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New payment provision for win-win negotiations between a contractor and subcontractors

Event organised by ICE

19 September 2023

This event has now ended

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Contractors frequently outsource their work to subcontractors. Because of the intense competition in the construction industry, contractors are constantly looking for ways to reduce bid prices. This webinar outlines a negotiation strategy whereby the contractor requests lower prices from subcontractors in exchange for shorter payment lags. Even before receiving payment from the owner, the contractor agrees to pay subcontractors. 

While prompt payments lessen the financing costs for subcontractors, lower subcontractor prices lower the contractor's bid price. In contrast to the industry standard of "pay-when-paid," this new payment offer of "pay-before-paid" signifies a paradigm change.

In order to assign project work packages to prospective subcontractors based on their provided prices for specific payment-lag alternatives, a genetic algorithm (GA) optimization model is developed. The GA model's objective is to decrease the contractor's bid price. The scalability of the GA model was established through solving large-size problems.


Dr Ashraf Elazouni PhD PMP PEng

Dr Ashraf Elazouni PhD PMP PEng

Sultan Qaboos University, Oman

Associate Professor, Civil and architectural engineering department

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Dr Ashraf Elazouni PhD PMP PEng

Dr. Ashraf Elazouni boasts a distinguished 30-year career in portfolio, program, and project management. Holding B.Sc. and M.Sc. degrees from Zagazig University, Egypt, and a Ph.D. from Oklahoma State University, USA, his academic journey laid the foundation for his impactful contributions.

Dr. Elazouni's expertise extends to instructing and coaching. He designed training for Egyptian engineers pursuing IPMA certification and conducted courses for Saudi ARAMCO employees aspiring to secure PMP certification. His commitment is evident in 38 workshops that enhanced Saudi ARAMCO staff skills across various project management facets.

A prolific inventor, Dr. Elazouni holds four USA patents in program and project management. His innovative methodologies, featured in renowned journals and international conferences, reflect his dedication to pushing project management boundaries.

As an educator, he has enriched curricula globally, teaching construction and project management at universities in Egypt, USA, Saudi Arabia, and Canada.

Dr. Elazouni's pioneering research, integrating project scheduling and finance, has earned patents and industry acclaim, establishing him as a visionary in the field.

For more information please contact:

Valentina Cazan