Ambiguity factors in construction contracts entailing conflicts

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Kerim Koc ◽  
Asli Pelin Gurgun

PurposeConflicts, claims and disputes are inherent in most construction projects. Acceptable degree of commonality in the interpretation of contract provisions is critical in effective contract administration. This study aims to assess the effects of contract ambiguity factors on construction conflicts, highlighting the causes of divergent interpretations using fuzzy technique for order of preference by the similarity-to-ideal-solution (TOPSIS) method.Design/methodology/approachFuzzy TOPSIS framework with 27 ambiguity factors is constructed by conducting a comprehensive literature review, accompanied by a pilot study. Questionnaire survey is formed, and one-to-one interviews are arranged with 35 contract administration experts.FindingsThe findings indicate that (1) ambiguity due to excessive changes in the bill of quantity (BOQ) (including ambiguous provisions related to BOQ changes), (2) incomplete clauses that do not describe the scope of the intended work purely, (3) ambiguity due to excessive amendments in the scope of works (including ambiguous provisions related to scope changes), (4) ambiguous enforceability including excessive demands and (5) ambiguous goal and performance requirements are the top five ambiguity factors affecting construction conflicts.Research limitations/implicationsPresented framework is performed referring to ambiguity factors in all type of construction contracts in the general sense. However, the identified factors may vary depending on the project type, contract type, procurement method or use of standard contract forms (such as NEC, FIDIC).Originality/valueThe literature lacks the investigation of ambiguity factors in construction contracts, yet the assessment of the effects of contract ambiguity is essential to minimize conflicts.

2018 ◽  
Vol 25 (4) ◽  
pp. 559-573 ◽  
Author(s):  
Behzad Mahjoubpour ◽  
Farnad Nasirzadeh ◽  
Mahmoud Mohammad Hosein Zadeh Golabchi ◽  
Maryam Ramezani Khajehghiasi ◽  
Mostafa Mir

Purpose Learning as the way in which labor acquire new knowledge and skills has important strategic implications for the competitive advantage of an organization. The purpose of this paper is to present an agent-based modeling (ABM) approach to investigate the learning behavior of workers. The effect of interactions among different workers as well as the factors affecting the workers’ learning behavior is assessed using the proposed ABM approach. Design/methodology/approach For this purpose, the processes through which the competency value of worker is changed are understood and the workers’ learning behavior is modeled, taking account of various influencing factors such as knowledge flow, social ability to teach and forgetting factor. Findings The proposed model is implemented on a real steel structure project to evaluate its applicability and performance. The variation in the competency value of different workers involved in the project is simulated over time taking account of all the influencing factors using the proposed ABM approach. Practical implications In order to assess the effect of interactions among welders as well as the welders’ characteristics on their learning behavior, the competence value of different welders is evaluated. Originality/value This research presents an ABM approach to investigate the workers’ learning behavior. To evaluate the performance of the proposed ABM approach, it was implemented on a real steel structure project. The learning behavior of different welders (agents) was simulated taking account of their interactions as well as the factors affecting the welders’ learning behavior. The project involved the welding of a 240-ton steel structure. The initial project duration was estimated as 100 days. In this project, it has been planned to execute the welding process using three different welders namely welder A, B and C.


2015 ◽  
Vol 42 (12) ◽  
pp. 1071-1089
Author(s):  
Alan Chan ◽  
Bruce G. Fawcett ◽  
Shu-Kam Lee

Purpose – Church giving and attendance are two important indicators of church health and performance. In the literature, they are usually understood to be simultaneously determined. The purpose of this paper is to estimate if there a sustainable church congregation size using Wintrobe’s (1998) dictatorship model. The authors want to examine the impact of youth and adult ministry as well. Design/methodology/approach – Using the data collected from among Canadian Baptist churches in Eastern Canada, this study investigates the factors affecting the level of the two indicators by the panel-instrumental variable technique. Applying Wintrobe’s (1998) political economy model on dictatorship, the equilibrium level of worship attendance and giving is predicted. Findings – Through various simulation exercises, the actual church congregation sizes is approximately 50 percent of the predicted value, implying inefficiency and misallocation of church resources. The paper concludes with insights on effective ways church leaders can allocate scarce resources to promote growth within churches. Originality/value – The authors are the only researchers getting the permission from the Atlantic Canada Baptist Convention to use their mega data set on church giving and congregation sizes as per the authors’ knowledge. The authors are also applying a theoretical model on dictatorship to religious/not for profits organizations.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benviolent Chigara ◽  
Tirivavi Moyo

Purpose The purpose of this study was to investigate the perceptions of construction professionals relative to factors that affect the delivery of optimum health and safety (H&S) on construction projects during the COVID-19 pandemic. Design/methodology/approach The study adopted a quantitative design which entailed the distribution of a web-based questionnaire among construction professionals, namely, architects, construction/project managers, engineers, H&S managers and quantity surveyors working for contractors and construction consultants in Zimbabwe. The data were analysed with descriptive and inferential statistics. Factor analysis was used to reveal interrelated significant sets of factors affecting the delivery of optimum H&S. Findings Factor analysis revealed nine components/factors: change and innovation-related, monitoring and enforcement-related, production-related, access to information and health service-related, on-site facilities and welfare-related, risk assessment and mitigation-related, job security and funding-related, cost-related and COVID-19 risk perception-related factors as the significant factors affecting the delivery of optimum H&S during the COVID-19 pandemic in Zimbabwe. Research limitations/implications The results highlighted the need for social dialogue among construction stakeholders to support initiatives that will enhance the delivery of H&S on construction projects. Construction stakeholders may find the results useful in highlighting the areas that need improvement to protect workers’ H&S during the pandemic. However, the small sample limits the generalisability of the results to construction sectors in other regions. Originality/value The study investigated factors affecting the delivery of optimum H&S during the COVID-19 to inform interventions to enhance H&S.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathaniel Ayinde Olatunde ◽  
Imoleayo Abraham Awodele ◽  
Bosede Olajumoke Adebayo

Purpose The purpose of this study is to examine the impact of coronavirus disease 2019 (COVID-19) on indigenous contractors in a developing economy with a view to enhancing their performance. Design/methodology/approach The study used a purposive sampling technique to select 37 indigenous contractors with ongoing construction contracts in Osun State, Nigeria who provided data for the study. A structured interview protocol was used to elicit the required information from the interviewees and frequency, percentage and content analysis were used for data analysis. Findings The results showed that the critical impact of COVID-19 on indigenous contractors in a developing economy is: time overrun, loss of profit and creation of dispute. Further results showed that other impacts are a disruption in supply of labour, locally sourced materials are with additional cost, the additional cost of implementing COVID-19 protocols, difficulty in sourcing imported materials and absence of new jobs with the corresponding retrenchment of workers. Practical implications The study recommended special palliatives for the indigenous contractors from the government so as to cushion the impact of the pandemic on them, thereby enhance their survival and performance. A special arbitration panel is set up in each state of the federation to look at disputes arising from the aftermath of the pandemic, this is with a view to adequately compensate indigenous contractors with genuine and properly compiled claims. inferring from the findings of the study, it suffices to say that the severity of the impact of the pandemic is very high on indigenous contractors in developing economies, as such a better preparedness strategy could lessen the impact of such pandemic in the future. Originality/value The study is an attempt to unearth the impact of COVID-19 on indigenous contractors with ongoing construction contracts in a developing economy. The study will be of value to construction stakeholders in providing the information needed to devise strategies to minimise the impact of a pandemic on indigenous contractors in future projects thereby enhance their performance.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aliyeh Kazemi ◽  
Eun-Seok Kim ◽  
Mohammad-Hossein Kazemi

Purpose Successful implementation of construction projects is one of the crucial factors for the economic development of every country. The main part of the countries’ capital is allocated to civil and infrastructure projects annually, most of which are accomplished with delay. Construction projects are often criticized for overrunning time and budgets. Analyzing the factors causing delay is essential for omitting them and timely implementation of these projects. Due to the importance of oil projects, this study aims to investigate and analyze the factors causing a delay in Iran’s oil construction projects. Design/methodology/approach In this research, after a broad literature review, using the fuzzy Delphi method, a total of 75 delay factors were identified under 11 major categories of owner, contractor, consultant, equipment, labor, materials, design, contract and contractual relations, laws and regulations, environmental factors, and managerial factors. Then, by using the best-worst method, the factors were prioritized. Findings The results showed that sanction, governmental management systems, weak project management by the contractor, technical and managerial weaknesses of the consultant, financial problems and delay in payment by the owner, low efficiency of the equipment, low productivity of the workforce, changes in laws and regulations, inappropriate organizational structure linking to the project, changes in the design, and changes in the price of materials are the most crucial factors causing a delay in Iran’s oil construction projects. Research limitations/implications These findings are expected to have significant contributions to Iran’s oil construction industry in controlling the time overruns in construction contracts. Originality/value The main contribution of this study is to develop a comprehensive framework in which, causes of delay in Iran’s oil construction projects are addressed and prioritized.


Author(s):  
Martin Oloruntobi Dada

Purpose – Using projects executed with both traditional and integrated procurement methods, the study sought to investigate relationships that exist among project participants and the influence of those relationships on cost growth. The paper aims to discuss these issues. Design/methodology/approach – Questionnaires were administered among 274 construction projects located in 12 states including the Federal Capital Territory of Nigeria. Responses were obtained from 96 projects. Data were subjected to both descriptive and inferential analyses. Findings – In terms of cordiality, relationships between client and contractors ranked highest, while those among in-house project teams ranked lowest. Cost growth or cost overrun is significantly correlated with client-contractor relationship, consultant-contractor relationship, client-consultant-contractor relationship and in-house team relationships. No association between procurement method and cost growth was found. Research limitations/implications – The limitation of generalizability of results due to the sampling method used is acknowledged. One implication of the findings is that in the context of this research, any explanation for cost growth has to be found outside procurement methods. Practical implications – Findings may assist project participants on variables to consider in anticipating, preventing or managing cost growth in building construction projects, beyond formularization of contracts and structures. Originality/value – The research has uniquely investigated the association between intangible project team relationships and tangible variable of cost growth.


2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benti Gadisa ◽  
Hong Zhou

PurposeIt is well recognized that the construction industry is characterised by inefficient and ineffective service delivery due to various causative factors. Thus this study aims to examine the influential factors affecting public construction project performance in Ethiopia to improve the industry's service delivery.Design/methodology/approachFrom the extensive literature reviewed, 58 potential factors affecting construction project performance have been compiled. Based on the evidence accumulated, the conceptual model of this paper has been developed. By using survey questionnaires, valuable data were collected from the construction industry professionals in Ethiopia; analysed and interpreted with the use of both SPSS and AMOS software.FindingsIt is concluded that failure factors related to the “performance” of the contractor, the “capability” of the owner, the “project design-procurement process,” and project contract management can significantly contribute to the poor performance of public construction projects in Ethiopia. Ten key factors include inadequate contractor capacity, weak project site management and supervision, weak project management skills and capabilities of the owner, additional work orders, delayed payment, lack of comprehensive project plans between parties and incomplete project design, rising material prices, ineffective project schedules, and cost management, rising market prices and devaluation of the currency.Research limitations/implicationsThe scope of this study confined to public projects in Ethiopia. It suggests that further research needs to consider public and private construction from a comprehensive perspective in the developing countries.Practical implicationsIt provides practitioners with information and guidance on the factors that affect the performance of construction projects.Originality/valueIt provides inclusive evidence related to many factors that affect the performance of public construction projects.


2016 ◽  
Vol 23 (5) ◽  
pp. 674-691
Author(s):  
Lamei Hu ◽  
Honghua Wu

Purpose There is a relatively low risk management (RM) level and maturity in China’s state-owned construction enterprises (CSCEs). The purpose of this paper is to find the main factors impacting RM in practice to promote rapid, sound and sustained development in CSCEs. Design/methodology/approach There are a few state-owned CSCEs in China. Most enterprises know little about RM. Because of the limited number of RM departments in these enterprises, 200 questionnaires were sent to the enterprises to investigate the RM strategies employed by them. The research is quantitative and used a questionnaire survey to determine the important factors influencing RM practice. The collected data were analyzed with the Statistical Package for the Social Sciences to identify the most important factors affecting RM as well as the extent of influence of these factors, in order to facilitate further research. Findings The survey revealed the top eight factors (i.e. leaders’ support, personnel’s responsibility, comprehensiveness of identification, costs and benefits, risk appetite, understanding of language, frequency of training and performance management) that highly impact RM in CSCEs and the extent to which these factors impact RM. The data reveal that the average RM level is low. Some methods have been recommended to improve RM. Research limitations/implications The research lays the foundation for further RM development in CSCEs. The low RM level in CSCEs should encourage researchers to find better ways to improve RM. Some factors in the research will function as valuable guides for China’s private and public-private partnership enterprises. Practical implications A quantitative analysis methodology for RM has been developed for CSCEs that can reflect their RM level. In addition, the degree of impact of key factors on RM has been shown. The results can act as a reference to improve RM quantitatively, making the RM system more explicit in dealing with risks more accurately and instructively. Originality/value Structural RM research is utilized to evaluate RM in CSCEs by following an empirical method. With the continuous improvement in RM, CSCEs can cooperate well with construction enterprises of other countries for infrastructure projects and gain more benefits.


2017 ◽  
Vol 22 (3) ◽  
pp. 252-268 ◽  
Author(s):  
Ernest Kissi ◽  
Theophilus Adjei-Kumi ◽  
Edward Badu ◽  
Emmanuel Bannor Boateng

Purpose Tender price remains an imperative parameter for clients in deciding whether to invest in a construction project, and it serves as a basis for tender price index (TPI) manipulations. This paper aims to examine the factors affecting tender price in the construction industry. Design/methodology/approach Based on the literature review, nine independent constructs and one dependent construct relating to tender pricing were identified. A structured questionnaire survey was conducted among quantity surveyors in Ghana. Partial least squares structural equation modelling (PLS-SEM) examined the influences of various constructs on tender price development (TPD) and the relationships among TPD and TPI. Findings Results showed that cultural attributes, client attributes, contractor attributes; contract procedures and procurement methods; consultant and design team; external factors and market conditions; project attributes; sustainable and technological attributes; and TPI have a positive influence on tender price, whereas fraudulent attributes exert a negative influence. Practical implications The findings offer construction professionals broader understanding of factors that affect tender pricing. The results may be used in professional decision-making in the pricing of construction projects, as they offer clearer causal relations between how each construct will influence pricing. Originality/value This study adds to the body of construction pricing knowledge by establishing the relationships and degree of influences of various factors on tender price. These findings provide a valuable reference for practitioners.


2015 ◽  
Vol 33 (4/5) ◽  
pp. 337-353 ◽  
Author(s):  
Carmo Gonçalves de Carvalho ◽  
Inês Flores-Colen ◽  
Paulina Faria

Purpose – The purpose of this paper is to present a proposal for a methodology to support the rehabilitation project of renders of old buildings. Design/methodology/approach – To achieve the objective it was considered essential to define the main types of participants and aspects to integrate the proposal. The research methodology consists in an inquiry presented to several professional participants in rehabilitation, a market study of materials and products available in Portugal, the design of a methodology proposal and its application to a case study. The inquiry sample totals 24 answers from the targeted professionals. A sequence of relevant supporting procedures consists in the proposal, which aims to provide a supporting methodology to decide and project in this context and also to be tested with its application to the building. This proposal was applied to an old building with load-bearing stone masonry walls and air-lime-based renders. Findings – It was concluded that the assessment of the building and ex+ternal renderings’ condition, its diagnosis and of the supporting walls, the definition of intervention, the specification of materials to be used and performance requirements to comply, and also plans for conservation and periodic maintenance, are crucial. From the inquiry, compatibility between materials and complementary roles and points of view of different types of participants in rehabilitation must be highlighted. Originality/value – A proposal for a methodology to support the project could provide useful guidance particularly for architects and construction engineers, and improve the understanding of direct participants on site, therefore contributing for the correct implementation of the intervention.


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