Construction Contractors' Claim Process Framework

Abstract. Engineering-Procurement-Construction (EPC) method has increasingly been applied in international markets. In this research, the causes of contractors' claims in international EPC projects are modeled and empirically tested with industry survey, structural equation modeling and case studies from the perspective of Chinese contractors. The established model outlines the causes of contractors' claims as: external risk (sociopolitical risks, economic risks, and natural hazards), clients' organizational behavior (untimely payment, change orders, and inefficient processing), and project definition in contract (unclear scope of works, and unclear technical specification). The structural equation modelling validates that these causes have direct influences on claim respectively. Besides, clients' organizational behavior acts as a partial mediation between external risk and claim, demonstrating that external risk can also exert influence on claim through affecting clients' organizational behavior. Seven case studies further confirmed and interpreted the substantive meaning of these relationships. This study establishes interdisciplinary linkages among knowledge areas of contracting, risk management, organizational behavior, and international EPC project delivery, which has important primary contributions in both theory and practice. Understanding how the fundamental factors interactively lead to claims can help contracting parties to develop effective claim strategies, proactively mitigate project risks, and ultimately improve EPC project performance.

Section: Discussionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Causes of contractors’ claims in international engineering-procurement-construction projects

Shen

Tang

et al. 2017

“…(Bresnen and Marshall 2000;Kululanga et al 2001). However, they all emphasize a considerably smaller number of misunderstandings in the partnering approach.…”

Section: Introductionmentioning

confidence: 99%

Fuzzy Control of Partnering Relations of a Construction Enterprise / Statybos Įmonės Partnerystės Santykių Neapibrežtumo Kontrolė

Radziszewska–Zielina

2011

Abstract. The author has elaborated an expert system to control partnering relations with a construction enterprise. The expert system is based on Mamdani fuzzy model. The purpose of the system is to improve the indices of assessing a construction enterprise by raising the level of partnering relations with other transactors in industry. The system indicates a recommendation supporting a decision-making system of any given construction enterprise and stating whether relations are to be preserved, changed or changed immediately to each of the fourteen relation parameters and for each of four transactors of enterprise's microenvironment. For every relation parameter, this decision is taken by the expert system with reference to the significance and assessment of this parameter identifying its influence on the success of a construction enterprise. Another task of the expert system is to select one parameter for each transactor which needs to be changed first. The process of choosing the parameter to be changed first for a given transactor is based on all input parameters.

“…legal) which partnering enterprises have to face. These problems have been described in works by Bresnen and Marshall (2000) and Kululanga et al (2001). However, none of them claims that partnering is an unsuitable approach in the construction industry or that the trend towards employing it in this industry will soon be over as it seems to be just the opposite.…”

Section: Introductionmentioning

confidence: 99%

Methods for Selecting the Best Partner Construction Enterprise in Terms of Partnering Relations

Radziszewska–Zielina

2010

Abstract. The author proposes fourteen parameters for assessing partnering relations in construction enterprises. By means of these parameters, experts in construction enterprises apply a five-point scale in order to evaluate enterprise relations with four transactors within its microenvironment. The parameters describing relationships are adopted as assessment criteria. The question of selecting the best construction enterprise for cooperation is a multi-criteria issue. The author's solution is based on the ELECTRE III method and elaborates two alternative methods of selecting the best construction enterprise on the basis of the analysis of partnering relations between construction enterprises being studied and their transactors within the microenvironment and indicates one of the above introduced methods as preference. Two methods have been developed with a view to supporting a decision-making system in a construction enterprise as regards the choice of a subcontractor. Relevant calculations can be made by the enterprise decision-maker using the ConRel programme elaborated by the Cracow University of Technology.