The research question of this paper is to analyse when an operator and a service provider prefer a fixed price contract, common in the oil and gas industry, versus the uncommon incentive-based contract. The contracts are modelled with 20 parameters and one free choice variable which is the time...

This paper analyzes the difference between the fixed price contract, common in the Oil & Gas industry, and the uncommon incentive based contract. Our study shows how the two contracts affect the profits and time usage differently. Both actors prefer the incentive based contract when the project...