personnel decision-making using the design science paradigm and guided by CAM as the kernel theory. The study employed machine learning techniques, producing a model that predicts the probability of free agents signing a new contract. Also, a web-based tool was developed to help decision-makers in baseball front offices so they can determine which available free agents to offer contracts.

Determinants of contract renewals in business-to-business relationships

Purpose This paper aims to analyze the underlying factors of contract renewals in business-to-business (B2B) contracts. Design/methodology/approach The authors build a unique data set with 296 contracts signed between a major firm supplying petrochemical goods and its 128 customers between 2013 and 2016. They use Insider Econometrics as their methodological approach. Findings The econometric results suggest that contracts involving higher volume of trade, higher levels of dedicated assets representing seller’s specific investments in each transaction, and contracts comprising more than one product present an increased likelihood of being renewed. Research limitations/implications Although limited to a single organization, this paper contributes to management theories focused on buyer–supplier relationships in which coordination between interdependent parties is required. Practical implications Practitioners engaged in B2B relationships may benefit from the findings to shape their bargaining strategies in contexts of high levels of asset specificity and bilateral dependence. Originality/value This paper contribute to theories related to the strategic negotiation between buyers and suppliers by emphasizing the importance of asset specificity in a nuanced and multifaceted fashion, by highlighting aspects related to resource dependency, and idiosyncratic characteristics on contract renewal.

Automatic‐renewal contracts with heterogeneous consumer inertia

AbstractAutomatic contract renewals are a common feature in consumer markets. Since these contracts renew automatically unless a consumer actively cancels, firms can use them to exploit consumer inertia. As a source of inertia I study limited attention and investigate how firms use contract renewal to sell to consumers with different degrees of inattention. In monopolistic markets, adverse selection of more‐attentive consumers limits the exploitation of naively inattentive consumers. When signing a contract, naively inattentive consumers overestimate their future probability to make an active cancellation decision. To exploit this mistake, the monopolist wants to target these consumers with large prices after contracts renew. These back‐loaded contracts, however, adversely attract more‐attentive consumers who cancel more often when choosing these exploitative contracts. To mitigate adverse selection, monopolists focus less on exploiting naively inattentive consumers. Adverse selection induces fewer consumer mistakes and can increase efficiency. I show that competition mitigates adverse selection, which induces firms to focus more on exploitation with more back‐loaded pricing. I discuss implications for recently implemented policies on automatic‐renewal contracts.

National panorama of niobium between 2010 and 2014

Mining is the extraction activity of a mineral good from the earth's crust. Niobium (Nb) is the element of no. 41 in the periodic table of chemical elements, such as transition metal, with its degree of hardness on the mohs scale equal to 6. The main niobium products of industrial interest are currently ferroniobium, niobium pentoxide vacuum alloys and metallic niobium. Brazil is the holder of the largest mineral reserves and leads the market when talking about Niobium, currently its reserves are estimated around 842,460.00 tons with an average content of 0.73% of Nb2O5. With the addition of new policies and contract renewals, Brazil has consolidated its position in the international market, having as main consumers the United States, Japan, Holland, China, Germany, Canada, South Korea, Russia and the United Kingdom. The rise in the price of oil in the period from 2003 to July 2008 made possible new exploration projects and the maintenance of deactivated transmission lines, which required greater production of steel pipes with resistance to heat and low temperatures, which boosted investments in new studies of the use of substances that met the demand , thus growing the internal market of Niobium.

What’s Behind Firms’ Inflation Forecasts?

How do firms form expectations about future inflation? We investigate this issue by exploiting the Survey of Inflation and Growth Expectations run by Banca d’Italia and Il Sole 24 Ore on Italian firms. Several sources of information might matter in shaping short- and long-term expectations, inter alia media reports, professional forecasts, personal shopping experience, price increases experienced when dealing with suppliers, and the outcome of contract renewals. The specific feature of the wage setting process in Italy allows us to assess the reaction of inflation expectations to exogenous variation in the cost of labour borne by firms. We find that firms’ inflation expectations are significantly affected by contractual wage increases. As to the prices of goods for own consumption, proxied by house and fuel prices, only the latter affect inflation expectations; official inflation data and professional forecasters expectations are also important. Results are robust to several specifications using panel and cross-section estimates.