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Open Access
Article
Publication date: 4 August 2022

Christopher Amoah and Hlatshwayo Nkosazana

Contract risk management has become a critical mission, as contract issues may lead to a loss of vast amounts of money to parties involved or cause project failure. This study…

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Abstract

Purpose

Contract risk management has become a critical mission, as contract issues may lead to a loss of vast amounts of money to parties involved or cause project failure. This study sought to identify effective management strategies to mitigate construction contract issues that might emerge during construction.

Design/methodology/approach

A quantitative research approach was adopted for the study. Structured questionnaires made up of close-ended questions were distributed to construction professionals in South Africa via the SurveyMonkey platform. The data were then analysed using descriptive statistics.

Findings

The findings indicate that the critical sources of contract-related disputes are ambiguous definitions of the contract parties' scope of their rights and obligations, lack of precise arrangements regarding the calculation of contractual penalties for failure to meet the deadline, lack of detailed specification of the works and specific milestones, lack of provisions regulating changes to the project documentation during the construction stage, an excessive amount of contractual penalties on contractor's side and lack of provisions regarding the rules of performing additional and replacement works and their settlement. However, for these disputes to be effectively managed, strategies such as reduction uncertainties in project's phases, setting up contingency plans, construction guarantee, extension of time claims, payment guarantee, retention and escalation clause should be implemented by the parties involved.

Research limitations/implications

Even though the empirical study focused on construction professionals in South Africa, the findings could be applied to other countries outside of South Africa.

Practical implications

To effectively manage and prevent contract disputes from averting project failures and losses to parties involved in the contract, construction professionals need to be aware of strategies that must be implemented before and during the project execution. If well implemented, these strategies will help a construction project be successful and experience fewer contractual disputes.

Originality/value

The study has identified the knowledge gap concerning suitable contract risk management strategies available for implementation to effectively prevent any contract parties from losing money, time and project failure.

Details

International Journal of Building Pathology and Adaptation, vol. 41 no. 6
Type: Research Article
ISSN: 2398-4708

Keywords

Open Access
Article
Publication date: 8 November 2022

Inimbom Walter Isang and David Ojimaojo Ebiloma

Covid-19 pandemic have raised serious health concerns, work disruptions and job loss. Thus, Nigeria’s Covid-19 challenges can hinder project performance in the construction…

2895

Abstract

Purpose

Covid-19 pandemic have raised serious health concerns, work disruptions and job loss. Thus, Nigeria’s Covid-19 challenges can hinder project performance in the construction sector. By integrating the principle of sustainable construction, it can minimise the environmental and socio-economic impact of Covid-19. This research therefore aims at developing strategies to achieve sustainable project performance in the post-Covid era in Nigeria.

Design/methodology/approach

A qualitative research method was used. Data was collected from 13 stakeholders in the built environment. Percentages and thematic analysis were used to analyse data from the interviews.

Findings

The study reveals that stakeholders are encountering operational and financial challenges: Increased price of materials, labour and material shortage and project delays were key operational challenges. The financial challenges were related to increased construction cost, reduced profit and payment delays. To address these challenges, the study developed managerial, contractual and governmental strategies: Market survey and bulk purchase, remote working and adherence to Covid-19 protocols were among the key managerial strategies. For the contractual strategies: contracts reviews, smart contracts, working overtime and night shift were developed, while governmental strategies included provision of funds, loans and incentives for workers.

Originality/value

The study deduced that while environmental sustainability was employed to address the Covid-19 challenges, the economic and social aspects were found to be under-utilized. Therefore, the study concluded that a holistic application of environmental, economic and social sustainability themes while incorporating managerial, contractual and governmental strategies is significant for achieving sustainable project performance in the post-Covid era in Nigeria.

Details

Frontiers in Engineering and Built Environment, vol. 3 no. 1
Type: Research Article
ISSN: 2634-2499

Keywords

Open Access
Article
Publication date: 8 July 2021

Eelon Mikael Lappalainen, Olli Seppänen, Antti Peltokorpi and Vishal Singh

With the ongoing digitalization of the construction industry (CI), situational awareness (SA) is becoming increasingly important in construction management. The purpose of this…

2359

Abstract

Purpose

With the ongoing digitalization of the construction industry (CI), situational awareness (SA) is becoming increasingly important in construction management. The purpose of this article is to identify the requirements of SA system development in the CI and to provide recommendations for the future development of SA systems.

Design/methodology/approach

In this exploratory multi-case research study, a literature review and five Finnish cases were used to gather the evidence on how system developers have planned SA systems and what motives and objectives were behind their development efforts. An analysis of the cases, along with a review of SA models and concepts from other sectors, was used to identify requirements and deficiencies of the SA systems developed by CI actors.

Findings

This study reveals deficiencies in the recent SA systems. The systems seemed to be based on traditional project models, in which the role of the individual as the creator and interpreter of an SA system is still significant. Major requirements and future development of the systems are related to better SA levels of perception and projection and data quality.

Research limitations/implications

This study contributes to an understudied area of SA in the construction context and provides new insights into how construction companies develop their SA systems. The main study limitations are its geographically limited case selection and the limited generalizability of the results.

Practical implications

The research (1) shows what requirements and systemic weaknesses SA developers in the CI must consider in future development work and (2) shows developers the requirements to obtain holistic SA.

Originality/value

The study provides insights into the content of newly developed SA models and integrates developers' requirements into the SA theory.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 8
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 14 August 2018

Keith W. Hipel, Liping Fang and Yi Xiao

A flexible decision technology called the Graph Model for Conflict Resolution (GMCR) is applied to a generic aquaculture conflict to illustrate how GMCR can be used to…

2625

Abstract

Purpose

A flexible decision technology called the Graph Model for Conflict Resolution (GMCR) is applied to a generic aquaculture conflict to illustrate how GMCR can be used to systematically investigate a wide range of conflicts arising in aquaculture in order to obtain meaningful strategic insights and thereby assist in making informed decisions in aquaculture development. To emphasize the importance of being able to resolve aquaculture controversies, a review of the global economic impacts of the aquaculture industry is provided and the key stakeholders who may be involved in aquaculture disputes along with their legitimate interests are identified. The paper aims to discuss these issues.

Design/methodology/approach

The GMCR methodology comprises two main stages: modeling and analysis. During the modeling stage, key decision makers (DMs), the options under each DM’s control and each DM’s relative preferences over feasible states are identified based on a thorough background investigation to a given dispute. Within the analysis stage, solution concepts that describe key characteristics of human behavior under conflict are utilized to determine resolutions that could occur when DMs interact under pure competition and cooperatively. Interpretation of the equilibrium results provides meaningful strategic insights for better understanding which strategies a given DM could select as the conflict evolves over time.

Findings

The results demonstrate how difficult it can be to balance the interests of different key stakeholders in aquaculture development. In all possible resolutions identified in the generic aquaculture conflict, at least two DMs among First Nations, environmental group and residents (Res) would object to the expansion of aquaculture activities due to the assumption that the government would choose to appease one stakeholder at a time. They also reflect the need for a useful tool box of decision technologies for addressing the vast range of challenges that could arise in the important area of marine economics and management.

Originality/value

The GMCR methodology possesses several unique and key original capabilities in comparison to other conflict analysis models. First, it only requires limited information to calibrate a conflict model. Second, it contains a number of solution concepts that describe how a DM could think and behave under conflict. Third, it furnishes a range of informative output, follow-up analyses and advice for use in real-life decision support. Finally, all of the foregoing advantages of GMCR can be contained within decision support systems that permit practitioners and researchers to readily apply the GMCR methodology to real-life conflicts.

Details

Marine Economics and Management, vol. 1 no. 1
Type: Research Article
ISSN: 2516-158X

Keywords

Open Access
Article
Publication date: 27 April 2020

Murat Gunduz and Hesham Ahmed Elsherbeny

This paper covers the development of a multidimensional contract administration performance model (CAPM) for construction projects. The proposed CAPM is intended to be used by the…

14387

Abstract

Purpose

This paper covers the development of a multidimensional contract administration performance model (CAPM) for construction projects. The proposed CAPM is intended to be used by the industry stakeholders to measure the construction contract administration (CCA) performance and identify the strengths and weaknesses of the CCA system for running or completed projects.

Design/methodology/approach

The research design follows a sequential mixed methodology of qualitative and quantitative data collection and analysis. In the first phase, contract administration indicators were collected from relevant literature. In the second phase, an online questionnaire was prepared, and data were collected and analyzed using the crisp value of fuzzy membership function, and structural equation modeling (SEM). The fuzzy set was chosen for this study due to the presence of uncertainty and fuzziness associated with the importance of several key indicators affecting the CCA performance. Finally, SEM was used to test and analyze interrelationships among constructs of CCA performance.

Findings

The data collected from 336 construction professionals worldwide through an online survey was utilized to develop the fuzzy structural equation model. The goodness-of-fit and reliability tests validated the model. The study concluded a significant correlation between CCA performance, CCA operational indicators, and the process groups.

Originality/value

The contribution of this paper to the existing knowledge is the development of a fuzzy structural equation model that serves as a measurement tool for the contract administration performance. This is the first quantitative structural equation model to capture contract administration performance. The model consists of 93 Construction Contract Administration(CCA) performance indicators categorized into 11 project management process groups namely: project governance and start-up; team management; communication and relationship management; quality and acceptance management; performance monitoring and reporting management; document and record management; financial management; changes and control management; claims and dispute resolution management; contract risk management and contract closeout management.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 6
Type: Research Article
ISSN: 0969-9988

Keywords

Open Access
Article
Publication date: 25 October 2021

Yaser Gamil and Ismail Abd Rahman

The purpose of this paper is to develop a structural relationship model to study the relationship between causes and effects of poor communication and information exchange in…

14291

Abstract

Purpose

The purpose of this paper is to develop a structural relationship model to study the relationship between causes and effects of poor communication and information exchange in construction projects using Smart-PLS.

Design/methodology/approach

The first method of this research is to identify the causes and effects factors of poor communication in construction projects from the extant of literature. The data used to develop the model was collected using a questionnaire survey, which targeted construction practitioners in the Malaysian construction industry. A five-point Likert type scale was used to rate the significance of the factors. The factors were classified under their relevant construct/group using exploratory factor analysis. A hypothetical model was developed and then transformed into Smart-PLS in which the hypothetical model suggested that each group of the cause factors has a direct impact on the effect groups. The hypothesis was tested using t-values and p-values. The model was assessed for its inner and outer components and achieved the threshold criterion. Further, the model was verified by engaging 14 construction experts to verify its applicability in the construction project setting.

Findings

The study developed a structural equation model to clarify the relationships between causes and effects of poor communication in construction projects. The model explained the degree of relationships among causes and effects of poor communication in construction projects.

Originality/value

The published academic and non-academic literature introduced many studies on the issue of communication including the definitions, importance, barriers to effective communication and means of poor communication. However, these studies ended up only on the general issue of communication lacking an in-depth investigation of the causes and effects of poor communication in the construction industry. The study implemented advanced structural modeling to study the causes and effects. The questionnaire, the data and concluding results fill the identified research gap of this study. The addressed issue is also of interest because communication is considered one of the main knowledge areas in construction management.

Details

Journal of Facilities Management , vol. 21 no. 1
Type: Research Article
ISSN: 1472-5967

Keywords

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