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Article
Publication date: 14 November 2023

Liupengfei Wu, Weisheng Lu and Chen Chen

This research aims to develop a blockchain smart contract–enabled framework to resolve power imbalance problems in construction payment.

Abstract

Purpose

This research aims to develop a blockchain smart contract–enabled framework to resolve power imbalance problems in construction payment.

Design/methodology/approach

This research adopts a design science research method to develop the blockchain smart contract–enabled framework. The authors then develop a prototype system. Finally, the authors evaluate its performance in solving power imbalance-induced payment problems.

Findings

The results show that the prototype system can resolve power imbalance problems in construction payment by allowing project participants to make transparent and decentralized decisions that are self-enforceable by blockchain smart contracts.

Research limitations/implications

This study provides theoretical explanations for how blockchain smart contracts can resolve power imbalances in construction payment; based on that, it proposes a novel blockchain smart contract–enabled method to rebalance the power of stakeholders in construction payment. Thus, it contributes to the body of knowledge on blockchain technology and construction payment.

Practical implications

This study moves beyond a conceptual framework and develops a practical blockchain smart contract system for resolving power imbalances in construction payment, strengthening construction project members' confidence in using blockchain technology.

Social implications

The proposed blockchain smart contract–enabled solution helps mitigate negative social impacts associated with late payment and non-payment. Furthermore, the research maximizes trust among participants in payment processes to inspire collaborative culture in the construction industry.

Originality/value

This paper introduces a novel blockchain smart contract integrated method, allowing project stakeholders to resolve power imbalance problems in construction payment through decentralized decision-making.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 6 April 2023

Gao Shang, Low Sui Pheng and Roderick Low Zhong Xia

The construction industry has arrived at a crossroads of rapid technological progress. While it is foreseen that the advent of new construction technologies will disrupt the…

Abstract

Purpose

The construction industry has arrived at a crossroads of rapid technological progress. While it is foreseen that the advent of new construction technologies will disrupt the construction industry’s future, such disruptions often create the ideal environment for innovation. As poor payment practices continue to plague the construction industry, the advent of smart contracts has created an opportunity to rectify the inherent flaws in the mitigation of payment problems in traditional construction contracts. Given the intrinsic resistance of construction firms to such revolutionary changes, this study aims to understand the various factors influencing the adoption of smart contracts in the Singapore construction industry.

Design/methodology/approach

A mixed method was adopted involving quantifying respondents’ perceptions of the factors influencing smart contract adoption, and validation from a group of interviewees on the matter. Out of 461 registered quantity surveyor members contacted via the Singapore institute of surveyors and valuers website, 55 respondents took part in the survey. This is followed by semi-structured interviews to validate the survey results.

Findings

The findings indicate that construction firms have neither a significant knowledge of nor willingness to adopt smart contracts. A total of 29 institutional factors were also identified that significantly influence the adoption of smart contracts. The quantitative findings were further reinforced by qualitative interviews with five industry experts.

Originality/value

With recognition of and the successful formulation of the significant institutional drivers and barriers, the key findings of this study will be integral in driving the commercial adoption of smart contracts within the construction industry.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

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…

4889

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

Article
Publication date: 1 May 2001

ADEKUNLE SABITU OYEGOKE

This study provides a framework for comparing construction management contracts in the UK and the US construction practices. It starts by reviewing previous studies on UK and US…

1683

Abstract

This study provides a framework for comparing construction management contracts in the UK and the US construction practices. It starts by reviewing previous studies on UK and US contracting practices and explores the main delivery methods, inform of comparison with construction management contracting systems. It examines construction management contracting types, processes and procedures and interaction between the construction manager and other stakeholders. This study was based on a literature review and the result shows the similarities and differences between the American and British CM systems within each practice and between both practices; the distribution of responsibilities and risks both in pre‐construction and during the construction stages; and allocation of responsibility in both practices.

Details

Engineering, Construction and Architectural Management, vol. 8 no. 5/6
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 30 April 2021

Hongjiang Yao, Yongqiang Chen, Yangbing Zhang and Bo Du

The purpose of this paper is to establish an integrated framework of the antecedents of enforcement after contract violations in construction projects and to examine whether…

Abstract

Purpose

The purpose of this paper is to establish an integrated framework of the antecedents of enforcement after contract violations in construction projects and to examine whether contract provisions (control and coordination provisions) and trust (goodwill and competence trust) affect enforcement mechanisms (contractual enforcement and relational enforcement).

Design/methodology/approach

A survey method was employed to test the hypotheses. The authors collected data from the Chinese construction industry, and general contractor respondents were asked to answer a questionnaire about a contract violation by one of their subcontractors.

Findings

Control provisions and competence trust are positively related to contractual enforcement, but goodwill trust is negatively related to contractual enforcement. Relational enforcement is influenced by goodwill trust and competence trust.

Research limitations/implications

This study treats contract violations as a given variable, and it focuses on contract violations by subcontractors. The cross-sectional design makes it difficult to confirm the causality of the relationships.

Practical implications

Overly strict contractual enforcement can generate disputes and a vicious cycle of retaliation, and overly severe relational enforcement can damage a potentially profitable long-term relationship. In construction projects, the violating party will benefit from this study to avoid excessively contractual enforcement and relational enforcement, thus developing a more collaborative atmosphere on the current project and even establishing a solid long-term relationship.

Originality/value

This study extends the project management literature by investigating the antecedents of enforcement after contract violations, an area not yet fully researched.

Details

International Journal of Managing Projects in Business, vol. 14 no. 6
Type: Research Article
ISSN: 1753-8378

Keywords

Article
Publication date: 31 July 2019

Chung Him Lau, Jayantha Wadu Mesthrige, Patrick T.I. Lam and Arshad Ali Javed

Project delays and cost over-runs are few common major problems arising from conventional contracts. To overcome these issues, the Hong Kong Government has been practicing the use…

2561

Abstract

Purpose

Project delays and cost over-runs are few common major problems arising from conventional contracts. To overcome these issues, the Hong Kong Government has been practicing the use of the New Engineering Contract (NEC) forms in several public works projects. However, despite the successful outcomes and the positive signs of adopting NEC, it appears that NEC forms of contracts are not widely adopted in the Hong Kong construction industry even after 25 years of their first introduction. The purpose of this paper is to identify the challenges and barriers for not implementing NEC widely in Hong Kong.

Design/methodology/approach

Based on a questionnaire survey data collected from 45 senior industry professionals, and six semi-structured interviews, the study evaluated the perceptions of construction professionals as to why NEC is still not popular in the industry and reported the relative importance of challenges in the implementation of NEC in Hong Kong.

Findings

The results reveal that “People are not willing to change,” “Limited number of trained professionals” and “Insufficient case law and adjudication experience” are the most significant challenges and barriers in adopting NEC. These findings are also supported by the opinions of construction professionals through semi-structured interviews.

Practical implications

The findings are relevant and would benefit to the industry stakeholders for adopting NEC contracts by informing them of the most significant challenges so that proper strategies may be devised to overcoming them for early contractors’ involvement, controlling cost and time overruns in infrastructure projects.

Originality/value

The empirical evidence of the study provides an insight into the challenges faced by the construction industry of Hong Kong. NEC form of contract is the way forward in order to create a better working environment conducive for all the parties that would result in better construction project performance and productivity.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 10
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 27 August 2021

Ramin Asadi, Suzanne Wilkinson and James Olabode Bamidele Rotimi

The high rate of rework that occurs in construction projects has a negative effect on the performance of the construction projects. Although several mechanisms have been…

Abstract

Purpose

The high rate of rework that occurs in construction projects has a negative effect on the performance of the construction projects. Although several mechanisms have been implemented to control reworking, a comprehensive list of rework causes is yet to be provided to present the common causes that contribute to rework in construction contracts. This paper aims to investigate the most common rework causes that need to be addressed in construction contracts.

Design/methodology/approach

A mixed-method using both the qualitative and quantitative approach is used in this paper. First of all, the study adopted a four-step literature review to introduce the rework research trends and provide statistical reports using descriptive analysis. Next, a comprehensive review has been completed using content analysis to identify the common causes of rework in construction projects. Finally, the common causes in construction contracts are further investigated through a quantitative questionnaire survey to validate the initial results.

Findings

The results of the review showed an increasing trend of publications on rework over the last three decades. Most of the studies were conducted in Australia, the UK, Nigeria and Hong Kong. Based on further investigation in the study area of sources of rework, 37 causes of rework causes were identified and classified in five groups. Then, the most significant causes of rework in construction contracts were compiled in the list of 22 items.

Research limitations/implications

The paper’s reported result, contributes to the contract management body of knowledge by proposing a list of common rework causes that can be used by practitioners during the contract negotiation to prevent contractual issues. The result of the review can also be used for further investigation of the relationship between rework and contract conditions.

Originality/value

The proposed list of common causes of rework in construction contracts allows project parties to improve the terms of the contract in addressing rework, this could result in fewer contractual claims and disputes. The findings of this study will also guide the investigations into the contract conditions, thus the approach used is constructive.

Details

Journal of Engineering, Design and Technology , vol. 21 no. 4
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 12 August 2020

Solomon Olusola Babatunde, Srinath Perera, Damilola Ekundayo and Damilola Sarah Adeleke

Building information modeling (BIM) is vital in the performance improvement of contracting firms. Thus, there is a need to stimulate its implementation in the construction sector…

Abstract

Purpose

Building information modeling (BIM) is vital in the performance improvement of contracting firms. Thus, there is a need to stimulate its implementation in the construction sector with a view to meeting the competitive demands of the industry. However, there have been very few studies on BIM implementation among contracting firms in Nigeria. Hence, this study aims to examine the current BIM uptake among Nigerian contracting firms, assess the barriers to BIM implementation and examine the ways of improving BIM implementation within these contracting firms.

Design/methodology/approach

A questionnaire survey was conducted on contracting firms (comprising small-, medium- and large-sized firms) in Lagos, Nigeria. The obtained data were analyzed using both descriptive and inferential statistics. These included percentage, mean score, standard deviation, the Kruskal–Wallis test and factor analysis.

Findings

This study revealed the current state of BIM implementation among contracting firms in Nigeria in terms of their knowledge of BIM, their usage of BIM as well as the BIM software adopted. Furthermore, the study identified 25 barriers to BIM implementation in contracting firms and identified 15 ways to improve BIM implementation in contracting firms. The relative importance of both the identified barriers and the ways for improving BIM implementation was gauged among contracting firms comprising small-, medium- and large-sized firms. The result of the Kruskal–Wallis test revealed that, except for two (out of 25) identified barriers, and one (out of 15) identified ways of improving BIM implementation in contracting firms, there is no significant statistical difference in the perceptions of the three respondents’ groups. The result of the factor analysis categorized the identified 25 barriers into seven main factors.

Practical implications

This study provides empirical evidence on the barriers to BIM implementation and the ways of improving its implementation among contracting firms, thereby providing a better insight of the Nigerian construction industry’s BIM environment.

Originality/value

This study’s findings can positively inform the decisions of construction stakeholders to formulate strategies capable of improving BIM implementation in the construction industry at large.

Details

Journal of Financial Management of Property and Construction , vol. 26 no. 1
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 23 March 2012

Godwin Idoro

The prominent role of traditional contract and design‐build methods in the procurement of projects and the importance of planning in the success of the projects prompt this study…

1635

Abstract

Purpose

The prominent role of traditional contract and design‐build methods in the procurement of projects and the importance of planning in the success of the projects prompt this study. The study evaluates the levels of use of project documents and their influence on the outcome of projects procured by the two methods. The purpose of this paper is to assist stakeholders in comparing the documents prepared and the performance of projects procured by traditional contract and design‐build methods.

Design/methodology/approach

The study adopted a questionnaire survey approach to achieve its purpose. A field survey of 84 projects made up of 42 traditional contract projects and 42 design‐build projects selected by purposive sampling was conducted. Three categories of variables namely: procurement method, project planning and project outcome were used. Data were collected with the aid of structured questionnaires and analysed to derive and compare the levels of use of selected project plans, levels of project inception, design, tendering, construction and overall planning in projects procured by traditional contract and design‐build methods using percentage, mean and t‐test.

Findings

The results reveal that the levels of project stage and overall planning in projects procured by the two methods investigated are the same. However, the levels of use of specific plans and project outcome in the two categories of projects are significantly different. The study considers the difference in the levels of use of project plans to be responsible for the lower delivery time and cost of projects procured by traditional contract method and higher quality standards in projects procured by design‐build method.

Originality/value

The paper has revealed the level of efforts put into the planning of projects procured by traditional contract and design‐build methods and their influence on the performance of the projects. The results will make project stakeholders aware of how to improve their efforts, thereby improving the outcome of the projects.

Details

Journal of Engineering, Design and Technology, vol. 10 no. 1
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 27 September 2011

Heap Yih Chong, Balakrishnan Balamuralithara and Siong Choy Chong

The purpose of this paper is to propose a conceptual model which is aimed at assisting end‐users, i.e. construction practitioners who are without a proper legal background for…

3404

Abstract

Purpose

The purpose of this paper is to propose a conceptual model which is aimed at assisting end‐users, i.e. construction practitioners who are without a proper legal background for effective administration of construction contracts, to enable them to make correct interpretations and decisions in dealing with vast amount of legal information.

Design/methodology/approach

This study proposes the application of data warehouse technology in the contract administration process of the construction industry. Upon identification of a comprehensive list of problems associated with construction contracts based on the feedback from 12 reputed experts in the construction industry, a conceptual model is developed using data flow diagram.

Findings

The results show that data warehouse technology is feasible and practical to the construction practitioners in the contract administration process.

Research limitations/implications

This research focuses only on the development of a conceptual model and thus the practicability aspect of the model is a major concern. As such, the resulting practical implications are limited and are constrained only to the construction industry in Malaysia, raising the question of generalizability of the proposed model, as well as across different industries and countries.

Practical implications

It is posited that the proposed conceptual model, when implemented, would enable construction practitioners to administer construction contracts with better clarity and accuracy, so that interpretation errors and disputes can be mitigated. This will facilitate the development of harmonious working relationships.

Originality/value

The application of data warehouse technology in contract administration is rather new in the construction industry. The conceptual model thus offers a more effective and proactive approach in construction contract administration towards dispute resolution and/or prevention.

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