Contract Management Research Articles

The contagion effect of corporate environmental responsibility in megaprojects: Analyzing underlying processes

The corporate environmental responsibility (CER) performance of contractors is a critical antecedence for the sustainable construction and operation of megaprojects. Studies have confirmed that individual or organizational traits, as well as the external institutional environment, influence contractors' CER decisions and behaviors. However, researchers have neglected the crucial fact that in a megaproject organization, other contractors' environmental responsibility practices also may affect the environmental responsibility decisions of the focal contractor, which refer to as the “contagion effect of CER in megaprojects”. This study examined the authenticity of this contagion effect and develops a conceptual framework to reveal the contagion process. Using 249 survey data from contractor managers with megaproject construction experience, the results confirm the contagion effect of CER in megaprojects. The detailed contagion process is that the focal contractor employees' organizational pride and social capital perception are activated by other contractors' CER practices, thereby choosing to follow other contractors to adopt similar CER strategies. Meanwhile, this process is partially moderated by contractors' megaproject identification. Specifically, contractors with a high level of megaproject identification will have greater organizational pride when observing other contractors' CER practices. However, megaproject identification does not change contractors' social capital perception level. This study provides valuable insights into understanding the contagion process of CER among contractors in megaprojects, and the related findings can help owners effectively incentive contractors' CER intentions to achieve higher megaproject sustainability performance.

Enabling Trust and Security in Digital Twin Management: A Blockchain-Based Approach with Ethereum and IPFS.

The emergence of Industry 5.0 has highlighted the significance of information usage, processing, and data analysis when maintaining physical assets. This has enabled the creation of the Digital Twin (DT). Information about an asset is generated and consumed during its entire life cycle. The main goal of DT is to connect and represent physical assets as close to reality as possible virtually. Unfortunately, the lack of security and trust among DT participants remains a problem as a result of data sharing. This issue cannot be resolved with a central authority when dealing with large organisations. Blockchain technology has been proposed as a solution for DT information sharing and security challenges. This paper proposes a Blockchain-based solution for digital twin using Ethereum blockchain with performance and cost analysis. This solution employs a smart contract for information management and access control for stakeholders of the digital twin, which is secure and tamper-proof. This implementation is based on Ethereum and IPFS. We use IPFS storage servers to store stakeholders' details and manage information. A real-world use-case of a production line of a smartphone, where a conveyor belt is used to carry different parts, is presented to demonstrate the proposed system. The performance evaluation of our proposed system shows that it is secure and achieves performance improvement when compared with other methods. The comparison of results with state-of-the-art methods showed that the proposed system consumed fewer resources in a transaction cost, with an 8% decrease. The execution cost increased by 10%, but the cost of ether was 93% less than the existing methods.

Investigating gig workers’ commitment to crowdsourced logistics platforms: Fair employment and social exchange perspectives

Crowdsourced logistics is developing rapidly during and post COVID-19. As key workers of crowdsourced logistics, gig workers' commitment is essential for the sustainable development of gig platforms. Drawing from the social exchange paradigm and organisational identification, this study explores how the five principles of Fairwork provided by crowdsourced logistics platforms (i.e., fair representation, fair management, fair conditions, fair contracts, fair pay) contribute to gig workers' organisational identification, which subsequently influences career satisfaction and career commitment. The study gathered 177 responses from gig workers in Singapore in July 2022. The structural equation modelling findings suggest that factors such as fair conditions, fair pay, fair representation, fair management, and fair contracts have substantial impacts on organisational identification. Moreover, the link between organisational identification and career commitment is partially mediated by career satisfaction. Overall, this study enriches the literature by proposing a suitable theoretical model to explain gig workers' commitment to crowdsourced logistics platforms. Moreover, the empirical results provide implications on the understanding of gig workers’ concerns for gig platforms, as well as policy suggestions for the maintenance of gig workers in the future.

Contract Management and Procurement Performance of State Corporation in Kenya

To enhance their competitive edge and optimize resource utilization, it is imperative for public sector entities to adopt efficient contract management strategies. Despite demonstrating a robust methodology for contract management, the energy industry experienced a significant 25% rise in procurement prices. Consequently, the research examined the impact of contract management on the efficacy of procurement processes within State organizations, encompassing contract administration, contract dispute resolution, contract relationship management, contract monitoring, and contract evaluation. This literature review examines the impact of contract management practices on procurement performance. The study was guided by the principles of general systems theory, institutional theory, contract management theory, and transactional cost theory. The study employed a cross-sectional research design. The study sample consisted of 157 individuals employed by one of the four state corporations in Kenya, specifically in the departments of managers'/vote holders, procurement, finance & accounts, or ICT. A sample size of 113 was generated using the sample size formulas proposed by Yamane in 1967. The proportion of the given criterion in the research population is approximately reflected in the sample due to the utilization of the stratified random sampling technique. The primary data was collected by means of a questionnaire. The dependability of the instrument was assessed through pilot testing, utilizing the Cronbach Alpha Reliability Coefficient. The dependability of the research tool was determined to be 0.839, a value that falls within the acceptable range. The investigation employed both descriptive and inferential statistics. The statistical analysis employed the Pearson correlation coefficient and multiple linear regression analysis at a significance threshold of 0.05. The data analysis was conducted using version 26 of the Statistical Package for Social Sciences (SPSS). The research revealed a statistically significant positive correlation between contract administration, contract dispute resolution, contract relationship management, contract monitoring, contract evaluation, and procurement performance. The findings of this study will contribute to the existing body of knowledge on contract management and procurement effectiveness in state businesses operating within the sector. The findings of the study indicate that enhancing contract management practices will lead to enhanced procurement performance within State Corporations. The efficacy of contract management can be juxtaposed with the efficiency of procurement endeavors undertaken by governmental entities and private corporations.

The Effect of Servant Leadership and Workload on Employee Engagement and the Implications for the Employee Performance of PT PLN (Persero) Sulawesi Development Main Unit

PT PLN (Persero) Sulawesi Development Main Unit has a commitment in a management contract on the Long Term Plan to complete a large work target to develop electricity infrastructure at the right cost, time and quality in supporting the electrification ratio in Indonesia, which currently has not reached 100% . The situation that occurred in the last 3 (three) years was a decrease in employee performance with the exceed requirements category abiut 14%. The fact that occurred in this condition was accompanied by a decrease in the results of the employee engagement survey which decreased with a decrease rate of 6.73%. The number of workers at PT PLN (Persero) Sulawesi Development Main Unit is still not fulfilled and this causes a high workload with a gap of 10.13%. The role of the leader in this situation is very massive, in this case not only leading the members but also being able to position himself as a servant who has no structural boundaries with his followers. However, the results ofthe assessment survey of leaders still provide several opportunities for improvement for leaders.This study aims to determine the effect of Servant Leadership (SL) and Workload on Employee Engagement (EE) and their implications for the performance of employees of PT PLN (Persero) Sulawesi Development Main Unit.The method used in this research is quantitative with descriptive research type. Respondents in this study were 237 employees of PT PLN (Persero) Sulawesi Development Main Unit, using non-probability sampling with saturated sampling. The data that has been processed will be analyzed using descriptive analysis techniques using SEM - PLS.The influence of servant leadership and workload on employee engagement and the implications for performance at PT PLN (Persero) Sulawesi Development Main Unit t is positive and significant at 46.2%.

Smart Contract Broker: Improving Smart Contract Reusability in a Blockchain Environment.

In this paper, we propose a smart contract broker to improve the reusability of smart contracts in a blockchain environment. The current blockchain platform lacks a standard approach to sharing and managing smart contracts, which makes it difficult for developers to reuse them and leads to efficiency issues. The proposed smart contract broker uses tags to identify and organize smart contracts, and it provides an environment for comparing and reusing smart contracts. This improves the reusability of smart contracts and efficiency. The proposed smart contract broker can be applied as a reference model that increases the flexibility and reusability of smart contract management in a blockchain environment.

A Decentralized and Automated Contracting System Using a Blockchain-Enabled Network of Stakeholders in Construction Megaprojects

With recent advances in information and communication technologies, trust and collaboration have become imperative in the construction industry. The increasing exchange of digital information and assets without much regard to contractual requirements has resulted in various data corruption, privacy, and security issues escalating to claims and disputes. Hence, there is a need to institute reforms in the existing contracting system to achieve a more efficient, collaborative, and transparent system. However, little research has investigated the digitalization of the contracting process, which continues to be traditional. This study is one of the first to develop a digital and automated contract management system leveraging blockchain technology and smart contracts. Design science research methodology was adopted for the research work. The proposed system aims to achieve the following: (1) a decentralized permissioned network of stakeholders with well-defined roles and approval workflow, (2) automated contract execution based on predefined conditions using smart contracts, and (3) transaction history integrity with time stamps via a blockchain-based secured data structure. To exemplify these points, a use case is presented for implementing blockchain-based contract management in a construction megaproject. A conceptual model was developed illustrating the decentralized network of the key project stakeholders based in a Hyperledger Fabric blockchain environment. The roles and access controls of the stakeholders within the network are defined using the responsibility assignment [responsible, accountable, consulted, and informed (RACI) matrix]. A computable and automated smart contract clause is formulated for the price variation clause used in construction contracts. A prototype of the proposed system was developed and demonstrated to industry experts for evaluation and validation. Positive feedback from the experts concerning the system characteristics and user-friendliness of the prototype showed that it possesses the potential to improve trust and transparency in the existing system. Whereas the decentralized stakeholder network would add trust and accountability to the system, the underlying blockchain data structure would enhance security and traceability by providing an immutable and real-time record of the transactions. The study provides a workable solution that serves as a valuable reference for future research in the field of contract management across multiple sectors. Although the system is shown to be applicable and feasible in this study, it may not be economically viable. It could be optimized in the future through cost–benefit analysis for different projects.

Development of a Campus Facility Management Operational Framework Using a Modified Delphi Method

An effective facility management process is crucial to overall firm performance and is becoming a core competency for organizations seeking to gain a competitive advantage. The recent literature on facility management reveals that poor facility management is a major cause of management inefficiency, leading directly to budget overruns, maintenance delays, repetition of work, variations, noncompliance incidents, unnecessary risk, and dissatisfied customers. Therefore, facility management firms should pay close attention to the most critical success factors in order to effectively manage and measure performance. This paper presents a multidimensional campus facility management performance framework (CFMPF) that addresses both operational and systematic factors. Facility management companies, owners, contractors, and consultants can use this framework to identify systemic weaknesses using key indicators to specifically assess the effectiveness and success of facility management. The significance of 45 key facility management success factors across seven categories was determined via a literature review, expert interviews, and the Delphi method. The seven process groups are: Campus Facility Work Force Management, Campus Facility Communication Management, Campus Facility Systems Management, Campus Facility Organizational Management, Campus Facility Financial Management, Campus Sustainability & Environment Management, and Campus Facility Assets Management. To verify the overall agreement via the Delphi rounds, the score percentage and standard deviation to mean ratio were examined. Mean value and interrater agreement (IRA) analyses were conducted to evaluate the correlation between the factors and facility performance. This research adds to the body of knowledge by presenting a systematic operational framework for campus facility management that identifies the underlying factors influencing performance and fills the gaps left by previous studies.

TANTANGAN DAN PELUANG BISNIS KONTRAK MANAJEMEN HOTEL DI ERA ADAPTASI KEBIASAAN BARU PADA PURI SIGNATURES DI BALI, INDONESIA

This article is the result of a case study research regarding the impact of the Covid-19 pandemic on the Hotel Management Contract business (hotel operator business) at Puri Signatures located in Bali, Indonesia. Research finds that the Covid-19 pandemic has affected companies from management to operational levels. At the management level, the Covid-19 pandemic has affected the ownership structure, organizational structure, and the change of brand from Puri Villas Indonesia to Puri Signatures. At the operational level, there have been major changes in terms of the cooperative relationship between management and clients, employment, marketing, partnership, and finance. However, the Covid-19 pandemic has provided an opportunity for companies to explore the performance of companies that are experiencing downsizing through new partnerships with a profit sharing system, and improve strategies towards digital marketing.

An Empirical Study on the Effect of Internal FTA Utilization Factors on Export Performance

Purpose – This study aims to identify the internal capabilities that export companies need to possess in order to utilize FTAs and to propose ways to expand their export performance through them. To achieve this goal, the study analyzed the internal factors that affect FTA utilization from a resourcebased perspective, such as Origin Management Competency, Information Acquisition Competency, contract Management Competency, and Commitment to Export, based on prior research on corporate capabilities in the field of management and FTA-related research. The study ultimately aims to confirm whether a company's FTA utilization contributes to its export performance through the management and response to its internal factors for FTA utilization. Design/methodology – To achieve the research objective, this study conducted a literature review related to FTA utilization and identified the internal factors of companies that affect FTA by classifying them into Origin Management Competency, Information Acquisition Competency, contract Management Competency, and Commitment to Export Based on this, a final research model was developed, hypotheses were set through a preliminary study survey, and conclusions were drawn by analyzing the data of 312 companies. Findings – The empirical analysis results indicate that Origin Management Competency and Contract Management Competency have a positive impact on FTA utilization, while Information Acquisition Competency and Commitment to Export do not have a statistically significant impact on FTA utilization. Based on these findings, this study suggests measures for efficient FTA utilization for companies that want to utilize FTAs. Additionally, FTA utilization has a positive impact on export performance. In other words, the extent to which companies utilize the signed agreements has a positive impact on their performance. Based on these results, this study identifies the characteristics of companies that want to utilize FTAs and proposes measures for future efficient FTA utilization. Originality/value – This study has confirmed that in order for companies to utilize FTAs, they must meet the requirements of the FTA. To this end, the study has concluded that it is important to manage and address internal factors such as Origin Management Competency, Information Acquisition Competency, contract Management Competency, and Commitment to Export to increase FTA utilization. Based on these results, it can be confirmed that it is essential for companies to have an understanding and management of the internal factors that satisfy the requirements of the FTA in order to utilize the FTA.

Analisis Pengaruh Penyebab Change order pada Pembangunan Apartemen di Kota Surabaya

The main objective of construction projects is to achieve the desired outcome, which means that the final results should align with the project plan and contract agreement. However, construction projects often encounter problems such as changes in orders. These changes can be caused by a variety of factors, including the decision of the owner, environmental, consultants, and other variables. The purpose of this study was to identify the causes of order changes, the most significant cause of order changes, and the extent to which order changes impact the development of apartments in Surabaya. The research methodology used in this study was descriptive statistic analysis, and the data was collected through questionnaires administered to the contractor management teams working on the Bess Mansion construction projects. The results revealed that there were 24 and 22 variables, respectively, that were identified as causes of order changes. The project owner was found to have the most significant impact on quality, accounting for 52.90% of the changes. The impact of order changes for the Bess Mansion Apartment construction project.

The future of clinical trials and drug development: 2050.

A workshop held at the 18th Annual Conference of the Pharmaceutical Contract Management Group in Krakow on 9 September 2022 asked over 200 delegates what the clinical trial landscape would look like in 2050. Issues considered included who will be running the pharmaceutical industry in 2050; how 'health chips', wearables and diagnostics will impact on finding the right patients to study; how will artificial intelligence be designing and controlling clinical trials; and what will the role of the Clinical Research Associate, the critical observer, documenter and conductor of a clinical trial need to look like by 2050. The consensus was that, by 2050, if you are working in clinical trials, you will be a data scientist. We can expect to see an increasing role of new technologies and a new three-phase registration model for novel therapies. The first phase will involve an aspect of quality evaluation and biological proof-of-concept probably involving more preclinical modelling and engineered human cell lines and fewer animal studies than currently used. Once registered, new products will enter a period of adaptive clinical development (delivered as a single study) intended to establish safety. This phase will most likely take around 1-2 years and explore tailored options for administration. Investigations will most likely be conducted in patients, possibly in a 'patient-in-a-box' setting (hospital or healthcare centre, virtual or microsite). On completion of safety licencing, drugs will begin an assessment of efficacy in partnership with those responsible for reimbursement - testing will be performed in patients, possibly where individual patient involvement in safety testing will offer some reimbursement deal for future treatment. Change is coming, though its precise form will likely depend on the creativity and vision of sponsors, regulators and payers.

Framework Design of Smart Contracts-Based Building Information Modeling Contracts Management in Material Supply Chain

Framework Design of Smart Contracts-Based Building Information Modeling Contracts Management in Material Supply Chain

Mitigation of Environmental Damage Through Natural Resources Management Contracts (Eco-Contract Perspective)

Environmental damage by extractive activities is caused by the formulation of policies that have not placed nature and the environment as legal subjects. Policy formulation in the form of a contract of work tends to accommodate human interests and is profit-oriented. This study aims to examine strategies for mitigating environmental damage caused by PT Freeport’s mining activities based on an eco-contract perspective. PT Freeport’s contract of work is the object of analysis in this research, while data on environmental damage are obtained from national media. Theoretical-reflective approach is used in analyzing the data to formulate mitigation strategies. The results showed that the mitigation of environmental damage in the eco-contract perspective emphasizes the natural relationships and interactions between all components of the ecosystem. In other words, mitigation of environmental damage requires equal treatment between the environment and humans which also indicates equal rights. In fact, force majeure conditions and natural disasters are still viewed from a human perspective, so that efforts to identify and socialize environmental damage only focus on human aspects rather than nature and the environment. PT Freeport’s contract of work has not accommodated mitigation efforts of environmental damage that ecologically oriented. In addition, the weak mapping, control, and socialization of PT Freeport’s mining activities have implications for the lack of efforts to mitigate environmental damage.

Exploring the role of social capital in public procurement

Purpose This study aims to build on social capital theory (SCT) and its dimensions by examining the role of social capital in the public procurement process and by identifying related contingencies that may influence procurement performance. Design/methodology/approach A systematic literature review and a thematic analysis regarding social capital in procurement are conducted. The antecedent–behaviour–consequence (ABC) model is used for illuminating linkages between social capital, contingencies and procurement performance. Findings The dimensions of social capital are investigated in the procurement process; however, the extent of social capital role can vary between the phases of the process. It is concluded that the contingencies of social dynamics are linked with social capital and may influence the outcomes and performance of the procurement process. Practical implications Social capital can ease interactions between public buyers and private suppliers by contributing to effective tendering, improving social interaction in negotiations and balancing rigidity in contract management, supporting the interests of both parties. The provided framework helps decision makers to comprehend the social dynamics in public procurement. Social implications Improving social dynamics and solutions in public procurement. Originality/value This study extends social capital research in the field of public procurement and creates a framework connecting social capital and prevailing contingency factors to procurement process performance.

COVID-19 vaccination procurement and contract management in a South African context

This article examines the lessons learnt and opportunities created to strengthen future procurement and contract management in the public health sector. In a rigid and highly regulated public sector procurement landscape, the COVID-19 vaccine procurement and vaccine roll-out activated not usually used regulations, policies and standards. The article views the COVID-19 vaccine rollout programme through a procurement and contract management lens focusing on two key segments in the COVID-19 vaccine programme – namely COVID-19 vaccine procurement and vaccine delivery into health facilities. To date, 60 million COVID-19 vaccine doses have been successfully procured and delivered to South Africa. The South African National Department of Health is integrating the COVID-19 vaccine programme into its national immunisation programme while also preparing to launch the National Health Insurance. The overall lessons learnt during the COVID-19 vaccine roll-out can be utilised to strengthen future procurement and contract management in the public health sector.

Розроблення і впровадження системи управління господарсько-майновим комплексом НАН України

In modern conditions, the issue of building an effective management system for the economic and property complex of the National Academy of Sciences of Ukraine becomes an urgent issue. This can be done on the basis of the creation and implementation of computer information and analytical systems, in particular, the Digital Real Estate Management System of the National Academy of Sciences of Ukraine (hereinafter - CS PROPERTY). CS MAYNO is intended for management of accounting, storage and use of reliable and updated information on real estate, which is recorded on the balance sheet of institutions, organizations, enterprises of the National Academy of Sciences of Ukraine, and management of lease and use contracts. The system must be developed using a modern software platform without using the software of the aggressor country. In this paper, a comprehensive analysis of the subject area is carried out and ways of automating the activities of the National Academy of Sciences of Ukraine in this area are described.

The Rise of the Standing Neutral: An Easy, Economical, and Effective Way to Prevent Contractual Conflicts

Kate Vitasek, Daniel Bumblauskas, Jim Groton, and Yu (Jade) Chu argue for a new contract management technique known as a standing neutral. This approach uses a trusted, independent advisor to help contracting parties solve disagreements before they grow.

Artificial Intelligence Applied to Contracts: Panacea or Poison?

The use of artificial intelligence (AI) in contract writing has led to the emergence of new and innovative contractual practices, including in drafting, execution and dispute resolution. This article presents the different aspects of the use of AI in the design and management of the different contracts of working life, focusing on the key vigilance points for contracting AI and the key clauses that need to be included in contracts to ensure legal compliance and stakeholder protection. A proactive, enlightened and adaptive approach is essential to ensure that the benefits of AI are maximized while minimizing risks and preserving the fundamental principles enshrined in international treaties and the Moroccan constitution. In addition, it also raises questions about the future of the legal profession and the need for lawyers to develop new skills to work with AI.

Towards a More Sustainable Multimodal Transport Through Effective Contract Management

Multimodal transport, including aerial segments, is considered to be highly efficient. Reducing the inefficient use of transport capacity makes transport less environmentally problematic and more sustainable. Such multimodal transport, however, requires a combination of different transport methods and different operations, ie for transhipment. Companies started to use container technology decades ago and new efficient models have been developed year after year. However, transport law lags behind and often relies on conventions from the 1950s. Transport law is mainly dominated by the international Transport Conventions that apply to transport by a single means of transport, apply mandatorily and entail different legal regimes without identifying their scope. For private parties this results in unpredictable obstacles that they need to deal with in contracts to preserve the sustainable character of multimodal transport and prevent highly unsustainable negotiations and litigation costs.