Statistical Evaluation for claims and disputes in construction contracts

2017 ◽  
Vol 5 (2) ◽  
pp. 80-96
Author(s):  
Raid Saleem Abd Ali ◽  
Nooran kanaan Yassin
Keyword(s):  
Construction Projects ◽  
Statistical Evaluation ◽  
Relative Importance ◽  
Minimum Level ◽  
Construction Contracts ◽  
Long Period ◽  
Price Schedule ◽  
Questionnaire Form ◽  
The Subject ◽  
The Cost

This research aims to diagnose and identify the causes of claims and disputes between the contractor and the employer, also review the methods used to resolve disputes in construction contracts. In order to achieve the goal of the research, scientific methodology is followed to collect information and data on the subject of claims and disputes in construction projects in Iraq through personal interviews and questionnaire form. The most important results in this research are: the price schedule contract as a kind of competitive contracts is the most important and guarantee for the completion of minimum level of claims and disputes with relative importance of (84.1), compared with the (cost plus a percentage of the cost contract) as a kind of negotiating contracts is the most relative importance of (79.6), and the turnkey contract as a kind of special contracts is the most relative importance of (74.2). The  contractor and  his agents are one of the most influence sources in occurring claims and disputes in construction contracts with relative importance of (77.4) followed by the contract documents with relative importance of (74.2) and then the employer with relative importance of (73.2). In addition to the long period of litigation and the multiplicity of veto grades are most negative when contractual disputes have resolved by it, and with relative importance of (86), followed by the large number of issues and lack of efficiency and specialty of Judges with relative importance (78.4). Finally, the direct negotiation method (relative importance of 77) is one of the most friendly settlement ways favored by conflicted parties, while the resolution of disputes and claims board (relative importance of 10) occupied the last rank in the friendly settlement ways.

scholarly journals Identifying The Effective Factors for Cost Overrun and Time Delay in Water Construction Projects

2016 ◽  
Vol 6 (4) ◽  
pp. 1062-1066 ◽  
Author(s):  
D. Mirzai Matin
Keyword(s):  
Time Delay ◽  
Construction Projects ◽  
Point Of View ◽  
Relative Importance ◽  
Cost Overrun ◽  
Weighting Method ◽  
Additional Information ◽  
Financial Difficulties ◽  
Questionnaire Form ◽  
The Government

Water construction projects in Iran frequently face problems which cause cost overrun and time delay, the two most common issues in construction projects in general. The objective of this survey is to identify and quantify these problems and thus help in avoiding them. This survey represents a collection of the most significant problems found in the literature, classified into 11 groups according to their source. The questionnaire form used contains 84 questions which were answered by random engineers who work in water construction projects. The Relative Importance Weight (RIW) method is used to weight the importance of each one of the 84 problems. The focus of this survey is on overall top ten issues which are: bureaucracy in bidding method, inflation, economical condition of the government, not enough information gathered and surveys done before design, monthly payment difficulties, material cost changes, law changes by the government, financial difficulties, mode of financing and payment for completed work and changes made by the owner. A section for each of these issues provides additional information about them. In the full text of this survey the same weighting method is used to classify the main groups, and the results show that issues related to the groups of government, owner and consultant has the most significant impact. The last part of this survey describes the point of view of the engineers who took part in this survey and the recommendations they made.

Investigating the causes preventing the fulfillment of construction contract requirements

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Fadi A. Fatayer ◽  
Amjad Z. Issa ◽  
Mohammed Abunemeh ◽  
Mohammed A.M. Dwikat
Keyword(s):  
Construction Projects ◽  
Subject Matter Experts ◽  
Structured Interviews ◽  
Building Projects ◽  
Content Type ◽  
Road Projects ◽  
The Subject ◽  
The Mean ◽  
Spss Software ◽  
The Cost

PurposeConstruction contractors in Palestine, as in many other developing countries, suffer from many problems. One of their main problems is their inability to meet contractual requirements, such as completing projects within time, at the agreed cost and to the desired quality. Therefore, this paper aims to investigate the causes of the non-fulfillment of contractual requirements in three different types of projects: building, road and electro-mechanical projects.Design/methodology/approachTwo methods were adopted to collect the data – qualitative and quantitative. In total, 65 causes were identified from the literature and qualitative semi-structured interviews with professional experts. These causes were classified into five categories: managerial, financial, contractor capabilities, regulations and laws and political. In the quantitative approach, a questionnaire was developed and then distributed to 50 professional experts: 20 building experts, 15 road experts and 15 experts in electro-mechanical projects. A five-point Likert scale was used to assess the importance, from the perspective of the subject matter experts, of the causes that had been identified. About 35 responses, which represent a combined response rate of 70%, were received. The quantitative data were analyzed using descriptive statistics, with the mean, standard deviation and degree of importance for each of the identified causes being determined, and the SPSS software platform used to rank them.FindingsThe results reveal that the most important reasons why contractors did not fulfill their contractual requirements in building projects were that contracts were awarded to the contractor offering the lowest price, and the profit margin was low because of intense competition among contractors. In road projects, the most important causes were the poor estimation of the equipment required and a lack of standardized conditions in the construction sector, while in electro-mechanical projects, the most important causes were the inability of the contractor to estimate the cost of the project accurately because of unclear bid documents and a lack of contractor capital.Originality/valueThe results of this study will be useful to stakeholders and Palestinian contractor unions. They can be disseminated to give guidance so that contractors can avoid these problems in future construction projects and enhance their compliance with contractual requirements. Moreover, knowing about these causes may lead to the reduction of conflicts and disputes between contractual parties (owners and contractors), which in turn will be reflected in the work quality and reputation of contractors.

scholarly journals DAMPAK CHANGE ORDER PADA PROYEK PERKERASAN JALAN

2020 ◽  
Vol 3 (1) ◽  
pp. 199
Author(s):  
Alexander Junius ◽  
Mega Waty
Keyword(s):  
Construction Projects ◽  
Road Construction ◽  
Relative Importance ◽  
Validity And Reliability ◽  
Change Orders ◽  
Importance Index ◽  
Change Order ◽  
Order Change ◽  
The Cost ◽  
The Impact

In a construction project, changes during the construction period are common. This change can be in the form of an increase or decrease in volume and type of work, changes in work specifications, or changes in the schedule for implementation. Changes in projects are often known as change orders. Change orders must be approved by all parties in a project namely, contractors, owners, and consultants. Change orders are caused by several factors such as changes in design, delays in procurement of goods, differences in field conditions, and others. The impact of this change order is felt by all parties involved in a project, but the change order has a different impact on each party involved. This study aims to determine the biggest impact of change orders from the contractor. In the questionnaire submitted the impact of change order is divided into several variables namely, the cost of quality, time, organization, and others. From the responses of respondents regarding the impact of change orders on road construction projects, an analysis was performed with the calculation of the Relative Importance Index (RII), and the biggest impact was obtained. Before the data is processed with RII, the validity and reliability tests are performed first. The biggest impact of change orders caused by change orders is that change orders increase the budget for contractors, change orders increase overhead costs, increase project duration, cause project costs overruns, and change orders cause a decrease in project profits. AbstrakPada suatu proyek konstruksi, perubahan selama masa konstruksi merupakan hal yang umum terjadi. Perubahan ini bisa berupa penambahan atau pengurangan volume dan jenis pekerjaan, perubahan spesifikasi pekerjaan, maupun perubahan jadwal pelakasnaan. Perubahan dalam proyek sering dikenal change order. Change order harus disetujui oleh semua pihak yang ada dalam suatu proyek, yaitu kontraktor, pemilik, dan konsultan. Change order disebabkan oleh beberapa faktor seperti perubahan desain, keterlambatan pengadaan barang, perbedaan kondisi lapangan, dan lain-lain. Dampak dari change order ini dirasakan seluruh pihak yang terlibat dalam suatu proyek, namun change order menimbulkan dampak yang berbeda pada tiap pihak yang terlibat. Penelitian ini bertujuan untuk mengetahui dampak change order terbesar dari pihak kontraktor. Dalam kuesioner yang diajukan dampak change order dibagi menjadi beberapa variabel yaitu, biaya mutu, waktu, organisasi, dan lainnya. Dari hasil tanggapan responden mengenai dampak change order pada proyek konstruksi jalan, dilakukan analisis dengan perhitungan Relative Importance Index (RII), dan didapat dampak terbesar. Sebelum data diolah dengan RII dilakukan uji validitas dan uji reliabilitas terlebih dahulu. Dampak change order terbesar yang ditimbulkan oleh change order adalah change order menambah anggaran untuk kontraktor, change order meningkatkan biaya overhead, menambah durasi proyek, menyebabkan biaya proyek membengkak, dan change order menyebabkan penurunan keuntungan proyek.

scholarly journals Selection of tachymetry spacing in the process of monitoring of construction projects

2019 ◽  
Vol 97 ◽  
pp. 03027 ◽  
Author(s):  
Oleg Rubtsov ◽  
Ramidin Alisultanov ◽  
Nina Rogova
Keyword(s):  
Construction Projects ◽  
Construction Project ◽  
Research Work ◽  
Deformation Monitoring ◽  
The State ◽  
Structural Elements ◽  
Reflection Mode ◽  
The Subject ◽  
The Cost ◽  
Selection Of

The urbanization of territories and the increase in density of urban development cause the necessity of introduction of improved structural solutions into the construction practice. This is also connected with both the erection of higher buildings with longer span structures and the use of non-standard methods for the analysis of structures. The introduction of modern structural patterns lessens considerably the weight of structures, reduces the consumption of materials and cuts the construction production costs. At the same time, the responsibility for the construction projects enhances. A systematic control over the state of structures including a quasi-continuous one, allows us to reveal the very beginning of destructive processes and to take measures for their liquidation. One of monitoring methods is the tachymetry survey of positions of a number of adjusting marks fixed at the structural elements. The non-reflection mode of operation of tachymetry survey allows lifting the restrictions for the number of points under observations. The combination of the afore-said factors determines the urgency of the use of the tachymetry as a tool for monitoring the state of the construction project. The subject of the study: the subject of the present research work is the methodology of selection of tachymetry spacing during the deformation monitoring of a construction project. The tachymetry can be carried out both in the mode of focusing on pre-established marks, and in the non-reflection mode through the points on the structure. The disadvantage of the first method is the need of installation of light-reflecting marks, which is not always possible due to some technical and/or aesthetic reasons and may lead to a significant increase in the cost of monitoring. The disadvantage of the second method is a reduced accuracy of the measurements. A wide incremental step may lead to the failure of detection of deformation processes, a narrow step means a considerable increase in the monitoring time and an unjustified rise in the cost of monitoring. Objectives: the purpose of this research work is the optimization of tachymetry spacing, which will reveal all deviations of structural elements from their permanent positions by a value exceeding the accuracy of measurements. Materials and methods: the initial material for the study included the results of geodetic observations carried out at various construction projects, in particular, the tachymetry results. The method of study includes the comparing of the limiting admissible curvature value to the minimum deformation value measured with the tachymeter accuracy. Results: a methodology is suggested for the selection of the tachymetry survey step. On its basis, a formula for the determination of a step value is offered that takes into account the geometry of the structure, the strain capacity of the material and the accuracy of the survey. Conclusions: the obtained results allow us to optimize the number of the observation points during the tachymetry survey and to ensure the detection of all destructive effects associated with structural geometry changes at the construction project. The descriptions of the methodology are recommended for their application in the development of geodetic monitoring programmes.

scholarly journals Validation of Impacts of Widely Acknowledged Human Factors in Risk Management of Residential Construction Projects

2018 ◽  
Vol 7 (3.12) ◽  
pp. 1265
Author(s):  
Shaik Salma ◽  
P Santha Rao
Keyword(s):  
Risk Management ◽  
Human Factors ◽  
Construction Industry ◽  
Construction Projects ◽  
Cost Overruns ◽  
Domain Experts ◽  
The People ◽  
The Subject ◽  
Traditional Construction ◽  
The Cost

In the countries like India where one has to still handle a unique blend of operational diversities like human operated traditional construction practices and modern construction technologies, in all construction projects that are highly vulnerable to socio-economic, political, technical and business risks. The involvement of the people with diverse educational, technical, economical and experience backgrounds is an unavoidable fact of the construction industry in India and hence the human factors are going to play a key role in the project to be more prone to risks as well as to mitigate the likely projects risks. Due to lack of robust risk management system, many prestigious construction projects in India have suffered failures and have impacted the country’s GDP and growth because of the gigantic share of the construction industry in the country’s economy. Hence, the risk management in the construction industry has become the subject of concern for the industry practitioners and so the analysis of operational difficulties for the identification and management of construction related risks to minimize the cost overruns, quality deviations and uncertain delays, is remained to be the main objective of the research by the domain experts and engineers for so long. In this paper, an attempt has been made to review all such papers with a specific aim to identify and analyze the human factors that, are highly acknowledged by experts in their works and, can influence / impact the project parameters namely cost, time and quality and validate the results by tracking a real time construction project to draw conclusions.  

Developing the adaptive process-based budgeting through TD-ABC and TD-ABB as part of strategic management accounting

2020 ◽  
Vol 23 (10) ◽  
pp. 1182-1194
Author(s):  
A.A. Akhmetzyanov ◽  
A.Yu. Sokolov
Keyword(s):  
Strategic Management ◽  
Cost Allocation ◽  
Management Accounting ◽  
Practical Significance ◽  
Common Time ◽  
Strategic Management Accounting ◽  
Scientific Papers ◽  
The Subject ◽  
The Common ◽  
The Cost

Subject. The article focuses on the advanced time-driven tools for allocating overhead expenses, which are based on process-based budgeting. Objectives. We articulate a technique for cost allocation so as to assess the cost of each process with reference to the common time driver. Methods. The study relies upon methods of systematization, classification, analogy and comparison, and summarizes the scientific literature on the subject. Results. The article presents our own suggestions on implementing TD-ABC and TD-ABB into the strategic management accounting process of developer companies. The principles were proved to help more effectively allocate overhead expenses and assess the capacity load of each process performed by functions, departments and employees. Carrying out a comparative analysis, we found certain reserves for utilizing resources more effectively. Conclusions and Relevance. The findings are of scientific and practical significance and can be used by developer and construction businesses. The conclusions can prove helpful for scientific papers, student books, and further research.

Renovating the View of Cost Sharing for the Underground Low Voltage Cable Projects in Hanoi

2019 ◽  
Vol 35 (5E) ◽  
Author(s):  
Pham Thi Thu Ha ◽  
Phan Dieu Huong
Keyword(s):  
Willingness To Pay ◽  
Cost Sharing ◽  
Low Voltage ◽  
Power Grid ◽  
Field Studies ◽  
Power Industry ◽  
Well Field ◽  
The Subject ◽  
Sharing Responsibility ◽  
The Cost

Underground power grid projects in Hanoi is so urgent that it requires immediate implementation. To synchronously and quickly implement the underground power grid projects, people in charge should not follow the outdated perspectives of just including the power industry, but also need to call for the support and cost sharing responsibility from consumers. This paper aims at approaching the subject both from the producers and consumers’ perspectives to together sharing the cost of putting the power grid underground not only in Hanoi but other metropolitans in Vietnam as well. Field studies (including 104 families) at Hoan Kiem District, Hanoi and CBA method were applied to investigate the willingness to pay (WTP) level of consumers to share the cost with the power industry for the underground power grid projects in Hanoi. The overview of the results shows that cost for the underground power grid in Hoan Kiem District ranging from 30,000 VND/household/month to 46,000VND/household/month. On the other hand, the willingness to pay of a typical household of four people within Hoan Kiem District ranges from 17,000VND/month to 24,000VND/month, with the most favorable method of annual payment within a detailed timeline.

FUNCTIONING OF THE MENTAL DEFENSES IN THE CONDUCT OF INTERROGATION WITHIN THE CRIMINAL PROCESS

2018 ◽  
Vol 28 (6) ◽  
pp. 2161-2165
Author(s):  
Hristo Ivanov Popnikolov
Keyword(s):  
Objective Assessment ◽  
Critical Conditions ◽  
Criminal Process ◽  
External Influences ◽  
Administration Of Justice ◽  
Individual Protection ◽  
The Subject ◽  
The Individual ◽  
The Cost ◽  
Subjective Side

From the subject presented in the report it is evident that the pre-trial and the court bodies may, to some extent, be influenced both by the person of the accused and by his competence to participate in the criminal process. In this regard as an expert, the psychologist can offer invaluable assistance. Each expertise would assist all actors involved in the administration of justice on their objective assessment of the offenders, the understanding of their individual protection and the inherent self-justification during procedural actions. The involvement of psychologists in the criminal process is key to establishing the truth in the investigation, because every crime as an act has a subjective side, expressed in the psychic attitude of the perpetrator to the committed act. Establishing these psychological motives is a key point in the criminal process with a view to establishing the truth.Psychological protection stabilizes the personality in the critical conditions of counteraction, related to the elimination of the experiences of tension, anxiety, stress and frustration, leading to maximum mobilization of its resources and at the same time to their overpayment. Thus, the individual who is the subject of the process action is protected against the adverse external influences, but at the cost of a lot of effort and enormous loss of nervous-mental energy, which increases his own vulnerability instead of contributing to its reduction. The appearance and functioning of psychological protection can be significantly impeded by the interaction of the investigator with the accused. Even more complicated is the situation when it breaks the communication contact that may arise in the psychological alienation and self-isolation of the accused due to the desire to protect himself.Protective psychological dominance is a real psychic activity that investigators, investigators, investigators and judges need to take into account in order to effectively deal with their task and to overcome the resistance of the investigated persons and in a time to prove in a lawful and moral way their guilt and participation in the commitment of the crimes.

Causes of Delay in Budget Hotel Construction Projects

2014 ◽  
Vol 5 (3) ◽  
pp. 49-63 ◽  
Author(s):  
Milind T. Phadtare
Keyword(s):  
Construction Projects ◽  
Business Group ◽  
Relative Importance ◽  
Joint Effort ◽  
Indian Context ◽  
Importance Index ◽  
Project Participants ◽  
Causes Of Delays ◽  
Industry Training

Delay in construction projects is a universal phenomenon. However, the topic is not adequately studied in the Indian context. This paper attempts to identify the causes of delays in construction of budget hotels in India and suggest remedies to avoid some delays. A business group constructing budget hotels across the country is approached for this study. Forty causes of delay have been identified and Relative Importance Index was calculated. The contribution of each category of causes of delay to overall delay in the projects was computed. Remedies such as, joint effort of the participants of the industry, training, coordination between project participants and project timing and scheduling are suggested and validated.

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