Contract Management Research Articles

Unlocking Decision-Making Potential with Causal AI-Driven What-If Simulations

Abstract: This article explores the potential of causal AI-driven what-if simulations in enhancing decision-making across various industries. Causal AI uses theories and causal reasoning to figure out and model the underlying cause-and-effect relationships that govern a system or domain. It can make strong predictions even when it only has limited data. The article discusses the advantages of causal AI over traditional AI approaches and its ability to handle sparse data, enable counterfactual reasoning, and address bias issues. It delves into the applications of what-if simulations powered by causal AI in manufacturing, oil and gas, supply chain management, and contract management, presenting scenarios and demonstrating how causal AI can offer valuable insights and optimize decision-making. The article also highlights the challenges and opportunities associated with causal AI, including the need for domain expertise, integration with existing systems, interpretability and explainability, competitive advantage, positive social impact, research and development, and ethical considerations. The impact of causal AIdriven what-if simulations on decision-making across industries is substantial, enabling organizations to make informed decisions, mitigate risks, and seize opportunities in an ever-changing business landscape.

The Influence of Credit Risk Using Derivative Financial Instruments on the Performance Commercial banks

The research aims to reveal the influence of credit risks using Derivative Financial Instruments (DFIs) on the financial performance of commercial banks in Iraq. To achieve the research aim and test its main hypothesis, a questionnaire is distributed to listed commercial banks in the Iraq Stock Exchange and that apply DFIs. The researcher used the questionnaire as the main tool in collecting data. Financial data of the variables of the study are analysed by a simple regression method, the arithmetic mean(AM) and standard deviation. The study used the statistical program (SPSS ) to analyse the data. The research sample consisted of (70) questionnaire forms that were distributed and (68) valid forms were recovered. Research results show that using DFIs reduces exposure to interest rate risks, exchange rates and price fluctuations. The financial crisis is the result of the excessive use of financial derivatives outside regulatory restrictions and securitization to collect liquidity. Financial derivatives represent the fastest-growing form of financial transactions and continue to grow even in crisis conditions. DFIs help to identify risks associated with economic losses incurred by the economic unit as a result of weaknesses in the management and operation of derivatives contracts. Accounting profit-based performance indicators, such as return on assets, return on property rights, earnings per share and cash flows per share, contribute to the evaluation of performance, as well as the use of DFIs contribute to increasing profits. The study shows that credit risks using DFIs have a significant positive influence on performances financial in commercial banks in Iraq. Paper type: Research paper.

Implications of Bid Rigging Practices in Small Island Developing States: A Case Study

The Bid rigging on construction projects has a wider societal implication that has spanned beyond the parties to the contract. This has led to costly litigation actions and additional unaccounted transactional costs derived from taxpayers’ funding. This study utilized a qualitative approach, through an emic view of a contemporary case study between the Government of Trinidad and Tobago and several contractors on bid rigging practices. The findings revealed that recommendations indicated within a Commission of Enquiry could have prevented unlawful practices. This research justifies the need for systems to be in place to comply with procurement laws and the heightened need for enforcement of ethical practices in state organizations. This research can assist policy makers in determining areas that require updating in relation to procurement and contract management practices within the construction industry.

Building information modeling (BIM) adoption for enhanced legal and contractual management in construction projects

Building information modeling (BIM) adoption offers significant benefits for construction projects, including enhanced collaboration and legal/contractual management. However, the impacts of BIM deployment on construction contracts and dispute resolution remain unclear. This research analyzed the regulatory and legal implications of BIM adoption in construction industry via a framework evaluating Contractual Frameworks (CF), Dispute Resolution (DR), Legal Awareness (LA), and Risk Management (RM). Fifteen qualitative interviews with construction industry experts provided key insights. The results showed CF, DR, and LA have a large positive impact on BIM adoption, while RM has a smaller effect. Specifically, clearly defined BIM protocols in contracts, efficient dispute resolution mechanisms, and legal knowledge of BIM are essential to ensure effective deployment. These findings imply construction project managers should proactively address contractual and legal factors to manage risks, encourage collaboration, and adhere to regulations when implementing BIM. This research makes a significant contribution by addressing the lack of empirical insights on the contractual and legal aspects of BIM adoption. The qualitative methodology provides in-depth perspectives from experienced industry practitioners. The findings offer valuable insights for stakeholders worldwide seeking to leverage BIM. Further comparative research across regions and industries would continue to advance comprehension of the legal implications of BIM adoption.

The impact of hypertension follow-up management on the choices of signing up family doctor contract services: does socioeconomic status matter?

BackgroundThis study aimed to explore the association between hypertension follow-up management and family doctor contract services, as well as to examine whether socioeconomic status (SES) had an interaction effect on this relationship among older adults in China.MethodsWe used data from the sixth National Health Service Survey of Shandong Province, China, including 3,112 older adults (age ≥ 60 years) with hypertension in 2018. Logistic regression models and a margins plot were used to analyze the role of SES in the relationship between hypertension follow-up management and family doctor contract services.ResultsThe regular hypertension follow-up management rate and family doctor contracting rate were 81.8% and 70.9%, respectively, among older adults with hypertension. We found that participants with regular hypertension follow-up management were more likely to sign family doctor contract services (OR=1.28, 95%CI: 1.04, 1.58, P=0.018). The interaction effect occurred in the groups who lived in rural areas (OR=1.55, 95%CI: 1.02, 2.35), with high education level (OR=0.53, 95%CI: 0.32, 0.88) and had high incomes (OR=0.53, 95%CI: 0.35, 0.81).ConclusionsOur findings suggested that regular hypertension follow-up management was associated with family doctor contract services and SES influenced this relationship. Primary health care should improve the contracting rate of family doctors by strengthening follow-up management of chronic diseases. Family doctors should focus on improving services quality and enriching the content of service packages especially for older adults with higher income and education level.

Relationship between Principals’ Competencies in Procurement and Performance of Financial Management Roles in Public Secondary Schools in Kajiado County, Kenya

This study investigated the relationship between principals’ procurement competencies and effective performance of financial management roles in public secondary schools in Kajiado County, Kenya. Various education stakeholders had complained about principal’s ineffective performance of procurement roles in public secondary schools in Kajiado County, Kenya as shown through the literature reviewed. Frederick Taylor’s Scientific Management theory guided the study. The study adopted correlational research design. Data collection from principals and bursars was through administration of questionnaires and an interview schedule for school auditors. The target and accessible population was all 160 public secondary school principals, their bursars and 3 school auditors. The study used multi-stage sampling technique to sample 115 public secondary school principals and bursars and all the 3 school auditors. Stratified simple random sampling was used to get proportionate sample from each data stratum. The findings indicated that there was a positive and statistically significant relationship between procurement competencies and principals’ performance of financial management roles (r=0.876**; p<0.01). The study concluded that some principals lacked the necessary procurement competencies to regularly carry out procurement risk management; ensure procurement rules are followed; carry out procurement contract management; enhance supply sustainability and continue use and re-use of vendors; improve supplier relationships; lead in identifying the best products in the market and in deploying technology in performance of procurement role. The study also concluded that some principals were not effective in timely preparation of procurement plans; in following laid down procurement rules and in regularly carrying out procurement risk management; in regularly managing procurement contracts; ensuring supply sustainability and in identifying the best products in the market. The study recommended training, mentoring and coaching of principals to improve their performance on the various identified procurement competency and skills gaps.

Blockchain based crowdsourcing framework for Vehicle-to-Vehicle charging

Electric Vehicles (EVs) have become a promising solution to entirely replace traditional internal combustion engine vehicles. EV owners face the “Range Anxiety” problem which is the fear that their remaining charge would not be enough to reach their destination. Vehicle-to-Vehicle (V2V) charging is currently being used in exchanging energy between EVs. Most of the existing energy V2V frameworks depend on a centralized server that manages the energy exchange. However, these solutions may suffer from privacy leakage and misbehaving platforms. To overcome these limitations, the paper proposes a blockchain-based crowdsourcing framework for V2V charging. The framework features include registering users, maintaining user information, clustering requesters (charging tasks), collecting preferences lists from requesters and providers, and lastly selecting the requester-provider charging pair as well as the corresponding meeting point. These features are implemented using three types of smart contracts: User Management Contract, Task Management Contract, and Solution Management Contract while guaranteeing the transparency of the system and overcoming the main limitations of the centralized solutions. Experiment results with real-life dataset show that the proposed framework achieves a comparable performance at reasonable paid costs and execution times.

Supplier Relationship Management Practices and Firm Performance: Evidence from Small and Medium Enterprises in India

Purpose: The aim of the study was to analyze the supplier relationship management practices and firm performance: evidence from small and medium enterprises in India. Methodology: This study adopted a desk methodology. A desk study research design is commonly known as secondary data collection. This is basically collecting data from existing resources preferably because of its low cost advantage as compared to a field research. Our current study looked into already published studies and reports as the data was easily accessed through online journals and libraries. Findings: The study on Supplier Relationship Management (SRM) in Indian SMEs reveals a positive link between effective SRM practices and firm performance. It highlights benefits such as improved operational efficiency, cost reduction, and enhanced product quality. However, challenges like resource constraints hinder widespread adoption. Overall, prioritizing strong supplier relationships can boost SME competitiveness in India. Unique Contribution to Theory, Practice and Policy: Transaction cost economics (TCE), resource dependency theory (RDT) & social exchange theory (SET) may be used to anchor future studies on analyze the supplier relationship management practices and firm performance: evidence from small and medium enterprises in India. SMEs could also benefit from capacity-building initiatives aimed at enhancing their negotiation skills, contract management capabilities, and technological adoption to facilitate efficient SRM processes. Policymakers can leverage research findings to design supportive policies aimed at strengthening the SME ecosystem in India.

A contract period optimization model for shared water saving management contract based on win-win

Aiming at the contract period of Shared Water Saving Management Contract (WSMC), this paper establishes a contract period optimization model based on win-win. Firstly, the water-saving investment and revenue are modeled as stochastic processes considering the fluctuation of uncertain variables such as operation and maintenance cost, water-saving amount and water price. Secondly, the profits of the water owner and Water-Saving Service Company (WSCO) are portrayed separately based on the WSMC market service mechanism. Then, the contract period model is constructed by minimizing the difference between the NPV of the two parties involved in the project as a constraint. Finally, the model is applied to two real cases, where the optimized contract period is 9 years in Case 1 and 12 years in Case 2. In addition, several variables affecting the model are analyzed, allowing the model to expand its applicability.

A Study on Contributing Factors of IT Outsourcing Satisfaction Financial Service Industry in Hong Kong

This paper aims to identify the critical success factors in Hong Kong Financial Service Industry IT outsourcing satisfaction and propose possible satisfaction rate boosts. A hybrid methodology (qualitative and quantitative) was adopted to analyze the variables and their relationship thoroughly. The six members focus group was formed to discuss IT outsourcing, and the survey was conducted to collect 447 valid responses for data analysis. The six critical success factors were Perceived Information Security Risk, Quality of Service Provider, Contract Management, Internal Contract Experience, Communication and Regulatory Policy, identified to support satisfaction of Hong Kong FSI IT outsourcing after conducting the analysis. Three recommendations are proposed to improve IT outsourcing satisfaction based on the findings of critical success factors: (1) A Build-up of Vendor Evaluation Framework, (2) Enhancement for Knowledge Management, and (3) Enhance Performance Monitoring. The snowball sampling method might have introduced biased information. In future research, a more extensive research scale would be required to understand the whole population, which would be more appropriate for the industry to understand the need and construct any policy. This paper is a holistic approach to identifying factors that affect Hong Kong FSI IT outsourcing satisfaction. In addition, practical recommendations were proposed to improve those factors, thereby increasing the satisfaction rate of IT outsourcing.

Effect of Procurement Contract Management Practices on Performance of Public Institutions. A Case of Integrated Polytechnic Regional College (IPRC) Musanze, Rwanda

The general objective of this research was to examine the effectiveness of procurement contract management practices on performance of public institutions in Rwanda. The specific objectives of the study were to assess the effect of contract cycle on performance of Integrated Polytechnic Regional College (IPRC) Musanze, analyze the effect of contract execution on performance of Integrated Polytechnic Regional College (IPRC) Musanze, examine the effect of contract relationship management on performance of Integrated Polytechnic Regional College (IPRC) Musanze and assess the effect of contract monitoring on performance of Integrated Polytechnic Regional College (IPRC) Musanze. This study utilized descriptive and correlation analysis as its primary research methods. A descriptive study also was used to describe the participants’ demographic information. A correlational analysis also was performed. The researcher was able to identify the relationship among contract management and performance of public institutions through a correlation study. The study population for this study was 72 Staffs of IPRC Musanze including Principal, Deputy Principal in Charge of Academics and Training, Corporate services Division Manager, Legal officer, Internal auditor, Logistics officer, Store keeper, Procurement Officer, Administration & Finance department, Workshop Assistants (End users), Instructors (End users), Receiving committee, Contract management team and public tender committee. Given the limited number of individuals or units in the population under study, the researcher has chosen to use a census inquiry method rather than sampling. Documentary, interview and questionnaire sources used as tools of data collection for the study. Questionnaires were distributed to 72 employees of IPRC Musanze. Using SPSS, the researcher determined descriptive statistics such as frequency distributions, percentages, means, and correlations. The correlation results show that a strong contract cycle exhibits highly significant positive correlation with the Performance of public institution (r=0.668, p=0.000<0.05). Effective Contract execution is significantly correlated with Performance of public institution (r=0.627, p=0.000<0.05). Contract relationship significantly correlates with Performance of public institution (r=0.699, p=0.000<0.05). Contract monitoring demonstrates a significant positive relationship with the Performance of public institution (r=0.699, p=0.000<0.05). The findings show that contract execution shows the highest effect (β1 = 0.264, t=2.760), followed by contract monitoring (β2= 0.239, t=2.069), contract cycle (β3= 0.232, t=1.884), and relationship (β4=0.212, t=1.592). IPRC Musanze should strengthen performance through enhanced contract cycles, execution, relationships, and monitoring, while focusing on sustainability and technology integration.

Construction Management in the Amazon: Analysis of Performance Indicators and Impacts of COVID-19

Management failures in public construction projects result in significant resource wastage and delays in social development goals. This research aims to evaluate the management of contracts for public school construction projects using cost, schedule, and scope performance indicators, as well as investigate the influence of the characteristics of the Amazon region and the COVID-19 pandemic on project execution. The methodology involved document analysis of selected samples, describing the projects, geographical locations, contractual changes, and statistical correlation tests. Subsequently, the study surveyed the consequences of the COVID-19 pandemic on the analyzed projects, along with an analysis of performance indicators. The results revealed that all projects experienced cost increases, with an average percentage of 24.36%. Regarding schedule extensions, 92.30% of the projects underwent contractual changes, with an average increase in time of 142.19%. Scope changes were present in all projects, with an average modification percentage of 61.84%. It is believed that this study contributes to a critical analysis of the management of public engineering projects, enabling the identification of problems and improvement opportunities.

건설현장 안전보건성과 영향요인 연구

The Occupational Safety and Health Act and the Serious Accident Punishment Act, which has been in effect since January 27, 2022, specify that workers' opinions must be heard regarding safety and health. This study was conducted because it was judged that listening to workers' opinions can identify potential harmful and risk factors at construction sites and establish disaster prevention measures, ultimately affecting safety and health performance. In this study, three legal factors and four system factors were configured as independent variables, and safety and health performance was configured as a dependent variable through interviews with 37 safety and health management managers, safety managers, and health managers of C Construction Company and a review of previous research. . A survey was conducted from January 11, 2024 to January 24, 2024 targeting 162 safety and health management managers, main contractor management supervisors, main contractor safety managers and health managers, partner company management supervisors, and partner company safety managers. Statistical analysis was performed on the data collected using the SPSS program. As a result of research on the survey items, validity and reliability were confirmed to be good, and in terms of legal factors, committees and councils, listening to opinions in risk assessment, and in system factors, meetings and TBM (Tool Box Meeting) had a significant impact on safety and health performance. It was confirmed that In the future, safety and health performance is expected to improve at construction sites through active listening to workers' opinions on the legal and systemic factors identified in this study.

Construction Contract Management: Policy Mechanisms and Influencing Factors

A construction contract is a civil contract agreed in writing between the principal and the contractor to perform part or all of the work in construction investment activities. Construction contracts include many different types, corresponding to stages and tasks in the construction process of a project. However, no matter what type of contract it is, it must comply with some basic legal issues that are the foundation of construction contracts. During the contract implementation process, the role of management is extremely important. The purpose of this study is to analyze several policy mechanisms in construction contract management and identify factors affecting construction contract management, and some inadequacies in construction contract management, from there, propose some solutions to improve construction contract management according to Vietnam’s law.

Strategies Supporting the Enhancement of Adherence to Procurement Standards by the Kwa-Zulu Natal Department of Health

Purpose: Regardless of the reforms and the employment of Supply Chain Management (SCM) as a strategic tool, South Africa still faces immense challenges in its procurement practices. Non-compliance with public procurement guidelines cannot be ignored because it has a significant cost to the government and the public as taxpayers. Methods: Mixed methods of data collection were employed in this paper to gather information from the relevant decision-makers and officials in finance and the SCM component. She found that unavailability of SCM staffing norms, shortage of staff, lack of supervision, shortage of skills, unavailability of an E-procurement system, and negligence are major determinants for non-compliance. Results and Conclusion: These findings have relevance for the Kwa-Zulu Natal Department of Health and also for the South African Public Sector as it strives to achieve a clean audit on procurement and contract management. Research implications: The Auditor General’s reports for the financial year 2017/2018 and 2018/2019 confirmed that this Department had received qualified audit opinions for two consecutive years for incurring irregular expenditure on procurement and contract management following non-compliance with procurement guidelines. Originality/value: This paper examined the possible actions to improve the Kwa-Zulu Natal Department of Health's adherence to procurement standards.

Project Contract Management and Performance of Water Project in Baringo County, Kenya

Project Contract Management and Performance of Water Project in Baringo County, Kenya

The Impact of Employee Proficiency on Tanzanian Procurement Contract Management; Evidence from Higher Learning Institutions

The impact of employee proficiency on Tanzanian procurement contract management; Evidence from higher learning institutions. Interviews, documentary reviews and questionnaires were used as the methods of data collection. The Statistical Package for Social Sciences (SPSS) computer software version 22 was used specifically for the purpose of analyzing the quantitative, while qualitative data were analyzed through content analysis. The findings revealed that an employee should be committed and well-skilled and also that an employer should train their staff on different issues related to procurement contracts management, assigning these tasks to the employees who are experienced enough, as all this leads to effective procurement contracts management. Staff competency has a significant positive influence on performance in procurement contracts management. The more the staff become competent in managing procurement contracts, the more the performance is improved. This indicated that staff are the key factors that will enable the organization to achieve its procurement contractual goals. It was discovered that many staff attended various training and seminars offered by regulators like Public Procurement Regulatory Authority (PPRA) and other professional bodies like the Procurement Supplies Professional and technician Board (PSPTB), therefore it was their fault that affected the effective management of procurement contract in Tanzania higher learning institutions. The study recommended that there must be regular training on procurement contract management for the public staff. The public sector should ensure that their employees are well-trained and educated on procurement contract management issues as it will enable the organization to have employees who will formulate and execute procurement contracts effectively and enable the organization to improve its procurement performance. Higher learning institutions should ensure their procurement officers receive procurement training frequently as needs arise due to frequent changes in procurement policies, procedures or laws. Higher learning institutions should train their employees to increase their skills in the interpretation of the contract. It is considered that well-experienced personnel in contract management are likely to perform great and enable the organization to perform well in contracts.

Barriers to Knowledge Sharing: A Case Study of Construction Companies in Surabaya

Knowledge-sharing (KS) barriers prevent organizations from capitalizing on their skills and knowledge assets. This research aimed to investigate the main barriers to knowledge-sharing and identify the commonly used practice of the knowledgesharing process in the construction company in Surabaya. Data was collected by sending questionnaires to the top management of large contractors (Qualification B) in Surabaya. Fifty-four questionnaires were collected and considered eligible for analysis. The Relative Importance Index (RII) method was used in this research. The results showed that internet/social media, e-mail, and face-to-face interaction are commonly used for knowledge-sharing. The results also showed that the top barrier to knowledge sharing was the lack of top management support and participation. Meanwhile, the top personal barrier was difficulties in generalizing knowledge from one project to another project. This study helped to understand the main barriers to the knowledge-sharing process in construction companies and provided some practical guidance for companies to deal with these barriers. Moreover, this study helped top management to provide strategies to alleviate the barriers to knowledgesharing within their organization in order to achieve the success of construction projects.
 Keywords: knowledge-sharing barriers, construction industry, knowledge-sharing practices

Scrutinizing the adoption of smart contracts in the MENA Region’s Construction Industry

ABSTRACT The construction industry embodies a paramount role in the economic growth of various nations, including the Middle East and North Africa (MENA) region. Despite its significance, the industry faces construction disputes and payment issues, inducing financial losses and project postponements. Consequently, the construction industry has mutated smart contracts to enhance operational efficiency, which automates contract management tasks and offers perks, including transparency and efficiency. However, the adoption of smart contracts in the MENA construction sector remains limited, and the region lacks thorough research on this topic. This study addresses this gap by examining the level of cognizance and apprehension of smart contracts among construction industry stakeholders in the MENA region. The research employs Structural Equation Modeling (SEM) to analyze the relative importance of implementing smart contracts within different project lifecycle phases and relevant practices and identify the hindrances impacting MENA’s smart contract deployment. A practical implementation of smart contract-based tendering employing the Trakti platform is paraded. The findings unveiled the infancy of smart contract adoption in the MENA construction sector. They revealed the substantial importance of implementing smart contracts in the Project Execution Phase, Project Closure, and Monitoring and Control Phase, attaining relative weights of 23.23%, 21.62%, and 20.50%, respectively.

Asset Information Model Management-Based GIS/BIM Integration in Facility Management Contract

Achieving efficiency success status inside an organization’s built environment and obtaining a positive return on investments need robust and comprehensive asset management and maintenance processes based on the efficiency of contract information documents within the built asset lifecycle. This paper aims to highlight the appropriate interactive approach for construction projects to build the information flow scope of asset facility management contracts based on GIS (Geographical Information System) and BIM (Building Information Modeling) integration processes and sustainability standards, and project as-built contractual documents to support owners and stakeholders with the intent of improving asset management processes. Expert interviews and contract information flow types in several facility management processes conducted in both local and international facility management organizations were used to assist the information flow scope method. The study classified and built significant integrated information and data flow models for a case study to serve as contract guidelines, including efficiency performance measures and indicators for monitoring procedures, technical evaluation, and financial issues in order to provide high-performance service quality in facility management applications.