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1 – 10 of over 67000This 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…
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.
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Anna Kadefors, Kirsi Aaltonen, Stefan Christoffer Gottlieb, Ole Jonny Klakegg, Pertti Lahdenperä, Nils O.E. Olsson, Lilly Rosander and Christian Thuesen
Relational contracting is increasingly being applied to complex and uncertain construction projects. However, it has proved hard to achieve stable performance and industry-level…
Abstract
Purpose
Relational contracting is increasingly being applied to complex and uncertain construction projects. However, it has proved hard to achieve stable performance and industry-level learning in this field. This paper employs an institutional perspective to analyze how legitimacy for relational contracting has been produced and challenged in Denmark, Finland, Norway and Sweden, including implications for dissemination and learning.
Design/methodology/approach
A collaborative case study design is used, where longitudinal accounts of the developments in relational contracting over more than 25 years in four Nordic countries were developed by scholars based in each country. The descriptions are underpinned by literature sources from research, practice and policy.
Findings
The countries share similar problem perceptions that have triggered the de-institutionalization of traditional contracting practices. Models and policies developed elsewhere are important sources of knowledge and legitimacy. Most countries have seen pendulum movements, where dissemination of relational contracting is followed by backlashes when projects fail to meet projected outcomes. Before long, however, relational contracting tends to re-emerge under new labels and in slightly new forms. Such a proliferation of concepts presents further obstacles to learning. Successful institutionalization is found to rely on realistic goals in combination with broad competence development at the organizational and industry levels.
Practical implications
In seeking inspiration from other countries, policymakers should go beyond contract models to also consider strategies to manage industry-level learning.
Originality/value
The paper provides a unique longitudinal cross-country perspective on the field of relational contracting. As such, it contributes to the small stream of literature on long-term institutional change in the construction sector.
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Adekunle S. Oyegoke, Michael Dickinson, Malik M.A. Khalfan, Peter McDermott and Steve Rowlinson
The purpose of this paper is to examine different categories of building project procurement routes based on organisational, contractual, financial and technical issues.
Abstract
Purpose
The purpose of this paper is to examine different categories of building project procurement routes based on organisational, contractual, financial and technical issues.
Design/methodology/approach
The paper is based on review of literature and conditions of contracts. The UK construction industry serves as a general frame of reference. The Royal Institution of Chartered Surveyors survey of Contracts in Use from 1985 to 2004 is used to probe the share and value of contracts along different procurement routes and across different conditions of contracts in the UK. The logic is that the value and the share of contracts will indicate the behaviour of different procurement routes in the UK construction market while the in‐depth analysis of conditions of contracts will show the gaps and relationships between the general definition/categorisation and contractual context (conditions of contracts) of each of the procurement routes.
Findings
The preliminary result of the analysis shows that traditional routes remain the main type of procurement route for the construction project industry sector, within which different management and incentivisation systems are applied for greater efficiency. The conditions of contracts in the UK support this assertion by aligning different procurement routes to different conditions of contracts and additionally specifying different forms of agreements, special provisions and incentivisation in order to increase performance, reduce risks and improve compensation methods.
Research limitations/implications
The study can serve as a learning opportunity for construction project stakeholders internationally, and clients in particular, to differentiate between procurement routes, management‐oriented systems, relational contracting and incentivisation.
Originality/value
The research provides an original assessment of construction procurement which can be used as intervening tool in different levels of private and public procurement strategies.
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Daniel M Chan, Albert P C Chan, Patrick T I Lam, Edward W M Lam and James M W Wong
Guaranteed maximum price (GMP) and target cost contracting (TCC) with a pain‐share/gain‐share arrangement have been adopted to integrate the construction delivery process and…
Abstract
Guaranteed maximum price (GMP) and target cost contracting (TCC) with a pain‐share/gain‐share arrangement have been adopted to integrate the construction delivery process and motivate service providers to seek continuous improvements in project outcomes. However, there is still a lack of research evidence to evaluate the levels of success and lessons learned from these innovative procurement strategies. Based on the analysis of a series of in‐depth interviews on the perceptions of various relevant experienced industrial practitioners, this paper aims to explore the key attributes of GMP/TCC including the underlying motives, perceived benefits, potential difficulties, critical success factors, key risk factors involved and optimal project conditions for adopting GMP/TCC. The research findings are useful in assisting key project stakeholders in minimising the detriments brought about by potential difficulties in and maximising the benefits derived from implementing GMP/TCC concepts. The study is also significant in contributing to new knowledge and practical information of GMP/TCC applications and implementation, in both a national and international context.
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Agnieszka Leśniak and Krzysztof Zima
One of the possible systems of project delivery is design & build (D&B), which is widely used in many countries. In the Polish public procurement market, the D&B system has been…
Abstract
One of the possible systems of project delivery is design & build (D&B), which is widely used in many countries. In the Polish public procurement market, the D&B system has been applied for a relatively short time, only since 2004, and despite the possibility, so far public clients have applied the D&B system only occasionally. This paper describes the current status of using the D&B method in the public procurement sector in Poland. Five hundred and fifty eight completed public-sector projects have been subject to analysis. Items analysed include the design/builder method of award, and types and value of contracts. The results provide insights for owners, the advantages and disadvantages of the D&B system, and highlight the need to change the method of selecting the contractor for the D&B system.
Baynesagn Asfaw Ambaw and Jan Telgen
Performance-Based Contracting (PBC) is widely accepted as a useful tool. It is believed that the use of PBC can assist the efficient utilization of the public resources. The…
Abstract
Performance-Based Contracting (PBC) is widely accepted as a useful tool. It is believed that the use of PBC can assist the efficient utilization of the public resources. The objective of this research is to assess the extent of PBC application and the obstacles to applying it in the public procurement systems of developing countries. Interviews and factual analysis of procurement guidelines and contracts are used to collect data for this research. The analysis results indicate that the majority of public organizations have not yet used PBC even though it is allowed by the law. This is due partly to lack of clarity in the procurement laws and lack of capacity to use PBC.
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…
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.
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This study was motivated by a belief that existing knowledge on management of a contractual claim in international contracting practice is different from a standardised local…
Abstract
Purpose
This study was motivated by a belief that existing knowledge on management of a contractual claim in international contracting practice is different from a standardised local practice. The paper is aimed at building competence for managing contractual claims in a standardised practice.
Design/methodology/approach
Comparative studies of British and Finnish contracting practices were used to determine the reason why claims are not pronounced in a standardised practice. Empirical study via direct interviews and questionnaires of a Finnish‐based contractor operating in the Russian markets was used. The players are three‐dimensional in nature where the client, consultants, and contractor come from different countries/practices and two of the projects studied were joint ventures.
Findings
The findings show the effects of: legal system, procurement methods, standardised practice and size of the market on the management of contractual claims. The remedial measures suggested include: operational management, i.e. learning through personal contacts, and management competence development of employees by learning through proper communication and education programmes in a form of continuing professional development.
Originality/value
Management of claims in the construction industry is vital to a successful implementation of the project. It brings about a fair dealing between the project owner and the contractor, improves contractor's cashflow and discourages abandonment of project and disputes. Lack of knowledge in managing claims constitutes a threat to successful implementation of project. The engagement of an expert and knowledge transfer through joint ventures/partnerships are suggested as solutions.
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