Contractors In Construction Projects Research Articles

Intelligent detection on construction project contract missing clauses based on deep learning and NLP

PurposeThe number of construction dispute cases has maintained a high growth trend in recent years. The effective exploration and management of construction contract risk can directly promote the overall performance of the project life cycle. The miss of clauses may result in a failure to match with standard contracts. If the contract, modified by the owner, omits key clauses, potential disputes may lead to contractors paying substantial compensation. Therefore, the identification of construction project contract missing clauses has heavily relied on the manual review technique, which is inefficient and highly restricted by personnel experience. The existing intelligent means only work for the contract query and storage. It is urgent to raise the level of intelligence for contract clause management. Therefore, this paper aims to propose an intelligent method to detect construction project contract missing clauses based on Natural Language Processing (NLP) and deep learning technology.Design/methodology/approachA complete classification scheme of contract clauses is designed based on NLP. First, construction contract texts are pre-processed and converted from unstructured natural language into structured digital vector form. Following the initial categorization, a multi-label classification of long text construction contract clauses is designed to preliminary identify whether the clause labels are missing. After the multi-label clause missing detection, the authors implement a clause similarity algorithm by creatively integrating the image detection thought, MatchPyramid model, with BERT to identify missing substantial content in the contract clauses.Findings1,322 construction project contracts were tested. Results showed that the accuracy of multi-label classification could reach 93%, the accuracy of similarity matching can reach 83%, and the recall rate and F1 mean of both can reach more than 0.7. The experimental results verify the feasibility of intelligently detecting contract risk through the NLP-based method to some extent.Originality/valueNLP is adept at recognizing textual content and has shown promising results in some contract processing applications. However, the mostly used approaches of its utilization for risk detection in construction contract clauses predominantly are rule-based, which encounter challenges when handling intricate and lengthy engineering contracts. This paper introduces an NLP technique based on deep learning which reduces manual intervention and can autonomously identify and tag types of contractual deficiencies, aligning with the evolving complexities anticipated in future construction contracts. Moreover, this method achieves the recognition of extended contract clause texts. Ultimately, this approach boasts versatility; users simply need to adjust parameters such as segmentation based on language categories to detect omissions in contract clauses of diverse languages.

Operational Barriers against the Use of Smart Contracts in Construction Projects

As an emerging but embryonic way of contract administration, smart contracts can play a prominent role in managing construction projects in an effective manner. However, there are still some barriers preventing the implementation of them in the life cycles of construction projects. This study investigates operational barriers against the adoption of smart contracts in construction projects and explores the challenges in this process. Operational barriers against smart contract implementation are identified through a comprehensive literature review and a focus group discussion is performed to refine the identified barriers. These barriers are evaluated through fuzzy analytical hierarchy process analysis. Finally, a framework is proposed for the adoption of smart contracts effectively in construction projects. 20 operational barriers were attained based on four main barrier categories: technical, financial, security/technological, and time. The results show that financial and technical aspects establish the most significant categories hindering the adoption of smart contracts, while expensive and clunky drafting and registration process, and cost of upskilling are the most significant barriers. Overall, the proposed framework might be useful for practitioners and project managers, who decide to use smart contracts in managing construction projects. The motive behind understanding critical operational barriers is to assist construction practitioners in automating contract execution processes. This study provides a basis for recommending the necessary strategies for the use of smart contracts in the industry to researchers in the construction management field.

Assessment of Barriers to the Implementation of Smart Contracts in Construction Projects—Evidence from Turkey

Despite their promising potential, the level of implementation of smart contracts is not at the desired level. To expedite the acceptance and deployment of smart contracts, the barriers to the implementation of smart contracts should be revealed. Past studies, however, do not provide a comprehensive theoretical basis due to several methodological drawbacks. Thus, this study aims to identify and assess the barriers to the implementation of smart contracts by considering the inherent characteristics of the construction industry. An in-depth literature review was initially conducted to extract all barriers proposed in the literature. Then, focus group discussion (FGD) sessions were conducted with the participation of the construction practitioners. In the FGD session, the results of the literature review were validated, and nine additional barriers were proposed. Finally, a total of 20 barriers under five categories was proposed for the smart contract adoption in the construction industry. Then, a questionnaire survey was conducted with the participation of 15 construction practitioners. Lastly, fuzzy VIKOR analysis was performed to assess the criticality of the implementation barriers. This study indicates that the construction companies should overcome not only technical barriers but also managerial barriers. Changes in the processes arisen due to smart contract implementation prevent the construction from implementing a smart contract, since the employees show resistance to these changes. Furthermore, the companies believe that they can lose their bargaining power with smart contracts, and they do not want to lose their power. Bottlenecks are considered the most critical barrier from a technological perspective, and companies are concerned about the problems resulting from them. Although this study provides insights into the barriers to smart contracts in the construction industry, all the respondents are from Turkey. Therefore, some of the findings of this study can be specific to the Turkish construction industry.

CHALLENGES TO THE ADOPTION OF BOT CONTRACTS SYSTEM FOR INFRASTRUCTURE DEVELOPMENT

The purpose of the study was to investigate the obstacles to the use of BOT contract systems for the construction of infrastructure projects in Jordan. This is achieved by adopting a professional empirical questionnaire. The respondents were asked to rank their perceptions of the obstacles to the implementation of the BOT contracts systems by specialists in the field of construction. According to the study, the main obstacles, as groups to the adoption of the BOT contract system are legal, economic, technical, political, social, and environmental groups. As far as the obstacles are concern, the most significant are regulations and changes of law, delays in permits and approvals, shortage of experts in BOT projects, stakeholders – conflict of interest, and regulatory framework – weak/poor. The study recommends that it is necessary to investigate this idea by utilizing appropriate policy initiatives, appropriate procedures, and government support to enhance the proper implementation of the BOT contracts in construction projects in Jordan.

ÖNORM B 2203-1 as a Supplement to FIDIC Emerald Book in Conventional Tunnel Construction

This paper explores how the ÖNORM B 2203-1 model can complement the FIDIC Emerald Book contracts in conventional tunnel construction projects, specifically focusing on cooperation, project management, reimbursement, and dispute resolution. The complex technical nature of such projects requires collaborative stakeholder engagement, efficient project management, and effective dispute resolution mechanisms. This article enhances the current body of literature by undertaking a qualitative comparative analysis of the FIDIC Emerald Book and the ÖNORM B 2203-1 model within the specific context of conventional tunnel construction projects. The findings demonstrate that specific areas in the FIDIC Emerald Book exist where supplementary guidance is required. Compared to the FIDIC Emerald Book, the ÖNORM model offers a more extensive range of project management aspects, reimbursement guidelines, dispute resolution provisions, and comprehensive technical specifications, all supported by contractual provisions. The major limitation of this study is its focus on a literature review. Thus, including the qualitative analysis in an actual project and applying the study results would be advantageous for verifying the findings.

Critical Factors Influencing Adoption of Blockchain-Enabled Smart Contracts in Construction Projects

Construction projects are premised upon contractual arrangements, and contracts constitute the basis of their success. A contract enables execution of work and transfer of payments, tracking of key performance indicators, and facilitation of collaboration among project stakeholders. Historically, construction projects have faced critical challenges due to poor alignment between clients’ expectations, contract terms, and contractor performance. The advent of advanced digital technologies under the concept of Industry 4.0 has the potential to benefit construction projects through application of blockchain-enabled smart contracts. However, the adoption of smart contracts in construction projects is in its early stages, and the factors that will influence its adoption remain unclear. Therefore, this study aimed to explore and establish the critical factors influencing adoption of smart contracts in construction contractual arrangements. This study administered an international questionnaire survey among experienced construction practitioners with involvement in smart contract initiatives and activities. The results obtained from descriptive statistics and fuzzy set-based analysis show that trialability, relative advantage, competitive advantage, and compatibility of smart contracts are the important predictors of the adoption of such contracts. The findings suggest that practitioners share a view that technological characteristics of blockchain-enabled smart contracts are critical to their adoption, regarding the technology’s perceived practicality in improving effectiveness and efficiency of construction projects. This study contributes to technology diffusion research in construction and highlights drivers that require practitioners’ and industry leaders’ attention to ensure successful adoption of smart contracts for cost-effective delivery of construction projects.

Leadership models in era of new technological challenges in construction projects.

The building sector is under the significant influence of emerging technologies. Structures shape the environment and "consume" natural resources throughout their life cycle. They "live" many years after the construction which implies a dependence on some generations of supporting technologies. They can be useful in the subsequent phases: design, construction, maintenance and demolition. They may refer to main processes (construction production) as well as to concurrent processes (management, accountancy, logistics etc.). Computers, automated tools and machines or other intelligent devices seem to be inevitable in the 21st century. Therefore, contractors of construction projects should be sensitive to these issues. Based on literature studies, the article revealed that knowledge management in a construction company should primarily rely on the corporate culture that manifests a preference for computer-aided methods. This part was supplemented by a questionnaire technique and a statistical analysis of the results. It was concluded that the path to technological maturity of the construction company is a continual process. Consistency in this pursuit enables effective promotion of innovative technologies in the construction company. The research allowed us to draw three explicit phases: lack of experience, euphoria, and experience in becoming a technologically matured enterprise.

From Contractual Flexibility to Contractor’s Cooperative Behavior in Construction Projects: The Multiple Mediation Effects of Ongoing Trust and Justice Perception

The flexible contract is an important mechanism for owners to govern contractors in construction projects. Given the limited explanatory power of the justice mechanism and the important role of relational factors, this study explored the role of ongoing trust and justice perception in the relationship between contractual flexibility and the contractor’s cooperative behavior and aimed to further reveal the potential influence paths through an empirical analysis. We found the following: (1) apart from justice perception, ongoing trust is another crucial mediation factor in the relationship. (2) Together with the former, ongoing trust plays significantly multiple mediation effects and constitutes the main indirect influence paths, among which the parallel one is strongest and the chain one comes third. (3) Moreover, both factors are more likely to be impacted by contract executing flexibility, compared with contract content flexibility. These findings enrich relational mechanism research and provide some guidance for the owner to build contractual flexibility to govern contractors’ behavior.

Administrative risks challenging the adoption of smart contracts in construction projects

PurposeAs a remedy to usually voluminous, complicated and not easily readable construction contracts, smart contracts can be considered as an effective and alternative solution. However, the construction industry is merely known as a frontrunner for fast adoption of recent technological advancements. Numerous administrative risks challenge construction companies to implement smart contracts. To highlight this issue, this study aims to assess the administrative risks of smart contract adoption in construction projects.Design/methodology/approachA literature survey is conducted to specify administrative risks of smart contracts followed by a pilot study to ensure that the framework is suitable to the research question. The criteria weights are calculated through the fuzzy analytical hierarchy process method, followed by a sensitivity analysis based on degree of fuzziness, which supports the robustness of the developed hierarchy and stability of the results. Then, a focus group discussion (FGD) is performed to discuss the mitigation strategies for the top-level risks in each risk category.FindingsThe final framework consists of 27 sub-criteria, which are categorized under five main criteria, namely, contractual, cultural, managerial, planning and relational. The findings show that (1) regulation change, (2) lack of a driving force, (3) works not accounted in planning, (4) shortcomings of current legal arrangements and (5) lack of dispute resolution mechanism are the top five risks challenging the adoption of smart contracts in construction projects. Risk mitigation strategies based on FGD show that improvements for the semi-automated smart contract drafting are considered more practicable compared to full automation.Originality/valueThe literature is limited in terms of the adoption of smart contracts, while the topic is receiving more attention recently. To support easy prevalence of smart contracts, this study attempts the most challenging aspects of smart contract adoption.

Developing a Dynamic Supervision Mechanism to Improve Construction Safety Investment Supervision Efficiency in China: Theoretical Simulation of Evolutionary Game Process.

The construction industry suffers from poor safety performance caused by the joint effect of insufficient safety investment by contractors and inefficient safety supervision by the government because of the information gap between the two sides. The present study aims to put forward a new pathway to improve safety investment supervision efficiency and analyze the decision-making interactions of stakeholders under this new pathway. For this purpose, this study establishes a safety investment information system to eliminate the information gap between the government and contractors for construction projects in China and further develops a dynamic safety investment supervision mechanism based on this. Evolutionary game theory is used to describe the decision-making interactions among stakeholders under the current static supervision mechanism and the dynamic supervision mechanism proposed in this research. Moreover, system dynamics is adopted to simulate the evolutionary game process and analyze the supervision effect and equilibrium state of different supervision mechanisms. The results reveal that the proposed safety investment information system could facilitate the transition of the supervision mode from static to dynamic; the evolutionarily stable strategy does not exist in the current static penalty scenario; and the dynamic supervision mechanism that correlates penalties with contractors’ unlawful behavior probability can restrain the fluctuation of the evolutionary game model effectively and the players’ strategy choices gradually stabilize in the equilibrium state. The results validate the effectiveness of the proposed dynamic supervision mechanism in improving supervision efficiency. This study not only contributes to the literature on safety supervision policy-making but also helps to improve supervision efficiency in practice.

Corporate Failure Prediction of Construction Companies in Poland: Evidence from Logit Model

Purpose: This paper aims to develop a corporate failure prediction model for construction companies in Poland that allow assessing their financial situation and credit risk. Design/Methodology/Approach: For this purpose, the following research methods have been used, descriptive and comparative analysis, subject literature review, and logit anal-ysis. The Polish construction companies' financial data in this research come from the Emerging Markets Information Service (EMIS). To achieve the main goal of the research, the logit model was built. The significance test, error matrix, and ROC curve were used to assess the quality of the estimated binary logit model. Findings: Based on the research, we identify seven financial indicators that significantly impact the probability of poor financial condition. The following variables are current assets turnover, debt to assets ratio, operating profit to assets, gross profit to assets, oper-ating profit plus amortization to short-term liabilities, current assets to assets ratio, and equity to assets ratio. The research results show that corporate failure prediction models are interesting and important tools to assess the financial situation. Based on the devel-oped model, it has been found that the growth of debts increases the credit risk of construc-tion companies. Moreover, the increase in the share of current assets in the total assets harms the financial condition. Also, the risk of insolvency decreases with growing profita-bility measured by the rate of return on assets. Practical Implications: The built logit model can be beneficial for investment loan provid-ers, insurance companies, and entities selecting contractors in construction projects due to the possibility of the credit risk assessment. Originality/Value: The use of logit models to identify statistically significant corporate failure prediction factors for construction companies in Poland.

Supplier-contractor coordination approach to managing demand fluctuations of ready-mix concrete

Although advancements have been made in the management of projects due to the digitalization and automation technologies, the efficient use of digital data is still lacking for the coordination of the supply chain. This paper presents an approach that allows data-driven and schedule-oriented supply chain coordination in the face of demand fluctuations. The approach consists of two main steps that contractors should take: 1) monitor the demand fluctuations based on a 4D model that captures the as-built status and updated look-ahead schedules, 2) make decisions to modify original orders to accommodate the demand fluctuations where orders are determined by a heuristic evolutionary algorithm. As a proof of concept, the coordination approach is demonstrated using an example project featuring a five-day in-situ construction of concrete walls. Results from this example show that using the approach improves the responsiveness of concrete planning and ordering. As a result, this leads to improved collaboration between suppliers and contractors in construction projects.

Investigation of Cost-Influencing Factors Potentially Controllable by Main Contractors in Construction Projects in Iraq

Cost overrun in construction projects is a common phenomenon in Iraq. This might occur due to diversity of factors. This study aims to identify the factors influencing construction projects cost that are potentially controllable by main contractors. A field study through a questionnaire survey was directed to a sample of related Iraqi professional engineers from general contracting companies at both public and private sectors. Their opinions on the impact and frequency of each factor were investigated. The questionnaire offered (59) factors classified in (8) categories namely; legislations, financial and economic, design, contractual, site management, material, labor and equipment. The factors were ranked according to the highest Relative Importance Index (RII). The study revealed (10) major factors that are potentially controllable by main contractors namely; labor productivity, sub-contractors and suppliers performance, equipment productivity, site organization and distribution of equipment, experience and training of project managers, scheduling and control techniques, planning for materials supply, planning for equipment supply, materials delivery and planning for skilled labor recruitment. Recommendations to aid contractors and owners in early identification of these factors are also included in this study.

Integrated project delivery as an enabler for collaboration: a Middle East perspective

Purpose This study investigates the extent to which the popular forms of contract adopted in the Middle East (ME) address collaboration. The purpose of this paper is to assess how collaboration features weaved into the construct of integrated project delivery (IPD) may impact projects in the ME. In this context, the study identifies features in IPD and existing delivery methods that may enable or inhibit collaboration and evaluates their impact on project success from the perspective of various contract managers in the ME. Design/methodology/approach The study employs structured face-to-face interviews with 41 construction industry practitioners in top contract management positions in the ME to evaluate the significance of collaboration features in IPD. Data collected from the structured interviews/surveys were analyzed using statistical tools in R and Excel. Findings Results reveal that while experts recognize the collaboration benefits which IPD features may contribute to a project, the current contractual environment of the industry does not optimally encompass these features. The current status of project delivery does not favor IPD implementation nor does it enable its collaborative features. Originality/value This study contributes to the growing international body of knowledge addressing the application of collaborative contracts in construction projects, and it is innovative in evaluating collaboration features within IPD and exiting project deliveries in the ME.

Text analytics to analyze and monitor construction project contract and correspondence

Abstract Text mining is a fast-growing area of research, due to its ability to discover valuable information and getting insights hidden in plain texts. The aim of this paper is to apply text mining in order to analyze construction project contracts and visually analyze project correspondence. Analyzing construction contract helps project parties to figure out their obligations and reduce time and effort needed for contract analysis. Additionally, performing text mining to the contract helps in extracting critical keywords that should be monitored closely in the correspondence. On the other hand, applying text mining for project correspondence helps in gaining an understanding regarding the communication nature and sentiment between project parties. Thus, the paper develops a Dynamic Text Analytical model for Contract and Correspondence “DTA-CC” through utilizing BIM. The DTA-CC model assists project parties to explore texts and get insights regarding the project performance. The specific objectives of this study are to 1-perform a text analytics of the construction project contract, 2- integrate project correspondence within the BIM model and 3- develop a text analytical model based on project's correspondence to monitor the project performance. The DTA-CC model is validated by applying a case study for a construction project located in Cairo, Egypt. The case study found that there is a lot of hidden information in the project's raw data. Moreover, it is crucial to monitor raw data in order to achieve a successful project. This study extends the existing knowledge by proposing a novel methodology to extract meaningful patterns from construction projects data.

Contractual Complexity in Construction Projects

Building on the multifunctional perspective from current contract theory, we conceptualize contractual complexity as a three-dimensional construct to depict the explicitness and elaborateness of control, coordination, and adaptation provisions in a construction project contract. A 13-item scale with construction project features is developed for measuring the different aspects of contractual complexity following rigorous scale development procedures. Using the structural equation modeling technique, empirical testing results demonstrate that all of the three components contribute significantly to contractual complexity. Further analysis indicated that treating contractual complexity in the three-functional way outperforms the unidimensional one regarding power to explain satisfaction and strong-form opportunism.

Construction claim problems in Malaysia: from the contractors perspective

There is high frequency of disputes arising from construction contract claims. Even with the most expert understanding of construction contract and the most reasonable risk-allocation system, claims will continue to present problems if they are poorly managed in practice. The significantly increasing number of construction claims indicates the need for the implementation of an effective construction claim management. This research aimed at surveying the most common problems experienced by Malaysian contractors in construction project. The paper presents the survey results and main findings, which indicate that the lack of site staff awareness to proactively detect claims, inaccessibility or unavailability of relevant documents, and conflicts arising during owner/contractor negotiation are all critical problems associated with the process of claim management. The problems observed from this research could be used to solve or improve the contractors' claim management system.

Contractor Selection Criteria in Ghanaian Construction Industry: Benefits and Challenges

Selecting a contractor for construction project is a difficult decision to be taken by a client because it may lead to construction delivery problems or successful delivery of the project. This study, therefore, investigated the contractor selection criteria in the Ghanaian construction industry, considering the benefits and challenges. A quantitative research method was adopted in this study through the use of a questionnaire. The target population for the study consisted of registered contractors and consultants in the Ashanti and Brong-Ahafo regions of Ghana. It was found that though the construction professionals are well vested with the prequalification selection criteria that are being used within the Ghanaian construction industry, they were not familiar with multi-criterial section methods. It was also found that the benefits of the contractor selection criteria include: enabling the client to select contractors who are performers for the project, saving the project owner a lot of time, minimizing the possibility of contractor default, and facilitating the achievement of project success and the objectives within the scheduled time. Furthermore, excessive cost and time overrun, poor quality standard, imprecise assessments due to lack of information, criteria being very complex and difficult to apply in practice, among others were identified as the challenges to the contractor selection criteria in Ghanaian construction industry. The study recommends for further studies to determine the impact of the identified challenges on construction projects, and ways to minimize the challenges.

Evaluation of Supply Chain Management Systems Used in Civil Engineering

One of the most important factors which have an effect on the cost and time of the building process is the organization of physical resources and the information flow structure. Depending on how effective this system is, a building project may end with a success or a failure. Because of many conditions of the construction executing and different needs of the contractors, there are different Supply Chain Management (SCM) systems connected with supplying construction projects: single-stage, multi-stage or combined. The article presents a comparative analysis of construction SCM systems based on a modified fuzzy AHP.The modification of this method is based on the use of interval type-2 fuzzy sets to aggregate evaluation according to the idea proposed by Mikhailov. The use of such a model of group preferences of decision-makers, makes it possible to take into consideration both the linguistic imprecision of an evaluation and the small number of experts. The weight values of specific criteria and the final scale vector of considered variants are obtained during the analysis. This may give a recommendation to general contractors in construction projects about which evaluation criteria and supply systems are preferred.

Development of Occupational Safety and Health Requirement Management System (OSHREMS) Software Using Adobe Dreamweaver CS5 for Building Construction Project

The construction industry sector is considered as being risky with frequent and high accident rate. According to Social Security Organization (SOCSO), the construction accidents has arisen from time to time. Construction Industry Development Board (CIDB) has developed the Safety and Health Assessment System in Construction (SHASSIC) for evaluating the performance of a contractor in construction project by setting out the safety and health management and practices, however the requirement checklist provided is not comprehensive. Therefore, this study aims to develop a software system for facilitating OSH in building construction project, namely OSH requirements management system (OSHREMS), using Adobe Dreamweaver CS5 and Sublime Text as PHP editor. The results from a preliminary study which was conducted through interviews showed that, the respondents were only implementing the basic requirements that comply with legislations, with the absence of appropriate and specific guideline in ensuring occupational safety and health (OSH) at the workplace. The tool will be benefits for contractors and other parties to effectively manage the OSH requirements for their projects based on project details.