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Start date: 2021Subject: search.filters.subject.Construction contracts

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    Contracting challenges in post-disaster reconstruction in developing countries: Evidence from Nepal reconstruction
    (Elsevier Ltd, 2025-04-15) Puri A; Ameer Ali N; Elkharboutly M
    This study aims to identify the challenges of procuring and contracting post-disaster reconstruction projects in developing countries using conventional construction contracts, with Nepal as a case study. After the 7.6 Mw Gorkha Earthquake in 2015, Nepal embarked on extensive reconstruction efforts supported by various foreign governments and agencies. While these efforts were generally hailed as successful, large-scale non-residential reconstruction projects encountered significant challenges. This issue is common globally due to the lack of attention from researchers on large-scale non-residential reconstruction, leading to overlooked issues and the continuous failure of these projects to meet their objectives. One key issue in such projects is using conventional construction contracts not designed for post-disaster scenarios. This study used a qualitative research design that included semi-structured interviews to collect data and thematic analysis to gain insights from individuals involved in Nepal's reconstruction. Fifteen interviews with experts involved in managing construction contracts during the reconstruction were conducted and analysed using Nvivo 14 software. Upon analysis, two main themes emerged: procurement and bureaucratic, and contract-related, each further divided into sub-categories. These themes highlight how Procurement Act and conventional contracts used in reconstruction in Nepal failed to address post-disaster needs. The findings emphasise the necessity for pre-disaster evaluations and updates to procurement laws and contracts to establish more suitable approaches for reconstruction. Aligning contracts with the specific requirements of post-disaster contexts can significantly enhance the efficiency and effectiveness of reconstruction efforts. Future research should focus on developing disaster-focused contracts to enhance global reconstruction practices.
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    Rework management in construction contracts : an assessment of NZS3910:2013 provisions : a thesis submitted in partial fulfilment of the requirements for the degree of Doctor of Philosophy in Engineering, Construction Project Management, Massey University, Auckland, New Zealand
    (Massey University, 2021) Asadi, Ramin
    Contracts play a significant role in achieving project goals in the construction industry. To enhance a project's performance by implementing a professional contract, construction practitioners must understand how contraction issues are addressed in the contract conditions. Although various contributing factors that affect construction contracts have been investigated and several methodologies have been proposed, the contract provisions that contribute to rework in construction projects have not been assessed adequately. Rework is of interest in the construction industry as it occurs throughout the project life cycle and affects its performance. The lack of understanding of construction practitioners under rework events may lead to cost overruns and delay in projects, resulting in contractual claims and disputes. Therefore, this research aims to investigate the contract clauses to improve the conditions that affect the project's performance by addressing rework. On the other hand, the contract is an essential means of controlling and managing interactions between parties under various situations. The assessment of contract provision in addressing contractual issues has been practiced effectively over the years to overcome conflicts between contract parties. Thus, the selected concept is helpful for improving the contract conditions under different circumstances. This study attempts to address issues related to rework in construction projects, which significantly improves the contract conditions. Initially, through conducting a comprehensive literature review, the root causes of rework are identified and then using a systematic literature review approach, the identified causes are classified with liable contract parties. The classified rework causes then are investigated in New Zealand construction projects using a questionnaire survey to find the relevant common causes of rework in contracts. The relationship between rework causes and contract clauses is then established through common sources of rework and contractual claims. For this purpose, the case of NZS3910 is selected as the most commonly used standard form of contract in New Zealand to assess the contract provisions under rework events. The initial findings show that the current condition of the contract does not address rework adequately. After investigating the relational aspect of rework in the construction contract, a series of professional interviews are conducted to explore the strengths and weaknesses of the contract conditions related to rework in construction projects. Then, the best practice to address rework is followed up. Furthermore, the current provisions stipulated in NZS3910 are evaluated as a documentary review to collect evidence for validation of interview results. It is observed that, while rework has not been defined in the contract, some of the contract clauses can be referenced for addressing rework. It is also confirmed that more clarification in the contract provision is required during contract preparation to avoid contractual claims originating from rework. Thus, the study develops a list of recommendations for improving the contract conditions that address rework issues. The research concludes by providing guidelines for addressing rework in contract provisions of NZS3910 and some general recommendations for improving the contract conditions. This research adds to the body of knowledge by improving the contract practices for rework management and achieving higher project performance with fewer contractual claims and disputes. Finally, and based on the study's findings, a framework that shows the flow of information for addressing rework is presented and recommended for further investigation in future research.
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    A contractual framework for two-stage early-contractor involvement (2S-ECI) in New Zealand commercial construction projects : a thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy (PhD) in Construction at Massey University, School of Built Environment, Massey University, Albany, Auckland, New Zealand
    (Massey University, 2021) Finnie, David
    Two-stage early contractor involvement (2S-ECI) is a two-stage procurement process for firstly employing a contractor during the design stage, and then entering into a contract for construction. 2S-ECI contractual practices remain generally unknown in New Zealand despite the well-documented advantages of involving contractors in the design-stage planning. Clients, with the help of their consultants or lawyers, must draft their own, often bespoke contract to engage the contractor’s services during the design stage because there are no standard forms of pre-construction services agreements (PCSAs) in New Zealand for employing contractors during the design stage. Some of these contracts, especially if done without professional advice, are drafted inadequately. This study attempts to remove these ambiguities and explore the effect 2S-ECI has on contractual risks; the optimal contractual ingredients to consider at the pre-construction stage such as timing, obligations and liabilities; the effect of 2S-ECI on market pricing; and the overall benefits, challenges, and opportunities to improve the effective use and uptake of 2S-ECI in New Zealand. A mixed-method research approach was adopted which comprised case law analysis, contract document analysis, and comparing these legal doctrines against industry perceptions which was obtained through conducting interviews and surveys. Three bespoke contract agreements used on 2S-ECI in New Zealand commercial construction projects were compared with two standard form PCSAs published in the UK. Perceptions of 2S-ECI use in New Zealand were explored through interviews of 21 senior construction practitioners. Interview findings were validated through surveying the interview sample. A contractual framework was developed to provide a clearer contractual process, identify contract ingredients for the pre-construction stage and establishing the effect of early involvement on the contractor’s obligations during the construction stage. The framework helps clients and project managers to develop procurement strategies using 2S-ECI, including as a starting point, the type of project suited to 2S-ECI. It also helps decision makers like architects, engineers, and quantity surveyors, to make more informed decisions on who should pay for instructed drawing details that come after entering into a construction contract such as the New Zealand Standard NZS3910:2013 Conditions of Contract for Building and Civil Engineering Construction. The framework considers; (i) when to treat claims for drawing details as variations; (ii) the legal implications of a contractor’s involvement in design development; and (iii) the legal implications on construction managers if there are claims from direct trade contractors against the client under a construction management procurement. Findings from the survey analysis shows the majority of interviewees see value in early collaboration between designers and contractors, but qualify this in that the actual value depends on the extent of the contractor’s contribution and that the tangible benefits are difficult to measure. Many felt that contractors had a moral duty to reduce their claims for design development during the construction. However, none was aware of the effect of early involvement on the contractor’s contractual obligations during the construction stage. 2S-ECI may have the potential to reduce the cyclical boom bust nature of construction pricing and provide a more equitable risk distribution between the contracting parties. 2S-ECI is best suited for projects involving work to existing building operations where the cost of disruption outweighs any premium incurred with the contractor’s early involvement in logistical planning; where the selection of preferred contractors through open-book negotiation is desirable; where securing resources in heated markets is otherwise difficult through competitive tender; and where designers want the contractor’s input for more complex design solutions. Challenges to the effective use and uptake of 2S-ECI in New Zealand were identified as part of the survey. The challenges include lack of clear 2S-ECI definition, unclear expectations and difficulty measuring the benefits, incomplete design documentation, and amendments made to standard contract terms transferring greater risks to contractors – without fully considering which party may be best able to manage the risk. The bespoke pre-construction contract documentation used often lacked scope of obligations and liabilities. Opportunities for improving the use and uptake of 2S-ECI in New Zealand include educating industry about 2S-ECI, developing a standard form of pre-construction services agreement (PCSA) for New Zealand, contractors developing specialist expertise in design coordination, buildability analysis and value management, and agreeing fixed-price construction contracts based on fully complete quality drawings. These findings also contribute to developing procurement policies that support transparency and appropriate risk equity and transfer toward the party who is best able to manage the risk within the New Zealand construction industry. A pre-construction services agreement (PCSA) was drafted with ingredients based on the findings (appendix 4). The framework also includes a flowchart that guides claims entitlement and a table comparing head or main contractor and consultant construction manager obligations was developed. This provide a practical guide for contract administrators and includes a summary of interpretation of terms to inform contract drafters that can help reducing ambiguity for all construction contracts. This has the potential to help avoid unwarranted disputes. It was also recommended that skills in construction law and buildability analysis within the construction industry be enhanced and for tertiary education institutions to play a greater role. These include skills in buildability-related claims-entitlement, the effect of early contractor involvement, the application of design buildability analysis, and design coordination and management within a building information model (BIM) system environment.