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Article
Publication date: 4 May 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…

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

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Article
Publication date: 13 July 2010

Daniel W.M. Chan, Albert P.C. Chan, Patrick T.I. Lam and James M.W. Wong

The paper aims to present a succinct review of guaranteed maximum price (GMP) and target cost contracting (TCC) concepts and features in general, and to identify the…

Abstract

Purpose

The paper aims to present a succinct review of guaranteed maximum price (GMP) and target cost contracting (TCC) concepts and features in general, and to identify the critical success factors for procuring GMP/TCC contracts from the Hong Kong perspective in particular.

Design/methodology/approach

By means of an empirical questionnaire survey geared towards industrial practitioners with direct hands‐on GMP/TCC experience, the opinions of various contracting parties including clients, consultants and contractors were solicited, analysed and compared in relation to GMP/TCC success factors.

Findings

Experienced practitioners shared the unanimous perception that: reasonable share of cost saving and fair risk allocation; partnering spirit from all contracting parties; right selection of project team; well‐defined scope of work in client's project brief and early involvement of contractor in design development, are the most essential ingredients for the successful implementation of GMP/TCC scheme.

Research limitations/implications

Although the research study is based in Hong Kong with a limited sample size, the survey findings and hands‐on experience of the relevant industrial practitioners may be cross‐referenced to other similar investigations in other parts of the world for international comparisons.

Originality/value

The research study has provided some useful insights into assisting key project stakeholders in determining important successful ingredients when launching GMP/TCC scheme. Such an identification of critical success factors would be valuable in formulating effective practical strategies to improve overall project performance, create win‐win opportunities for contracting parties and mitigate the occurrence of construction disputes/claims. It also attempts to seek more research evidence to capture the levels of success and lessons learned from previous GMP/TCC construction projects for generating best practice recommendations for future implementation.

Details

Journal of Facilities Management, vol. 8 no. 3
Type: Research Article
ISSN: 1472-5967

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Article
Publication date: 15 April 2019

Abid Hasan and Kumar Neeraj Jha

Delays in construction projects can be very expensive due to their adverse effects on project cost and profit margin. To overcome this problem, clients in the construction…

Abstract

Purpose

Delays in construction projects can be very expensive due to their adverse effects on project cost and profit margin. To overcome this problem, clients in the construction industry sometimes use schedule incentive/disincentive (I/D) contracting strategy. However, previous studies have shown that inadequate understanding and wrong implementation of schedule I/D provisions could result in unintended results. Moreover, the use of the I/D contracting method is in its initial stages in many countries such as India. The purpose of this paper is to identify various factors that are essential for schedule I/D success in construction projects.

Design/methodology/approach

A questionnaire survey was conducted among experienced professionals (clients, contractors and consultants) from across the Indian construction industry.

Findings

Top success factors related to clients in the descending order of their importance are: realistic targets; detailed guidelines for I/D implementation; close coordination with other stakeholders; correct estimation of I/D duration and amount; and imposing disincentives after due consideration. Meanwhile, factors related to contractor organisations are: continuous monitoring and control; thorough understanding of schedule I/D targets; specific considerations in appointing senior project personnel; effective communication; and proper labour management.

Research limitations/implications

This empirical research was conducted in the Indian construction industry. Similar studies from developed construction markets may provide more insights into the successful use of schedule I/D provisions in construction projects.

Practical implications

The uptake of these recommendations is likely to increase the success of schedule I/D provisions in construction projects, especially in developing countries where the use of I/D contracting strategy is not very popular.

Originality/value

This research highlights the specific roles of both clients and contractors in the success of schedule I/D projects in developing countries such as India.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 3
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 9 September 2014

Marcus Jefferies, Graham John Brewer and Thayaparan Gajendran

There has been a significant increase in the use of relationship contracting in the global construction industry, with strategies such as Partnering, Alliancing and…

Abstract

Purpose

There has been a significant increase in the use of relationship contracting in the global construction industry, with strategies such as Partnering, Alliancing and Public-Private Partnerships all used. These approaches were introduced to the Australian construction industry in the 1990s in an attempt to overcome the adversarial nature of traditional contracting methods. The purpose of this paper is to investigate factors that influence the successful implementation of Project Alliancing by means of a case study approach focusing on the procurement of a large water treatment plant. The research findings identify critical success factors (CSFs) both from literature and the case study project.

Design/methodology/approach

The research traces the origins of Alliancing and identifies CSFs by reviewing literature and analysing a current case study project. The paper first identifies CSFs on a global scale by establishing a theoretical framework of CSFs and then compares this to the case study project. A case study of an Australian Alliance project is investigated whereby a semi-structured interview process, involving senior managers from the six partners from the Alliance, was used in conjunction with a review of project documentation. The findings of the case study project are compared to the literature and any new CSFs are identified.

Findings

Alliancing helps to establish and manage the relationships between all parties, remove barriers and encourage maximum contribution to achieve success. Alliancing provides a project delivery method that promotes open communication, equality and a systematic problem resolution process. Team culture focusing on an “open book/no blame” approach is vital to the success of an Alliance. Five CSFs were identified as specifically influencing the success of the case study project: the use of an integrated Alliance office; the staging of project and stretch targets; establishing project specific key performance indicators; facilitating on-going workshops; and the integration of a web-based management programme.

Originality/value

The research findings assist both public and private sectors by identifying factors that are critical for success in Alliancing. Five additional factors were identified as specifically influencing the success of the case study project. Since this research was conducted, Australia has seen a further increase in relationship contracting where the likes of Alliancing is often used as the default approach for certain Public Sector projects. Ongoing research into Alliancing is vital to ensure the development of sustainable procurement models, successful operational viability, fair risk distribution and value for money.

Details

Engineering, Construction and Architectural Management, vol. 21 no. 5
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 9 April 2018

Guangdong Wu, Xianbo Zhao, Jian Zuo and George Zillante

This study aims to investigate the influence of contractual flexibility on different types of conflict, determine if contractual flexibility is significantly correlated…

Abstract

Purpose

This study aims to investigate the influence of contractual flexibility on different types of conflict, determine if contractual flexibility is significantly correlated with project success between contracting parties, verify the mediating effect of project conflicts on the relationship between contractual flexibility and project success and examine the relationship between different types of conflicts and project success in megaprojects.

Design/methodology/approach

A theoretical model was developed and a structured questionnaire survey was conducted with 468 professionals. The structural equation modeling technique was used to analyze the data.

Findings

The results showed that both types of contractual flexibility – term and process flexibility – were correlated with and significantly positively affected project success, and term flexibility was found to have a greater influence. The introduction of project conflicts significantly weakened the relationship between contractual flexibility and project success, verifying the partial mediating effect of conflicts. All types of project conflicts play a destructive role in achieving project success; relationship conflict had the largest negative effect. Contractual flexibility affects two paths with respect to project success: the direct path (contractual flexibility → project success) and the indirect path (contractual flexibility → conflict → project success). The direct effect of contractual flexibility on project success is positive; the corresponding indirect effect is negative. The direct effect is greater than the corresponding indirect effect.

Research limitations/implications

Different types of conflicts may mutually transform to extent certain degree. However, this study did not address the potential influence of conflict transformation on project success. The results implied that more emphasis should be placed on contractual terms, particularly on developing flexible terms in the contractual document, when implementing megaprojects. Meanwhile, this study reveals the effects of conflicts on project success in megaprojects, which provides a useful reference for project stakeholders to avoid the negative effect of conflicts.

Practical implications

This study provides a better understanding of the relationship between contractual flexibility, types of conflicts in megaprojects and a reliable reference for the project manager to effectively deal with these related issues. This implies the contracting parties strengthen communication and cooperation to establish a trust mechanism, while reducing the negative influence of project conflicts and enhancing the positive effect of contractual flexibility.

Originality/value

Few studies have investigated the effects of contractual flexibility on conflict and project success in megaprojects; this study contributes significant theoretical and practical insights to contract management and conflict management and provides a reliable reference to achieve project success.

Details

International Journal of Conflict Management, vol. 29 no. 2
Type: Research Article
ISSN: 1044-4068

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Article
Publication date: 17 February 2012

Joseph H.L. Chan, Daniel W.M. Chan, Albert P.C. Chan and Patrick T.I. Lam

There is a lack of empirical research on risk mitigation strategies for those construction projects procured by guaranteed maximum price contracts (GMP) and target cost…

Abstract

Purpose

There is a lack of empirical research on risk mitigation strategies for those construction projects procured by guaranteed maximum price contracts (GMP) and target cost contracts (TCC). The paper aims to identify and analyse the risk mitigation strategies for GMP/TCC construction projects from the Hong Kong perspective.

Design/methodology/approach

A total of 94 industrial practitioners with both sound knowledge and abundant hands‐on experience of the GMP/TCC methodology participated in an industry‐wide empirical questionnaire survey to indicate their levels of agreement on those 18 risk mitigation strategies identified from reported literature and in‐depth interviews which were later analysed by factor analysis.

Findings

The results of factor analysis revealed that the 18 individual risk mitigation strategies can be consolidated into seven underlying grouped factors: relational contracting and mutual trust; clear contract provisions and well‐defined scope of works; involvement of contractor in decision making process; right selection of project team; third party review of project design at tender stage; standard contract clauses for GMP/TCC schemes; and fair treatment of contractor.

Research limitations/implications

Although both GMP/TCC contracts have been increasingly popular in the construction market of Hong Kong, not all of these projects have been equally successful and some of them have been exposed to very high risks or uneven allocation of risks. A detailed analysis and an implementation of recommended effective risk mitigation strategies are essential to the success of GMP/TCC schemes.

Originality/value

The research findings of this study are expected to help the decision makers to generate useful insights into risk mitigation strategies when administering GMP/TCC contracts at an early stage of project delivery and lay a solid foundation for further research on GMP/TCC in both local and international contexts.

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Article
Publication date: 1 March 1992

Om P. Kharbanda and Ernest A. Stallworthy

In the continuing endeavour to work towards ever better management,experience plays a crucial role. We learn from success, but we can learnmuch more from failure. Further…

Abstract

In the continuing endeavour to work towards ever better management, experience plays a crucial role. We learn from success, but we can learn much more from failure. Further, it is far better and cheaper when we learn from other people′s failures rather than our own. This monograph assesses the requirements of project management in relation to industrial projects, illustrating the factors that can result in failure by means of a series of case studies of completed and abandoned projects worldwide that have failed in one way or another. The key roles played by project planning and project cost control in meeting and overcoming the practical problems in the management of industrial projects are examined in detail. In conclusion the lessons that can be learned are evaluated and presented, so that we may listen and learn – if only we will.

Details

Industrial Management & Data Systems, vol. 92 no. 3
Type: Research Article
ISSN: 0263-5577

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Article
Publication date: 7 March 2016

Ernest Effah Ameyaw and Albert P.C. Chan

Public–private partnerships (PPPs) are viewed as a reform tool for resolving inefficiency and absence of dynamism in water supply delivery in developing countries…

Abstract

Purpose

Public–private partnerships (PPPs) are viewed as a reform tool for resolving inefficiency and absence of dynamism in water supply delivery in developing countries. However, the requirements for their successful implementation have received very little attention. This paper aims to describe a set of critical success factors (CSFs) that, when given special and continual attention, would ensure a successful project implementation and to provide a predictive tool to aid implementers to evaluate the likelihood of a successful PPP water supply project.

Design/methodology/approach

Fourteen perceived CSFs were initially derived from project cases and extant literature, and verified through a two-round Delphi survey. Factor analysis established five critical success factor groups (CSFGs) that were then used to develop a fuzzy synthetic evaluation tool for assessing the chance of a successful project.

Findings

The five key CSFGs are commitment of partners, strength of consortium, asset quality and social support, political environment, and national PPP unit. The model output showed that, overall, these factors have a “very high” positive impact on a successful implementation of a water supply project. Hence, there is an excellent correlation between achievement of the CSFGs and project success. Success indices of individual principal factors are also “very high”.

Originality/value

The study presents a tool to public clients and private audience, and it is hoped that the study will trigger policy development towards PPP practice in developing countries, because these findings have wider implications for legal and regulatory systems, public capacity, financing, public procurement and politics.

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Book part
Publication date: 8 April 2005

Arch G. Woodside, Günter Specht, Hans Mühlbacher and Clas Wahlbin

This paper examines three issues. First, do multiple possible paths to high versus low new product performance (NPP) occur among European, high-tech, industrial…

Abstract

This paper examines three issues. First, do multiple possible paths to high versus low new product performance (NPP) occur among European, high-tech, industrial manufacturing firms? Second, what are the upstream influences on high NPP? For example, what background factors affect the levels of the KSFs? Third, do consistent country-level differences occur among Austrian, German, and Swedish executives in their evaluations of antecedents and high-tech NPP? To probe these issues, a total of 771 chief operating officers and project managers participated in face-to-face long interviews (McCracken, 1988) covering 241 less and 264 more successful than average industrial NPD projects. The empirical findings support the propositions that: (1) multiple paths lead to high versus low NPP; (2) unique antecedent variables affect the KSFs for high NPP; and (3) for several upstream and direct influences, consistent national differences occur among executives’ assessments of NPP. A key implication of the study for NPD executives is to recognize the possibility of alternative paths leading to successful NPD.

Details

Managing Product Innovation
Type: Book
ISBN: 978-1-84950-311-2

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Article
Publication date: 26 August 2014

Asbjørn Rolstadås, Iris Tommelein, Per Morten Schiefloe and Glenn Ballard

The purpose of this paper is to show that project success is dependent on the project management approach selected, relative to the challenges posed by the project, and to…

Abstract

Purpose

The purpose of this paper is to show that project success is dependent on the project management approach selected, relative to the challenges posed by the project, and to develop an analytical model for analyzing the performance of the project organization.

Design/methodology/approach

The research is based on literature review, model development, interviews, and case studies.

Findings

The findings define two different approaches in project management: The prescriptive approach focusses on the formal qualities of the project organization, including governing documentation and procedures. The adaptive approach focusses on the process of developing and improving a project organization, project culture and team commitment. The two approaches have been identified through studies of three different case projects. An analytical model, referred to as the Pentagon model, has been applied for analyzing the performance of the project organization and explaining the project management approach. The model focusses on five different organizational aspects: structure, technologies, culture, social relations and networks, and interaction.

Research limitations/implications

The research is limited to megaprojects and to project management success.

Practical implications

It is suggested that project teams consider and select their project management approach at project initiation, and accordingly decide on relevant success factors to focus on. The adapted Pentagon model can be applied to develop the project management organization and assess its performance in the course of project delivery.

Originality/value

The contribution of the research is the application of the analytical model, and the identification as well as illustration of the prescriptive, vs adaptive management approach.

Details

International Journal of Managing Projects in Business, vol. 7 no. 4
Type: Research Article
ISSN: 1753-8378

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