Contractual governance as a source of institutionalised waste in construction

Abstract

Purpose-The construction industry has been subject to substantial criticism for its short term "hitand-run" relationships which are focused on win-lose situations. Despite the wide recognition of these problems the industry persistently resists the radical demanded of it. Therefore, the main purposes of this study are twofold. First, to investigate why this might be the case by reviewing the governance problem confronting clients and decision makers in construction procurement, as conceptualised in Transaction Cost Economics (TCE). Secondly, to critically analyse and question the efficiency and effectiveness of various safeguarding approaches, insight into various imperfect procurement and contractual arrangements, which are takenfor-granted and impede efficiency and improvement efforts in construction. The findings presented provide a theoretical anchor and rationale for developing alternative approaches to the design and delivery of capital projects.

Into Mitigating Making-Do Practices using the Last Planner System and BIM: A System Dynamic Analysis

“…Other evidence confirms that nonvalue-adding activities account for more than half of all activities in a construction project [4,5]. The literature has widely investigated different types of NVA according to the classification offered by Taichii Ohno [6], including rework [7], product defects [8], waiting [9], transportation [10], intuitional waste [11], and the relation between production waste and environmental waste [12][13][14]. This disparity in measuring and defining waste measures increases the difficulty of formulating holistic frameworks for waste elimination and hurdles efforts of providing general guidelines for root causes analysis [15].…”

Critical Factors to Overcome Project Scope Creep in the Oil and Gas Industry

“…All of Andersen et al (2016), Costantini et al (2021, Kujala et al (2015), and Sarmento & Renneboog (2016) agreed that scope creeps elimination can be done through proper channels of communication, including negotiation and proper contract documentation of project scope and all other project's correspondences. It is recommended to have third-party draft contract documents for two parties (i.e., the client and service provider) to focus on mitigating the project's risks in the future and after signing a contract (Sarhan et al, 2017). Sarhan et al (2017) state that is customizing each document to cope with different projects and parties' requirements and go beyond the standard fixed context of contracts 'templates.…”

“…It is recommended to have third-party draft contract documents for two parties (i.e., the client and service provider) to focus on mitigating the project's risks in the future and after signing a contract (Sarhan et al, 2017). Sarhan et al (2017) state that is customizing each document to cope with different projects and parties' requirements and go beyond the standard fixed context of contracts 'templates.…”