Moral hazard and construction procurement : A conceptual framework

@inproceedings{Eriksson2015MoralHA,
  title={Moral hazard and construction procurement : A conceptual framework},
  author={Per-Erik Eriksson and H Clark Lind},
  year={2015}
}
The first aim of this paper is to clarify the meaning of moral hazard in the context of construction procurement. Two important points are that typically there is a double moral hazard problem, as the client also can “misbehave” in a number of ways, and that both internal moral hazard (within the client and contractor organization) and external moral hazard (between client and contractor) must be handled. The second aim of the paper is to give an overview of strategies to reduce the risk of… CONTINUE READING

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