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Operational framework to settle contractual claims in construction projectsSaad, Awad Saad Abdulla January 2017 (has links)
Thesis (MTech (Construction Management))--Cape Peninsula University of Technology, 2017. / Delays are frequent and recurring in construction projects, mostly in developing
countries. Several factors pertaining to modes of operation in the local construction
industry contribute to construction delays. Contractual claims are integral and an
important feature of construction project's life. Often times, delay-related contractual
claims in construction projects is a controversial issue that often leads to disputes
and conflicts between contractual parties due to its ambiguity and complexity.
Literature have shown over the last decade a range of problems that have
consistently resulted in construction delay and significant costs to all contractual
parties due to contractual claims in almost all types of construction projects.
Therefore, to achieve more time efficiency on construction projects, comprehensive
studies on common problems resulting in routine delays due to contractual claims is
essential. Such studies need to pinpoint the most relevant causes of delay that have
to be monitored carefully in order to avoid the construction delays. Thus, this study
adopted a quantitative research method. Closed ended and open ended questions
were designed in the quantitative instrument for the quantitative survey. Descriptive
and Principal Component Analysis was employed for data analysis to develop an
operational framework for evaluating delay related claims in the South African
construction industry. Findings from the analysis of data revealed several factors
through which, when appropriately evaluated will reduce the incidence of contractual
claim to minimum if not completely eliminated in construction project.
The study has found that delay-related claims are increasingly emerging and have
become the most common and costly problem in construction projects which not only
deny the client timely access to the completed facility but disrupt the overall
performance of the building project. This study also concludes that the contractual
claims that often lead to dispute during execution of building projects are; Change
order claim, Variation order claim, Cost and expense claims and Dayworks claim.
Therefore, evaluation of these claims must be given careful assessment during the
construction phase of a building project to forestall its attendant consequence on
project performance. Inconsistencies in the operational dealings with contractual
claims in the South African construction industry showed that; release of payment
emanating from claims, quality of management and design coordination, nonavailability
of specified materials and change in micro economic policy are the most
significant in evaluation factors which must be considered in evaluation of accurate
and undisputed contractual claims. This study also affirmed that the three principal
components that lead to claim and dispute when combined explained 49% of the
total variance. Also, it was concluded that arbitration is most appropriate for dispute
due to; shortage of materials, claims in fluctuation of the materials price, physical
environmental consideration, and conflict of interest among the project team.
Litigation is most appropriate to resolve dispute due to access to the construction
site. While mediation is most suitable for dispute due to; inability of the client to
understand design, the choice of the procurement process, delay in release of
payment emanating from claims, lack of prompt delivery of materials by the
suppliers, interference with utility lines and extreme weather condition. Lastly,
Negotiation is most suitable for dispute arisen from constructability of the design and
non-availability of specified materials.
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Causes and effects of cost underestimation on construction projects in South AfricaAwosina, Abiodun Emmanuel January 2017 (has links)
Thesis (MTech (Construction Management))--Cape Peninsula University of Technology, 2017. / The South African construction industry is faced with challenges which contribute to unsuccessful project delivery. Cost underestimation have negative contribution to construction projects, the effects and causes of cost underestimation have not been adequately explored with the objective of providing mitigating mechanisms. This study is aimed at investigating factors which contribute to cost underestimation, the prevalence of cost underestimation in relation to causes and effects of cost underestimation, with the final objective to establish mechanisms for efficient mitigation of cost underestimation.
The study review literatures relating to cost estimation, and additional data were collected in form of a structured questionnaire. The questions highlight the following areas; project planning, method and techniques, and tools as factors contributing to cost underestimation; scope changes and risk associated with specialized building works as prevalence of cost underestimation; planning stage, design and material changes risk due to unforeseen factors as causes of cost underestimation; loss of reputation, exposure to risk and financial loss as effects of cost underestimation; and design requirements, effective techniques and planning as cost underestimation mitigation mechanism.
A total of one hundred and forty two (142) emails were sent via the survey website to the selected respondents and seventy four (74) responses were received. A quantitative approach was used and a convenient purposive sampling of respondents was used by handpicking the respondents from the available register of the South African Council for Quantity Surveying Professions (SACQSP) and the general building contractors registered with Construction Industry Development Board (CIBD), construction professionals working in quantity surveying practice and construction firms within and around Cape Town.
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Project Management Skills of the FutureJanuary 2012 (has links)
abstract: The goal of this research study was to identify the competencies the Project Manager (PM) will need to respond to the challenges the construction industry faces in 2022 and beyond. The study revealed twenty-one emerging challenges for construction PMs grouped into four primary disruptive forces: workforce demographics, globalization, rapidly evolving technology, and changing organizational structures. The future PM will respond to these emerging challenges using a combination of fourteen competencies. The competencies are grouped into four categories: technical (multi-disciplined, practical understanding of technology), management (keen business insight, understanding of project management, knowledge network building, continuous risk monitoring), cognitive (complex decisions making, emotional maturity, effective communication), and leadership (leveraging diverse thinking, building relationships, engaging others, mentoring, building trust). Popular data collection methods used in project management research, such as surveys and interviews, have received criticism about the differences between stated responses to questions, what respondents say they will do, and revealed preferences, what they actually practice in the workplace. Rather than relying on surveys, this research study utilized information generated from games and exercises bundled into one-day training seminars conducted by Construction Industry Institute (CII) companies for current and upcoming generations of PMs. Educational games and exercises provide participants with the opportunity to apply classroom learning and workplace experience to resolve issues presented in real-world scenarios, providing responses that are more closely aligned with the actual decisions and activities occurring on projects. The future competencies were identified by combining results of the literature review with information from the games and exercises through an iterative cycle of data mining, analysis, and consolidation review sessions with CII members. This competency forecast will be used as a basis for company recruiting and to create tools for professional development programs and project management education at the university level. In addition to the competency forecast, the research identified simulation games and exercises as components of a project management development program in a classroom setting. An instrument that links the emerging challenges with the fourteen competencies and learning tools that facilitate the mastering of these competencies has also been developed. / Dissertation/Thesis / Ph.D. Civil and Environmental Engineering 2012
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Influence of construction clients on health and safety performanceLopes, Martin 05 June 2012 (has links)
M. Tech. / Relative to other industries in South Africa and construction industries worldwide, the South African construction process generates a disproportionate number of fatalities, injuries and disease, the direct and indirect cost of which contribute to the cost of construction. Serious accidents and injuries resulting in personal injury and wrongful death occur with alarming frequency at construction sites in the U.K. The majority of accidents are not caused by careless workers but rather by failure to control. According to the Health and Safety Executive report published in 1988 out of the 90% of all construction accidents leading to death 70% could have been prevented by positive management actions and interventiion. Clients influence construction health and safety performance. Architects and design engineers often disavow responsibility for health and safety issues associated with the construction of their work. Arguably, this denial will only change if clients insist that construction health and safety is addressed on their projects. Health and safety begins with the attitude that accidents are preventable and that requirements for healthy and safe work practices must be followed. Health and safety should not be left solely under the control of the workers if injuries are to be curtailed or diminished, because the health and safety environment consists of many factors over which workers have little or no control. An underlying belief is that the majority of accidents are not caused by careless workers but by failure in controls. Although the best site management of health and safety cannot prevent all accidents, entities other than those actually performing the work do have an important role to play in enforcing proper safety standard measures : It is possible to prevent accidents from occurring. Success in health and safety has a great deal to do with people, especially those who will be responsible for ensuring that the project will be delivered safely. There is some evidence that the importance of health and safety is being realised by clients. Costs associated with worker injuries and fatalities are borne ultimately by the client and insisting that health and safety be included in design and construction considerations will prevent the occurrence of injuries and ultimately reduce the construction costs. Clients mostly set health and safety culture during the construction phase. Health and safety prequalification criteria to design approval post the design phase that shows that clients would prefer their involvement to be in specific phases. Clients do not realise that they can make significant contributions to improve health and safety performance during the early stages of a project. Clients who have to pay for construction work do not make specific cost provision for construction safety. Clients need to afford health and safety the same status as other project parameters. It is widely accepted that contractors should bear the responsibility for health and safety during the construction phase. The study found that clients regarded the construction and maintenance phases as the most important to address health and safety. Again clients do not realise the significance of placing health and safety importance in the initial phases of a project.
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The execution of the financial management function in small to medium-sized building contractors as a means of promoting business sustainabilityBekker, Jakobus Petrus January 2004 (has links)
The objective of this study was to investigate the extent to which small to medium-sized building contractors beneficially utilise the financial management function in their enterprises to improve and ensure business sustainability. Financial management focuses on the principles of decision-making, which requires action, without perfect knowledge of the outcome. To effectively execute the financial function, using the primary inputs in decision-making, financial management requires the ability to: understand and interpret financial statements and reports; make reasoned and objective decisions in controlling the operations of the enterprise; have a thorough knowledge of the internal functioning of the enterprise; and have a thorough knowledge of current and expected future economic conditions in the external environment. To do this, requires an effectively applied financial management function in the enterprises, which includes the utilisation of the financial management criteria to ensure business sustainability. However, without an appreciation of what financial management is, how important financial management is, and how financial management must be applied in the enterprise, small to medium-sized building contractors will find it difficult to effectively perform the financial management function and its different activities. It was therefore important to determine how well owners and construction managers of the average small to medium-sized building contractor deal with and utilise the financial management function in their enterprises. Consequently, a survey was carried out amongst small to medium-sized building contractors in the Nelson Mandela Metropolitan Municipal (NMMM) area, which revealed information that was used to come to certain conclusions: Firstly, it can be concluded that the financial management function is generally exercised superficially. This is supported by the responses of small to medium-sized building contractors, which implied that more than half the contractors do not fully perform financial management tasks. Secondly, it was concluded that the financial management criteria generally do not play a role in the business sustainability considerations of small to medium-sized building contractors. This is supported by the results, which imply that more than half the contractors do not fully utilise the financial management criteria.
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The management of conflict in the construction industry in GhanaEllis, Florence Yaa Akyia January 2012 (has links)
No description available.
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Real options in construction projects and as a possible alternatives to PFI projectsMacDonnell, Moira Anne Elizabeth January 2010 (has links)
No description available.
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A case study on improving labour productivity in civil engineering projectsBalci, Besim U. 25 January 2012 (has links)
M.Ing. / The ability of construction firms to stay solvent largely depends on productivity. Productivity improvement is the key to economic prosperity in the long term. It provides the basis for increasing wages and more prosperous firms. Various methods can be implemented to measure and increase productivity which will result an increased output and efficiency. The aim of this work is to address the methods to be used for labour productivity measurement and improvement in civil engineering context. A case study will be done on a current construction project.
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Ensuring positive cash flow by prompt payment in the construction industryVan Vuuren, Elizabeth Louiza 20 January 2015 (has links)
M.Ing. (Engineering Management) / Ensuring and maintaining positive cash flow is becoming more and more difficult, especially in the construction industry. Payments need to be collected to be able to sustain a positive cash flow and this is not an easy process. Organizations fail due to insufficient available liquid assets and this study is done to determine why payments aren’t made, including information on what payment provisions contractors agree upon, and why the trend in the industry is to keep cash rather than pay suppliers. The collection of outstanding payments is also investigated, including actions taken if payments are not made, what clauses are included in contracts to ensure payment and if interest is charged on outstanding payments. A credit application processes need to be in place to ensure the credit worthiness of the clients/ employers is reviewed. It is also very important that some form of contract is agreed upon, understood and signed by both parties. There are instances where the contract documentation is not provided or the contract documents is provided and signed, but one of the parties has not read or understood some of the payment clauses. This could also lead to delayed payments. Collection of outstanding payments could be to propose a payment agreement, by charging interest or alternatively, enforcing early payments by providing a settlement discount. One of the most mentioned reasons for companies holding onto cash is to ensure liquid capital is available to ensure positive cash flow and the continuation of the business. The main reasons why liquid capital is not available is poor management of funds, poor payment procedures and mismanagement of funds. It was found that most of the construction companies have credit application processes, contracts and payment provisions in place, but most of these companies don’t adhere strictly to the procedures set out in these documents. More attention need to be given to enforcing credit and collection policies in practice, as well as following the payment provisions set out in the construction documentation. Questionnaires were only sent to companies operating in the construction industry. Further investigations can be done on other industries (including construction, mechanical, electrical, medical, farming, food sector, fashion sector etc.), which can assist in assisting with payments made by companies or individuals.
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Evaluating the use of project management techniques in infrastructure delivery by South African small and medium sized contractorsAgumba, Justus Ngala 16 July 2008 (has links)
South Africa is currently faced with the challenge of reducing the huge backlog of infrastructure delivery to communities that were previously disadvantaged. Given the prioritization of empowerment by the South African government, the previously disadvantaged and marginalized sector of the construction industry that comprises mainly, Small and Medium Enterprises (SMEs) is the preferred vehicle of delivery. However, consequent to their historic position outside of the mainstream construction industry, they lack the requisite project management expertise and experience to make good on this objective. This study investigates the characteristics of the personnel managing SMEs and the SMEs themselves, the usage, necessity, importance and adequate use of the techniques, effectiveness and potential applicability of various project management techniques to improve the performance of the SMEs in delivering the much-needed infrastructure. The study also identifies those external and internal factors that are detrimental to the effective implementation of project management techniques. Given the aforementioned, a descriptive survey was conducted among contractors who were either registered members of the Gauteng Master Builders Association (GMBA) or the National Home Builders Registration Council (NHBRC) in Gauteng. The data was collected using a semi-structured, structured and open-ended interview questionnaire, and analysed using descriptive analysis, severity index and content analysis respectively. The findings indicate that experienced and educated personnel manage SMEs. There is usage of essential project management techniques, which the contractors agreed are necessary and important in managing their projects. There is inadequate use of project management techniques among the SMEs. When used, the techniques brought about improvement in the delivery of projects. The research also established various factors that deterred the adequate implementation of project management techniques, namely, lack of adequate project information from professionals, time and financial constraints. The research concludes by suggesting that if significant improvements in the delivery of construction projects are to be attained, the findings stated need to be taken into consideration. / Mr. F.C. Fester Prof. F.A.O. Otieno Mr. I.O. Adegoke
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