Construction Contracts Quality Assessment from the Point of View of Contractor and Customer

Abstract

The cost and determination of construction projects are key issues for both customer and contractor when entering into a construction contract. For customers, calculation and evaluation of the cost of construction projects is complicated by the problem of underpricing, which may lead to the failure of contractors submitting a bid for a project, and, in addition, overpricing may lead to an overestimation of the average market value of specific groups of works. Therefore, the aim of the study is to compare the quality assurance of different contractors’ contracts using a multi-functional decision-making process and to develop a set of quality assessment criteria. The Analytic Hierarchy Process (AHP) was used to determine the significance of the criteria and afterwards to evaluate the construction contracts. Two groups of experts were involved in this research: specialists for the customer group, and specialists for the contractor group that comprised professionals in their respective fields, with many years of experience in managing and implementing construction projects. Based on the results of this study, conclusions and recommendations are presented regarding possibilities of ensuring quality of construction contracts and minimizing disputes between customer and contractor.

Price Recalculation Model of Construction Contracts

“…Kiekvienas pakeitimas reikalauja analizės ir sprendimo, kuris priklauso nuo suinteresuotųjų projekto šalių santykio ir bendravimo (Smith et al, 2023). Vilkonis et al (2023) atliko išsamų mokslinį tyrimą, vertinant statybos projekto kokybės užtikrinimą ir galimų ginčų prevencijos didinimą tarp užsakovų ir rangovų. Tyrimo metu buvo nustatyti kriterijų rinkiniai, kuriuos statybos dalyviai galėtų naudoti bendrosiose ir konkrečiosiose sutarčių sąlygose ir kuriuos taikant būtų galima sumažinti sutarčių sąlygų neapibrėžtumą ir iš anksto užkirsti kelią ginčams tarp užsakovo ir rangovo.…”

‘Buildability’ in the Digital Age: A Phenomenological Discourse of Industry Practitioners’ Perceptions

“…Discipline/Field of Service Years of Experience [1] Project Manager-Consultant 30 [2] Project Manager-Consultant 30 [3] Construction Manager-Contractor 28 [4] Construction Manager-Contractor 30 [5] Estimator/Tendering Manager-Contractor 16 [6] Commercial Manager (Post-Contract)-Contractor 16 [7] Estimator/Commercial Manager (Pre-Contract)-Consultant 28 [8] Schedulers/Programme Manager-Consultant 34 [9] Engineer-Consultant/Employer 20 [10] Engineer-Contractor 17 [11] Architect 34 [12] Estimator/Commercial Manager (Post-Contract)-Consultant 17…”

“…A construction project is commonly acknowledged as successful when the aim of the project is achieved in terms of its predetermined objectives, including completing the project on time, within budget, and to the required quality standard [2,3]. However, in most construction projects, severe time and cost overruns [4,5] and poor quality [6] have become a common phenomenon. For example, approximately 86% of construction projects experience cost overruns [7], 70% experience time overruns [8], and 10% of project materials end up as waste material [9] resulting in negative impacts on quality.…”