Performance Contracting Research Articles

Evolutionary Game Study on the Supervision Strategy in the Operation Phase of Green Public Buildings Based on System Dynamics Simulation

In the energy performance contracting (EPC) mode, an effective way to achieve green public buildings, the information asymmetry among stakeholders in the operation phase is critically adverse to the energy-saving effect of green public buildings. This paper constructs an evolutionary game model between energy users and energy-saving companies (ESCOs) in the operation phase of green public buildings under the premise of limited rationality. Vensim PLE software is used to build the corresponding simulation model to simulate the strategy evolution of players under different initial strategies. Typical scenarios with different government punishment, penalties from energy users, and opportunistic gains of ESCOs, respectively, are set up to conduct sensitivity analysis. The results show that dynamic alternation exists in the strategy evolution of players during the operation phase of green public buildings under the EPC mode, and it is influenced by the simulation period and players’ initial strategies. And the evolution in different typical scenarios is influenced by the aforementioned parameters with different significance. This study can provide a basis for the supervision strategy of ESCOs in the operation phase of green public buildings by local governments and energy users thus promoting the energy-saving operation of green public buildings for final carbon reduction.

The role of outsourcing some activities in improving the quality of service provided to the customerExploratory research in Asiacell Communications

The aim of the current research is to highlight the role of outsourcing some activities in improving the quality of service provided to the customer at the level of the Asiacell Telecom Company. In order to achieve the goal of the research, the Asiacell company was chosen as a field by distributing the questionnaire to (51) individuals. The researchers resorted to using the statistical program (SPSS) to analyze the data. Several results have been reached, the most important of which is the validity of the hypotheses adopted by the research represented in the existence of a significant correlation between the research variables. In addition to the presence of a significant effect of the information technology activity in the dimensions of service quality, which reflects the interest of the researched company in adopting the outsourcing strategy and the harmony of the nature of the company’s work and the research variables. Speed of implementation, cost reduction, and improvement of service quality through periodic follow-up to measure the performance of contractors to ensure the achievement of the desired results.

Design of Investment Potential Analysis Model of Integrated Energy Project Based on Deep Learning Neural Network

Under the background of energy conservation and emission reduction and large-scale promotion of electric energy substitution, fully exploring the complementary potential of various energy systems and realizing the optimization of comprehensive energy utilization are the most critical development goals of the current energy system. The key to achieving this goal is the investment potential analysis of integrated energy projects. In order to effectively solve the problems of difficult scientific determination of evaluation index weight and low accuracy of evaluation results in the analysis of investment potential of integrated energy projects, an investment potential analysis model of integrated energy project based on deep learning neural network is designed. The design process of the integrated energy project is summarized. The RBF-BP neural network model is established to obtain the correlation between the factors of the evaluation unit, further analyze and process the training results, and calculate the weight of the evaluation index. The obtained weight is substituted into the TOPSIS comprehensive evaluation model for the investment potential analysis of integrated energy projects. According to the investment potential analysis results, the investment potential analysis value of energy performance contracting (EPC) mode is 0.9122, which is the best operation mode. The results show that the analysis results reflect the investment potential of integrated energy projects more objectively and scientifically.

Dynamic control for construction project scheduling on-the-run

Construction project management requires dynamic mitigation control to ensure a project's timely completion. Current mitigation approaches are usually performed by an iterative Monte Carlo (MC) analysis which does not reflect (1) the project manager's goal-oriented behavior, (2) contractual project completion performance schemes, and (3) stochastic dependence between construction activities. Therefore, the development statement within this paper is to design a method and implementation tool that properly dissolves all of the aforementioned shortcomings ensuring the project's completion date by finding the most effective and efficient mitigation strategy. For this purpose, the Mitigation Controller (MitC) has been developed using an integrative approach of nonlinear stochastic optimization techniques and probabilistic Monte Carlo analysis. MitC's applicability is demonstrated using a recent Dutch large infrastructure construction project showing its added value for dynamic control on-the-run. It is shown that the MitC is a state-of-the-art decision support tool that a-priori automates and optimizes the search for the best set of mitigation strategies on-the-run rather than a-posteriori evaluating the potentially sub-optimal and over-designed mitigation strategies (as commonly done with modern software such as Primavera P6).

Global Importance of Measurement and Verification in Energy Conservation

Measurement and Verification (M & V) is the rule of the game in Energy Conservation Projects where mode of the payment is “Pay as you save” and modus operandi is “Performance Contracting”. International Measurement and Verification Protocol (IPMVP) has four M & V protocols that are being practiced by Energy Servicing Companies (ESCO) in developed countries for evaluating the performance of any energy conservation project. This paper highlights the importance of M & V protocol.

The land degradation neutrality management enablers, challenges, and benefits for mobilizing private investments in Pakistan

Limited investments in land degradation neutrality (LDN) are causing environmental degradation and are the main barriers to socioeconomic development worldwide. Therefore, it is crucial to meet the target 15.3 of the Sustainable Development Goals to achieve soil neutrality by 2030 at the national level. Therefore, the primary purpose of this study is to find critical enablers, challenges, and benefits of LDN and develop a new administrative management framework for mobilizing private investments according to local financial market conditions. To achieve this research objective, the authors selected 14 degraded districts in four provinces of Pakistan. The data for this study were collected from 63 institutions that were directly or indirectly involved in land degradation risk prevention and management. The research evaluation process comprises a mixed-method approach to infer institutional survey data analysis. The interpretation of the results was based on two important dimensions, including 12 survey statements. From the perspective of LDN management (LDNM) enablers, the government’s long-term vision and strong commitment were validated as top-ranked measures among the six enablers for the implementation of LDN. The development of horizontal and vertical coordination mechanisms for the LDN is the second-most critical enabler. While developing public-private partnership (PPP) policies, procedures and services are perceived as the third most potent enabler. In terms of LDNM challenges and benefits, raising awareness of the LDN concept, capacity development, and LDN market risk assessment are identified as the main challenges. However, developing a green economy, securing social needs, and ensuring ecological sustainability are vital benefits. This study makes theoretical and practical contributions to the field of LDNM. Theoretically, this study contributes to the LDNM framework based on complexity theory by integrating transaction cost logic to execute win-win PPP agreements. Practically, to meet different market conditions, this study suggests three PPP models: special credit lines, risk-sharing facilities, and land protection performance contracts. These inputs will provide insight into what the government needs to develop for land use policy, promote LDN investments, and forge new partnerships between local financial institutions and landscape stakeholders.

A Comparative Analysis of the Performance of Domestic and Foreign Contractors

In Ethiopia, infrastructure, particularly road construction, has been the most essential driver of economic growth. Simultaneously, it is widely acknowledged and analyzed that the domestic road construction industry is inefficient, threatening its role as a driver of the country's economic growth. Thus, the objective of the study was to make comparative analysis of domestic and foreign contractors’ performance in Ethiopian road construction in terms of cost, time, and quality. To meet the objective of the study a document review, semi-structured interview, and focused group discussion were used as a data collection tool. Based on analysis, the finding shows that the domestic contractors are far from being competitive in terms of cost overrun, time overrun and quality performance but it is promising progress over time. This necessitates the participation of both the construction industry and the government in improving the sector's competitiveness, Local road construction firms operate in a challenging business climate.

Energy Performance Contracting in a Supply Chain under Cap-and-Trade Regulation and Carbon Tax Policy

Energy performance contracting (EPC) is a new tool for supply chain members to cooperate in emission reduction. This paper investigates a two-tier supply chain composed of a supplier and a capital-constricted manufacturer with carbon reduction demand under different low-carbon policies (Cap-and-Trade Regulation and Carbon Tax Policy, respectively). The manufacturer is motivated to cooperate with the supplier to reduce carbon emissions through EPC services. Different from other research, the emission reduction decision maker of EPC services in this paper could be any supply chain member. The results show that cap-and-trade regulation and carbon tax policy have the same impact on the optimal pricing and emission reduction decisions in the monopoly supply chain, but the manufacturer’s profit is higher under cap-and-trade regulation. And when the cost-sharing coefficient is within a low range, the emission reduction targets decided by the manufacturer are lower. Otherwise, the targets decided by the supplier are lower. Moreover, supply chain members can obtain higher profits when the reduction targets are determined by themselves, and supply chain coordination under different decision models could be realized through revenue sharing contracts. Considering the total profit of the supply chain, when the cost-sharing rate is within a low range, the supply chain can achieve a Pareto improvement if the supplier determines the emission reduction targets. Otherwise, the reduction targets decided by the manufacturer can realize a Pareto improvement.

ANALISIS RISIKO KONSTRUKSI PADA PEKERJAAN PEMBANGUNAN SUTET 500 KV BALARAJA -KEMBANGAN

The construction of the 500 kV Balaraja - Kembangan SUTET consisting of 157 towers with a channel length of 47.2 km route has a large enough risk that it can cause delays and even failure.The long path and substantial social problems resulted in many negative impacts on its implementation. For this reason, the risks may need to be analyzed so that the project can proceedas planned. This final project aims to identify the risks of implementing the 500 kV SUTET Balaraja- Kembangan development project, analyze the dominant risks and determine the risk response ofthemost dominant risks. The research process was carried out by conducting surveys, distributingquestionnaires, and interviews. The series of analyzes begins with risk identification through aliterature study. After that, a risk analysis is carried out by distributing questionnaires to previouslyselected respondents.Risk analysis is carried out by estimating the most significant possible risk and the resulting impacton time and cost. The final step is to determine the risk response to this project by interviewing competent parties. Based on the analysis results, it is known that the dominant risk variable concerning time is challenging to site location conditions. In contrast, the most dominant risk to cost is poor contractor performance.

Rwanda’s Agricultural Transformation Revisited: Stagnating Food Production, Systematic Overestimation, and a Flawed Performance Contract System

The quantitative development of Rwanda’s agriculture in recent years has been widely regarded as a success story. However, a simple statistical analysis of publicly available data shows that food crop production volumes and yields actually stagnated over the last fifteen years. Moreover, agricultural output was significantly overestimated from 2008 to 2013 and then adjusted without explanation in Rwandan and international datasets. As a result, the country’s economic growth numbers are inflated as well. After presenting substantial evidence for these claims, this article discusses why massive food production overestimation occurred. It argues that it likely proliferated due to a flawed performance contract system that incentivized bureaucrats and farmers to tweak the numbers instead of compelling them to achieve actual results. Even more, this inflation prevented early detection of agricultural stagnation and the required policy adjustment. The article concludes that despite its failure to raise yields and the flaws in its governance system, the Rwandan government has achieved a fair amount of progress in state-building and socio-economic development, and that this may eventually lead to more effective policy implementation.

Economic limits to contractual performance: from hardship to the excessive costs of specific performance

Abstract This article analyses two different limits to specific performance of contracts: hardship and excessive or unreasonable costs, looking into their conditions, scope of application, and effects, with the aim of outlining their corresponding field of application, intending to solve the current confusions on the subject.

Approaches for Sustainability of College-Based Departmentalized Continuous Professional Development Programme for the Academic Staff of Selected Volta Region Colleges of Education, Ghana

Sustaining any good venture is as important as the beginning of it if not more important. In the case of continuous professional development of the staff of academic institutions, the positive impact could only be felt if the practice is sustained for the gains to be harvested continually. This prompted the research into approaches for sustainability of college-based departmentalized continuous professional development of the academic staff of the colleges of education in the then Volta Region of Ghana in 2017. The study was qualitative with case study approach that used open-ended questionnaire in collecting data from 12 tutors and 4 vice principals from four selected colleges in the Region. Semi structured interview guide was adopted in gathering data from the four principals of the four colleges. Thematic analysis was done after manual coding of the data was carried out. The findings have: procedural approach such as Management adopting participatory approach indecision making on instituting and managing performance on CPD programmes; Motivational approach pointed to Management creating an environment of trust and shared commitment, setting high but achievable targets; design and delivery approach indicated neat, attention grabbing, and compelling models to be adopted; legal framework approach pointed to central staff development unit develop and monitor institutional staff development policies, staff developing Individual Professional Development Plan (IPDP), personnel signing performance contract on CPD agenda, CPD factored into promotion agenda; supervision, monitoring and evaluation approach captured frequent collaborative appraisal of staff / programme of the CPD. The study concluded that CPD programmes could only be sustained at the colleges of education in the region if multidimensional approach is adopted and therefore Management should provide collaborate and also provide annual budget allocation couple with certificating personnel who satisfy CPD mandates to makeat least 75% attendance at CPD in promotion of staff.

Social Housing Net-Zero Energy Renovations With Energy Performance Contract: Incorporating Occupants’ Behaviour

This article examines how the behaviour of occupants is assessed in a project with ambitious targets for energy use reductions and within the framework of an approach based on an energy performance contract. Its starting point is the observation that there may be significant disparities between the consumption threshold required by the regulations or the labels and the actual building consumption in its post-delivery existence. While behaviour cannot be the only factor explaining this overconsumption, the promoters of high-performance renovation operations often marginalise their importance. The recent surge in requirements for energy consumption reductions in new or renovated buildings in Europe further exacerbates these problems. In light of these challenges, there is a strong demand for compulsory verification of post-delivery performances and for developing energy performance contracts. In this context, the behaviour of a building’s occupants can no longer be considered as a simple adjustment variable. Through the analysis of Energiesprong, a net-zero energy renovation approach for the social housing developed in the Netherlands and in France, built around the principle of an energy performance contract over a long timeframe, the article highlights the injunctions to behavioural changes, the strategies, the negotiations, and the adjustments deployed by the project leaders. It finally shows that there is still a long way to go before the occupant’s behaviour in a high-energy performance renovation project is fully taken into account.

Determinants of public construction works contract performance Application: An Empirical survey

The overall purpose of the study was to identify determinants of public works contract performance, in Benishangul Gumuz Region. The researchers used survey method for the study and data were collected from the target population by means of self-administrative questionnaire and sample was selected by using stratified sampling. Descriptive and inferential analysis was employed to analyze the determinants of public construction works contract performance. The consequence shows that all determinants like contractor performance, consultant performance, contract management, and risk management significantly and positively affects public works contract performance; on the other hand cost overrun significantly and negatively affects public works contract performance. Therefore, the researchers recommends that existing low level of public works contract performance should be improved in order to facilitate public service delivery and properly use of public money (wisely use of public resource). Moreover, contractors, consultants and clients should increase their performance. Therefore, owners, contractors, consultants and the concerned Government bodies who struggle to promote growth of public construction works contract should start at giving tremendous effort on this very prominent area. Following this public construction can be used as an engine for basic delivery of public service especially for the poor's and that improving public construction projects performance hence progress the welfare of the society at large.

Justice in Contracts

Abstract The mission of justice for contracts seems to be solely one of gatekeeping. As long as the justice of the bargaining stage is secured and the parties’ agreement complies with a proper floor of legitimacy, contract law, on this conventional approach, must simply follow the parties’ preferences. Doctrines that govern contractual performance and breach by appealing to justice considerations are thus portrayed as either confused or misguided. The justice rhetoric either covers for other, notably economic, considerations or undermines contract law’s liberal underpinnings. Against this common wisdom, this Article develops a theory of contractual justice, which is implicit in this significant body of doctrines. Contractual justice is a species of relational justice, and is thus informed by the most fundamental normative underpinnings of private law in a liberal polity, namely, the maxim of reciprocal respect for self-determination and substantive equality. Focusing on the justice of on-going contractual relationships, modern contract law properly solidifies a cooperative conception of contract performance, which targets a contract-specific form of relational injustice associated with the heightened interpersonal vulnerability to which sequential contractual performance gives rise. The task of this Article is threefold. It articulates and defends the normative commitment to contractual justice that is implicit in contract law’s rules of the game, epitomized by the duty of good faith and fair dealing. It further explains and justifies the legal form of these rules, being normative defaults, rather than either majoritarian defaults or mandatory rules. And finally, it demonstrates how the refinement of both their substance (relational justice) and their form (normative defaults) can help direct the future development of these complex and currently somewhat disoriented set of doctrines and, more broadly, reclaim the central place of justice in the law of contract of a liberal legal order.

An Energy Performance Contract Optimization Approach to Meet the Competing Stakeholder Expectations under Uncertainty: A Canadian Case Study

Energy performance contracts (EPC) can address economic sustainability challenges associated with residential energy retrofitting projects, including funding limitations, poor quality of project delivery, and landlord-tenant dilemma. Literature has overlooked the impact of weighted average cost of capital (WACC) and funding sources in EPC planning. However, the WACC, stakeholder priorities, and uncertainties can alter the project outcomes. This study proposes a Monte-Carlo simulation based non-linear multi-objective optimization approach to address the aforementioned challenges. A case study conducted in British Columbia indicated that the maximum overall project profitability can vary between $18,035 and $20,626 with decision priorities. The overall project profitability can vary over 9% due to uncertainties. The project profits can change over $3000 due to changes in the WACC. These observations confirmed the criticality of accounting for WACC, stakeholder priorities, and uncertainties in EPC planning. The risk of compensating for the performance compromises and profits increases simultaneously for the energy services company with the increasing contract periods, while it is inverse for the owners. Therefore, the contract period must be decided considering the profit expectations and risk tolerance of the stakeholders. Extended contract periods allow lower capital contributions from the building owners, potentially solving the principal-agent disputes in rental buildings.

Improving the Efficiency of Energy Consumption in Buildings: Simulation of Alternative EnPC Models

The construction sector and the operation and maintenance of buildings largely contribute to energy consumption and emission of greenhouse gases (GHGs) in the European Union (EU). Therefore, it is of utmost importance to improve the energy performance of buildings. Yet, this frequently involves high short-term investments, which may not be compatible with owners’ budgetary constraints. In this research we analyze the importance of Energy Performance Contracting (EnPC) for the improvement of energy efficiency in buildings. These models allow bypassing budgetary restrictions of owners (public and private ones) and bring private capital to finance energy efficiency measures. The paper analyses different models of contracting Energy Service Companies (ESCOs), from traditional models to alternative models, and exposes the versatility of the new contracting models and the associated risks. Several applications of energy performance contracts implemented in European countries are presented to identify the main characteristics that lead to successful contracts. The paper also includes the discussion of energy performance contracts applied to a public building (a school) that seeks to reduce its annual energy consumption, by testing the use of three types of energy performance contracts. The results show that there is potential in the use of EnPC but it is critical to select the most adequate model, especially when defining the contract duration, to balance both owners’ and companies’ interests.

Cultural norms to support gender equity in energy development: Grounding the productive use agenda in Rwanda

Changes to cultural norms as a result of electrification can promote gender equity. This paper contributes to the energy transitions literature addressing research complexity from investigating consumption behaviours and opportunities for behaviour change. We ask: how cultural norms influence productive uses of energy technologies and how norms may change as a result of electrification? A scoping and critical review of literature, and empirical study applying grounded theory analysis and the energy cultures framework suggests the value of exploring existing and emerging energy cultures, particularly the nature of material cultures, norms and practices. Qualitative methods used include key informant interviews, transect walks and observation. The application is in the Bugesera District of Rwanda. The main study finding is that there are relationships between mini-grids, fuels, values, beliefs and traditions that influence uptake and vice-versa. The emphasis on of productive use is revisited to suggest inclusion of norms such as Agakiriro — making wealth through small scale business enterprises; Ubudehe — mutual assistance welfare practice; new material realities of the modern Rwandan household; local and international technological innovations; old programs — One Laptop Per Child; imihigo – a tradition of goal setting translating to performance contracts, and Made in Rwanda — enhancing the domestic market through value chain development. Inclusion of gender concerns in the push for productive use of electricity and in renewable energy policy can promote sustainable value chain creation and inclusive business model development. Finally, we reflect on policy considerations for stakeholders working in energy development in Rwanda and elsewhere.

Contractual performance by a third party governed by lex contractus and the effectiveness of avoidance action in insolvency proceedings

Upon a request for a preliminary ruling on the articulation between Article 13 of the European Insolvency Regulation n° 1346/2000 and Article 12(1)(b) of Rome I Regulation, the Court of Justice of European Union has confirmed in a decision on April 22, 2021 that a payment made in perfor-mance of a contract by a third party is subjected to the law applicable to that contract and not to the law of the Member State opening the insolvency proceedings where the payment is challenged by an avoidance action. The decision raises some reflections on the correlation between the European Insolvency and Rome I Regulations as well as the effectiveness of avoidance action in insolvency proceedings.

An energy performance contracting parameter optimization method based on the response surface method: A case study of a metro in China

As an effective mechanism for improving energy efficiency, energy performance contracting (EPC) is receiving increasing attention. However, due to many uncertain factors that affect contract parameters, a reasonable distribution of participants' interests is necessary. To reasonably determine EPC contract parameters, this paper proposes a framework based on Geometric Brownian motion (GBM) and the response surface method (RSM) to optimize EPC contract parameters. First, GBM is used to simulate the energy prices, energy savings, energy-saving revenue allocation, etc. Then, the RSM is proposed to optimize multiple contract parameters. Finally, the proposed method is applied to the Wuhan Metro Line 2 lighting system renovation project. The results demonstrate that (a) the contract parameter optimization framework based on the GBM-RSM provides an effective method for optimizing the combination of EPC contract parameters. (b) The GBM-based method of quantitative simulation effectively expresses the uncertain factors of energy-saving performance in EPC renovation and provides reasonable data support for optimizing EPC contract parameters. (c) The established response surface optimization model of EPC contract parameters is an efficiently fitted model. A comparison between the optimization results and actual application results shows the feasibility of response surface optimization of EPC contract parameters, which improves the benefits for the owner of energy-saving renovation and thus increases the owner's enthusiasm, while guaranteeing a reasonable return for energy-saving companies. Hence, this study provides an effective method for optimizing EPC contract parameters and offers a reference for similar problems.