Pre-contract Stage Research Articles

Implementation of Good Faith Principles in Trade Contracts in Indonesia

The principle of good faith is a fundamental basis for establishing contractual relationships, including trade contracts in Indonesia. The application of this principle is important to create a conducive, fair and transparent business climate. The purpose of this study is to examine the application of the principle of good faith in trade contracts in Indonesia. This research uses qualitative research methods by collecting data using literature review techniques. then after the data is collected, it is analyzed using steps such as selecting data, presenting data and finally making conclusions. The research findings show that the implementation of the principle of good faith in trade contracts in Indonesia is regulated in Article 1338 paragraph (3) of the Civil Code, which emphasizes the importance of the principle of good faith and fair dealing in the entire contract process, starting from negotiation, contract arrangement, contract implementation, to dissolution. contract. In Indonesian law, good faith is applied not only during contract implementation but also in the pre-contract stage, namely before the contract is signed. This is important to protect the parties involved in the transaction from losses. The use of the good faith principle in commercial contracts in Indonesia has also been applied in several judicial cases, such as in life insurance contracts, where the court ensured that the good faith principle was applied to protect the rights of the parties involved. Apart from that, the principle of good faith is also applied in the choice of law for foreign direct investment contracts Indonesia.

Impediments to building information modelling-enabled construction waste management in Nigeria

PurposeBuilding Information modelling (BIM) has the potential to significantly minimise the quantity of construction waste (CW), but its adoption is low in construction waste management (CWM). This study examined the factors impeding the adoption of BIM in CWM efforts at the design and precontract stages from the perspective of construction stakeholders in Nigeria.Design/methodology/approachThe study was informed by a post-positivism philosophical stance, which involved using the structured questionnaire as a quantitative research design tool for data collection via snowball sampling technique. The data garnered from construction experts were analysed using Cronbach’s alpha test, normalities test, Frequency, Percentage, Kendall’s coefficient of concordance and Chi-square tests, Analysis of variance (ANOVA), and exploratory factors analysis (EFA).FindingsThe study concluded that the awareness of BIM potential for CWM is high, but the adoption in waste management (WM) is low. The factor analysis reduced the twenty assessed factors into four key clusters of impediments to BIM adoption in CWM: (1) knowledge and resistance barriers, (2) support and interest barriers, (3) interoperability and experts' factors, and (4) economic barriers. These factors are critical impediments to BIM-enabled CWM at the design and precontract stage, and there was no significant statistical difference in their rating by the construction stakeholders in Nigeria.Originality/valueStudies on the impediments to BIM adoption in CWM efforts, primarily at the design and pre-contract stages in emerging countries are scarce. This sought to fill this literature gap by establishing the critical impediments that should be overcome to improve BIM use in CWM.

Characteristics of Tenders As A Pre-Contract Stage for the Procurement of Goods and Services

Tendering in procuring goods and services is a crucial early stage in forming a fair procurement contract. This study aims to analyse the characteristics of tenders as a pre-contract stage of public procurement of goods and services. This research uses a qualitative research method with a descriptive approach. A literature study carried out the data collection technique in this research. The data that has been collected is then analysed in three stages, namely data reduction, data presentation, and conclusion drawing. The results showed that the characteristics of tenders as a pre-contract stage of government procurement of goods and services include competitive, fair, transparent, efficient, and effective. These tender characteristics are essential to consider in procuring government goods and services to produce quality goods and services providers who can carry out work correctly and on time

Application of Digital Technologies Tools for Social and Sustainable Construction in a Developing Economy

This study aims to evaluate the diverse application areas of digital technologies (DTs) within the Nigerian construction industry, with the intention of gaining insights into their potential benefits, challenges, and opportunities for enhancing efficiency, productivity, and overall performance. This will help us to understand how innovative technologies can improve the various stages of construction projects. To achieve the objectives of this study, a convenience sampling approach was employed to distribute closed-ended questionnaires among construction professionals located in Lagos State. Several statistical tools were used to analyze the obtained data, including percentages, frequencies, mean item scores, and exploratory factor analyses were performed to gain a comprehensive understanding of the dataset. The major findings from the study indicated that architectural design, cost planning, building system analysis, structural analysis, and contract documentation are areas in which DT is mostly applied in the construction industry. Further analysis using factor analysis revealed four clusters of application areas as the pre-contract stage, construction stage, post-contract stage, and modeling stage. The findings of this study offer valuable insights into the effective utilization of DT in the construction industry, thereby contributing to informed decision-making and improved project management practices. The insights gained from this research can inform industry professionals, policymakers, and stakeholders in making informed decisions to drive positive changes and innovation within the sector.

Effect of Contract Management Phases on Supply Chain Performance among Manufacturing Firms in Nairobi County, Kenya

Purpose: Contract management entails process which ensures parties to the contract undertake the contracts as per the objectives and obligations in the contract. Contract management also involves execution of roles and responsibilities through creation of conducive working relationship to all parties in the agreement. The objective of the study was to establish effect of contract management phases on supply chain performance among manufacturing firms in Nairobi County.
 Methodology: The population of the study was manufacturing companies which are based in Nairobi, Kenya. Nairobi has 640 manufacturing firms. The sample size of this study consisted of 246 supply chain managers in manufacturing firms in the Nairobi, obtained through stratified sampling and randomly selected. Self-administered questionnaire were used to collect data from the respondents. The quantitative data was coded and grouped into to various categories, percentages, frequencies, means were derived and presentation done through tables for compiling the study.
 Findings: The study found that pre-contract phase, solicitation, contract execution phase, post award phase influenced supply chain performance as per correlation analysis. The findings indicted buyer specifications are emphasized at pre-contract stage, the contract is signed at execution stage and deliverable during post ward phase and all the stages are crucial for supply chain performance at manufacturing firms. The study concludes that manufacturing firms depend highly on the clear contract singing and fulfillment of the contractual obligations by all parties across the phases. The study also concludes that the success of the firm will depend on efficiency in supply chain therefore; the management should ensure that there are no lapses in the procurement process.
 Unique Contribution to Theory, Practice and Policy: The study recommends that there is need for manufacturing firms in Kenya to invest in constant training of their employees on effective contract management across all the phases to enhance their performance. The study also recommends that manufacturing firms in Kenya should put in place appropriate measures that ensure that potential risks regarding contract management phases, detected in advance, and mitigated to enhance operational performance.

Avoiding construction disputes: a comprehensive framework for pre-contract planning

Many industry disputes originate during the pre-contract stage, emphasizing the importance of preventing these issues early on rather than relying on post-facto resolutions. Therefore, professionals need to act proactively to avoid lapses in the pre-contract stage from the initial stage of the construction project. However, the current literature lacks an investigation of dispute avoidance by identifying professionals involved in the pre-contract phase of construction projects. This research, thus, aims to investigate the strategies to avoid disputes in construction projects in the pre-contract stage from the perspective of responsible professionals. The study adopted a qualitative approach by conducting semi-structured interviews among 15 industry practitioners involved in dispute management practices, selected through purposive sampling. The data collected was analyzed using the N-Vivo12. The findings revealed 48 lapses in the pre-contract stage and 104 strategies to avoid disputes. The findings further revealed that most of the lapses occurred during the technical stage. In contrast, the architects are responsible for design errors, and quantity surveyors contribute to documentation issues. The research offers a comprehensive framework for professionals and regulatory authorities to encourage dispute mitigation efforts, thereby contributing to the body of knowledge.

Enhancing the Responsiveness of Bids in Public Procurement: The Case of Sri Lanka

Bid Responsiveness in the public procurement process (PPP) is a crucial aspect of public construction projects. A responsive bid materially complies with the form or content requirements of the bidding documents; the responsiveness of a bid is determined during the bid evaluation period. Accepting low-responsive bids can lead to project failures and unexpected adverse consequences. The Public Procurement Systems (PPS) in developed countries frequently used systematic mechanisms to enhance the quality of the PPP which includes enhancing the responsiveness of bids. This study revealed six dominant factors impacting responsiveness and five systematic mechanisms more prominently discussed in the PPS in developed countries to enhance the quality of the PPP. The population of this study consists of procurement specialists in Sri Lankan public construction procurement at the pre-contract stage and among those who have more than 20 years of experience in PPP were considered as the sampling frame. The fuzzy-set theory was used to determine the ranking order of these systematic mechanisms based on their influence to enhance responsiveness by overcoming the impact of dominant factors. Suggestions were made for Sri Lankan PPS to implement these systematic mechanisms.

Exploring the Benefits of Virtual Reality Adoption for Successful Construction in a Developing Economy

Existing literature has shown that Virtual Reality (VR) is widely utilized in advanced economies to enhance sustainable construction practices. However, its adoption in developing economies remains limited. To this end, this study aims at exploring the potential benefits of implementing VR technology in a developing country. The study collected information on the beneficial aspects of VR from previous research and conducted questionnaire surveys to gather relevant insights from construction project experts in Nigeria. The collected data were analyzed using the Measurement of Alternatives and Ranking According to the Compromise Solution (MARCOS) method and Exploratory Factor Analysis (EFA). The MARCOS method revealed that the key potential benefits of VR include improved communication and collaboration, enhanced project performance, risk identification, digitalization, and safety planning. Furthermore, the study conducted an in-depth investigation of the beneficial areas of VR using EFA, which identified six component groups: pre-contract stage planning, post-contract stage planning, quality control and sustainability, design flexibility and reputation, resource management, and risk management and digitalization. The study provides a comprehensive discussion of the advantages of implementing virtual building methods in developing countries.

Significant factors affecting the New Zealand transportation infrastructure project cost – quantity surveyors' perception

PurposeCost overrun is one of the critical issues faced in construction projects, as nine out of ten projects will likely go over the budget. In particular, transportation infrastructure (TI) projects, such as roads and bridges, are vastly affected by cost overruns, which can delay the entire project. This research intends to identify the factors affecting the cost overruns in New Zealand (NZ) TI projects.Design/methodology/approachThe research was conducted using a questionnaire survey involving ninety-two participants experienced in infrastructure project estimation in NZ. Quantitative methods were used to analyse the data.FindingsFifty-three factors were identified through literature under ten categories. Based on the survey, ten significant factors were identified with a high grade of importance. The three most critical factors were “frequent design changes,” “poor planning and scheduling” and “inadequate tender documentation.” It was found that the cost overrun is primarily affected by the pre-contract stage causes.Research limitations/implicationsThe data were collected from professionals involved in NZTI projects. Therefore, the implications may be different for other contexts.Practical implicationsThe results will improve the current estimation practice by developing a new statistical model considering all the significant variables for NZTI projects.Originality/valueAlthough much research is done to identify these factors, they are only considered in a few statistical cost models. These new statistical models mainly focused on technical variable factors similar to the current standard estimation process. However, the results of this research, qualitative and quantitative factors, will be used for the future cost model.

Kewenangan Notaris dalam Mewujudkan Kebahagiaan

Introduction: Civil relations, especially engagement relations, are a major factor in the growth and development of society.The actual form of the resulting agreement is the choice of the parties, but for the purposes of evidentiary law, the form of the agreement in a notarial deed (written) has a stronger position. 
 Purposes of the Research: The purpose of this study is to examine the authority of a notary in making authentic deeds and to review the existence of a notary's deed in providing happiness based on the agreement of the parties. 
 Methods of the Research: This research was carried out in a normative juridical manner, using bibliographical data as secondary data to examine rules and norms in law. 
 Results Originality of the Research: The authority of a notary in making agreements is a mandate. The freedom to contract the parties accompanied by the principle of good faith is then stated in a notarial deed that should give happiness to the contracting parties. The position of a notary as an intermediary must accommodate the needs of the parties, both from the pre-contract stage, and the contractual stage to the post-contract stage. The notarial deed is also a means of happiness and light for the contracting parties

Critical audit indicators for assessing construction projects performance (CPP) at pre-contract stage in Tanzania

This study evaluates the current practices of auditing for CPP in Tanzania and identifies critical performance audit indicators at the PCS. A sequential exploratory mixed methods approach comprising of documentary review from four (4) main audit institutions in Tanzania, 9-semi-structured interviews, and 43 questionnaires from audit experts were employed. Qualitative content analysis, and descriptive and inferential statistics were used to analyse qualitative and quantitative data respectively. From the findings, practitioners variably audit the performance of projects, either by omitting some measures at specific stages, measuring certain items in isolation, or overlapping some measures across stages of a project, which influences the different interpretations of the audit results. Study findings further indicate that procurement plans, budget, and feasibility study are the top most significant indicators at a planning stage, while client requirements, contract documents, and specifications are the top significant indicators at the design stage. Appropriateness of the method of procurement, evaluation process, award of contract, and capacity and competence of the selected contractor regarding project size, and complexity, are considered the most significant at the procurement stage. This study provides useful insights into performance audit indicators for construction project auditors and a baseline for audit practice policy directions in developing countries.

Building information modelling adoption for construction waste reduction in the construction industry of a developing country

PurposeThis paper aims to present the result of an assessment of the potential effect of building information modelling (BIM) adoption on the reduction of construction waste (CW) from a developing country's perspective. This was done with a view to reducing the waste generated in construction projects particularly at the design and pre-contract stages.Design/methodology/approachThe study adopted a post-positivism philosophical approach, which informed the use of a quantitative research design and a questionnaire as instrument for data collection. The data gathered from construction professionals in the Nigeria construction industry were analysed using an array of statistical tools such as frequency, percentage, Kruskal–Wallis H-test, Kendall's coefficient of concordance, chi-square and exploratory factors analysis.FindingsThe study revealed five major groups of factors causing CW at the design and pre-contract stages that can be avoided or minimised through BIM implementation. These are; (1) errors in design and documentation, (2) specification and quality factors, (3) estimating and site condition factors, (4) planning of work factors and (5) procurement related factors.Practical implicationsThe findings of the study offer practical insight for industry participants on the need for BIM implementation to reduce CW by identifying the diverse areas responsible for these waste generation.Originality/valueWhile there has been significant literature on BIM implementation, contributions on the effect of this technology in reducing waste generation particular at the design and pre-contract stages in developing countries has been almost non-existent. This study strives to fill in this gap by showcasing the major waste generating activities that can be avoided through the use of BIM.

Building Information Modelling (BIM) and Job Performance: An Empirical Analysis in Public Sector Project Management

The construction sector often faces various problems especially related to time, rising costs, project delays, waste and errors that can hinder the economic development. In order to overcome the problems, application of Building Information Modeling (BIM) in construction project is actively implemented in improving work efficiency and performance among industry practitioners especially in developed countries. Nonetheless, the ability of BIM towards highlighting its productivity and performance cannot be seen in the construction industry in Malaysia and faces several challenges that affected the job performance. Therefore, this study examines the relationship between various critical success factors and job performance among professionals who have used BIM applications in construction of project management. The stratified sampling method with the population of 345 professionals who practice the use of BIM applications in construction project management are applied in the study. The total population was collected from a preliminary study of the number of pre-contract stages in PWDs that had implemented BIM. Two models were constructed to be analyzed for multiple regression analysis. Findings revealed that four factors (collaborative synergy, ICT utilization, commitment and knowledge, culture orientation) have a significant positive relationship with job performance. While, external factor (collaborative synergy) has the most significant influence on job performance among those involved with the use of BIM applications. The findings of the study also have highlighted two major weaknesses that limit the effectiveness of the use of BIM applications are related to digital skills among staff and lack of support from management. These elements of weaknesses are seen to have affected the work performance in Malaysian construction sector. In the future research, to get more comprehensive view it is suggested several other factors especially external factors such as government policy and legislation, BIM guidelines and standards are to be considered in the study.

Delay Management as a Mitigation Strategy for Conflicts in Construction Projects in Kenya

The problem of conflicts in construction projects is a fact that happens in many countries, one of which is conflicts associated ensuing from delays. Delay management is exceedingly arduous and remains ineffective as the majority of the construction projects are tardy in time performance. The study aimed to investigate the role of delay management in mitigating project conflicts caused by delay factors by examining the causes and management approaches to these delays during the project implementation process. Empirical evidence from a review of the literature has unveiled that delay conflicts have detrimental impacts. Consequently, understanding the causes of delay has become a critical component of improving the construction industry’s performance. In Kenya, more than 70% of projects being executed are likely to increase by a factor of more than 50% over time. The study embraced a cross-sectional research design. Questionnaires were sent to randomly sampled consultants, contractors, and project developers. The data collected was then analysed using the Relative Importance Index (RII) and Spearman’s rank correlation. The study established the inevitability of conflicts attributed to delays amongst project stakeholders, with delays in progress payments being the leading cause. Other factors in the top five list were; inadequate site management and control, delays in approving major changes in scope, materials price fluctuations, delays in handing over the site, and difficulties in financing the project. It is recommended that clients ensure that works are aptly planned and veritable costing executed during the pre-contract stage and that interim payment certificates are settled promptly within the defined time frame, both to avert invoking interest penalty clauses and also to promote better progress of the works, to ensure smooth completion. Additionally, the contractor should ensure proper planning and scheduling of the works, as well as effective site management and supervision. These results have significant consequences since they give practical, scientific, policy, and social values that contribute to a better understanding of delays and delay management from a global perspective

Exploring the Cloud Computing Implementation Drivers for Sustainable Construction Projects—A Structural Equation Modeling Approach

Sustainability aspects should be adopted during all the decision-making stages of executing construction projects to gain maximum benefits without compromising the objective of such projects. Cloud computing has been a valuable tool for sustainable construction success in several countries over the last two decades. Cloud computing and its drivers have undoubtedly improved the sustainable success target of cost, quality, and time. However, cloud computing implementation in Nigeria’s construction industry is minimal. Consequently, the study aims to generate a decision support model to support a cloud computing implementation by looking into the relationship between cloud computing drivers and construction activities in Nigeria. This study’s data was obtained from previous literature and quantitatively augmented with a questionnaire survey. The data was obtained from questionnaires administered to one hundred and four construction practitioners in Lagos State. Thus, exploratory factor analysis (EFA) was used to validate the questionnaire survey results. However, to assess and validate the factors (drivers) constructed and analyze the relationships between cloud computing drivers and construction activities, partial least square structural equation modelling (PLS-SEM) method was used. An analysis of construction project activities was carried out through EFA, and it generated five main components: pre-contract stage, management, design and storage, estimation and communications, and finally, back-office activities. The study indicated that the implementation of cloud computing drivers had a significant impact on construction activities. The findings also revealed a weak relationship between cloud computing implementation and construction activities, with a 0.087 percent impact. Furthermore, the findings indicate that human satisfaction is the primary factor influencing cloud computing deployment, followed by organization, client acceptance, and industry-based factors. The significance of the findings can be used as a reference or standard for decision-makers to base their decisions on the cost efficiency of cloud computing and its capability to boost efficiency in the construction sector. This research contributes to current construction engineering management by enhancing knowledge of cloud computing implementation drivers and their implications on construction activities.

Effect of Cost of Scaffolding on Cost of Preliminaries in Multi-Storey Building Projects in Abuja, Nigeria

This paper investigated the relationship between cost of scaffolding and total cost of preliminaries for fifty construction projects in Abuja, Nigeria. Data used for the study were obtained using pro forma method of data collection for both cost of scaffolding and preliminaries for all the fifty (50) multi-storey building projects studied. The use of both descriptive and inferential statistics was adopted to analyze the collected data. Percentage was used for the descriptive analysis while hierarchical multiple regression analysis was used for the inferential analysis and development of predictive models. It was discovered from the analysis that cost of scaffolding carries a significant proportion from total cost of preliminaries and a positive, strong and significant relationship exists between the cost of scaffolding and the total cost of preliminaries in multi-storey building projects. The respective strong value of coefficients of correlation and determination observed ranges from 76% – 80% and 59% – 62%. The degree of association between the cost of scaffolding and total cost of preliminaries and that between the cost of scaffolding and total cost of construction were also respectively found to be strong. The coefficient of correlation ranges from 75% to 80%. All the three predictive regression models formulated were discovered to be suitable for predicting the cost of scaffolding with the use of the total cost of preliminaries and total construction cost at 95% confidence limit. It was suggested that consultants and contractors should ensure that cost of scaffolding is measured in detail at the pre-contract stage and that larger project samples should be used in further studies to formulate better predictive models for cost of scaffolding

The dynamics of changes in PPP projects – a meta-case analysis approach

Changes in public-private partnership (PPP) projects are inevitable and often lead to project failure, hence, the management of changes in PPP projects are more challenging than with traditional projects. The complex nature of changes in PPP projects, however, lacks systematic investigation and a quantitative approach in current literature. To fill this gap, this study considers the development process of major changes in PPP projects from a whole-life cycle perspective. The findings reveal significant relationships between causes and negative change results, as well as the enlarged interactive effects of certain causes. Most of the negative changes occur at the operational stage and vary across different types of project and regions, but the pre-contract stage is the most critical stage to prevent future negative changes. Hence, more proactive change management strategies are suggested for the government decision makers and project managers. This study contributes to the body of knowledge in PPP literature by providing a meta-case analysis approach, which can improve the accuracy of case selection and facilitate statistical analysis. The findings can help the researchers and practitioners to better understand the nature of changes and manage them in a more efficient way.

Managing intragroup conflicts within project design teams during pre-contract stage that effect the project deliverables in Sri Lanka

PurposeThe purpose of this study is to investigate the management of intragroup conflicts occurring in project design teams during pre-contract stages that affect the project deliverables of construction projects implemented in Sri Lanka.Design/methodology/approachA qualitative approach with a case study research strategy was used in the study. The required empirical data were collected by conducting expert interviews and reviewing the documents used in four selected projects implemented in Sri Lanka. All the projects used traditional separated procurement systems and had re-measurement contracts. Manual content analysis was used to analyze the collected data.FindingsThe study findings revealed the different types of intragroup conflicts that arise during the pre-contract stages of projects within project design teams of construction projects implemented in Sri Lanka and the causes and effects of those conflicts on project deliverables. The study recommends proactive strategies that can be adopted to manage those conflicts.Originality/valueA dearth of literature on the association between the intragroup conflicts that arise during the design stages of construction projects and project deliverables exists. This study bridged this research gap. It is novel because it reveals the impact of intragroup conflicts that occur during the pre-contract stages of construction projects on project deliverables and identifies several proactive strategies that will assist in managing those intragroup conflicts.

The application of good Faith principle of precontract in common law and civil law contry

In Indonesia, development of application of good faith principle in legal agreement focuses on the application of Civil Code (KUHPerdata) where scope is still placed on the implementation of agreement. It is as if Civil Code has not recognized the existence of good faith principle at pre-contract stage. In comparison, according to modern agreement theory that parties who suffer losses in pre-agreement/contract stage or at negotiation stage, their rights also deserve to be protected. Thus, pre-agreement/contract promises will have legal implications for those who violate them. This will be seen in countries that have common law and civil law systems. An important issue in this case relates to the principle of good faith at the pre-contract stage which creates a gap with the provisions in the legislation. To analyze these problems, legal research was conducted with the black-letter law paradigm. Technique of collecting legal materials in this research used library research. Legal materials are analyzed deductively and utilize the method of interpretation (hermeneutics). Results showed that the application of the principle of good faith at the pre-contract stage in Common Law and Civil Law countries had differences. In the Civil Law system, good faith is highly emphasized in the stage of contractual negotiation. Whereas in the Common Law system, it prioritizes efforts to restore rights of aggrieved party in pre-contract stage. Parties who do not have good faith at the pre-contract stage have legal consequences for cancellation of the agreement.

KNOWLEDGE MANAGEMENT PROCESS IMPLEMENTATION IN PRIVATE FINANCE INITIATIVE PROJECT IN MALAYSIA

PFI involved a project with long-term relationships at various stages from pre-contract stage to contractual stage and in use stage which also include maintenance stage. KM process is one of the elements to ensure the success of the KM system. In the PFI project, the KM process also needs to be checked whether it is applied in the various stage of the pre-contract stages. Questionnaires had been distributed to the parties involved at the pre-contract stage. The results are then analyse using the Relative Important Index (RII) to identify the ranking of KM usage in various stages of the pre-contract stage. According to the analysis, some of the stages in the pre-contract process of the PFI are not fully implemented in the KM process. For knowledge acquisition and storage practise, the high usage of the process is at the conduct of value management, submission to cabinet and access, evaluation, and approval. The next KM process which is capturing and storing, the process evaluation, negotiation and recommend are the activities at the higher level practising these KM processes. At next KM process which is re-using and sharing are Access and approval by the ministry, evaluation, negotiate and recommend practise more on this KM process.