The impact of COVID-19 on construction contracts

2021 ◽  
pp. 151-164
Author(s):  
Donald Charrett
Keyword(s):  
Construction Contracts ◽  
The Impact

Impact of COVID-19 pandemic on indigenous contractors in a developing economy

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Nathaniel Ayinde Olatunde ◽  
Imoleayo Abraham Awodele ◽  
Bosede Olajumoke Adebayo
Keyword(s):  
Developing Economies ◽  
Sampling Technique ◽  
Structured Interview ◽  
Additional Cost ◽  
Developing Economy ◽  
Content Type ◽  
Construction Contracts ◽  
The Government ◽  
And Performance ◽  
The Impact

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.

FINANCING COSTS IN THE EVENT OF DEVIATIONS IN WORK PERFORMANCE UNDER CONTRACT STANDARDS

2021 ◽  
Vol 8 (1) ◽  
Author(s):  
Markus Gmoser ◽  
Lukas Steinschaden ◽  
Detlef Heck
Keyword(s):  
Interest Rate ◽  
Work Performance ◽  
Unit Price ◽  
Flat Rate ◽  
Construction Contracts ◽  
Performance Variation ◽  
Construction Claims ◽  
Financing Costs ◽  
National Norms ◽  
The Impact

When carrying out construction contracts both, the employer and the contractor, regularly have to deal with “financing costs”. The financing costs cannot be set as a flat rate, since these can vary from one building contract to another. The pre-financing period can be determined from the conditions of the construction contract. These conditions together with the entrepreneur’s financing interest rate forms the basis for calculating the financing costs of the offer. Deviations to the construction contract can result in construction claims and often lead to extended pre-financing periods, which lead to additional financing costs. With the help of a survey the authors investigate how often the calculated pre-financing period deviates from pre-financing periods with claims. This study has the objective of drawing attention to the issue of additional financing costs due to claims. With the help of a survey the authors investigate, how often the calculated pre-financing period of the offer deviates from the pre-financing period of a service deviation performance variation / a claim. The aim of the questionnaire is to point out the topic of additional financing costs in the event case of performance deviations in the performance of services. The study investigates solely projects under national norms respectively Austrian construction contract standards which favour unit price contract. This paper explains and illustrates the impact of additional financing costs resulting from deviations from the scope of works.

Does the WTO government procurement agreement influence steel imports?

2016 ◽  
Vol 15 (2/3) ◽  
pp. 153-167 ◽  
Author(s):  
Benjamin Liebman
Keyword(s):  
Trade Agreement ◽  
Government Procurement ◽  
Data Set ◽  
Content Type ◽  
Construction Contracts ◽  
Goods And Services ◽  
Service Contracts ◽  
American Policy ◽  
The Impact ◽  
Grade Steel

Purpose Government procurement policies containing domestic content requirements have faced increasing attention, as more traditional forms of trade discrimination have declined in recent decades. The most important effort to reduce discriminatory government procurement policies is the plurilateral Agreement on Government Procurement (GPA), in which a subset of WTO countries has agreed to provide increased access to imports from fellow signatory countries. This paper focuses on the Buy American policy, which mandates domestic content for all US Federal government purchase above the micro-purchase level. The author tests whether steel imports from GPA and US Free Trade Agreement (FTA) partners, both of which receive preferential access to US federal procurements, increase as the value of federal construction contracts rise. Design/methodology/approach The author tracks federal construction contracts and seeks to determine whether there is a link between these contracts and construction grade steel imports from GPA and US FTA members. The author uses two-stage least squares to regress the import quantity of steel from GPA and US FTA countries on the value of US federal construction contracts. Imported and domestic steel prices as well as macroeconomic variables such as industrial production and non-residential construction are controlled for. A panel data set is used that includes three different construction-grade steel products and covers years 2004-2013. Findings The results indicate that increased federal construction contracts increase imports of construction-grade steel from GPA and FTA partners. This effect is relatively small, however, which may be due to the fact that federal construction is a small share of overall US construction. In general, the results suggest that the primary determinant of US import sourcing behavior is the business cycle as well as the price of steel. Nevertheless, the findings indicate that the preferences provided by the GPA and FTAs do have some impact on where US construction firms source their steel. Originality/value Previous research has studied the effect of the WTO’s GPA on foreign access to federal construction and other service contracts. This is the first study, however, to investigate whether these contracts impact the import sourcing behavior of the steel that is used in construction. Furthermore, while previous research measures the impact of GPA membership on the overall trade of goods and services, this paper is the first to link a particular industry with the inputs that are restricted by local content requirements such as the Buy American policy but freed up under the GPA. In general, previous research on the GPA has tried to capture the broad effect of GPA membership on trade, while this study focuses on the relationship between the GPA, federal procurement in a particular industry (construction) and import behavior of a key input, construction grade steel.

Reality of the dispute settlement of construction contracts by the judiciary in Iraq

2018 ◽  
Vol 6 (1) ◽  
pp. 13-18
Author(s):  
Raid Saleem Abd Ali ◽  
Nooran Kanaan Yassin
Keyword(s):  
Data Collection ◽  
Dispute Settlement ◽  
Scientific Methodology ◽  
Specific Subject ◽  
Construction Contracts ◽  
Collection Data ◽  
The Impact ◽  
To Receive

This study deals with the dispute settlement of construction contracts by the judiciary in Iraq, as well as identifying the reasons that contribute to these conflicts occur. Scientific methodology was followed by the collection data about contracting construction (51) contracts, where conflicts have occurred between the contractor and the employer and that the impact has been to resort to the judiciary to resolve them, As well as data collection for the (83) case of ʺpenalty taking work from contractorsʺ. The research is found that there are seventeen reasons for the occurrence of disputes between the contractor and the employer, the (employer's delay in the disbursement of the financial duties of the contractor) occupy first rank and a percentage of (22.73%), follow in the second rank (default by the employer in the removal of the obstacles that objects the contractors works) and by (10.6%), but (delete, add, or the introduction of new clauses on quantities) and (delay of the employer to receive the carried work preliminary or final) occupy third rank with (9.09%). Litigation takes several years to resolve disputes in construction contracts.It is found that (95%) of the decisions (in the sample study cases) issued by the Court are based on the report of the experts engineers who are used to express their artistic opinion on a specific subject in the case.

scholarly journals نمذجة أثر تغيُّر سعر الصرف على أسعار الأسمنت في السودان (2000- 2016)

2021 ◽  
Vol 9 (3) ◽  
pp. 1-10
Author(s):  
Mogahid Bilal Taha ◽  
Mudathir Suliman M.Ali
Keyword(s):  
Exchange Rate ◽  
Construction Materials ◽  
Feasibility Studies ◽  
Continuous Change ◽  
Explanatory Variables ◽  
Construction Contracts ◽  
For Profit ◽  
The Exchange Rate ◽  
Market Variables ◽  
The Impact

Feasibility studies, planning, pricing and contract management in the construction industry depend mainly on the stability of the economic process where most infrastructure projects require relatively long periods of time to implement them. In a highly inflationary economy where foreign exchange rates constantly change compared to the local currency for long periods that may extend for years. In such an economy, the prices of construction materials vary according to market variables. The methods of pricing items in bids are not feasible for profit and loss accounts and for competition purposes, which leads to significant complications in the management of construction contracts associated with these projects and generates a new case of continuous change unprecedented and has not been resolved even in the global construction contracts of FIDIC. The researcher monitored and collected the inflation values and the exchange rate of Sudanese pound against US dollar as the main currency for a large number of years against the prices of cement for the same years and then statistically studied through a number of statistical analysis programs. Information has been studied over time and then the change in the price of cement versus inflation and the exchange rate and a try to devise a function has been carried out in order to describe that change and express it in a mathematical formula that facilitates reading, analyzing and forecasting. It was found that the change of cement prices is related in a logarithmic function with both inflation and the exchange rate. The independent explanatory variables (exchange rate and inflation rate) were found to be responsible for at least 80% of the changes in the dependent variables (cement prices). The remaining 20% is the impact of other (random) variables not included in the model, and this is an indication of the quality of the documentation of the model. That the variables included in the model is the most influential in the dependent variable of non-included variables. The mathematical models have passed derived economic and standard criterion and have been acceptable statistically and can therefore be relied upon to test any hypotheses are developed.  

Sign in / Sign up

Export Citation Format

Share Document