Contract Costs Research Articles

Self-building or sharing? The strategy analysis of building charging stations

Charging station sharing, as a new business model, can effectively reduce the building of unnecessary public charging stations and promote sustainable urban development. This study discusses whether the manufacturers introduce a charging station sharing strategy and identify the introduction conditions. We develop a strategic competition model where the two manufacturers engage in electric vehicles (EVs) and charging stations. The results show that charging stations have a facilitating effect on the EV market. In a sharing strategy, the low-end vehicle manufacturer can profit more when the contract cost is smaller. Comparing the strategies of self-building and sharing, the manufacturers should choose a self-building strategy when the cost coefficient of building the station, the brand advantage, and the contract cost are all larger. However, when the brand advantage and the contract cost are smaller, or both in the medium, the manufacturers should choose a sharing strategy. In addition, we also find that the substitutability of EVs and the cross-sensitivity of EVs and charging stations can lead to lower market demand for EVs. In a monopoly production scenario, encroachment by both the platform and the service provider leads to lower profits for the manufacturer. Therefore, it is more favorable for the manufacturer to self-build charging stations in the no-invader condition. Our analysis provides insights into when charging station sharing may be beneficial and when it may be detrimental to vehicle manufacturers.

Dynamic BIM Adoption Impact on Contract Cost Variance Factors Using PLS-SEM Techniques

This paper investigates the Building Information Modeling (BIM) adoption impact on the factors of Contract Cost Variance (CCV) over time. The study considers qualitative and quantitative data to identify the most common causes of CCV through pre-tendering. A partial least square-structure model (PLS-SEM) procedure was used to develop a causal model and rank CCV factors based on their effect, partially based on prior survey raw data conducted in 2022 and the data from 94 projects. Construction industry experts assessed the prior five-year rate of BIM adoption on construction projects to infer the expected trend in BIM adoption in the future (until 2037). Based on the causal model of CCV factors and the future rates of BIM adoption, the dynamic impact of BIM on CCV factors over time was modeled and analyzed. The analysis shows that BIM reduces CCV over time by improving Estimator Performance (EP), Information Quality (IQ), and contractual procedure (CP). The results showed that the CP, EP, and EF have directly impacted CCV, and the PC and IQ indirectly affect the CCV. This paper considers the temporal aspect, examining how the impact of BIM on CCV factors evolves. This dynamic analysis is crucial for long-term strategic planning in construction management.

Irreversible reinsurance: minimization of capital injections in presence of a fixed cost

AbstractWe propose a model in which, in exchange to the payment of a fixed transaction cost, an insurance company can choose the retention level as well as the time at which subscribing a perpetual reinsurance contract. The surplus process of the insurance company evolves according to the diffusive approximation of the Cramér-Lundberg model, claims arrive at a fixed constant rate, and the distribution of their sizes is general. Furthermore, we do not specify any particular functional form of the retention level. The aim of the company is to take actions in order to minimize the sum of the expected value of the total discounted flow of capital injections needed to avoid bankruptcy and of the fixed activation cost of the reinsurance contract. We provide an explicit solution to this problem, which involves the resolution of a static nonlinear optimization problem and of an optimal stopping problem for a reflected diffusion. We then illustrate the theoretical results in the case of proportional and excess-of-loss reinsurance, by providing a numerical study of the dependency of the optimal solution with respect to the model’s parameters.

A Study on the Improvement of Shadow Regulations in the Paid Broadcasting Market : Focusing on the Channel Contract Procedure and Cost Calculation Area

A Study on the Improvement of Shadow Regulations in the Paid Broadcasting Market : Focusing on the Channel Contract Procedure and Cost Calculation Area

Contract Cost Management and Supply Chain Performance of County Referral Hospitals in Kenya

A large body of literature underscores the impact of contract management on supply chain performance from diverse contexts. Although the concept of contract cost management and supply chain performance has extensively been researched from the Kenyan context, most of the studies have zeroed in on manufacturing supply chains. Therefore, the study seeks to establish the relationship between contract cost management and supply chain performance of county referral hospitals in Kenya. The study is anchored on transactional cost economies theory. The study employed a descriptive research design and mainly concentrated on the forty-seven county referral hospitals in Kenya. In order to meet the research objective, the respondents were chosen based on the sample frame. The heads of department in each of these departments: procurement, finance, and stores were employed as a unit of observation across the referral hospitals. The pilot study targeted 10 respondents which is 10% of the final study sample size of who were randomly selected in each of the firms. The primary data were collected through a self-administered questionnaire that had both open and closed ended questions, designed to obtain definite responses. Statistical Package for the Social Sciences (SPSS version 28) was used to analyze the data and present the variables through coding and summarizing the responses of all the respondents and the analyzed data was presented in form of tables. The Cronbach’s Alpha value was greater than 0.7 which indicated that the questionnaire met the minimum acceptable threshold. The study findings showed that contract cost management significantly influence the supply chain performance of county referral hospitals in Kenya. The study concluded that performance was predicted to improve for every unit increase in these practices. The study further recommends that county referral hospitals should implement electronic document management systems for contract documentation, streamlining processes, and improving overall efficiency. Some recommendations included through choosing right software, systems configuration, document importation, user training, and need identification.

Conceptual principles of interorganizational (network) accounting in clusters based on the provisions of institutional theory

Purpose: The purpose of the article is to study the key theoretical principles of institutional theory as the basis for shaping an accounting system of interorganizational (network) linkages in the cluster and to propose directions for their solution. Methodology/approach: The methodological tool is a systematic analysis of the fundamental provisions of economic teachings and scientific works of accounting researchers. Bibliometric analysis was applied to scientific publications indexed in Scopus, which made it possible to determine the most popular economic theories as thematic guidelines. We also used methods of learning induction and deduction for contextual research of keywords in scientific publications and to establish links between the research characteristics of each of the selected theories. The abstract-logical method was used to formulate scientific-theoretical generalizations and conclusions. Findings: The problem of interorganizational accounting in the cluster is outlined based on the provisions of the institutional theory. Development directions are proposed, and recommendations are given for improving accounting within the framework of agency theory, transaction cost theory, contract theory, and actor-network theory. Originality/value: The results of the study contribute to the analysis of changes and directions of development of interorganizational accounting in the cluster and also complement accounting theory. The article fills a research gap by presenting the development of interorganizational accounting based on agency theory, transaction cost theory, con-tract theory, and actor-network theory. The originality of the research lies in its creation of a foundational framework and its introduction of a novel perspective on the role of accounting in interorganizational (network and cluster) relations, allowing for a more comprehensive understanding of their developmental peculiarities.

Risk mitigation in urban bus concession contracts: Overcoming uncertainties with a real options model

In this paper, we analyzed a risk-sharing mechanism that can be used in urban bus public service contracts (PSC) to deal with demand uncertainty in the upcoming years. This mechanism is similar to a collar option: an MRG (Minimum Revenue Guarantee) combined with a revenue cap. We applied this mechanism to a case study, the Lisbon Metro Area bus contracts. We compared the chosen model (a gross cost contract) with a simulated scenario modeled as a collar option. To develop this scenario, we model the flexibilities applying Real options Analysis and the project uncertainty as a Geometric Brownian Motion (GBM). The calculations were performed using Monte Carlo simulation. The results show that, compared to the gross cost, the collar option model allows the private operator to benefit from a potential demand increase. In the case of a downturn, the loss is shared between the two sides, reducing the contract cost borne by the government. Furthermore, from a public policy perspective, contrary to the gross cost model, this model may incentivize the private partner to improve service quality as a strategy to increase demand and, consequently, revenues. In addition, if demand evolves in a different trend, the financial rebalance is made automatically, reducing litigation costs for both sides.

Analysis of The Effectiveness of Earned Value Method In Road Widening Project Management In Mojokerto Regency

In construction project management, achieving three main goals, namely cost, quality, and time, becomes the primary focus. This study aims to evaluate a road widening project in Mojokerto Regency with a target completion time of 150 days. To prevent delays and cost overruns, researchers adopted the Earned Value method as a tool to identify early warnings regarding project performance. This method integrates cost and time measurements through indicators such as Cost Variance (CV), Schedule Variance (SV), Cost Performance Index (CPI), Schedule Performance Index (SPI), Estimated at Completion (EAC), and Estimated Schedule at Completion (EAC). The analysis results show that the additional costs required (ETC) amounted to Rp 3,276,704,110.14, with an estimated additional time (ETS) up to the 12th week being 87 days. The project's cost change (EAC) reached Rp 3,961,767,811.01 from the contract cost, while the estimated project completion time (EAS) was 171 days. These findings indicate that the construction service provider has implemented an efficient execution method with consistent monitoring, ensuring the smooth progress of the project.

Contractual Diversification Advantage: A Relational View of the Link Between Supplier Diversification and Performance

Contractual Diversification Advantage: A Relational View of the Link Between Supplier Diversification and Performance

Influence of acute dietary nitrate supplementation on oxygen delivery/consumption and critical impulse during maximal effort forearm exercise in males: a randomized crossover trial.

Beetroot juice supplementation (BRJ) should increase nitric oxide bioavailability under conditions of muscle deoxygenation and acidosis that are a normal consequence of the maximal effort exercise test used to identify forearm critical impulse. We hypothesized BRJ would improve oxygen delivery:demand matching and forearm critical impulse performance. Healthy males (20.8±2.4 years) participated in a randomized crossover trial between October 2017 and May 2018 (Queen's University, Kingston, ON). Participants completed 10 min of rhythmic maximal effort forearm handgrip exercise 2.5 h post placebo (PL) vs. BRJ (9 completed PL/BRJ vs. 4 completed BRJ/PL) within a 2 week period. Data are presented as mean±SD. There was a main effect of drink (PL>BRJ) for oxygen extraction (P=0.033, ηp2=0.351) and oxygen consumption/force (P=0.017, ηp2=0.417). There was a drink × time interaction (PL>BRJ) for oxygen consumption/force (P=0.035, ηp2=0.216) between 75 and 360s (1.25-6min) from exercise onset. BRJ did not influence oxygen delivery (P=0.953, ηp2=0.000), oxygen consumption (P=0.064, ηp2=0.278), metabolites ((lactate) (P=0.196, ηp2=0.135), pH (P=0.759, ηp2=0.008)) or power-duration performance parameters (critical impulse (P=0.379, d=0.253), W' (P=0.733, d=0.097)). BRJ during all-out handgrip exercise does not influence oxygen delivery or exercise performance. Oxygen cost of contraction with BRJ is reduced as contraction impulse is declining during maximal effort exercise resulting in less oxygen extraction.

Encoding a Many-Body Potential Energy Surface into a Grid-Based Matrix Product Operator.

An efficient algorithm for compressing a given many-body potential energy surface (PES) of molecular systems into a grid-based matrix product operator (MPO) is proposed. The PES is once represented by a full-dimensional or truncated many-body expansion form, which is obtained by ab initio calculations at each grid mesh point, and then all terms in the expansion are compressed and merged into a single MPO while maintaining the bond dimension of the MPO as small as possible. It was shown that the ab initio PES of the H2CO was compressed by more than 2 orders of magnitude in the size of the site operators without loss of accuracy. By the use of grid basis, the tensor rank of the site operators of the MPO is reduced from four to three due to the diagonal nature of the position-dependent operators on grid basis, which significantly reduces the computational cost of the tensor contractions required in the real and imaginary time evolution of the matrix product state (MPS) wave functions with the grid-based MPO (Grid-MPO) Hamiltonian. Similar to other grid-based methods, Grid-MPO is easily applicable to any kinds of potentials of molecular systems, such as analytical empirical model potentials expressed by position operators and ab initio potentials, if the values at the grid points are available. Using the Grid-MPO combined with the MPS, we calculated the time correlation function of the Eigen cation to predict the infrared spectrum and compared with the experimental and the previous theoretical studies. The actual scaling with the size of systems was examined for the multidimensional Henon-Heiles Hamiltonian. It was shown that the method is considerably accelerated by the graphic processing unit (GPU) because the sizes of site operators were kept small and all tensors were able to be stored on the VRAM of a GPU.

Comparing three contract types to optimize profits in service firm – digital service platform relationships

PurposeThe importance of service firms cooperating with digital platforms is widely acknowledged. The authors study three contractual relationships (fixed-cost, cost-sharing, and profit-sharing) between service firms (specifically hotels) and digital platforms in a highly fragmented service supply chain to examine which of these contract types optimizes profits.Design/methodology/approachThe authors extend prior models analyzing the optimal expected total profit from the travel service firm (hotel)–digital platform relationship, providing new insights into each contract type’s ability to coordinate decentralized systems and optimize profits for both parties.FindingsThis study finds that fixed cost contracts cannot coordinate the decentralized system. Cost-sharing contracts can coordinate the decentralized system but only allow one channel profit split. In contrast, profit-sharing contracts may not always perfectly coordinate the decentralized system but support alternative profit allocations. Practically, both profit-sharing and cost-sharing contracts are preferable to fixed-cost contracts.Practical implicationsThe paper includes implications for travel service firm managers to consider when structuring contracts with digital platforms to focus on profit optimization. Profit-sharing contracts are most preferable when cost and revenue data are fully shared between parties, while cost-sharing contracts are preferable over fixed-cost contracts.Originality/valueThis study extends prior investigations into the utility of different contract types on the optimal profit of a travel service firm (hotel)-digital platform provider relationship. The research fills a gap in the literature concerning the contracts used in these relationship types.

Accounting treatment of contractual indirect costs

This article examines aspects of contractual indirect cost accounting resulting from the provisions of the National Accounting Standard "Construction Contracts," the General Chart of Accounts, and other national accounting regulations related to contractual cost accounting. These aspects include the definition of contractual indirect costs, their composition and classification, the stages of allocating contractual indirect costs to the cost of products/services provided, and the accounting treatment of contractual indirect costs.

Nickel Price Projection Using Multivariate Regression Method and Investment Feasibility Analysis of Nickel Mining in Indonesia with Sensitivity Analysis and Monte Carlo

Nickel is one of the metals commonly used in various industries. Indonesia is one of the countries that has the largest nickel reserves in the world. Nickel prices will be formed through an equilibrium mechanism between production supply and nickel demand. This study will analyse the relationship between nickel price formation, supply, and demand. Nickel prices will also affect the feasibility of nickel mining investment in Indonesia. The data used in this study consists of market data derived from historical reports of the last 5 – 12 years (2010 – 2022) and mining plan assumptions derived from benchmarks with similar industries. The methods used in this analysis are multivariate regression, discounted cash flow, sensitivity analysis, and Monte Carlo simulation. The results of the analysis that have been carried out show the relationship between nickel supply and demand with prices, with estimated nickel price projection ranging from $16,750 / Ton – to $18,927 / Ton. The factors that most influence the feasibility of mining investment are nickel price, sales realization, water content, contractor costs, and fuel costs. The risk of nickel mining investment in Indonesia based on Monte Carlo simulations is estimated at around 11.36%. This shows that nickel mining investment in Indonesia is still very attractive.

ANN prediction model of final construction cost at an early stage

ABSTRACT Previous studies developed models to predict final construction cost (FCC) values based on many inputs, which makes them difficult to use. However, relying on models with relatively few inputs will reduce the accuracy of the prediction results. This paper aims to develop an artificial neural network (ANN) model to predict the FCC based on contract cost (CC), contract duration, and project sector at an early stage of a project. The data collected and used for the ANN model was 135 Saudi Arabian construction projects. The Zavadskas and Turskis logarithmic approaches, and the Pasini method were utilized to overcome the limited data. Then, the ANN model was developed through two stages. The purpose of the first stage was to enhance the data by identifying the abnormal data using absolute percentage errors (APE). The enhanced data was used to develop the ANN in the second stage. The finding showed that the ANN model provided an average MAPE (mean absolute percentage error) of 18.7%. The MAPE of the ANN model is decreased to 8.7% on average by deleting data with an APE higher than 35%. The model allows stakeholders to evaluate the financial importance of potential risks and develop appropriate risk management strategies.

Facilitating the role of quantity surveyors through integration of cyber-physical systems

Purpose Cyber-physical systems (CPS) enable the synergistic integration of virtual models with the physical environment. This integration is gaining recognition for its potential to enhance construction project information management, thereby contributing to improved cost management in construction. Similarly, quantity surveyor (QS) plays a key role in construction projects by estimating and monitoring construction costs. Consequently, this research aims to explore redefining the role of QSs by integrating CPS. Design/methodology/approach The research adopted an interpretivism stance to collect and analyse data. Two rounds of 21 and 19 semi-structured interviews were conducted, with experts selected through heterogeneous purposive sampling. Code-based content analysis was used to analyse the data using NVivo12. MS Visio data visualisation tool was used to present the findings. Findings It is empirically proven the potential of CPS to facilitate nine key roles of QSs in all stages of the RIBA plan of work through the identification of 15 CPS applications and technologies. Nine key roles of QSs that CPS can facilitate were identified as preliminary estimation, measurement and quantification, contract administration, preparation of BOQ, interim valuation and payments, tender and contract documentation, cost planning, cost control and procurement advice. The study explored how adopting CPS technologies can transform traditional quantity surveying practices and enhance their value within the construction industry. Originality/value The findings add to the body of knowledge by redefining the role of QS through the integration of CPS for the first time and then by highlighting the usages of CPS in the construction industry rather than limiting it to a specific sector of the construction industry, as previous studies have done. This research uncovers several other research arenas on CPS as being the very first research to evaluate CPS to facilitate key roles of QSs. The findings can enhance the awareness and the practical implementation of CPS by intervening to form more partnerships among application developers and industry leaders.

ANALYSIS OF COST AND TIME PERFORMANCE IN THE WADUNGASRI MARKET CHANNEL NORMALIZATION WORK IN SIDOARJO USING THE EARNED VALUE METHOD

The construction project management for Wadungasri Sidoarjo Market Drainage Normalization aims to achieve cost, quality, and time objectives within a 100-day timeframe. This study addresses a 7.44% delay experienced by contractors, seeking to establish early warning mechanisms for poor project performance. The Earned Value Method is employed, integrating time and cost value concepts. Key indicators such as Cost Variance (CV), Schedule Variance (SV), work productivity index (CPI), time productivity index (SPI), project completion cost forecast (EAC), and project completion schedule forecast (ECD) are utilized. The results reveal a required cost of Rp 563,044,547.85 (ETC) and a 65-day timeframe (ETS) at the end of the 7th week, with a 0.64% increase in project completion cost (EAC) over the contract cost. The project completion time (EAS) is estimated at 114 days, reflecting a 0.14% extension. The analysis emphasizes the importance for construction service providers to implement efficient methods and consistent supervision to avoid delays in the Wadungasri Sidoarjo Market Drainage Normalization project.

Timed-release encryption anonymous interaction protocol based on smart contract

Timed-release encryption (TRE) is a cryptographic primitive that can control the decryption time and has significant application value in time-sensitive scenarios. To solve the reliability issue of nodes in existing TRE anonymous interaction schemes, we propose a blockchain-based TRE protocol for anonymous query time trapdoors. In our protocol, the recipient divides the encrypted trapdoor request information into n ciphertext fragments using secret sharing technology near the decryption time, and employs the idea of onion routing to perform layer-by-layer encryption, creating onion-type data transmitted through middlemen selected from the smart contract. After receiving the ciphertext fragments, the time server integrates them to obtain the trapdoor request information and returns the corresponding time trapdoor to the recipient. This allows the recipient to query any time trapdoor anonymously. Our protocol provides a normative design for the smart contract and specific constraints on the participants’ behavior. Compared with the related anonymous query trapdoor schemes, our protocol improves the probability of successful queries. Security analysis shows that our protocol can resist release-ahead attack, interruption attack, eavesdropping attack, and replacement attack. Performance analysis shows that our protocol outperforms related protocols regarding anonymity, efficiency, and flexibility, achieving highly efficient anonymous interactions. Finally, we conducted an experiment in the Ethereum Rinkeby test network. For the settings of ciphertext fragment number n=3 and ciphertext fragment threshold t=2, the gas consumption for a user to execute the contract was $5.66, which was higher than the contract cost of related schemes, but the contract execution cost was within an acceptable range.

The institutional environment and gig platform transaction cost solutions

Abstract A growing number of labour market participants transact through gig platforms. This choice should reflect a reduction in transaction costs for platform users, compared to costs they meet when using alternative modes of governance. We exploit a unique cross-platform, cross-country data set of gig platform users to test the impact of the institutional environment in one of its dimensions – the strictness of labour market regulation (LMR) – on the ability of gig platforms to reduce users' transaction costs. According to our findings, the regulation indicator of both the user and platform countries influences transaction costs for platform users, even controlling for platform and user characteristics. The platform appears to reduce transaction costs most when users face stricter or weaker LMR, in a U-shaped effect. In the former case, the platform may provide an escape from labour regulations when hiring for tasks, while in the latter case, the platform can economize on the usual transaction costs of private contracting by administrating some types of users' activities.

Cost-Benefit Modeling of Smart Contracts Applied to the Accounting and Auditing Field

Abstract Blockchain technology is increasingly pervasive in social production and life, and its influence on the accounting and auditing industry is undeniable. The article extensively researches blockchain technology and smart contracts, and it constructs a blockchain-based cloud data auditing model. Combining it with the evolutionary game model completes the construction of the blockchain-based cloud data auditing system. The running cost of the auditing model is analyzed in terms of communication and computation overhead, smart contract cost, time cost, etc., and how it affects the strategies of auditing clients and auditors is studied from the aspects of cost and benefit, respectively. In this paper, the audit model’s average communication overhead and computation overhead are 9.86 KB and 0.82 seconds, respectively. The cost of the smart contract model is relatively low and shows a steady trend. The average query time of this paper’s auditing model is 0.78ms, and none of the validation times on the validator exceeds 5ms, while the average validation times on the blockchain and cloud servers are 11.01ms and 534.35ms, respectively. The auditing client and the auditor tend to adopt the blockchain technology strategy when the cost reduces, or the benefit increases, with a probability of adoption approaching 1 after numerous games.