Skip to main content
SpringerLink
Log in

Game-Theoretic Modeling of the Project Management Contract

  • mathematical game theory and applications
  • Published:
Automation and Remote Control Aims and scope Submit manuscript

Abstract

The paper considers two-stage game-theoretic models of the project management contract with a random duration of tasks. In the first stage, the Principal signs the contract for task execution in which he determines the amount and regime of payments to each of the contractors; in the second stage, the contractors choose their own work rates. The optimal amount of payments and the expected completion time of the project are estimated. The characteristics of the optimal contract for each payment regime are numerically simulated. In accordance with the comparative analysis of the simulation results, the project manager (Principal) benefits from choosing the contract with different payments for the contractors and the payment regime upon completion of tasks.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Log in via an institution

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Institutional subscriptions

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8
Fig. 9
Fig. 10
Fig. 11

Similar content being viewed by others

Notes

  1. PERT, Program Evaluation Review Technique.

References

  1. Voropaev, V. I. Upravlenie proektami v Rossii (Project Management in Russia). (Alans, Moscow, 1995).

    Google Scholar 

  2. Lysakov, A. V. & Novikov, D. A. Dogovornye otnosheniya v upravlenii proektami (Contractual Relationships in Project Management). (Inst. Probl. Upravlen., Moscow, 2004).

    Google Scholar 

  3. Petrosyan, L. A., Zenkevich, N. A. & Shevkoplyas, E. V. Teoriya igr (Game Theory). (BKhV-Peterburg, St. Petersburg, 2012).

    Google Scholar 

  4. Spravochnik po spetsial’nym funktsiyam (Handbook of Special Functions), Abramovits,7D2M. and Stigan,7D2I., Eds., Moscow: Nauka, 1979.

  5. Adler, P., Mandelbaum, A., Nguyen, V. & Schwerer, E. From Project to Process Management: An Empirical-Based Framework for Analyzing Product Development Time. Manage. Sci. 41(no. 3), 458–482 (1995).

    Article  Google Scholar 

  6. Cohen, I., Mandelbaum, A. & Shtub, A. Multi-Project Scheduling and Control: A Project-Based Comparative Study of the Critical Chain Methodology and Some Alternatives. Project Manage. J. 35(no. 2), 39–50 (2004).

    Article  Google Scholar 

  7. Kamburowski, J. An Upper Bound on the Expected Completion Time of PERT Networks. Eur. J. Operat. Res. 21(no. 2), 206–212 (1985).

    Article  MathSciNet  Google Scholar 

  8. Kulkarni, V. G. & Adlakha, V. G. Markov and Markov-Regenerative PERT Networks. Operat. Res. 34(no. 5), 769–781 (1986).

    Article  MathSciNet  Google Scholar 

  9. Kwon, H., Lippman, S., McCardle, K. & Tang, C. Project Management Contracts with Delayed Payments. Manufact. Service Operat. Manage. 12(no. 4), 692–707 (2010).

    Article  Google Scholar 

  10. Maggott, J. & Skudlarski, K. Estimating the Mean Completion Time of PERT Networks with Exponentially Distributed Durations of Activities. Eur. J. Operat. Res. 71(no. 8), 70–79 (1993).

    Article  Google Scholar 

  11. Paul, A. & Gutierrez, G. Simple Probability Models for Project Contract. Eur. J. Operat. Res. 165, 329–338 (2005).

    Article  Google Scholar 

  12. Ross, S. Introduction to Stochastic Dynamic Programming. (Academic, New York, 1983).

    MATH  Google Scholar 

Download references

Author information

Authors and Affiliations

  1. St. Petersburg State University, St. Petersburg, Russia

    N. A. Zenkevich

  2. UC San Diego, La Jolla, USA

    Y. Sokolov

  3. St. Petersburg State University of Aerospace Instrumentation, St. Petersburg, Russia

    M. V. Fattakhova

Authors
  1. N. A. Zenkevich
    View author publications

    You can also search for this author in PubMed Google Scholar

  2. Y. Sokolov
    View author publications

    You can also search for this author in PubMed Google Scholar

  3. M. V. Fattakhova
    View author publications

    You can also search for this author in PubMed Google Scholar

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Zenkevich, N., Sokolov, Y. & Fattakhova, M. Game-Theoretic Modeling of the Project Management Contract. Autom Remote Control 81, 2094–2107 (2020). https://doi.org/10.1134/S0005117920110107

Download citation

  • Received:

  • Revised:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1134/S0005117920110107

Keywords

Search

Navigation