Comparing the effect of inadequate documentation to the cost management and tendering processes in managing contractor and fixed lump sum contracts in Australia

Purpose of this paper This research aims to examine the effects of inadequate documentation to the cost management & tendering processes in Managing Contractor Contracts using Fixed Lump Sum as a benchmark. Design/methodology/approach A questionnaire survey was conducted with industry practitioners to solicit their views on documentation quality issues associated with the construction industry. This is followed by a series of semi-structured interviews with a purpose of validating survey findings. Findings and value The results showed that documentation quality remains a significant issue, contributing to the industries inefficiency and poor reputation. The level of satisfaction for individual attributes of documentation quality varies. Attributes that do appear to be affected by the choice of procurement method include coordination, build ability, efficiency, completeness and delivery time. Similarly the use and effectiveness of risk mitigation techniques appears to vary between the methods, based on a number of factors such as documentation completeness, early involvement, fast tracking etc. Originality/value of paper This research fills the gap of existing body of knowledge in terms of limited studies on the choice of a project procurement system has an influence on the documentation quality and the level of impact. Conclusions Ultimately research concludes that the entire project team including the client and designers should carefully consider the individual projects requirements and compare those to the trade-offs associated with documentation quality and the procurement method. While documentation quality is definitely an issue to be improved upon, by identifying the projects performance requirements a procurement method can be chosen to maximise the likelihood that those requirements will be met. This allows the aspects of documentation quality considered most important to the individual project to be managed appropriately.

Meeting the Requirements of the CDM Regulations: Identification of Critical Success Factors of Small to Medium Sized Contractor’ Compliance in the UK Construction Industry

The Construction Design and Management (CDM) Regulations (2007) is one of the most important set of health and safety regulations in the construction industry today. The aim of this research is to examine critical success factors for CDM compliance in small to medium size contractors in the UK construction industry. The objectives of the research include the identification of critical barriers in doing so along with the identification of success factors where CDM is incorporated. A mixed method approach is adopted in the identification and categorisation of the various factors encompassing a literature review, interviews and questionnaire survey. The key finding which emerge is the lack of knowledge and understanding with regards the CDM regulations with the recommendation to encourage small and medium contractor compliance through illustrating the benefits attainable. The practicality of the research is evident based on the significant uptake in the CDM by larger contractors, yet the research indicates that further insight and guidance is required to educate and inform those working within small to medium sized contractors in the UK. Where such acknowledgement and compliance is adopted, it is envisaged that this sector will benefit from reduced incidents and accidents, increased productivity while ultimately leading to a safer and more productive industry as a whole.

The application of early contractor involvement and its impact on project performance

Early contractor involvement is a topic that has attracted attention from construction practitioners and researchers in the UK since the 1990s. It has been adopted to introduce construction knowledge and experience to the design process, and to integrate design with construction. In contrast with the limited number of previous studies on early contractor involvement, which used case studies, a questionnaire survey was conducted in this study, to investigate the application of early contractor involvement in current practice and its impact on project performance in terms of time, cost and quality. From an analysis of the questionnaire results, early contractor involvement is found to be increasingly used in the construction industry, and to have a significant impact on cost and time performance. This research provides empirical evidence related to the practice of early contractor involvement. It demonstrates the major influence of early contractor involvement on management processes and working relationships during a project, which contribute to performance improvement and project success.

Article of agreement between Alexander Cook, contractor of Humberstone and the Provisional Municipal Council of the county of Welland

Article of agreement between Alexander Cook, contractor of Humberstone and the Provisional Municipal Council of the county of Welland to construct and build the main drain through the marsh lands tract commencing in lot no. 27 in the 4th concession in the township of Humberstone in a southerly direction (6 pages, handwritten). This is signed by John Frazer, Provisional Warden, Dexter Deverardo and Alexander Cook. (2 copies), Dec. 30, 1854.

Receipt from John Brown, contractor of Thorold, Ontario

Receipt from John Brown, contractor of Thorold, Ontario for cement, Aug. 8, 1876.

Receipt from George Wilson, Contractor and Builder, St. Catharines

Receipt from George Wilson, Contractor and Builder, St. Catharines for work done, March 4, 1887.

Receipt from George Wilson, Contractor and Builder, St. Catharines for contracting work

Receipt from George Wilson, Contractor and Builder, St. Catharines for contracting work, Sept. 30, 1887.

The impact of contractor selection method on transaction costs: a review

The basic premise of transaction-cost theory is that the decision to outsource, rather than to undertake work in-house, is determined by the relative costs incurred in each of these forms of economic organization. In construction the "make or buy" decision invariably leads to a contract. Reducing the costs of entering into a contractual relationship (transaction costs) raises the value of production and is therefore desirable. Commonly applied methods of contractor selection may not minimise the costs of contracting. Research evidence suggests that although competitive tendering typically results in the lowest bidder winning the contract this may not represent the lowest project cost after completion. Multi-parameter and quantitative models for contractor selection have been developed to identify the best (or least risky) among bidders. A major area in which research is still needed is in investigating the impact of different methods of contractor selection on the costs of entering into a contract and the decision to outsource.

Modelling trade contractor information production

Design management research usually deals with the processes within the professional design team and yet, in the UK, the volume of the total project information produced by the specialist trade contractors equals or exceeds that produced by the design team. There is a need to understand the scale of this production task and to plan and manage it accordingly. The model of the process on which the plan is to be based, while generic, must be sufficiently robust to cover the majority of instances. An approach using design elements, in sufficient depth to possibly develop tools for a predictive model of the process, is described. The starting point is that each construction element and its components have a generic sequence of design activities. Specific requirements tailor the element's application to the building. Then there are the constraints produced due to the interaction with other elements. Therefore, the selection of a component within the element may impose a set of constraints that will affect the choice of other design elements. Thus, a design decision can be seen as an interrelated element-constraint-element (ECE) sub-net. To illustrate this approach, an example of the process within precast concrete cladding has been used.

Modelling trade contractor information production

Design management research usually deals with the processes within the professional design team and yet, in the UK, the volume of the total project information produced by the specialist trade contractors equals or exceeds that produced by the design team. There is a need to understand the scale of this production task and to plan and manage it accordingly. The model of the process on which the plan is to be based, while generic, must be sufficiently robust to cover the majority of instances. An approach using design elements, in sufficient depth to possibly develop tools for a predictive model of the process, is described. The starting point is that each construction element and its components have a generic sequence of design activities. Specific requirements tailor the element's application to the building. Then there are the constraints produced due to the interaction with other elements. Therefore, the selection of a component within the element may impose a set of constraints that will affect the choice of other design elements. Thus, a design decision can be seen as an interrelated element-constraint-element (ECE) sub-net. To illustrate this approach, an example of the process within precast concrete cladding has been used.

Contractor key competitiveness indicators: A China study

A proper method to assess contractor competitiveness is important both for assisting clients in the selection of proper contractors and for assisting contractors in the development of more competitive bidding strategies. Previous studies have identified various indicators for assessing contractor competitiveness, and several assessment methods have been introduced. Nevertheless, these studies are limited because they are unable to tell which indicators are more important in different market environments. This paper identifies the key competitiveness indicators �KCIs� for assessing contractor competitiveness in the Chinese construction market. An index value is used to indicate the relative significance of various competitiveness indicators based on which KCIs are identified. The data applied in this study are from a survey of the construction industry in mainland China. The research findings provide valuable information for both existing businesses and the construction professionals who plan to compete for construction works in the Chinese market. The study provides useful references for further studies that compare the KCIs used in the Chinese construction industry and those used in other construction industries.