The use of incentive schemes is very common in construction projects. Primarily, construction incentivization arrangements are either positive reward (incentive) or penal (disincentive) in nature. This research aims to investigate under what circumstances incentive or disincentive should be used. Review of literatures on incentivization and theories of motivation suggest that: i) disincentives are useful for projects with well-defined budget and design; ii) incentives should be used to balance hidden risks; iii) incentives should be used to enhance relationship when the projects involved many team members; iv) disincentives are useful for building works; and v) incentives are useful for civil and infrastructural projects. Respectively, five scenarios were prepared to solicit views of practicing construction professionals. In general, all the suggestions were agreed by the respondents. The findings of the study inform how incentive schemes can be arranged to derive maximum benefits according to the project particulars. The study is useful to both researchers and practitioners.
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