scholarly journals RESIDUAL RISKS OF PAYMENT PROVISIONS IN FIDIC AND JCT CONDITIONS: A QUANTITY SURVEYOR’S VIEW

2020 ◽  
Vol 1 (1) ◽  
pp. 26-40
Author(s):  
A. G. Sanni ◽  
O. J. Adebiyi ◽  
N. V. Okorie
Keyword(s):  
Construction Industry ◽  
Construction Cost ◽  
Critical Examination ◽  
Scenario Building ◽  
Construction Contracts ◽  
Benin City ◽  
Problem Situations ◽  
Advance Payment ◽  
Quantity Surveying

The obligee and obligor of all cost-related commitments in construction contracts are governed by the conditions of contract. Like in all human engagements, risk is inevitable in construction contracts. This exploratory overview examined residual risks associated with payment provisions in Federation Internationale Des Ingenieurs-Consiels (FIDIC) and Joint Contracts Tribunal (JCT) conditions of contract in Nigerian construction industry. The selected payment provisions were advance payment, interim valuation, retention and final payment. The methodology comprises: (i) critical examination of payment provisions, (ii) scenario building of problem situations, (iii) assessing the sensitivity of the provisions to contractual conflict, and (iv) evaluating the effect on construction cost administration. Disbursement and amortization of Advance payment in FIDIC are more secured than JCT.  Interim valuation in FIDIC allows the contractor to make claims for delayed issuance of interim certificate but FIDIC does not give the contractor such right because all application for payments must be made by the contractor to the engineer. It would take a contractor in FIDIC-based contract a longer time for maturity of final payment than in JCT-based contract. It is recommended that a contractor in FIDIC-based contract should get retention bond in lieu of deduction of retention money to enhance its liquidity. Sanni, A. G. | Department of Quantity Surveying, University of Benin (UNIBEN), Benin City, Nigeria.

scholarly journals Assessment of bonds utilisation in the Nigerian construction industry

2019 ◽  
Vol 10 (5) ◽  
pp. 1607
Author(s):  
Usman Muhammed ◽  
Emmanuel Chididebere Eze ◽  
John Abel Tsado ◽  
Blessing Okokun
Keyword(s):  
Construction Industry ◽  
Scientific Method ◽  
Construction Projects ◽  
Financial Burden ◽  
Survey Method ◽  
Cost Performance ◽  
Construction Contracts ◽  
Advance Payment ◽  
Timely Completion ◽  
Performance Bond

Default by contractors in meeting the time and cost performance of a project is usually counterproductive. Considering safety from the high financial burden of construction projects, clients are compelled to seek a level of guarantee in bonds to safeguard them from financial problems and provide incentive for proper and timely completion of the project by the contractor, thereby minimising failures and risks. Therefore, the study assessed the level of bond utilization in Nigerian construction industry, with a view to examining the benefits of its utilisation in construction projects. Survey method was adopted in which questionnaires were used to collect data from respondents. With a response rate of 45.30% (164 of 362), the collected data were analysed using descriptive and analytical scientific method. It was found that the level of bond utilisation in construction contract is high, with performance bond and Advance payment bond being most commonly used construction bond types. Assurance of performance and financial security are the major benefits of bond utilisation. The study recommends that there is need for more enlightenment of construction participants on the various types bond used in construction contracts

scholarly journals Role of Leadership in Transforming the Profession of Quantity Surveying

2012 ◽  
Vol 9 (1) ◽  
pp. 37-44 ◽  
Author(s):  
George Ofori ◽  
Shamas-ur-Rehman Toor
Keyword(s):  
Construction Industry ◽  
Critical Importance ◽  
Skill Sets ◽  
Knowledge Leadership ◽  
Quantity Surveying

The construction industry is facing a period of change. The roles ofthe professions involved in the industry in general, and of quantitysurveyors in particular, are also changing. There are opportunitiesfor surveyors to seize the initiative to broaden their involvement inprojects, and attain strategic positions within the industry. However,they will have to improve upon their skill sets and their knowledgebases. Senior quantity surveyors interviewed in Singapore sharedtheir views on the challenges facing the construction industry,and their profession. They suggested that the quantity surveyingprofession would only be able to address the pressing issues itfaces if it pays more attention to innovation and the development ofits people. It should be able to attract and retain talent. Knowledgemanagement will be of critical importance. This will be enabled andfacilitated by knowledge leadership.

scholarly journals CRITICAL FACTORS VARYING CONSTRUCTION COST

2009 ◽  
Vol 12 (1) ◽  
pp. 104-117
Author(s):  
Tam Thi Minh Nguyen ◽  
Thi Hao Cao
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Multiple Linear Regression Model ◽  
Construction Cost ◽  
Ho Chi Minh City ◽  
Cost Overrun ◽  
Key Factors ◽  
Industry Sectors ◽  
The Relationship ◽  
Chronic Problem

Construction industry is considered to be one of the most important industries in Vietnam's economy. But many construction industry sectors have been experienced chronic problem as cost overrun. Therefore, a conceptual model of factors influencing construction cost was developed to determine the key factors that cause difference between budget cost and actual cost and some solutions are recommended to be applied to achieve the best outcome of cost. The result of analyzing 216 construction projects completed from 2002 to 2007 by companies located in Ho Chi Minh City indicated 6 main factors varying construction cost: project planners, project executives, economics, political, natural environment, fraudulent and lost. The results of multiple linear regression model confirmed the relationship between these above 6 factors and construction cost with the theories are supported at the statistically significant level of 0.05.

scholarly journals Identifying and prioritizing delay factors in Iran’s oil construction projects

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Aliyeh Kazemi ◽  
Eun-Seok Kim ◽  
Mohammad-Hossein Kazemi
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Successful Implementation ◽  
Content Type ◽  
Construction Contracts ◽  
Fuzzy Delphi ◽  
Low Efficiency ◽  
Comprehensive Framework ◽  
Governmental Management ◽  
Laws And Regulations

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.

scholarly journals A PROPOSED THEORETICAL FRAMEWORK ON STRATEGIES FOR KLANG VALLEY MALAYSIAN QUANTITY SURVEYING CONSULTANCY FIRMS TO ACHIEVE PROFITABILITY

2020 ◽  
Vol 5 (21) ◽  
pp. 01-12
Author(s):  
Bee-Ling Chong ◽  
Kai-Chen Goh ◽  
Tien-Choon Toh
Keyword(s):  
Construction Industry ◽  
Firm Growth ◽  
Global Financial Crisis ◽  
Theoretical Framework ◽  
Business Environment ◽  
Construction Firms ◽  
Consulting Firms ◽  
Klang Valley ◽  
Quantity Surveying ◽  
The Global Financial Crisis

There is a lack of research studies showing the specific practices that enable QS consultancy firms to achieve profitability in Malaysia’s construction industry. As firm profitability is expected to have a positive and significant impact on firm growth, this put Malaysia's QS consulting firms at risk and affected firm growth if the problem they face remains unresolved. Despite the current Covid-19 pandemic has led to the global financial crisis, weaker global growth is still a big issue to developing countries including Malaysia. Construction firms such as QS consultancy firms face a lot of challenges due to the globalisation and competitiveness of the construction industry. Quantity surveying (QS) consultancy firms need to adopt suitable strategies to survive and grow in an evolving business environment. Thus, this paper focuses on the theoretical framework of the strategies for QS consultancy firms.

scholarly journals Construction Cost Predication Model Using Macro Economic Indicators

10.29007/tjbv ◽  
2020 ◽  
Author(s):  
Craig Capano ◽  
Jeanette Hariharan ◽  
Hashem Moud ◽  
Ashish Asutosh
Keyword(s):  
Time Series ◽  
Construction Industry ◽  
Time Use ◽  
Prediction Models ◽  
Construction Cost ◽  
Economic Indicators ◽  
Economic Data ◽  
Historic Data ◽  
Nonlinear Autoregressive ◽  
Over Time

Estimating future costs of construction is an important component to the success of any contracting company. Traditionally a cost modifier has been utilized to offset cost escalations or volatility predictions. Construction estimators and contractors have also attempted to utilize a variety of prediction models. This paper establishes a basis for reliable forecasting and explores the possibility of developing prediction models using time series Neural Networks (NN) by utilizing historic data of three accepted macro-economic composite indicators (MEI) and two accepted construction industry cost indices. The use of these macro-economic indicators for NN-based models may be used to predict cost escalations for construction. Nonlinear autoregressive NN models are constructed through using the macro-economic data and the construction cost data to determine if a reliable time-series predictive model could be established. The results of these models indicated that there is a high correlation between the macro-economic escalations, independent factors, and the construction cost escalations, dependent factors, over time. Use and knowledge of these correlations could aid in the prediction of cost escalations during construction.

scholarly journals Comparative Cost Estimation of Residential Building

2021 ◽  
Vol 9 (8) ◽  
pp. 2735-2739
Author(s):  
Prof. Amit Kale
Keyword(s):  
Construction Industry ◽  
Cost Estimation ◽  
Construction Management ◽  
Research Effort ◽  
Construction Project ◽  
Residential Building ◽  
Construction Cost ◽  
Building Construction ◽  
Estimation Methods ◽  
Comparative Cost

Abstract: A construction project of any building is mainly based on 3 important steps that are planning, Cost Estimation of the building and proper execution of construction of the building. Construction cost estimation has the lion’s share of the research effort in construction management. The Objective is to analyze the effectiveness of various cost estimation methods by comparing traditional and various online websites. This study will provide more accurate estimates that save time and minimize errors. The research conducted will be helpful for estimation of construction, also proving how the introduction of IT sector in construction industry is turning out to be beneficial. Keywords: Estimation, Construction Management, Online Websites, minimize errors

scholarly journals Critical Barriers to Social Sustainability: the Quantity Surveyors’ Perspective

2019 ◽  
Vol 2 (3) ◽  
Author(s):  
Eric Ohene ◽  
Gabriel Nani ◽  
Mershack Opoku Tetteh
Keyword(s):  
Construction Industry ◽  
Response Rate ◽  
Social Sustainability ◽  
Total Sample ◽  
Cultural Barriers ◽  
Financial Barriers ◽  
Policy Makers ◽  
Comprehensive Literature Review ◽  
Adequate Education ◽  
Quantity Surveying

Although the advocacy for Social Sustainability consideration in the construction industry has been on the rise, however, the practice of Social Sustainability (SS) is plagued with many barriers. The barriers that hinder practices of SS in the construction industry has to be carried out. Notwithstanding, not much research works has been undertaken regarding the barriers that hinder SS in the construction industry. The aim of the study is to explore the critical barriers to social sustainability from the perspective of the quantity surveyor. A comprehensive literature review was conducted and nineteen (19) variables (barriers) were identified. Structured questionnaires were designed and were answered by 110 out of the total sample size of 120 Quantity Surveying professionals recognised by the Ghana Institute of Surveyors (GhIS) representing approximately 92% response rate. The data collected were analyse using Factor Analysis. The study found out that Socio-cultural barriers, Political and Technical barriers, knowledge or awareness barriers and financial barriers are the underlying group barriers for the 19 identified barriers. The study further revealed that, among the four underlying groups, Political and Technical barriers was the most dominant. This draws special attentions to the government’s position in ensuring effective consideration in promoting social sustainability practices as well as the technical knowledge needed in the SS practices in Ghana. The study as well raises the awareness and the need to ensure adequate education, training and professional development. Again, this study adds to sustainability literature by analysing the critical barriers to achieving social sustainability from the perspective of the Quantity Surveyor. The findings and recommendations of this study will help practitioners and policy makers in taking appropriate measures to overcome the barriers and thereby promoting the integration of social sustainability into quantity surveying practices.

scholarly journals Exploration of Building Information Modelling (BIM) Application: An Understanding Among Quantity Surveyor in Malaysia

2020 ◽  
Vol 5 (2) ◽  
pp. 1-11
Author(s):  
Nadzirah Zainordin ◽  
◽  
Zamzarina Md Judyar ◽  
Nur Syahirah Zafarull ◽  
Nor Azizah Zalin ◽  
...  
Keyword(s):  
Literature Review ◽  
Construction Industry ◽  
Questionnaire Survey ◽  
The Other ◽  
Time Constraints ◽  
Building Information Modelling ◽  
Information Modelling ◽  
Building Information ◽  
Quantity Surveying ◽  
And Task

This study begins with a broad literature review to understand the Building Information Modelling (BIM) concept. Quantity Surveyors star as an influential role as qualified, trained, and proficient in dealing with glitches relating to construction expenditure, supervision, and consultation in the construction industry. When the task is getting crucial, an assistant from technology may help faster and smoother the process and task. This study aims to investigate an understanding of the application of BIM among Quantity Surveyor in Malaysia. According to the Board of Quantity Surveyors, Malaysia's official website, 101 registered Quantity Surveying Consultant firms were in 2018. This study targeted 1000 persons from different firms and expected to respond from at least 278 persons due to time constraints. The other criteria of the respondents include years of experience in the industry. Quantity Surveying Consultant firms would be the most suitable people to answer a questionnaire survey for this study. The registered Quantity Surveying Consultant firms are very well proficient in the quantity surveying practice and services. Therefore, by choosing Quantity Surveying Consultant firms to be the respondent may help in getting the most consistent answer and higher accuracy of the exploration of Quantity Surveyors productivity by adopting the Building Information Modelling (BIM) concept in Quantity Surveyor, which will further enhance the awareness of benefits of BIM to the Quantity Surveyor profession itself.

Sign in / Sign up

Export Citation Format

Share Document