Model for Understanding, Preventing, and Resolving Project Disputes

Mitropoulos, Panagiotis; Howell, Gregory A.

doi:10.1061/(asce)0733-9364(2001)127:3(223)

Cited by 146 publications

(68 citation statements)

References 11 publications

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“…Accordingly, in order to develop a proper procurement selection process, the client should be prepared to deal with political/legal/social uncertainties in the transaction environment, and to account for higher TCs by making sure the cost estimate for contingencies is as covered as possible. Researchers such as (Mitropoulos & Howell, 2001;Walker & Pryke, 2009;Love et al, 2010) also supported the extensive effect uncertainties in the transaction environment. Also, other hypotheses will be tested and analyzed in the same way.…”

Section: Discussionmentioning

confidence: 94%

Procurement Selection Model: Development of a Conceptual Model Based on Transaction Costs

Rajeh

Tookey

Rotimi

2014

AJCEB-Conerence Series

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Procurement is a major improvement area and a crucial element contributing to project success, and the selection of an optimal procurement system is an important and difficult step in project execution. The criteria for choosing suitable procurement methods are based on client's objectives and priorities, and influenced by project constraints. The procurement path determination chart has largely dominated research in procurement selection process in construction. Eight factors need to be considered by the client when developing procurement selection criteria. At the procurement strategy the focus should be on factors such as cost, quality, and time, while at the procurement route the consideration should focus on complexity, certainty, risk, responsibility, and degree of control by the client. However, including certain criteria and ignoring the magnitude of transaction costs (TCs) associated with uncertainties in the transaction environment simplifies this process. This study addresses this shortcoming by combining evaluation criteria with TCs incurred because of external and internal environmental uncertainties in a theoretical model on procurement selection. This is achieved by developing a conceptual framework model based on TCs. Uncertainties in the transaction environment have a positive or negative impact on the magnitude of TCs such as information, procurement, administration, and enforcement. The model represents an analytical form of a suitable combination of factors influencing procurement systems, which guide procurement decisions. The model will increase understanding of how efficient procurement selection of construction projects can be achieved through appropriate procurement procedures, which could positively impact project performance.

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Section: Discussionmentioning

confidence: 94%

Procurement Selection Model: Development of a Conceptual Model Based on Transaction Costs

Rajeh

Tookey

Rotimi

2014

AJCEB-Conerence Series

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“…These three factors could either independently or interactively result in contractual problems (Williamson 1979;Mitropoulos, Howell 2001), leading to contractors' claims in delivery of international EPC projects. Accordingly, a conceptual model on causes of contractors' claims in EPC projects is established to help understand the relationships among external risk, clients' organizational behavior, project definition in contract, and claim, which presents the relationships underpinned by four hypotheses, as shown in Figure 1. …”

Section: Development Of the Conceptual Modelmentioning

confidence: 99%

“…Contractors may submit claims that are attributed to clients' organizational behaviors such as delay in payment, change orders and inefficient processing (Chester, Hendrickson 2005), but clients may reject the claims for the reasons of inaccurate estimation, insufficient supporting documents, and contractors' opportunism behaviors (Cheung, Pang 2013;Levin 1998;Williamson 1979). Thus, clients' organizational behavior during construction process is an important source of claims, which should be a management emphasis in EPC project delivery (Mitropoulos, Howell 2001). …”

Section: H2: Clients' Organizational Behavior Have An Influence On Claimmentioning

confidence: 99%

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

Shen

Tang

et al. 2017

Journal of Civil Engineering and Management

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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.

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“…However, we will like to draw from the rich literature of dispute resolution in China such as the works of Chan (2002) in the international construction projects in China, Howlett (2003) discuss about the Chinese arbitration and law, Lau (1979) explain in details on the teaching of Confucius, Liu and Fellow (1999) in the Chinese organizational culture, Kumaraswamy & Yogeswaran (1998) research on the sources of construction disputes. Uff (1998) mentioned on the issues of addressing multi-tiered dispute resolution methods in large-scale construction and infrastructure development projects and Mitropoulos and Howell (2001) discusses in the prevention and resolution of construction disputes, while Chan and Suen (2005) mention on the dispute resolution management in China.…”

Section: Overview Of the Dispute Resolution Process In Chinamentioning

confidence: 99%

Comprehensive Objectives for PPP Projects: Case of Beijing Olympic Stadium

Chinyere¹

2013

IJBM

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This paper is concerned with issues relating to the need for clear and comprehensive objectives by parties to Public-Private Partnership Projects: the case of Beijing Olympic Stadium, which is the first Public-Private Partnership project (PPPs) sporting complex in china. The discussion is illustrated by reference to the numerous risks encountered throughout the development and construction of the project and also revealing the concessional agreement that lead to the use of public private partnerships in building the 2008 Beijing Olympic Stadium. The paper begins by discussing the definition of PPP, nature, development, competitive bidding, total investment and sharing formula of the project partners, structure, operation process of the Beijing Olympic Stadium (Bird's Nest), the disagreement between the Project Company and Beijing Municipal Government (BMG) and also elucidate the three major disputes associated with the project and then give an overview of the disputes resolution process in China.This case study also highlighted the intricacies seen, both in the implication of cancelling the retractable roof and the critical lessons learnt from the PPP project, as regards to the 2008 Beijing Olympic Stadium. However, even with all the numerous disputes, risks , negotiation and re-negotiation, the project was completed within the stipulated period with a touch of unimaginable structural design at a reasonable cost, which happens to go a long way in assisting the successful hosting of the 2008 Beijing Olympic Games.The recommendation and lessons learnt from this case study includes that government support and commitment are very vital for any unique project especially in innovative and complex design structure such as the Beijing National Stadium (Bird's Nest). Hence, during the signing of the preliminary agreement any project, a well-defined project scope must be visibly stated, formulated and clearly defined prior before signing the agreement. That the sharing of comprehensive common project aims and objectives must be the ultimate priority of all stakeholders associated in the venture. And also the importance of engaging in a proper and effective risk management strategy because private and public sector interests must work together at all times, for successful completion of the project such as hosting the 2008 Beijing Olympic Games.

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Model for Understanding, Preventing, and Resolving Project Disputes

Cited by 146 publications

References 11 publications

Procurement Selection Model: Development of a Conceptual Model Based on Transaction Costs

Procurement Selection Model: Development of a Conceptual Model Based on Transaction Costs

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

Comprehensive Objectives for PPP Projects: Case of Beijing Olympic Stadium

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