IDEAS home Printed from
   My bibliography  Save this paper

Framework for Structuring Procurement Contracts


  • Borg, Lena

    () (Department of Real Estate and Construction Management, Royal Institute of Technology)

  • Lind, Hans

    () (Department of Real Estate and Construction Management, Royal Institute of Technology)


The aim of this paper is to propose a new structure for classifying contract types and payment methods. Concerning the procurement contract types the first important feature is the stepwise structure with three main steps in the contract design: (1) should the contract only include construction or both construction and operation/maintenance? (2) Who should do the detailed design of the premise? (3) How many contractors should the client use? An important new feature of the structure is that in both step 2 and step 3 there is a continuum of alternatives. Concerning the payment methods the structure is primarily based on how the project specific risks are shared.

Suggested Citation

  • Borg, Lena & Lind, Hans, 2014. "Framework for Structuring Procurement Contracts," Working Paper Series 14/9, Royal Institute of Technology, Department of Real Estate and Construction Management & Centre for Banking and Finance (cefin).
  • Handle: RePEc:hhs:kthrec:2014_009

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Hans Lind & Lena Borg, 2010. "Service-led construction: is it really the future?," Construction Management and Economics, Taylor & Francis Journals, vol. 28(11), pages 1145-1153.
    2. M Skitmore & D Cattell, 2013. "On being balanced in an unbalanced world," Journal of the Operational Research Society, Palgrave Macmillan;The OR Society, vol. 64(1), pages 138-146, January.
    3. S. Thomas Ng & Yoki Wong, 2007. "Payment and audit mechanisms for non private-funded PPP-based infrastructure maintenance projects," Construction Management and Economics, Taylor & Francis Journals, vol. 25(9), pages 915-923.
    4. Mandell, Svante & Nilsson, Jan-Eric, 2010. "A Comparison of Unit Price and Fixed Price Contracts for Infrastructure Construction Projects," Working Papers 2010:13, Swedish National Road & Transport Research Institute (VTI).
    5. Per Erik Eriksson, 2010. "Partnering: what is it, when should it be used, and how should it be implemented?," Construction Management and Economics, Taylor & Francis Journals, vol. 28(9), pages 905-917.
    Full references (including those not matched with items on IDEAS)

    More about this item


    Procurement; Contract; Construction sector; Infrastructure projects;

    JEL classification:

    • H44 - Public Economics - - Publicly Provided Goods - - - Publicly Provided Goods: Mixed Markets
    • L74 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Construction
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hhs:kthrec:2014_009. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mo Zheng). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.