Innovative contracting in infrastructure design and maintenance
This paper describes the results of research into the contract arrangements and design processes for contractors in the road infrastructure industry. The changing institutional environment has led the industry to believe that more opportunities can be realised to the benefit of society (lower cost, higher quality, more efficient design and design process) when contractors are allowed more 'design freedom' in their contracts with governments. We have explored the technical design space, and developed a framework to structure this space. Next, we identified, through many indepth interviews and case studies, a number of technical, organisational and institutional opportunities, threats and barriers for granting more design space. Finally, the paper discusses the conclusions that could be drawn from the mapping of the opportunities onto the bottlenecks, and it shows that much can indeed be gained, but that many of these opportunities for cost reduction or value improvement are hampered by large, inert institutional settings.
A Theory of the Firm: Governance, Residual Claims, and Organizational Forms
This collection examines the forces, both external and internal, that lead corporations to behave efficiently and to create wealth. Corporations vest control rights in shareholders, the author argues, because they are the constituency that bear business risk and therefore have the appropriate incentives to maximize corporate value. Assigning control to any other group would be tantamount to allowing that group to play poker with someone else's money, and would create inefficiencies. The implicit denial of this propositions is the fallacy of the so-called stakeholder theory of the corporation, which argues that corporations should be run in the interests of all stakeholders. This theory offers no account of how conflicts between different stakeholders are to be resolved, and gives managers no principle on which to base decisions, except to follow their own preferences. In practice, shareholders delegate their control rights to a board of directors, who hire, fire and set the compensation of the chief officers of the firm. However, because agents have different incentives than the principals they represent, they can destroy corporate value unless closely monitored. This happened in the 1960s and led to hostile takeovers in the market for corporate control in the 1970s and 1980s. The author argues that the takeover movement generated increases in corporate efficiency that exceede $1.5 trillion and helped to lay the foundation for the great economic boom of the 1990s.
Soil organic matter and microbiological development of technosols in the South Wales Coalfield
Abstract Degraded land (formerly ‘reclaimed’) after surface-coal-mining is a serious problem in South Wales. This project uses forestation to foster soil development on opencast coal-mine spoil technosols. It compares records of humification and the soil microbiological system (microcoenosis) using paired data from the same plantings in 1998 and 2018. Statistical analysis finds no significant difference between samples collected under trees planted by the pit-planting versus trench planting method or trees planted using organic or mineral fertilizer. However, there are strong significant differences in both soil organic matter and microflora components and significant correlations with time since tree planting. Most components of the soil organic carbon (TOC) and the microflora increase, often significantly. However, compared to 2018, 1998 samples contain significantly greater maximum levels of Insoluble Carbon while the microflora had significantly more Ammonifying bacteria. Decreases in Insoluble Carbon explain the relatively small increase in TOC between 1998 and 2018. The % extracted with 0.1 N H2SO4 is significantly larger in 2018, suggesting active weathering. Similarly, both the maxima and minima of total Humic and Fulvic acids content, extracted with 0.1 M Na4P2O7 + 0.1 M NaOH, are significantly greater in 2018. Total microflora shows significant positive correlations with time-since-tree-planting as do the proportions of bacilli and actinomycetes but the correlation with ammonifying bacteria is negative. In 1998, the microflora was dominated by non-spore-forming bacteria while, in 2018, bacilli and actinomycetes prevail; both are involved in the transformation of complex organic compounds and humification. This indicates active transformation of more complex organic compounds and advancing humification. In sum, forestation of these degraded, formerly reclaimed, opencast coal-mine spoils has resulted in a massive increase in both the size and functioning of the soil organic system.