Abstract:
The public construction projects in Thailand usually delay from the contractual duration. The main objective of this research is to study the incentive scheme for public construction projects in Thailand. The models of incentive scheme were reviewed from related research, academic literatures and opinion of government agencies and contractors. In order to identify the factors effecting the selection of incentive scheme, advantages and disadvantages of each incentive scheme were studied and interview sessions were held with government agencies and contractors involving in public construction projects. Subsequently, the analysis utilizing Analytical Hierarchy Process technique (AHP) was applied in order to explore the appropriate incentive scheme based on the identified factors from both owners and contractors point of view. The analysis was done separately for different project types, such as building construction, highway construction, bridge construction, and public construction projects. The results of research present that seven incentive schemes are identified such as (1) Tendering for both cost and project duration (A+B bidding), (2) Incentive plus penalty (Incentive/disincentive), (3) Tendering for both cost and project duration with Incentive plus penalty (A+B with incentive/disincentive bidding), (4) Building area rental or lane rental, (5) Bid evaluation with past performance, (6) Compensation for project duration extension and (7) Advanced payment. There are nine factors effecting the selection of incentive scheme. The results of analysis show that for most of the construction projects, both project owners and contractors present a similar opinion on the factor effecting the selection of incentive scheme. They agree that Compensation for project duration extension scheme is appropriate. In addition, Bid evaluation with past performance scheme is a second preference in project owners point of view whereas Advanced payment scheme is a second preference in contractors point of view. However, because most of the proposed incentive schemes have not yet been implemented to public construction projects in Thailand, the results of interview may be based on only the personal opinion and experience.