Critical assessment of construction contract administration using fuzzy structural equation modeling

Abstract

PurposeThis paper covers the development of a multidimensional contract administration performance model (CAPM) for construction projects. The proposed CAPM is intended to be used by the industry stakeholders to measure the construction contract administration (CCA) performance and identify the strengths and weaknesses of the CCA system for running or completed projects.Design/methodology/approachThe research design follows a sequential mixed methodology of qualitative and quantitative data collection and analysis. In the first phase, contract administration indicators were collected from relevant literature. In the second phase, an online questionnaire was prepared, and data were collected and analyzed using the crisp value of fuzzy membership function, and structural equation modeling (SEM). The fuzzy set was chosen for this study due to the presence of uncertainty and fuzziness associated with the importance of several key indicators affecting the CCA performance. Finally, SEM was used to test and analyze interrelationships among constructs of CCA performance.FindingsThe data collected from 336 construction professionals worldwide through an online survey was utilized to develop the fuzzy structural equation model. The goodness-of-fit and reliability tests validated the model. The study concluded a significant correlation between CCA performance, CCA operational indicators, and the process groups.Originality/valueThe contribution of this paper to the existing knowledge is the development of a fuzzy structural equation model that serves as a measurement tool for the contract administration performance. This is the first quantitative structural equation model to capture contract administration performance. The model consists of 93 Construction Contract Administration(CCA) performance indicators categorized into 11 project management process groups namely: project governance and start-up; team management; communication and relationship management; quality and acceptance management; performance monitoring and reporting management; document and record management; financial management; changes and control management; claims and dispute resolution management; contract risk management and contract closeout management.

The Impact of Contracts Administration on the Performance of Road Construction Projects in Uganda: A Literature Gap

“…However, a key feature is to recognise that each construction project is unique, and thus a one size fits all contract does not work. Contracts are drafted to capture all the distinguishing factors of each construction project (Gunduz and Elsherbeny, 2020). According to Khekale and Futane (2013:1), "construction project contracts are agreements made by construction project owners (contract issuing parties) and construction enterprises (contractors) according to basic construction procedures in order to complete specific construction and installation projects and to define the rights and obligations of both parties".…”

Evaluating the Key Roles of Contract Administrators in the Zambian Construction Industry

“…Based on the premise that the contract administrator is a key independent role-player in the construction contract, it could also be expected that there would be clarity with regard to the roles and responsibilities of the contract administrator. However, Gunduz (2020) opines, that the misunderstanding of roles and responsibilities is one of the reasons for poor, construction contract administration.…”

“…Various skills are needed to perform the role of a contract administrator successfully. Relative attention has been paid to understanding what contract administrators do when engaged in the business of contract administration (Gunduz et al, 2020). There is no comprehensive research that has been conducted to ascertain the roles and functions of contract administrators, to inform, and provide empirical knowledge on specific competencies to perform roles efficiently (Klee, 2019).…”

Conjoint analysis: the assumptions, applications, concerns, remedies and future research direction

“…Generally, during the data analysis, a technique/software generates some results backed up by the theory. It is imperative that the results must be evaluated for its validity and reliability based on pre-existing standards or parameters (Boge et al, 2018;Gunduz and Elsherbeny, 2020;Fassott et al, 2016;Akinci et al, 2007). However, such parameters are not the sole criteria for the reviewers' decision in the favor of any research work.…”

“…It is imperative that the results must be evaluated for its validity and reliability based on pre-existing standards or parameters (Boge et al. , 2018; Gunduz and Elsherbeny, 2020; Fassott et al. , 2016; Akinci et al.…”