Haavard Haaskjold has submitted the following academic thesis as a part of the doctoral work at NTNU, MTP:

The Puzzle of Project Transaction Costs: Optimising project transaction costs through client-contractor collaboration

Electronic version of the thesis: https://ntnuopen.ntnu.no/ntnu-xmlui/handle/11250/2721546

Abstract:

Cost overruns is a recurring problem for projects in the construction industry worldwide. The total cost of a project is the sum of its production costs and its transaction costs. Production costs refer to costs associated with activities directly related to transforming inputs into valuable outputs, such as design and construction, while transaction costs are associated with managing and controlling the project. Examples of such activities include administration, preparing bids, managing changes, conflict resolution, verifications, site visits and meetings etc.

Several initiatives over the years have helped the construction industry to reduce production costs through more effective design and construction. However, we know surprisingly little about project transaction costs.

This thesis finds that transaction costs account for more than 18% of the total costs in Norwegian construction projects. Furthermore, a holistic model has been developed to demonstrate how improved client-contractor collaboration leads to reduced transaction costs, through more trust and better quality of the project deliverables.

The thesis also contains recommendations for practitioners in their search to achieve better collaboration in their projects. This includes the Collaboration Compass, a tool that can be applied to identify the most effective mechanisms to enhance collaboration in a project.

The Faculty has appointed the following Assessment Committee to assess the thesis:

·Professor emeritus Derek Walker, RMIT University, Australia

·Dr. Therese Eriksson, The Swedish Transport Administration, Sweden

·Professor Nils Olsson, NTNU

Professor Nils Olsson, Department of Mechanical and Industrial Engineering, NTNU, has been appointed Administrator of the Committee.

The Committee recommends that the thesis is worthy of being publicly defended for the PhD degree.

The doctoral work has been carried out at the Department of Mechanical and Industrial Engineering.

Due to the ongoing COVID-19 situation, the trial lecture and defence will be presented using  online-based solutions. 

Anyone interested is invited to attend by following the link:

Join Zoom Meeting
https://NTNU.zoom.us/j/92806468040?pwd=WE4xYnpZRGNvMVduRnhXTWxJUllBdz09

Meeting ID: 928 0646 8040
Passcode: 012438

Join by SIP
92806468040@zoomcrc.com

Join by Skype for Business
https://NTNU.zoom.us/skype/92806468040

The trial lecture will take place on 21st January at 08:15

on the following prescribed subject:

“Towards an understanding of collaborative project implementations models and comparisons with traditional models”

The public defence of the thesis takes place on 21st January at 10:15.

Professor Bjørn A. Andersen, Department of Mechanical and Industrial Engineering, has been the candidate’s main supervisor. Professor Jan Alexander Langlo, Department of Mechanical and Industrial Engineering, and Professor Wenche Aarseth, Nord University, have been the candidate’s co-supervisors.

Electronic version of the thesis: https://ntnuopen.ntnu.no/ntnu-xmlui/handle/11250/2721546

Abstract:

Cost overruns is a recurring problem for projects in the construction industry worldwide. The total cost of a project is the sum of its production costs and its transaction costs. Production costs refer to costs associated with activities directly related to transforming inputs into valuable outputs, such as design and construction, while transaction costs are associated with managing and controlling the project. Examples of such activities include administration, preparing bids, managing changes, conflict resolution, verifications, site visits and meetings etc.

Several initiatives over the years have helped the construction industry to reduce production costs through more effective design and construction. However, we know surprisingly little about project transaction costs.

This thesis finds that transaction costs account for more than 18% of the total costs in Norwegian construction projects. Furthermore, a holistic model has been developed to demonstrate how improved client-contractor collaboration leads to reduced transaction costs, through more trust and better quality of the project deliverables.

The thesis also contains recommendations for practitioners in their search to achieve better collaboration in their projects. This includes the Collaboration Compass, a tool that can be applied to identify the most effective mechanisms to enhance collaboration in a project.