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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…

1685

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: 18 May 2020

Jan Emblemsvåg

Project-based industries seem ignored in the quality management literature. These industries have some peculiarities that warrant attention, and the purpose of this paper is to…

1308

Abstract

Purpose

Project-based industries seem ignored in the quality management literature. These industries have some peculiarities that warrant attention, and the purpose of this paper is to discuss some of the critical aspects of project-based industries concerning quality management and particularly Quality 4.0.

Design/methodology/approach

The approach is based on reviewing the literature and then developing the paper using basic definitions, literature, logic and experience. It should be noted that the type of literature review is so-called “integrative” due to the fact that the topic of this paper is new. Furthermore, for this paper, as for integrative literature reviews in general, the purpose is to create initial and preliminary conceptualizations and theoretical models, rather than review old models. Creative collection of data is therefore key to combine perspectives and insights from different sources. This paper is therefore more a discussion piece rather than a paper presenting results per se. The relevant literature is only a starting point from which the argument is developed.

Findings

The paper demonstrates that quality management in project-based industries is outdated, driven by adversarial and legalistic interpretations of contracts, which results in manual work and reactive quality management. Initially, this can be a stumbling block for Quality 4.0. However, the greater credibility and transparency of Quality 4.0 technologies can enable relational contracting such as partnering. This will subsequently result in major improvements in total quality.

Research limitations/implications

The research was initially triggered by industry experience over years. The empirical aspect of the paper is therefore related to the construction, shipbuilding and the oil and gas industry. Because contracting regimes are similar across these industries, the findings are arguably applicable to other project-based industries. However, this is not demonstrated. Furthermore, as the topic is new to both literature and practice it is likely that the paper has not covered all relevant aspects that will emerge as the ideas are implemented.

Practical implications

The paper supports the argument for developing the contracting into a relational approach away from the adversarial and legalistic approach of today. It is illustrated how Quality 4.0 technologies can help in this transition. Therefore, the practical implications can become substantial in how industry works and the research about it.

Social implications

If the ideas were implemented, they could change contract management in project-based industries from the adversarial approach of today to genuine cooperation. It would therefore be relevant for teaching future contract managers. The project outcomes would also result in improved quality and reduce the loss to society.

Originality/value

The combination of Quality 4.0, new contracting regimes and project-based industries is according to the knowledge of this author, an original contribution that can help people improve the management of quality in project-based industries. With these industries constituting a large and growing share of an economy, the value can also become significant once practical issues concerning implementation are sorted out.

Details

The TQM Journal, vol. 32 no. 4
Type: Research Article
ISSN: 1754-2731

Keywords

Article
Publication date: 4 April 2008

Robert A. Marshall, Philippe Ruiz and Christophe N. Bredillet

The purpose of this paper is to summarise a successfully defended doctoral thesis. The main purpose of this paper is to provide a summary of the scope, and main issues raised in…

2666

Abstract

Purpose

The purpose of this paper is to summarise a successfully defended doctoral thesis. The main purpose of this paper is to provide a summary of the scope, and main issues raised in the thesis so that readers undertaking studies in the same or connected areas may be aware of current contributions to the topic. The secondary aims are to frame the completed thesis in the context of doctoral‐level research in project management as well as offer ideas for further investigation which would serve to extend scientific knowledge on the topic.

Design/methodology/approach

Research reported in this paper is based on a quantitative study using inferential statistics aimed at better understanding the actual and potential usage of earned value management (EVM) as applied to external projects under contract. Theories uncovered during the literature review were hypothesized and tested using experiential data collected from 145 EVM practitioners with direct experience on one or more external projects under contract that applied the methodology.

Findings

The results of this research suggest that EVM is an effective project management methodology. The principles of EVM were shown to be significant positive predictors of project success on contracted efforts and to be a relatively greater positive predictor of project success when using fixed‐price versus cost‐plus (CP) type contracts. Moreover, EVM's work‐breakdown structure (WBS) utility was shown to positively contribute to the formation of project contracts. The contribution was not significantly different between fixed‐price and CP contracted projects, with exceptions in the areas of schedule planning and payment planning. EVM's “S” curve benefited the administration of project contracts. The contribution of the S‐curve was not significantly different between fixed‐price and CP contracted projects. Furthermore, EVM metrics were shown to also be important contributors to the administration of project contracts. The relative contribution of EVM metrics to projects under fixed‐price versus CP contracts was not significantly different, with one exception in the area of evaluating and processing payment requests.

Practical implications

These results have important implications for project practitioners, EVM advocates, as well as corporate and governmental policy makers. EVM should be considered for all projects – not only for its positive contribution to project contract development and administration, for its contribution to project success as well, regardless of contract type. Contract type should not be the sole determining factor in the decision whether or not to use EVM. More particularly, the more fixed the contracted project cost, the more the principles of EVM explain the success of the project. The use of EVM mechanics should also be used in all projects regardless of contract type. Payment planning using a WBS should be emphasized in fixed‐price contracts using EVM in order to help mitigate performance risk. Schedule planning using a WBS should be emphasized in CP contracts using EVM in order to help mitigate financial risk. Similarly, EVM metrics should be emphasized in fixed‐price contracts in evaluating and processing payment requests.

Originality/value

This paper provides a summary of cutting‐edge research work and a link to the published thesis that researchers can use to help them understand how the research methodology was applied as well as how it can be extended.

Details

International Journal of Managing Projects in Business, vol. 1 no. 2
Type: Research Article
ISSN: 1753-8378

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

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…

14350

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

Article
Publication date: 15 May 2017

Khalid Almarri and Bassam Abuhijleh

The purpose of this paper is to develop a public–private partnership (PPP) framework for newcomers from developing countries with the United Arab Emirates (UAE).

Abstract

Purpose

The purpose of this paper is to develop a public–private partnership (PPP) framework for newcomers from developing countries with the United Arab Emirates (UAE).

Design/methodology/approach

For this purpose, through the meta-analysis review of literature and applied qualitative content analysis to the international PPP best practices, the authors identified key relevant PPP processes, terminologies and vocabulary that can assist new entrants in establishing their PPP infrastructure.

Findings

The outcome was a generic best practice framework for PPP implementation that consisted of five phases which further consisted of groups of functions and sub-groups of functions. These phases are establish the PPP framework, PPP implementation, contract design, bid management and PPP contract management.

Practical implications

This framework is expected to benefit the upper management of local government departments and the federal ministries to understand the full process for local PPPs and to help them make informed decision for what to develop as PPPs and how to develop them.

Social implications

This systematic approach to the development of PPPs in the UAE is expected to increase the number of PPP tenders, as there will be more awareness on what PPPs stand for, how they balance risks, improve efficiency and effectiveness of projects, improve facilities and services, etc.

Originality/value

This framework is the first to lay the foundations for a standardised PPP practice in the UAE for practitioners.

Details

Journal of Facilities Management, vol. 15 no. 2
Type: Research Article
ISSN: 1472-5967

Keywords

Article
Publication date: 15 July 2014

Huimin Li, David Arditi and Zhuofu Wang

Transaction costs arise from economic exchange rather than production activities. However, the term “transaction cost” is not consistently defined in the construction industry…

1610

Abstract

Purpose

Transaction costs arise from economic exchange rather than production activities. However, the term “transaction cost” is not consistently defined in the construction industry because the concept of transaction cost is not universally accepted by all stakeholders in construction projects. As a result, empirical studies are few and conflicting because accessing data on transaction costs is problematic, and the interpretation of the data is difficult. The purpose of this paper is to analyze the transaction costs borne by the owner in a construction project from the perspective of transaction cost economics and construction project characteristics.

Design/methodology/approach

A questionnaire survey was administered to construction owners. The factors that impact transaction costs were analyzed in the context of human-related issues (the owner's and the contractor's positions in the transaction), and environment-related issues (the transaction environment, and project management efficiency). Statistical analyses were conducted to compare the transaction costs incurred in the pre- vs post-contract phases of a project relative to the private vs public sector, different project delivery systems, different procurement methods, and different types of contracts.

Findings

The owners surveyed believe that transaction costs may be reduced if the owner and the contractor follow some basic guidelines (e.g. experience in similar projects, prompt payment, good relationship with project participants, no irregularities in bidding, and only few material substitutions and claims), if the project is well-run (e.g. technical competency, strong leadership, prompt decision-making, effective communication, and fair/speedy conflict management), and if the transaction environment is favorable (e.g. fair risk allocation, early contractor involvement, and complete design documents). The findings of the survey also indicate that post-contract transaction costs are much higher than pre-contract transaction costs expressed as percent of project value and that transaction costs are affected by the owner (public vs private), the procurement method, the project delivery system, and the type of contract.

Originality/value

The primary contribution that this research makes to the body of knowledge is a better understanding of transaction costs incurred by construction owners in the USA. The highest transaction costs are to be expected in the post-contract phase of public projects awarded on a unit price basis, but can be reduced, hence reducing overall project cost.

Details

Engineering, Construction and Architectural Management, vol. 21 no. 4
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 March 2011

Aruna Apte, Uday M. Apte and Rene G. Rendon

Services acquisition in the US Department of Defense (DoD) has continued to increase in scope and dollars in the past decade with over $200 billion spent for services in 2008. In…

Abstract

Services acquisition in the US Department of Defense (DoD) has continued to increase in scope and dollars in the past decade with over $200 billion spent for services in 2008. In this empirical study, we conducted a web-based survey to collect primary data on management practices in services acquisition in the U. S. Navy and studied such areas as contract characteristics, management approaches, and program management issues. The paper presents summary results of our survey, implications of current management practices, and recommendations useful for improving services acquisition in the Navy.

Details

Journal of Public Procurement, vol. 11 no. 4
Type: Research Article
ISSN: 1535-0118

Article
Publication date: 14 March 2016

Debadutta Kumar Panda

The purpose of this study is to investigate on what is value and value creation in Public–private partnerships (PPPs)? How coordination and trust among project partners is created…

1431

Abstract

Purpose

The purpose of this study is to investigate on what is value and value creation in Public–private partnerships (PPPs)? How coordination and trust among project partners is created in PPPs? In which way coordination and trust among project partners are related to organizational governance and success? How risk management is related to the success or failure of PPP project implementation? How organizational attributes can influence the PPP project implementation?

Design/methodology/approach

This study was conducted using qualitative research method. In all, 3 Indian PPPs were selected in the first phase, and then, 26 respondents were randomly chosen from the selected PPPs. One-to-one personal discussion was conducted with each respondents using predetermined set of questions. The responses were transcribed, and similar ideas were clustered together across the thematic research questions and themes. Subsequently, interlinking of themes and ideas was done through inductive reasoning and represented in the form of a causal relationship.

Findings

The study found that the importance of trust and confidence among project partners; organizational attributes (system, structure and style, process) of partner organizations; and the risk reduction and control in the PPP project company have influenced the relationship dynamics among project partners.

Originality/value

This study encourages future researchers to empirically test the possibility of existence of mediating and moderating effects in the link between value creation and contract management in PPPs. A structural framework was derived, which is expected to provide momentum for theoretical exploration and empirical verification.

Details

International Journal of Organizational Analysis, vol. 24 no. 1
Type: Research Article
ISSN: 1934-8835

Keywords

Article
Publication date: 1 March 2011

Branco Ponomariov and Gordon Kingsley

This paper explores changes in the attitudes of managers at a state transportation agency towards working with professional service consultants over time. The development of a…

Abstract

This paper explores changes in the attitudes of managers at a state transportation agency towards working with professional service consultants over time. The development of a relational orientation amongst agency managers is explored, i.e. managerial styles recognizing greater interdependence and emphasizing trust, partnership and collaboration over formal procedures and monitoring. Case studies of two points in time (2003 and 2007) are presented using semi-structured interviews and survey data. The evidence demonstrates growing patterns of interdependence and the structural and procedural adaptations made by the agency. Corresponding difference in means tests demonstrate patterns of change in relational orientation over time.

Details

Journal of Public Procurement, vol. 11 no. 3
Type: Research Article
ISSN: 1535-0118

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