Project Contract Research Articles

Intelligent identification of risks in construction contract clauses based on semantic reasoning

Purpose The number of construction dispute cases has surged in recent years. The effective exploration and management of risks associated with construction contracts helps to directly enhance the overall project performance. The existing approaches to identify the risks associated with construction project contracts have a heavy reliance on manual review techniques, which are inefficient and highly restricted by personnel experience. The existing intelligent approaches only work for the contract query and storage. Hence, it is necessary to improve the intelligence level for contract risk management. This study aims to propose a novel method for the intelligent identification of risks in construction contract clauses based on natural language processing.Design/methodology/approach This proposed method can formalize the linguistic logic and semantic information of contract clauses into multiple triples and transform the structural processing results of general clauses in a construction contract into rights and interests rules for risk review. In addition, the core semantic information of special clauses in a construction contract, rights and interests rules are used for semantic conflict detection. Finally, this study achieves the intelligent risk identification of construction contract clauses.Findings The method is verified by selecting several construction contracts that had been applied in engineering contracting as a corpus. The results showed a high level of accuracy and applicability of the proposed method.Originality/value This novel method can identify the risks in contract clauses with complex syntactic structures and realize rule extension according to the semantic relation network of the ontology. It can support efficient contract review and assist the decision-making process in contract risk management.

Effects of Contractual and Relational Governance on Project Performance: The Role of BIM Application Level

This study aims to explore the moderating role of Building Information Modeling (BIM) between project governance and project performance. The theoretical foundation of this research is rooted in transaction cost economics. The data come from the construction industry in China’s Sichuan province. A dataset comprising 175 survey responses was subjected to analysis through the Partial Least Squares (PLS) method. The findings confirm that contract completeness and contract flexibility positively influence project performance, and trust in relational governance also has a positive impact on project performance. Additionally, the level of BIM application moderates the relationships between contract flexibility and trust with project performance. However, a significant positive relationship between contract completeness and project performance was not observed. These findings establish a groundwork for transitioning project governance research from a static to a dynamic viewpoint, thereby facilitating the practical implementation of BIM technology. As a result, this study enriches the academic comprehension of governance amidst digital transformation and provides actionable suggestions for fostering efficient governance practices within a technologically progressive landscape.

A Common Structure for Factors that Enhance Synergy in Contractor Project Teams: Executive and Practitioner Perspectives

Synergy in a contractor project team improves performance by integrating diverse knowledge and skills among team members, enabling the achievement of project objectives. However, according to a literature review, factors that enhance synergy among contractor project teams from the perspective of executives and practitioners have rarely been discovered, revealing a knowledge gap that needs to be filled. Therefore, the aim of this study was to identify a common structure of such factors for executives and practitioners. Data collection involved a questionnaire survey targeting large contractors in Bangkok, Thailand. Then, we compared the mean importance and rank order of synergy factors, examined differences and similarities in synergy factors between executive and practitioner perspectives using the Mann–Whitney U test, and applied confirmatory factor analysis (CFA) for the data analysis. The differences and similarities show that executives and practitioners have similar perspectives on synergy factors. The CFA results validate a factor structure that enhances synergy. This synergy factor structure for executives and practitioners can be divided into five groups, with their standardized regression weights in parentheses: coordination (0.94), organizational structure (0.92), motivation (0.80), leadership (0.75), and planning and policy (0.69). These findings contribute to the body of knowledge and the state of practice by offering a practical framework to assist executives and practitioners in contractor organizations in identifying common measures and resource allocation based on the regression weights of synergy factors. This can improve synergy among contractor project teams, potentially resulting in better performance.

Assessing the impact of free trade agreement (FTA) signing on China’s outbound labor services

This study utilizes panel data encompassing 164 countries to analyze China’s foreign labor export from 2008 to 2017. Employing the multi-period double-difference method, the research investigates the impact of Free Trade Agreement (FTA) signings on China’s labor export. Empirical findings reveal the following insights:The signing of FTAs significantly enhances China’s foreign labor export, demonstrating a temporal effect. Importantly, this conclusion withstands rigorous testing through various robustness checks. FTAs have a positive impact on China’s labor export to developing countries but do not exhibit a similar effect on developed countries. The impact of FTAs on labor export is pronounced in contractual engineering scenarios, while no discernible effect is observed in China’s labor cooperation. Through a meticulous examination of specific WTO+ and WTO-X provisions, the study underscores that it is primarily the WTO+ provisions that drive China’s foreign labor export. Consequently, strategic recommendations are proposed. These include fostering additional FTAs between China and developing nations, prioritizing labor export within contracted projects, encouraging expansion of Chinese labor export enterprises into new markets, promoting multi-party cooperation to facilitate overseas labor export, diligent consideration of existing FTA provisions, and exploration of transitioning from WTO+ to WTO-X provisions.

Software Project Management and Their Economic Evaluation in terms of Enterprise Sustainability

Nowadays, we are witnessing that projects, computers and software as an integral part of them infiltrates or rather ruthlessly penetrates all spheres of business and daily life of a modern society and directs enterprise development, efficiency, productivity, competitiveness, image and ultimately in a way their very existence. In recent decades, the software industry and its products have become one of the factors without which the normal operation of contemporary economies cannot be imagined, however, software development often presents almost insurmountable difficulties.The research is related exactly to the analysis of software projects and their impact in the sustainability of enterprises. It is difficult to imagine any enterprise that claims to be competitive, to prepare, realize and monitor their projects without software support, be it standard software or specially developed for the needs of the enterprise, where software development comes into play. During the research combined methods are utilized. The methodology used includes the theoretical analysis which is based on the current literature from this field, followed by "case studies" that deal with the development of software projects in Kosovo by conducting interviews with their IT managers using face to face and semi structured interviews and finally based on gathered data the development of a concrete software project has been simulated. Finally the outcome from research is that always software development has to be identified with the project objectives of the project contractors and aims to meet their requirements and expectations. Software project team’s work for years in the development of complex and professional software projects, where competence in the relevant field as well as motivation play a key role in the development of successful business projects.

Variations and Claims in International Construction Projects in the MENA Region from the Last Decade

This study delves into the dynamics of ‘Variations’ and ‘Claims’ in construction projects. This study aims to identify, categorize, and devise mitigation strategies for critical types of variations and claims that are aligned with the contract’s FIDIC conditions. The research draws on input from construction industry professionals, including contract administrators and project managers, and focuses on the MENA region. The region’s extensive adoption of FIDIC standards and the rapidly growing construction sector drive this choice. Data collection encompassed a questionnaire distributed to 80 industry experts, predominantly through interviews focused on countries such as Saudi Arabia, the UAE, Kuwait, and Egypt. Utilizing SPSS-V.25 for statistical analysis, this study uncovers the most prevalent and impactful causes of variations and claims, highlighting the critical need for managerial intervention. A key feature is the integration of scientometric analysis into a quantitative finding. Implementing a k-means clustering analysis is a significant addition to the methodology. The survey had high internal consistency with a Cronbach’s alpha of 0.97, and the respondents reported frequent and significant claims such as delayed drawings, ambiguous documents, and client changes. The results showed that effective claims management requires clear communication and balanced contracts, while poor design and contract documentation cause variations and claims. The correlation analysis showed strong positive correlations between claim types and causes. To reduce claims and address these factors, most respondents said the survey could predict and reduce claims.

Analisis Faktor-Faktor Penyebab Terjadinya Perubahan Desain dan Pengaruhnya terhadap Cost overrun Proyek Konstruksi di Jambi

This research aims to prove empirically the factors that cause design changes and the impact of cost overruns on construction projects. The data collection technique used was primary data collection with a sample of 10 respondents taken from contractor project staff of construction projects in Jambi City. The sampling technique in this research used probability sampling and stratified random sampling methods. Data analysis processing in this study used IBM SPSS 28. The final results of this analysis found that the causative factor of design changes because of owner or contractor. The most dominant design change factors caused by the owner were delays in providing goods that should have been provided by the owner at 48.48%, temporary suspension at 42.85%, and termination of construction contracts at 56.81%. Apart from that, other dominant factors in design changes caused by contractors are delays in providing design drawings for construction that have been approved, amounting to 62.5%, design/specification defects equal in value to the number of addendums issued at the implementation stage, namely 60.60%, final failure of contractor/subcontractor performance was 64.51%.

Raw Material Cost Prediction Planning and Ready-Mix Product Sales Using Adaptive Linear Neural Network Method

An important thing that needs to be considered to ensure the successful implementation of the project is planning. The current problem with RMC is the non-achievement of the target, which causes the company's condition to be not optimal. Stable production cost projections on construction projects have been a problem and a serious concern, especially for project contractors. Often, there is a deviation between the projected initial costs and the actual ones at the construction site. Production predictions need to be made to determine the accuracy of these needs. This study aims to predict the needs of production and raw materials in an industry and can accommodate the calculation of estimated profits. Prediction of an industry's production and raw material needs can be used as a reference in calculating profit estimates. The ADALINE method is a neural system consisting of several nodes. A node requires several input processes to produce one output, which can be used as a predictive model. The results show that the actual and simulation data results using the ADALINE model have 100% conformity. This shows that the ADALINE model on the neural network can also function as one of the prediction model choices in addition to performing a prediction function. Prediction results using neural networks are one of the alternative solutions for utilizing prediction models other than other prediction models.

THE INFLUENCE FAKTORS ON PROJECT PERFORMANCE: INTEREST, COMPETENCY AND CONTRACT PROJECT

In order to increase economic growth through the development of industrial areas in Indonesia, the Government is making efforts to accelerate projects that are considered strategic and have high urgency so that they can be realized within a short period of time. A project is considered successful if good project performance is achieved. Competence of project funds is important. This research was conducted to determine the influence of competence, interests and project contracts which are thought to have an impact on project performance. This research contained 55 samples and used the smarPLS method. From the results of this research, it was found that there was a significant influence on project interests and competencies. This shows that the competencies possessed by the project team are very influential. Apart from competency, the results obtained from project interests have an influence on project performance. But this is not the case with project contracts which do not include any influence on project performance.

Trilateral Evolutionary Game Strategy for the Design Optimization of Engineering General Contracting Projects in the Chinese Context

The engineering general contracting mode is an advanced engineering transaction mode, and design optimization is one of the important driving forces for vigorously promoting the general contracting mode. The application proportion of the general contracting mode in infrastructure projects is not high, the number of successful projects is not large, and the implementation effect is not ideal. One of the main reasons is that the design optimization theory and practice of international standard general contracting projects cannot adapt to the general contracting projects in the Chinese context, making local general contracting projects face huge challenges such as low enthusiasm for design optimization from all parties and unsatisfactory design optimization effects. Therefore, under the premise of bounded rationality, when the owner adopts control methods of different intensities, an evolutionary game study on the selection of design optimization strategies between the design and construction parties is carried out, and stability control strategies are proposed through case experiments and simulations. The research results indicate the following: firstly, the design optimization of general contracting projects in the Chinese context is feasible, but it depends on the distribution ratio of benefits obtained from the design optimization. Compared with general civil construction general contracting projects, the design optimization allocation ratio of industrial construction general contracting projects is more significant; secondly, the mixed control method of strong control and weak control is the optimal choice for the owner of the general contracting project; and thirdly, there are multiple evolutionary stable points, and mechanism design or incentive measures should be used to guide owners to choose weak control strategies, while design and construction parties should choose their design optimization strategies. The research results provide a reference for owners to determine the proportion and scheme of design optimization allocation, and for construction parties to determine design optimization strategies.

Project Contractors’ Capacity and Performance of Road Construction Projects in Uasin Gishu County, Kenya

Project Contractors’ Capacity and Performance of Road Construction Projects in Uasin Gishu County, Kenya

A Redundancy Allocation Model for Uncertainty Random Water Supply System in Water Saving Management Contract Projects

Water saving management contract (WSMC) projects provide advanced technology and management for a water supply system to achieve water conservation and set redundant components to ensure water supply reliability. Project managers focus on the reliability optimization problem and require redundancy allocation strategies of the above system. This paper presents an optimization method by dealing with the lifetime of the whole water supply system. Assuming the lifetimes of advanced components are uncertain variables and the old ones are random variables, a reliability optimization model of water supply systems is established based on chance theory, and the redundancy allocation solutions are obtained by an optimization toolkit. A WSMC case in Shenzhen, China is studied and the results show that the reliability of the water supply system has been in a high state based on the allocation strategy. This study provides theoretical support for improving water-saving safety and popularizing the WSMC service mechanism.

Systematic Review of Risks in Energy Performance Contracting (EPC) Projects

Systematic Review of Risks in Energy Performance Contracting (EPC) Projects

A class modified projection algorithms for nonmonotone variational inequalities with continuity

Many well-known projection algorithms may have no convergence results when the mapping lacks generalized monotonicity. This paper proposes a modified projection contraction algorithm and a modified Tseng-type extragradient algorithm for solving nonmonotone variational inequalities. To ensure global convergence of the two new algorithms, we assume only that the mapping is continuous and the solution set of its dual variational inequality is nonempty. In particular, we do not need to assume any generalized monotonicity of the mapping. Numerical experiments are provided to illustrate the efficiency of the proposed algorithms.

The Rehabilitation of Dir-Polder Tambak Hanyar Irrigation Network on The Secondary Canal of The Tuan River in Banjar Regency

The rehabilitation of irrigation networks aims to increase water use efficiency. This includes repairing leaking or clogged channels so that water can flow more smoothly and precisely to where it is needed. A good irrigation network can also assist to manage rainwater better, thereby reducing the risk of flooding. The method of irrigation network rehabilitation in the Tambak Hanyar Polder for the Secondary Channel of the Tuan River, Banjar Regency is applied as follows (1) measuring the cross section of the Tuan River based on BM (Bench Mark) and PC (Point Control) depicted in the As Built Drawing, (2) preparing heavy equipment in the form of an excavator to remove mud or sedimentation deposits according to the depth measurements of the Tuan River, (3) evaluate the dimensions of the Tuan River secondary channel using measurements according to the project contract. Conclusion: Rehabilitation of the Tuan River secondary channel along 4050 meters of 7700 meters (contract reference) has been carried out. Rehabilitation of around 3650 meters was not carried out based on differences in work with reference to As Buit Drawing and Back Up Volume MC 100%. The reasons are (1) Technical Obstacles: Unpredictable weather and high rainfall intensity as well as the influence of sea tides on irrigation areas, (2) Non-Technical Constraints: Time is needed for socialization to the community regarding the implementation of rehabilitation and negotiations regarding the location for disposing of excavated soil and the position of residents' houses on the banks of the Tuan Secondary Channel River.

Distribution of Projects Financed by Means of the National Rural Development Programs in Cluj-Napoca Metropolitan Area

Distribution of Projects Financed by Means of the National Rural Development Programs in Cluj-Napoca Metropolitan Area. The measures and sub-measures included in the National Rural Development Programs of 2007-2013 and 2014-2020 have also been accessed by the 19 communes of the Cluj-Napoca Metropolitan Area. The present paper focuses on the most significant measures and sub-measures of these programs, in relation to their main purpose (supporting the modernization of agriculture, encouraging the diversification of the rural economy and improving the standard and quality of life in rural areas) and the distribution of contracted projects (and submitted projects - where the case) in this area, an area developing under the socio-economic influence of the nearby city. While for some communes the influence of the city is quite visible, some other communes still preserve accentuated rural features, and these different trajectories are also mirrored in the types of submitted or contracted projects from such communes, in the context of these development programs. Keywords: rural development, Cluj-Napoca, metropolitan area, projects, National Rural Development Program.

ANALYSIS OF THE COSTS OF PREVENTING WORK ACCIDENTS IN THE IMPLEMENTATION OF THE OCCUPATIONAL HEALTH AND SAFETY MANAGEMENT SYSTEM IN THE PALOPO CITY ARTS AND SPORTS BUILDING CONSTRUCTION PROJECT

Introduction: The construction industry is characterized by many small companies working with limited resources and substandard safety management systems. The aim of this study: To analyze the costs of preventing work accidents in implementing the work health and safety management system in the arts and sports building construction project in Palopo City. This research uses the method: mixed qualitative and quantitative research with descriptive analysis research design. The selected samples in this research were project contractors, K3 experts and several workers who almost had work accidents. Results: The costs incurred by the company do not meet the requirements of the PUPR ministerial regulations in Circular Letter Number 11/SE/M/2019. Based on the analysis of tangible benefits, the total cost of treatment and the total cost of project delays is IDR 317,859,200. And based on the BCR analysis the results obtained are B/C ≥ 1 for the benefits realized.

Comparative Analysis of Environmental Protection Provisions in Construction Procurement: A Case Study of Nepal's Projects Funded by National and International Agencies

This study investigates the environmental protection provisions embedded in procurement processes of construction projects in Nepal, funded by various national and international agencies. The research aims to compare and analyze the environmental safeguarding measures outlined in bidding documents from different funding sources, along with examining relevant legal frameworks and policies governing environmental protection in construction projects. Through a qualitative approach and content analysis methodology, the study delves into the scope, limitations, and significance of environmental considerations in construction procurement. Findings reveal diverse approaches across funding agencies, highlighting the emphasis on contractor responsibilities, safety measures, and project management. While Nepal's standard bidding documents establish foundational environmental provisions, projects funded by international agencies demonstrate a higher commitment to environmental sustainability. The study underscores the importance of comprehensive environmental measures in construction projects to mitigate ecological impact and promote long-term environmental conservation.

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 efficiency of China's export trade with Africa and its influence mechanism

AbstractThis paper calculates the trade efficiency of China's exports to Africa by considering trade inefficiency factors, such as Chinese aid to Africa and Chinese contracted projects. Based on a stochastic frontier gravity model and data for China's exports to 38 African countries from 2010 to 2020, this study draws the following conclusions. First, trade inefficiencies, such as China's aid and contracted projects, play a positive role in promoting China's export trade to Africa. Second, the efficiency of China's export trade to Africa varies significantly in different regions, among which countries with high export trade efficiency are concentrated in North and South Africa. Third, the trade potential and trade expansion space of China's exports to Africa vary significantly among different product sectors, which provides much space for promoting trade policy. We highlight that China's government should develop differentiated regional trade policies due to regional heterogeneity in terms of export trade efficiency between China and African countries.