Complexity in the Evaluation of Contract Types Employed for the Construction of Highway Projects

Abstract

The procurement of public works is by definition complex in that its success depends on many varied interrelated parties (client, designer, licensing authorities, contractors, construction supervisor, users). In addition, the construction process is always technologically complex as it is comprised of numerous tasks and objectives. The choice of the most appropriate contract type (CT) regarding the method of contractor compensation is one of the most essential and complex decisions. This choice is based on the decision maker's knowledge, experience and intuition. Following an extensive literature review to determine both the seven CT's employed in the construction industry and the nine selection criteria (SC) most commonly considered when choosing between CT's, a questionnaire survey was carried out among 79 highway construction professionals who were asked to rate each CT against each selection criterion. This study presents the frequencies of the CTs scores against each criterion but the main aim of the research is to decompose the complex selection patterns relating to the participants’ choices. A correlation analysis carried out established associations among the respondents’ profiles and their resulting ratings of each CT against each SC. The results indicate that the participants’ origin, current position profile, years and type of professional experience and finally years of direct and indirect experience with each CT influence their perception of the appropriateness of each CT against each criterion and the respective scores awarded to each CT.