Construction contracts: law and management (3rd edition)

This book is aimed primarily at students for whom the study of building or civil engineering contracts forms part of a construction-based course. We have had in mind the syllabus requirements for first degrees in Building, Civil Engineering, Architecture, Quantity Surveying and Building Surveying, as well as those of postgraduate courses in Construction Management and Project Management. We have also assumed that such students will already have been introduced to the general principles of English law, especially those relating to contract and tort. As a result, while aspects of those subjects that are of particular relevance to construction are dealt with here, the reader must look elsewhere for the general legal background. In producing this third edition, we have again been greatly assisted by the many helpful comments made by reviewers and users of its predecessor. Nonetheless, our basic aim is identical to that which underpinned the first edition: to provide an explanation of the fundamental principles of construction contract law, rather than a clause-by-clause analysis of any particular standard-form contract. As a result, while we draw most frequently upon JCT 98 for our illustrations of particular points, this merely reflects the pre-eminent position occupied by that particular form of contract in the UK construction industry. We conclude by repeating our previous warning as to the dangers inherent in a little learning. Neither this book, nor the courses for which it is intended, seek to produce construction lawyers. The objective is rather to enable those who are not lawyers to resolve simple construction disputes before they become litigious, and to recognize when matters require professional legal advice. It should be the aim of every construction student to understand the legal framework sufficiently that they can instruct and brief specialist lawyers, and this book is designed to help them towards that understanding.

Roles in construction projects: analysis and terminology

Standard form contracts are typically developed through a negotiated consensus, unless they are proffered by one specific interest group. Previously published plans of work and other descriptions of the processes in construction projects tend to focus on operational issues, or they tend to be prepared from the point of view of one or other of the dominant interest groups. Legal practice in the UK permits those who draft contracts to define their terms as they choose. There are no definitive rulings from the courts that give an indication as to the detailed responsibilities of project participants. The science of terminology offers useful guidance for discovering and describing terms and their meanings in their practical context, but has never been used for defining terms for responsibilities of participants in the construction project management process. Organizational analysis enables the management task to be deconstructed into its elemental parts in order that effective organizational structures can be developed. Organizational mapping offers a useful technique for reducing text-based descriptions of project management roles and responsibilities to a comparable basis. Research was carried out by means of a desk study, detailed analysis of nine plans of work and focus groups representing all aspects of the construction industry. No published plan of work offers definitive guidance. There is an enormous amount of variety in the way that terms are used for identifying responsibilities of project participants. A catalogue of concepts and terms (a “Terminology”) has been compiled and indexed to enable those who draft contracts to choose the most appropriate titles for project participants. The purpose of this terminology is to enable the selection and justification of appropriate terms in order to help define roles. The terminology brings an unprecedented clarity to the description of roles and responsibilities in construction projects and, as such, will be helpful for anyone seeking to assemble a team and specify roles for project participants.

Contemporary organizational theory in the management of construction projects

The level of insolvencies in the construction industry is high, when compared to other industry sectors. Given the management expertise and experience that is available to the construction industry, it seems strange that, according to the literature, the major causes of failure are lack of financial control and poor management. This indicates that with a good cash flow management, companies could be kept operating and financially healthy. It is possible to prevent failure. Although there are financial models that can be used to predict failure, they are based on company accounts, which have been shown to be an unreliable source of data. There are models available for cash flow management and forecasting and these could be used as a starting point for managers in rethinking their cash flow management practices. The research reported here has reached the stage of formulating researchable questions for an in-depth study including issues such as how contractors manage their cash flow, how payment practices can be managed without damaging others in the supply chain and the relationships between companies" financial structures and the payment regimes to which they are subjected.

Cash flow management in construction firms

The level of insolvencies in the construction industry is high, when compared to other industry sectors. Given the management expertise and experience that is available to the construction industry, it seems strange that, according to the literature, the major causes of failure are lack of financial control and poor management. This indicates that with a good cash flow management, companies could be kept operating and financially healthy. It is possible to prevent failure. Although there are financial models that can be used to predict failure, they are based on company accounts, which have been shown to be an unreliable source of data. There are models available for cash flow management and forecasting and these could be used as a starting point for managers in rethinking their cash flow management practices. The research reported here has reached the stage of formulating researchable questions for an in-depth study including issues such as how contractors manage their cash flow, how payment practices can be managed without damaging others in the supply chain and the relationships between companies’ financial structures and the payment regimes to which they are subjected.

Horizontal potential vorticity dipoles on the convective storm scale

The structure and dynamics of potential vorticity (PV) anomalies generated by convective storms is investigated both theoretically and in a numerical model case study. Linear theory suggests that if the storm-induced heating is on a sufficiently small scale (relative to the Rossby radius of deformation), and the environment contains moderate vertical wind shear (of order 1 m s(-1) km(-1)), then the dominant mode of a diabatically generated PV anomaly is a horizontally oriented dipole. The horizontal dipoles are typically of O(10 PVU), compared with the O(1 PVU) vertical dipoles that have been studied extensively throughout the literature. Furthermore, the horizontal PV dipoles are realized almost entirely as relative vorticity anomalies (on a time-scale of the order of tens of minutes after the heating has been turned on). The analysis of horizontal PV dipoles offers a new perspective on the vorticity dynamics of individual convective cells, implying that moist processes play a role in the maintenance of vertical vorticity in the convective storm environment.

Detecting local adaptation in widespread grassland species - the importance of scale and local plant community

1 Adaptation of plant populations to local environments has been shown in many species but local adaptation is not always apparent and spatial scales of differentiation are not well known. In a reciprocal transplant experiment we tested whether: (i) three widespread grassland species are locally adapted at a European scale; (ii) detection of local adaptation depends on competition with the local plant community; and (iii) local differentiation between neighbouring populations from contrasting habitats can be stronger than differentiation at a European scale. 2 Seeds of Holcus lanatus, Lotus corniculatus and Plantago lanceolata from a Swiss, Czech and UK population were sown in a reciprocal transplant experiment at fields that exhibit environmental conditions similar to the source sites. Seedling emergence, survival, growth and reproduction were recorded for two consecutive years. 3 The effect of competition was tested by comparing individuals in weeded monocultures with plants sown together with species from the local grassland community. To compare large-scale vs. small-scale differentiation, a neighbouring population from a contrasting habitat (wet-dry contrast) was compared with the 'home' and 'foreign' populations. 4 In P. lanceolata and H. lanatus, a significant home-site advantage was detected in fitness-related traits, thus indicating local adaptation. In L. corniculatus, an overall superiority of one provenance was found. 5 The detection of local adaptation depended on competition with the local plant community. In the absence of competition the home-site advantage was underestimated in P. lanceolata and overestimated in H. lanatus. 6 A significant population differentiation between contrasting local habitats was found. In some traits, this small-scale was greater than large-scale differentiation between countries. 7 Our results indicate that local adaptation in real plant communities cannot necessarily be predicted from plants grown in weeded monocultures and that tests on the relationship between fitness and geographical distance have to account for habitat-dependent small-scale differentiation. Considering the strong small-scale differentiation, a local provenance from a different habitat may not be the best choice in ecological restoration if distant populations from a more similar habitat are available.

Study of the lactation curve in dairy cattle on farms in Central Mexico

Accurate knowledge of lactation curves has an important relevance to management and research of dairy production systems. A number of equations have been proposed to describe the lactation curve, the most widely applied being the gamma equation. The objective of this work was to compare and evaluate candidate functions for their predictive ability in describing lactation curves from central Mexican dairy cows reared under 2 contrasting management systems. Five equations were considered: Gaines ( exponential decay), Wood ( gamma equation), Rook ( Michaelis-Menten x exponential), and 2 more mechanistic ones (Dijkstra and Pollott). A database consisting of 701 and 1283 records of cows in small-scale and intensive systems, respectively, was used in the analysis. Before analysis, the database was divided into 6 groups representing first, second, and third and higher parity cows in both systems. In all cases except second and above parity cows in small-scale systems, all models improved on the Gaines equation. The Wood equation explained much of the variation, but its parameters do not have direct biological interpretation. Although the Rook equation fitted the data well, some of the parameter estimates were not significant. The Dijkstra equation consistently gave better predictions, and its parameters were usually statistically significant and lend themselves to physiological interpretation. As such, the differences between systems and parity could be explained due to variations in theoretical initial milk production at parturition, specific rates of secretory cell proliferation and death, and rate of decay, all of which are parameters in the model. The Pollott equation, although containing the most biology, was found to be over-parameterized and resulted in nonsignificant parameter estimates. For central Mexican dairy cows, the Dijkstra equation was the best option to use in describing the lactation curve.

An analytic knowledge network process for construction entrepreneurship education

Purpose - The purpose of this paper is to provide a quantitative multicriteria decision-making approach to knowledge management in construction entrepreneurship education by means of an analytic knowledge network process (KANP) Design/methodology/approach- The KANP approach in the study integrates a standard industrial classification with the analytic network process (ANP). For the construction entrepreneurship education, a decision-making model named KANP.CEEM is built to apply the KANP method in the evaluation of teaching cases to facilitate the case method, which is widely adopted in entrepreneurship education at business schools. Findings- The study finds that there are eight clusters and 178 nodes in the KANP.CEEM model, and experimental research on the evaluation of teaching cases discloses that the KANP method is effective in conducting knowledge management to the entrepreneurship education. Research limitations/implications- As an experimental research, this paper ignores the concordance between a selected standard classification and others, which perhaps limits the usefulness of KANP.CEEM model elsewhere. Practical implications- As the KANP.CEEM model is built based on the standard classification codes and the embedded ANP, it is thus expected that the model has a wide potential in evaluating knowledge-based teaching materials for any education purpose with a background from the construction industry, and can be used by both faculty and students. Originality/value- This paper fulfils a knowledge management need and offers a practical tool for an academic starting out on the development of knowledge-based teaching cases and other teaching materials or for a student going through the case studies and other learning materials.

Understanding construction competitiveness: the initial results of a Delphi survey in Finland, Sweden and the UK

The competitiveness of the construction industry is an important issue for many countries as the industry makes up a substantial part of their GDP – about 8% in the UK. A number of competitiveness studies have been undertaken at company, industry and national levels. However, there has been little focus on sustainable competitiveness and the many factors that are involved. This paper addresses that need by investigating what construction industry experts consider to be the most important factors of construction industry competitiveness. It does so by conducting a Delphi survey among industry experts in Finland, Sweden and the UK. A list of 158 factors was compiled from competitiveness reports by institutions such as World Economic Forum and International Institute of Management Development, as well as from explorative workshops in the countries involved in the study. For each of the countries, experts with different perspectives of the industry, including, consultants, contractors and clients, were asked to select their 30 most influential factors. They then ranked their chosen factors in order of importance for the competitiveness of their construction industry. The findings after the first round of the Delphi process underline the complexity of the term competitiveness and the wide range of factors that are considered important contributors to competitiveness. The results also indicate that what are considered to be the most important factors of competitiveness is likely to differ from one country to another.

Competitiveness in construction: a critical review of research

Since its popularization in the 1980s, competitiveness has received close attention from practitioners and researchers across a wide range of industries. In the construction sector, many works on competitiveness have also been published. So far, however, there seems to be no comprehensive review to summarize and critique existing research on competitiveness in construction. This research, therefore, reviews the extant literature from four aspects: concept of competitiveness, competitiveness research at the construction industry level, competitiveness research at the firm level, and competitiveness research at the project level. The review presents the state-of-the-art development of competitiveness research in construction, identifies the research gaps, and proposes new directions for further studies. Further research is recommended to validate previous studies in construction practices, identify the mechanisms that encourage mutual enhancement of competitiveness at different levels, and how to achieve its sustainability by embracing new management and/or economics techniques.

Re-engineering construction: going against the grain

An overtly critical perspective on 're-engineering construction' is presented. It is contended that re-engineering is impossible to define in terms of its substantive content and is best understood as a rhetorical label. In recent years, the language of re-engineering has heavily shaped the construction research agenda. The declared goals are to lower costs and improve value for the customer. The discourse is persuasive because it reflects the ideology of the 'enterprise culture' and the associated rhetoric of customer responsiveness. Re-engineering is especially attractive to the construction industry because it reflects and reinforces the existing dominant way of thinking. The overriding tendency is to reduce organizational complexities to a mechanistic quest for efficiency. Labour is treated as a commodity. Within this context, the objectives of re-engineering become 'common sense'. Knowledge becomes subordinate to the dominant ideology of neo-liberalism. The accepted research agenda for re-engineering construction exacerbates the industry's problems and directly contributes to the casualization of the workforce. The continued adherence to machine metaphors by the construction industry's top management has directly contributed to the 'bad attitudes' and 'adversarial culture' that they repeatedly decry. Supposedly neutral topics such as pre-assembly, partnering, supply chain management and lean thinking serve only to justify the shift towards bogus labour-only subcontracting and the associated reduction of employment rights. The continued casualization of the workforce raises real questions about the industry's future capacity to deliver high-quality construction. In order to appear 'relevant' to the needs of industry, it seems that the research community is doomed to perpetuate this regressive cycle.

Lean construction: Arenas of enactment, models of diffusion and the meaning of 'leanness'

The existing literature on lean construction is overwhelmingly prescriptive with little recognition of the social and politicised nature of the diffusion process. The prevailing production-engineering perspective too often assumes that organizations are unitary entities where all parties strive for the common goal of 'improved performance'. An alternative perspective is developed that considers the diffusion of lean construction across contested pluralistic arenas. Different actors mobilize different storylines to suit their own localized political agendas. Multiple storylines of lean construction continuously compete for attention with other management fashions. The conceptualization and enactment of lean construction therefore differs across contexts, often taking on different manifestations from those envisaged. However, such localized enactments of lean construction are patterned and conditioned by pre-existing social and economic structures over which individual managers have limited influence. Taking a broader view, 'leanness' can be conceptualized in terms of a quest for structural flexibility involving restructuring, downsizing and outsourcing. From this perspective, the UK construction industry can be seen to have embarked upon leaner ways of working in the mid-1970s, long before the terminology of lean thinking came into vogue. Semi-structured interviews with construction sector policy-makers provide empirical support for the view that lean construction is a multifaceted concept that defies universal definition.

The futures of construction: A critical review of construction future studies

Anticipating the future is increasingly being seen as a useful way to align, direct and improve current organizational strategy. Several such 'future studies' have been produced which envision various construction industry scenarios which result from technological and socio-economic trends and influences. Thirteen construction-related future studies are critically reviewed. Most studies fail to address the complexities and uncertainties of both the present and the future, and fail to explore the connections between global, local, construction-specific and more widespread factors. The methodological approaches used in these studies do not generate any significantly different advice or recommendations for the industry than those emerging from the much larger canon of non-future oriented construction research. As such, these reports are less about the future than the present. If future studies are to make a worthwhile contribution to construction, it is critical that they develop our appreciation of the practical ability of stakeholders to influence some aspects of the future and not others, and an awareness of the competing agendas and the relative benefits and disadvantages of specific futures within the construction sector. Only then can future studies provide insights and help in preparing for the opportunities and threats the future may bring.

Contextual prerequisites for the application of ILS principles to the building services industry

Purpose – This paper proposes assessing the context within which integrated logistic support (ILS) can be implemented for whole life performance of building services systems. Design/methodology/approach – The use of ILS within a through-life business model (TLBM) is a better framework to achieve a well-designed, constructed and managed product. However, for ILS to be implemented in a TLBM for building services systems, the practices, tools and techniques need certain contextual prerequisites tailored to suit the construction industry. These contextual prerequisites are discussed. Findings – The case studies conducted reinforced the contextual importance of prime contracting, partnering and team collaboration for the application of ILS techniques. The lack of data was a major hindrance to the full realisation of ILS techniques within the case studies. Originality/value – The paper concludes with the recognition of the value of these contextual prerequisites for the use of ILS techniques within the building industry.