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23,396 result(s) for "Contract administration"
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Construction Contract Administration Performance Assessment Tool by Using a Fuzzy Structural Equation Model
The contract administration process is inevitably complex, and improper performance of the associated tasks and procedures may lead to disputes between the contracting parties whilst further driving against the sustainability bottom lines. Therefore, this paper proposes an assessment tool to improve the implementation of construction contract administration (CCA) through a multi-dimensional construction contract administration performance model (CAPM), construction contract administration performance index (CCAPI), and a mobile software to assess the CCA performance at the project level by integrating the crisp value of the fuzzy set theory within a second-order confirmatory factor analysis of the structural equation modeling technique. A hybrid mobile application (CAPM) is developed using the Ionic framework which can run either in full model mode or short model mode with 93 and 33 key construction administration factors, respectively. Assessment of sustainability practices in the area of contract administration is a part of the holistic model and CAPM defines 13 major key indicators relevant to social and environmental sustainability while economic sustainability is scattered over the rest of the CAPM indicators. The CAPM is practically implemented in 13 international construction projects and the results reveal that the proposed tool is reasonably captured in the different performance levels of CCA, and we conclude a low level of implementing in risk management. As part of the holistic model, assessment of sustainability practices in the area of contract administration is separately discussed and the study reveals the need to improve the environmental and social sustainability practices in contract administration.
A model-based smart contracts system via blockchain technology to reduce delays and conflicts in construction management processes
PurposeSmart contracts using blockchain technology (BCT) is a tool that decentralizes authority and makes it easier to upgrade the contract administration process by providing an efficient system. Current literature provides a good overview of contracts in the construction industry; however, the specific details of BCT's smart contracts applications in the three categories have not been addressed adequately: (1) information quality, (2) enhancing project schedule and progress payment time and (3) reducing conflicts among project stakeholders. Thus, this study aims to analyze smart contracts using BCT by creating a computerized contract model, specifically evaluating its impact on the three identified categories.Design/methodology/approachIn this paper BCT-SmContract was developed through an automated program that utilizes blockchain to define the contractual agreements between different parties in a construction project. BCT-SmContract model provides a new technique to overcome the current challenges associated with factors identified in this study, i.e. (1) information quality, (2) enhancing project schedule and progress payment time and (3) reducing conflicts among project stakeholders. Afterward, the model was tested to ensure validity and reliability through a construction project.FindingsThe findings indicated that BCT-SmContract was approximately 90% faster to execute the contract and 100% accurate in reflecting the correct information about the project status, resulting in reduced conflicts.Originality/valueThis study has contributed in upgrading the traditional contracting method in construction by developing an automated smart contract model to enhance the processes and achieve higher accuracy.
Ambiguity factors in construction contracts entailing conflicts
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.
Financial Contract Administration in Construction via Cryptocurrency Blockchain and Smart Contract: A Proof of Concept
The blockchain that uses cryptocurrency is a paradigm shift in the way of data storage, retrieval, and verification due to the concept of decentralization. This paradigm is essential to ensure the security of crucial data in any project. Adding a smart contract to the blockchain would facilitate the automation of various processes. Thus, the cryptocurrency blockchain that uses the smart contract can be considered a suitable platform for an ecosystem of many industries. The construction industry needs a highly secure automated management system due to its complex contractual relationships and transactions between parties. Therefore, integrating the blockchain with the smart contract creates the most appropriate ecosystem to be developed. This study introduces an ecosystemic prototype using a programmable smart contract within a novel cryptocurrency blockchain for construction. The purpose of the prototype is to guarantee a decentralized system as an independent economic environment for the construction industry. The system guarantees the security of financial transactions and focuses on the payment clauses in the construction contract as well. The results depended on three well-known hypothetical case scenarios from the construction site and were displayed in the form of extracted access data tables. The prototype proved the efficiency of the decentralized system for the construction industry by minimizing human-factor interference in the transaction process and thus reducing time waste and cost.
Critical assessment of construction contract administration using fuzzy structural equation modeling
PurposeThis paper covers the development of a multidimensional contract administration performance model (CAPM) for construction projects. The proposed CAPM is intended to be used by the industry stakeholders to measure the construction contract administration (CCA) performance and identify the strengths and weaknesses of the CCA system for running or completed projects.Design/methodology/approachThe research design follows a sequential mixed methodology of qualitative and quantitative data collection and analysis. In the first phase, contract administration indicators were collected from relevant literature. In the second phase, an online questionnaire was prepared, and data were collected and analyzed using the crisp value of fuzzy membership function, and structural equation modeling (SEM). The fuzzy set was chosen for this study due to the presence of uncertainty and fuzziness associated with the importance of several key indicators affecting the CCA performance. Finally, SEM was used to test and analyze interrelationships among constructs of CCA performance.FindingsThe data collected from 336 construction professionals worldwide through an online survey was utilized to develop the fuzzy structural equation model. The goodness-of-fit and reliability tests validated the model. The study concluded a significant correlation between CCA performance, CCA operational indicators, and the process groups.Originality/valueThe contribution of this paper to the existing knowledge is the development of a fuzzy structural equation model that serves as a measurement tool for the contract administration performance. This is the first quantitative structural equation model to capture contract administration performance. The model consists of 93 Construction Contract Administration(CCA) performance indicators categorized into 11 project management process groups namely: project governance and start-up; team management; communication and relationship management; quality and acceptance management; performance monitoring and reporting management; document and record management; financial management; changes and control management; claims and dispute resolution management; contract risk management and contract closeout management.
Contract administration practices on building information modelling (BIM)-based construction project – an exploratory study
Purpose The era of digital construction, including building information modelling (BIM), has placed a high demand for a seamless collaboration of people, technology and processes in meeting a project delivery. The project actors involved in a BIM process must ensure compliance with all regulations and contractual requirements from inception. While many studies have disclosed the various contractual implications arising from BIM implementation, little has been examined on the current state of BIM in contract administration practice, particularly in the Malaysian construction industry. This study aims to explore the current state of BIM implementation with specific reference to a design-and-build construction project. Design/methodology/approach The exploratory case study involved the construction of a public complex. Semi-structured interviews were carried out with the project actors, and document analysis was performed on the project’s contractual guidelines to derive the findings. Findings Findings from the thematic analysis revealed the following five sequences of activities that guided the contract administration practices, particularly during the pre-contract and post-contract stages of a BIM-based construction project: project inception, tendering phase, detailed design, construction and preparation for the handing over phase. Most of the activities were conducted to deliver the final BIM outputs successfully. Nevertheless, some shortcomings were noted in the project monitoring, the validation process of the BIM deliverables and the BIM players’ competency level in fulfilling the specified BIM contractual requirements. Practical implications The study contributes to a practical understanding of how BIM can affect project administration and how a public client can improve contractual risk allocation in future BIM implementation. Originality/value This paper discloses the current practices of contract administration to better understand the impacts of BIM management during the pre-contract and post-contract stages of a BIM-based construction project.
Disputes in Construction Industry: Owners and Contractors' Views on Causes and Remedies
The construction industry is prone to conflicts and disputes due to complexity, competitive environment, and complicated project documents. In this complex environment, members from various professions, each has their goals and desires to secure the most of his own benefits, work together to build a structure. The objectives of this study were to investigate the frequency, causes, and remedies of disputes in the Central Province of Saudi Arabia. The required data were collected, through a questionnaire survey, from 130 contractors and 54 owners located in the Central Province. This study reveals that disputes in the Saudi construction industry are inevitable with a frequency of occurrence exceeds two disputes per month. Project documents, owners, and contractors to some extent are the sources for such disputes. Project documents are poorly prepared with inaccurate specifications, ambiguity in contract wording, contradictions between project documents, unrealistic project duration, the inaccurate bell of quantities (BOQ), and weakness in contract language. Owners cause great disputes through sizable variation orders exceeding allowable limits, changing item descriptions and quantities in BOQ, interfering in the execution of the contract, and delaying responses to requested information/approvals. Contractors cause disputes through poor contract administration. Contractors follow a combined strategy (mitigating disputes and holding only the disputed work area only) and owners either mitigate disputes or hold disputed scopes. Government owners mostly mitigating disputes and, conversely, private owners hold the disputed scope and continue with the rest of the project. This study is believed to contribute to the current body of knowledge in disputes and contractors and owners by providing effective mitigation techniques that will assist them in minimizing the negative impacts of disputes.
Assessing the Performance of Consultants in Public Projects in Southern Region of Ethiopia: A Case Study in Wolaita Zone
In the construction industry, consultants play a vital role in ensuring smooth project implementation and progress. However, consultancy performance often falls short of expectations, leading to delays. This study assesses the performance of construction consultants in the Wolaita Zone. Objectives include evaluating their roles in public projects, identifying factors affecting performance, and exploring best practices for improvement. A descriptive survey design was used, employing questionnaires and interviews, with respondents selected through simple random sampling. Data were analyzed using descriptive statistics and ranked by relative importance index. Many public projects in the Wolaita Zone perform poorly due to project-specific causes. Weaknesses include progress reporting, financial forecasting, problem-solving, design alternatives, cost estimation, tender documentation, contract administration, and site staff management. Factors such as decision-making ability, teamwork, project type and duration, planning, scheduling, and team relations also influence outcomes. Further challenges include fluctuating client needs, change orders, weak monitoring, lack of feedback, poor contract administration, limited training, and consultant incompetence. The study found that management, project, cost, and client satisfaction factors most significantly affect consultant performance. Based on the findings, appropriate solutions are recommended.
Causes of Disputes in Construction: A Fuzzy Synthetic Evaluation
Construction project disputes are a prevalent issue and require prompt resolution to prevent project delays. Efficient dispute resolution is critical for the success of construction projects. Therefore, the aim of this study is to identify the critical causes of disputes in the Malaysian construction industry and assess their underlying causes. A survey was developed to collect data on the causes of disputes and distributed among industry professionals. The data collected from 125 respondents was analyzed using normalized mean analysis, factor analysis, and fuzzy synthetic evaluation (FSE). Four critical causes of disputes were identified: poorly managed construction processes leading to resource shortages and quality issues, improper contract administration, non-compliance with contractual obligations by either party and errors or omissions in contract documents. Factor analysis revealed that these causes could be categorized into two main components: stakeholder challenges and contractual issues. The FSE results indicated that the components ranged from slightly critical to moderately critical. The study contributes to the literature by categorizing the causes of disputes into stakeholder challenges and contractual issues, offering a structured framework for addressing disputes. The study also highlights the need for improved stakeholder collaboration and contract management to mitigate disputes effectively.
Unlocking Blockchain in Construction: A Systematic Review of Applications and Barriers
The emergence of construction 5.0 marks a shift toward a human-centric approach to digitization within the construction industry. Along with diverse digital innovations related to this shift, blockchain technology offers vast opportunities for the construction industry, including streamlining project management processes, enhancing transparency in payment processes, and improving contract administration. This paper systematically reviews 109 articles using the Preferred Reporting Items for Systematic Reviews and Meta-Analyses (PRISMA) protocol to examine the applications of blockchain in construction, identifying twenty-three topics across eight thematic areas. These areas were further mapped using VOSviewer Online version 1.2.3 to identify interrelationships among the themes and highlight their broad impact. Key features like immutability, security, transparency, and traceability show promise in contract administration, supply chain logistics, facilities management, and sustainability. However, the study also describes the challenges of adopting blockchain in construction, emphasizing the need for enhanced stakeholder education, improved regulatory frameworks, and the creation of industry-specific blockchain platforms to support its acceptance in the construction industry. Emphasizing emerging blockchain applications and the adoption challenges equips researchers and practitioners with the knowledge of these applications and their significance to construction practices.