Multiple Contracts Research Articles

Contract Design Choices and the Balance of Ex Ante and Ex Post Transaction Costs in Software Development Outsourcing

This paper examines multiple contract design choices in the context of transaction and relational attributes and consequent ex ante and ex post transaction costs. It focuses on two understudied themes in the IT outsourcing literature. First, while the literature is predominantly concerned with opportunism and consequent ex post hazard costs that contracts can safeguard against, parties to a contract also economize on ex ante transaction costs by their choice of contract type and contract extensiveness. Second, the literature studies the aggregate extensiveness of contracts rather than of distinct contract functions: safeguarding, coordination, and adaptability. Against this backdrop, our research model portrays a nuanced picture that is anchored in the following theoretical interpretation: transaction and relational attributes have implications on specific ex ante and ex post transaction costs, and these implications can be balanced by respective choices in both contract type and the extensiveness of specific contract functions. These two contract design choices complement and substitute for each other in their ability to economize on specific transaction costs. Our analysis of 210 software development outsourcing contracts finds that explanatory power increases when analyzing the extensiveness of individual contract functions rather than the aggregate contract extensiveness, highlighting subtle competing influences that are otherwise masked by an aggregate measure. Our analysis also shows that a preference for time-and-material contracts counteracts the effect of certain transaction attributes on contract extensiveness, and even cancels it out in the case of transaction uncertainty.

Optimal Approximate Solution for $$\alpha $$ α -Multiplicative Proximal Contraction Mappings in Multiplicative Metric Spaces

In this work, we introduce the new concept of \(\alpha \)-multiplicative proximal contraction mappings in the setting of multiplicative metric spaces and we also solve optimal approximate solution for such mappings. Our main results improve and extend several results in the literature. We also state some illustrative examples to claim that our results properly generalizes some results in literature.

Optimal Mix of Vertical Integration and Contracting for Energy Crops: Effect of Risk Preferences and Land Quality

Long‐term contracts are likely to be critical to induce the production of perennial energy crops as a feedstock for the emerging cellulosic biofuel industry. This paper develops a framework to analyze the determinants of landowner choice among a land‐leasing contract, a fixed‐price contract, and a revenue‐sharing contract for energy crop production. We examine the effect of heterogeneous landowners' risk and time preferences and land quality on the optimal mix and equilibrium terms of these contracts, which jointly maximize the net benefits of the refinery and landowners in a region; this has implications for the extent to which energy crop production is likely to be vertically integrated or independently contracted by a biorefinery. We find that the refinery can potentially earn a higher profit by offering a choice of these three types of contracts rather than a single type of contract only; by allowing self‐selection of contract type based on landowner risk and time preferences, the contractual terms needed to induce production of energy crops are reduced. Although it is optimal for vertically‐integrated and contracted production to co‐exist, we find that the share of the former is predominant across a range of assumptions about the distribution of risk preferences, time preferences, and relative riskiness of conventional and energy crop production. We also find that the impact of having multiple contract types to choose from on landowners' welfare is ambiguous.

Haustral boundary contractions in the proximal 3-taeniated rabbit colon.

The rabbit proximal colon is similar in structure to the human colon. Our objective was to study interactions of different rhythmic motor patterns focusing on haustral boundary contractions, which create the haustra, using spatiotemporal mapping of video recordings. Haustral boundary contractions were seen as highly rhythmic circumferential ring contractions that propagated slowly across the proximal colon, preferentially but not exclusively in the anal direction, at ∼0.5 cycles per minute; they were abolished by nerve conduction blockers. When multiple haustral boundary contractions propagated in the opposite direction, they annihilated each other upon encounter. Ripples, myogenic propagating ring contractions at ∼9 cycles per min, induced folding and unfolding of haustral muscle folds, creating an anarchic appearance of contractile activity, with different patterns in the three intertaenial regions. Two features of ripple activity were prominent: frequent changes in propagation direction and the occurrence of dislocations showing a frequency gradient with the highest intrinsic frequency in the distal colon. The haustral boundary contractions showed an on/off/on/off pattern at the ripple frequency, and the contraction amplitude at any point of the colon showed waxing and waning. The haustral boundary contractions are therefore shaped by interaction of two pacemaker activities hypothesized to occur through phase-amplitude coupling of pacemaker activities from interstitial cells of Cajal of the myenteric plexus and of the submuscular plexus. Video evidence shows the unique role haustral folds play in shaping contractile activity within the haustra. Muscarinic agents not only enhance the force of contraction, they can eliminate one and at the same time induce another neurally dependent motor pattern.

Key aspects in managing safety when working with multiple contractors: A case study.

Working with multiple contractors in a shared workplace can introduce and increase safety risks due to complexity. The aim of this study was to explore how safety issues are recognized in a specific case and to identify whether clients and contractors perceive problems similarly. The safety issues are explored through a brief survey and a workshop in the maintenance department of a logistics company. The results indicate that culture and behavior are recognized differently by clients and by contractors. The contractors and client had different perceptions of involvement of contractors by the client. The contractors complained on lack of involvement, which was not fully recognized by the client. The case study used a practical approach to show differences in perception of safety within a project. The study illustrates the need for more applied studies and interventions on contractor safety.

Evolutionary analysis identifies multiple genome expansions and contractions in Sepsidae (Diptera) and suggests targets for future genomic research.

We here argue that data from comparative studies of genome size and karyotypes provide important information for planning comparative research on genome evolution. We document for 39 species of sepsids that there is a four-fold difference in genome size (151-618 Mbp). Mapping genome sizes onto a phylogenetic hypothesis identifies that this range is the result of five genome expansions and four genome contractions that we here define as changes in genome size of more than 50 Mbp. We then generate karyotype data for 10 species and find no changes in chromosome number. The study reveals that the "Oriental" clade of sepsids is a promising system for studying genome evolution because it has experienced three genome expansion events. These events can be compared with an expansion in the "Neotropical" clade in order to reveal the mechanisms that underlie genome expansion in Sepsidae. A review of the literature on genome sizes and karyotypes reveals that they have been poorly documented in Metazoa. This means that researchers interested in the evolution of genome expansions and contractions are currently not being able to identify appropriate target taxa for genome sequencing. We thus argue for more comparative research on genome sizes and karyotypes and point out that historically species were chosen for genome sequencing for reasons not related to genome evolution (e.g. small genome size, model species status, phylogenetic position, interesting phenotypes). We believe that it is now time to use a more genome-centric selection criterion, where species for whole genome sequencing are selected based on their importance for understanding genome evolution.

ANALYZING PROCUREMENT ROUTE SELECTION FOR ELECTRIC POWER PLANTS PROJECTS USING SMART

The decision of selecting the appropriate procurement/delivery system for large investment construction projects is a critical and challenging task for clients, and therefore a significant factor for the project’s success. Complex projects as electric power plants can involve managing multiple contracts or subcontracts simultaneously or in sequence. The aim of this paper is to develop, and analyze a decision support tool to select the most efficient procurement/delivery system for multiple contracts Combined Cycle Power Plants (CCPP) constructed in Egypt and funded by the publicsector. This process involved the identification of various procurement routes, followed by the utilization of quantitative values developed in accordance with the requirements of the multi-criteria decision analysis technique known as simple multi-attribute rating technique (SMART). Results revealed that the procurement/delivery system with the highest score, for all contractual packages, is the integrated project delivery method (IPD) under which other procurement/delivery methods could be utilized such as performance-based contracting (PBC), and construction management (CM). Further in this research, a sensitivity analysis approach was adopted to validate the IPD selection, and to determine the most critical criterion and the most critical measure of performance for each contractual package.

New tunnel system to eliminate sanitary sewer overflows and control combined sewer overflows in Hartford, Connecticut

The South Hartford Conveyance and Storage Tunnel is a major component of Hartford Metropolitan District's Clean Water Project. It is intended to capture and store combined sewer overflows from the southern portion of Hartford, CT, and sanitary sewer overflows from West Hartford and Newington, CT. The project is estimated to cost approximately $US500 M and will be constructed under multiple construction contracts. The project components include a deep rock tunnel 6.6 km long and 7.6 m excavated diameter, several kilometers of consolidation sewers, multiple hydraulic drop shafts with deaeration chambers and a 100 MLD pumping station for tunnel dewatering. The tunnel boring machine-bored tunnel will be excavated in shale, siltstone and basalt through several fault zones. An AECOM led team is currently performing the final design for the project.

Mechanomyographic mean power frequency during an isometric trapezoid muscle action at multiple contraction intensities

This study examined the mechanomyographic mean power frequency (MMGMPF)–force relationships for five (age = 19.20 ± 0.45 years) aerobically-trained (AT), five (age = 25 ± 4.53 years) resistance-trained (RT), and five (age = 21.20 ± 2.17 years) sedentary (SED) individuals. Participants performed isometric trapezoidal muscle actions at 50, 60, and 70% maximal voluntary contraction (MVC) of the leg extensors that included linearly increasing, steady force, and linearly decreasing segments. MMG was recorded from the vastus lateralis. Linear regressions were fit to the natural-log transformed MMGMPF versus natural log-transformed force relationships (linearly increasing and decreasing segments) with the b (slope) and a (y-intercept) terms used for comparisons. MMGMPF was averaged for the entire steady force segment. The b and a terms were not different among training statuses (P > 0.05) or linearly increasing and decreasing segments (P > 0.05). There were muscle action-related differences in the b terms as a function of training status from the 70% MVC. The SED had greater b terms during the linearly increasing than decreasing muscle action (P = 0.010), and the converse was true for the AT (P = 0.013), whereas the RT displayed no muscle action-related differences (P > 0.05). The unique muscle action-related differences in the b terms as a function of training status may be the result of unique adaptations to motor unit activation and deactivation strategies.

Innovative menu of contracts for coordinating a supply chain with multiple mean-variance retailers

We consider the coordination challenge with a risk-neutral manufacturer which supplies to multiple heterogeneou retailers. We find that the manufacturer can maximize its expected profit only if the expected profit of the supply chain is maximized, or equivalently supply chain coordination (SCC) is achieved. The target sales rebate (TSR) contract is commonly used in practice to achieve SCC. However, as we found in this paper, the presence of heterogeneity in retailers’ minimum expected profit requirements is the major cause that a single TSR contract and the related single hybrid contracts all fail to achieve SCC and maximize the manufacturer’s expected profit simultaneously. Thus, we develop an innovative menu of TSR contracts with fixed order quantity (TSR-FOQ) . Although there are multiple contracts in a menu, we find that the manufacturer only needs to decide one basic TSR contract and two newly developed parameters termed as the risk-level indicator and the separation indicator, in applying the sophisticated menu of TSR-FOQ. By adjusting the two indicators, the manufacturer can control the profit variance of the retailers and the separations of the component contracts of the menu. We further propose another sophisticated menu of TSR with minimum order quantity and quantity discount contracts which can give each retailer a higher degree of freedom in the selection of order quantity. Differences between the two menus are analytically examined. Some meaningful managerial insights are generated.

Assessing risk in sustainable construction using the Functional Resonance Analysis Method (FRAM)

Traditional tools found in occupational risk assessments are a preliminary hazard analysis and checklists, both based on the isolation of a particular activity from the entire process and created for application in specific environments of manufacture. This strategy makes the results of such evaluations distant from real situations. Construction is a complex endeavor and can involve multiple contractors and groups working under each contractor. Work occurs under constant change and varying demands. In this context, as workers move through their daily journey, their health and safety are often are threatened by activities carried out by other contractors or groups. The study utilizes the Functional Resonance Analysis Method (FRAM), which aims to describe how function couplings may be combined in such a way that variability of performance, rather than failure or poor functioning, creates an occupational risk. The study also contributes to the evolution of FRAM, by proposing the application of the analytic hierarchy process, to investigate the relative importance of the criteria and alternatives for the identification of phenotypes of performance variability, as well as the aggregation of variability.

Two axiomatic characterizations for the system of spheres-based (and the Epistemic Entrenchment-based) multiple contractions

In some recent works (Reis 2011, Fermé and Reis, J. Philos. Log. 41, 29–52, 2012, Fermé and Reis, Rev. Symb. Log. 6, 460–487, 2013) two new kinds of multiple contraction functions have been proposed, namely the system of spheres-based multiple contractions and the epistemic entrenchment-based multiple contractions, as generalizations (to the case of multiple contraction) of the well-known classes of systems of spheres-based and of epistemic entrenchment-based (singleton) contractions. Additionally, a representation theorem for the class of epistemic entrenchment-based multiple contraction has been proposed, and it has been shown that the two newly proposed constructions are equivalent, in the sense that a multiple contraction function is a system of spheres-based multiple contraction if and only if it is an epistemic entrenchment-based multiple contraction. In this paper we present two axiomatic characterizations for those multiple contraction functions which differ from the one mentioned above and, in particular, make use of some more intuitive postulates.

Coordinating collaboration in contractually different complex construction projects

Purpose– The paper aims to compare the coordination of supply chain networks in contractually different complex construction projects.Design/methodology/approach– A comparative case study of the coordination of collaborative work in two successful hospital construction projects was conducted. One of the projects applied multiple dyadic contracts, whereas the other project applied one multi-party contract between the parties. The projects were located in the USA. Data were collected by observing the coordination on the construction sites for six weeks and by conducting 72 interviews.Findings– The paper shows that depending on the contract type, the timing and extent of complementary procedural coordination differs during projects. Compared with one multi-party contract, the dyadic contracts needed to be complemented during the design phase with three additional procedural coordination mechanisms: organizational design, processes for collaborative work and integrated concurrent engineering sessions. Additionally, common rules of conduct were taken into use during the construction phase. However, regardless of the contract type, procedural coordination mechanisms, such as co-located working, collaborative decision-making in inter-organizational meetings, a liaison role and shared project goals were needed throughout the projects.Practical implications– If multiple dyadic contracts are applied, procedural coordination mechanisms have to be co-created by all supply chain parties at the beginning of the project.Originality/value– The paper provides an understanding on successful contractual and complementary procedural coordination mechanisms of supply chain networks in complex construction projects.

Sickness absence in a municipal public service of Goiânia, Brazil.

Sickness absence, as work absenteeism justified by medical certificate, is an important health status indicator of the employees and, overall, sociodemographic and occupational characteristics are among the main factors associated with sickness absence. Public administration accounts for 21.8% of the formal job positions in Brazil. This population allows the study of a wide range of professional categories. To assess the profile and indicators of sickness absence among public workers from the municipality of Goiania, in the State of Goiás, Brazil. A cross-sectional study on certified sick leaves, lasting longer than three days, of all civil servants from January 2005 to December 2010. Prevalence rates were calculated using as main criteria the number of individuals, episodes and sick days. 40,578 certified sick leaves were granted for health treatment among 13,408 public workers, in an annual average population of 17,270 people, which resulted in 944,722 days of absenteeism. The cumulative prevalence of sick leave for the period was of 143.7%, with annual average of 39.2% and duration of 23 days per episode. The cumulative prevalence of sickness absence was higher among women (52.0%), older than 40 years old (55.9%), with a partner (49.9%), low schooling (54.4%), education professionals (54.7%), > 10 years of service (61.9%), and with multiple work contracts (53.7%). Diagnoses groups (ICD-10) with higher cumulative prevalence of sick leaves were those with mental disorders (26.5%), musculoskeletal diseases (25.1%), and injuries (23.6%). Indicators of sickness absence express the magnitude of this phenomenon in the public sector and can assist in planning health actions for the worker, prioritizing the most vulnerable occupational groups.

Contractor management performance evaluation model at prequalification stage

The client’s choice of contractor at the project prequalification stage is critical as the selected contractor is responsible for the overall coordination of a project. Although a wide variety of criteria have been employed to develop models for contractor selection, one critical component of their capability – management performance – has historically been among the least addressed but, we argue, most critical elements in a useful selection model. Even in the cases when management performance is considered, it has typically focused only on objective outcome criteria of limited predictive power, such as contractor time and cost performance. This paper reports on the results of a study to develop a comprehensive contractor evaluation model that directly addresses the contractor management capabilities and practices as a critical additional element at the prequalification stage. Using a multi-step research process, including extensive literature review, analysis and synthesis of critical contractor management performance factors, development of an analytic network project (ANP) model, and subsequent case study and field validation, we identified a robust model that enhances the decision support tools for the client organization by creating databases for comparing multiple contractors with respect to management practices. In addition, the evaluation of this prequalification criterion permits the contractors to focus on their efforts to address the critical management practices to improve their project performance.

Redefining the Latch-State in Human Airway Smooth Muscle

Rationale: The latch-state describes the ability of tonic smooth muscle to maintain force at reduced ATP consumption and crossbridge cycling rate. In animal models this is evidenced by reduced unloaded shortening velocity (Vmax), presumably indicative of crossbridge cycling rate, and reduced myosin light chain phosphorylation (pMLC). In this study we aim to assess this phenomenon in human airway smooth muscle (hASM).Methods: hASM tissues were dissected from trachea procured from the International Institute for the Advancement of Medicine. Force-velocity curves and pMLC measurements were performed at several time points in multiple prolonged methacholine 10-6M contractions. Rat ASM strips were tested with the same protocol. A mathematical model was developed to explain the findings.Results: Despite a 40% drop in pMLC between the 1st to the 20th min after the peak contraction, hASM Vmax did not show any change. Conversely, rat ASM Vmax decreased by 50%. A mathematical model of the cross-bridge cycle, combining strain-dependent ADP affinity of myosin with actin regulated binding of dephosphorylated myosin heads, was capable of reproducing our findings.Conclusion: As our results contradict the classical latch-bridge theory, we suggest an alternative model. We propose that Vmax, as calculated from standard force-velocity curves, is not indicative of the crossbridge cycling rate during latch. Instead, Vmax is reduced due to drag caused by dephosphorylated myosin heads binding to actin, with their binding force regulated by actin regulatory proteins and their activation state. The increase in dephosphorylated myosin late in contraction decreases the measured Vmax, unless its binding force is down-regulated by regulatory proteins. Our modelling further shows that force maintenance can be explained by phosphorylated myosin heads remaining attached to actin in a locked configuration, unable to release ADP because of strain dependence of the ADP affinity of myosin.

A Contract-Based Spectrum Trading Scheme for Cognitive Radio Networks Enabling Hybrid Access

The latest trends in spectrum trading allow secondary users (SUs) to employ hybrid access models and exploit bandwidth employing either opportunistic spectrum access or exclusive spectrum access of vacant frequency bands (FBs) leased for exclusive usage. In this paper, the spectrum trading problem is addressed in an operational framework, where a primary spectrum owner (PSO) allocates specific FBs to a number of primary users (PUs) and at the same time allows SUs belonging to multiple service classes to operate opportunistically in a part of the spectrum primarily allocated to the PU operation. By offering exclusive bandwidth-price contracts to SUs in FBs, which are excluded from the PU access, the PSO expects additional revenue. In this framework, the PSO aims at maximizing its revenue through optimal contract design that considers the multiple SU service classes, about which the PSO may have at its disposal either complete or incomplete information. In the first case, it is proven that only one type of contract destined for the highest SU service class is profitable to the PSO. In the second case, two heuristic algorithms are proposed for the optimal contract design corresponding to offering a single contract or multiple contracts to various service classes. The simulation results for the complete and incomplete information cases have been examined with regard to the SU service classes and the number and transmission specifications of the PUs. The two proposed algorithms manage to address the incomplete information case and be close to the optimal values obtained when complete information is available. Finally, the social welfare, as the aggregate expected utility of all parties involved, is examined.

A game-theoretical approach for optimizing maintenance, spares and service capacity in performance contracting

Recently the service industry is transitioning from material-based contracting to performance-based contracting. This paradigm shift enables the supplier to maximize the profit by attaining the system performance goal, while the customer is able to lower the asset ownership cost with assured system availability. Prior studies usually focus on a single stakeholder, either the supplier or the customer, in searching for the optimal decisions. Under game-theoretical framework, this paper proposes a multi-party, multi-criteria, and multi-item service delivery mechanism to maximize the utilities of all the stakeholders. The goals are achieved by jointly optimizing the maintenance, the spares inventory, and the repair capacity under the game-theoretical framwork. We prove that the supplier’s actions on parts replacement time, spares stock level and repair cycle times are fully observable to the customer. Hence a first-best solution is guaranteed without moral hazard issue. Numerical studies from wind industry show that a single or a consolidated multi-item contract could be advantageous over multiple single-item contracts as it ensures a higher profit margin at a lower customer’s cost.

Frailty modelling of time-to-lapse of single policies for customers holding multiple car contracts

Corporate customers often hold multiple contracts and this might give dependence between the lapsing times of the single policies. We present a shared gamma frailty model in order to study the time-to-lapse of single car policies for customers holding multiple car contracts with the same insurance company, accounting for measured and time-dependent covariates. Customers with the highest frailty value tend to leave the company earlier than the others and finding these is a central aspect within a company’s customer relationship management strategy. We estimate conditional survival curves which illustrate the decreased survival probability of a customer after a lapse in a single car insurance policy. The individual survival curves are overestimated if the underlying association for cars with the same customer is ignored. Fitting misspecified Cox’s proportional hazards model also results in an underestimation of the standard error of the parameter estimates.

Integrating Major Components of a New Landfill Gas System – Coordination of Multiple Contracts for Gas Treatment, Pipeline Transmission and Turbine Energy Generation – An Update

Integrating Major Components of a New Landfill Gas System – Coordination of Multiple Contracts for Gas Treatment, Pipeline Transmission and Turbine Energy Generation – An Update