Construction Contracts

by

ACKNOWLEDGEMENT

There is an immense role of my supervisor, family and associations for the completion of this research study. I would be gratitude to them for supporting me and assisting me.

DECLARATION

I take oath that the entire thesis has been completed by me and the entire work has been done by writing and no copy pasting material has been added in this thesis.

Signed __________________ Date _______________

ABSTRACT

This research study is conducted to examine the construction contracts. This research study carried out to conduct an investigation into whether conflicting parties involved in a construction contract are beneficial for client or contractor, or whether in fact they are beneficial to any party at all. The construction of a project is an integrated process. Every construction project requires detailed planning and involves parties such as the owner, contractor, and subcontractors, who are contractually integrated but who have different responsibilities and knowledge. Motivated contractors accept the emphasized goals in the contract and try to achieve them in return for monetary incentives. At the same time, a contractor is also subject to disincentives agreed upon with the agency if the contractor fails to achieve those goals. The findings of this research study indicate that there is a negative impact of conflicting parties on the contracting contracts. This research contributes significantly to the provision of managerial tools that have the potential benefit of supporting construction negotiations by integrating the strategic and tactical perspectives of negotiation while considering the attitudes of the decision makers.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER # 1: INTRODUCTION1

Research Background1

Problem Statement2

Aim and Objectives3

CHAPTER # 2: LITERATURE REVIEW5

Introduction5

Types of Construction Contract6

Fixed Price Contracts6

Cost Plus Contracts7

Cost Plus Incentive Fee (CPIF)7

Studying Disputes in the Construction Industry7

Causes of Conflicts and Disputes in the Construction Industry9

CII Research Findings: Method to Measure the Cost of Quality in Construction11

Quality Performance Management System (QPMS)11

Crosby Influence on the Quality Performance Management System12

Contract Unit Prices13

Design and construction contract14

Construction Industry Institute Research in Quality Management15

CHAPTER # 3: METHODOLOGY17

Research design17

Overview of Qualitative and Quantitative Research Approaches17

Data Collection18

Data Analysis19

Ethical Soundness19

CHAPTER # 4: FINDINGS21

Introduction21

Quantitative Data Analysis21

Questionnaire Analysis22

Project characteristic influences the effective project management22

Descriptive Statistics25

Correlation Analysis29

Qualitative Data Analysis34

Problems in UK construction industry and supply chain35

Delays in Construction Process35

Excusable and Non excusable Delays36

CHAPTER # 5: CONCLUSION40

REFERENCES44

APPENDIX48

Consent form48

Questionnaire49

CHAPTER # 1: INTRODUCTION

Research Background

In the 1990s, the UK construction industry has gone through periods of growth and decline. At present, there is a definite increase in terms of the iota; construction work being done though construction activity has been on the rise, there has been little increase in expenditure. This can be noted from Statistics UK's data (1999a) where in 1994, construction expenditure was 5.7% of the total gross domestic product (GDP), and in 1998, it was 5.5°/s of the GDP (Awakul and Ogunlana 2002 365). The annual capital expenditure in construction for the years 1993 to 1996 ranged from 575 billion employing about 440.000 individuals in 1993, to S80 billion employing 455,000 individuals in 1996 (Statistics UK, 1999b and 1999c). Currently the UK construction industry directly employs around one-half million ...