Current traditional delivery models used in the Australian construction industry are seen as highly bespoke and adversarial where there is an inappropriate contractual risk allocation, lack of collaboration and poor project management. With the pipeline of investment compounded with the impact that global macroeconomic trends and events (e.g., COVID-19, climate change, political instability, social change, digital revolution) have on supply chains and risk profiles; there are calls from practitioners and researchers for fundamental change to contractual delivery arrangements to support the implementation of collaboration. The standard form of contract known as the New Engineering Contract (NEC) is seen as a logical step in the right direction; however, there is a lack of in-depth investigation to understand and support its implementation, particularly in Australia. This thesis aims to understand whether NEC could be utilised to a greater extent in the Australian construction industry by using institutional theory as a frame of reference. This paper reports on an exploratory interview study with a range of professionals in the construction industry in Australia to understand the current problems with traditional procurement, NEC’s perceived role and contribution to developing contractual practice, the barriers to change and the roles that various actors play in driving the development of NEC. The study confirms that the industry has a range of economic, knowledge-related and cultural factors that motivate the need for change. The effect of these practices has become part of the institution of the construction industry, ‘the way we do things. This has resulted in inefficient and poor performance outcomes. The general perception and experience amongst industry participants is seen as positive to NEC, where many acknowledge clear advantages but also various issues to its implementation. Key institutional actors are perceived to act as barriers to further adoption of NEC are the government, clients/public sector organisations and the legal profession. Other main barriers identified include the limited number of trained professionals and the culture and mindset in the industry. Greater adoption of NEC requires the active role of government, clients, and industry and professional bodies. / I den australiensiska byggindustrin används idag skräddarsydda kontrakt som skapar motsättningar mellan parterna genom obalanserad riskallokering och är förknippade med dåligt samarbete och bristande projektledning. Med tanke på den stora volymen planerade investeringar och den påverkan som globala makroekonomiska trender och händelser (t.ex. covid-19, klimatförändringar, politisk instabilitet, social förändring, digital omställning) har på leveranskedjor och riskprofiler, är det idag många praktiker och forskare som pekar på behovet av nya kontrakt som stödjer samverkan. Standardkontraktet New Engineering Contract (NEC) ses då som ett steg i rätt riktning. Syftet med detta examensarbete är att förstå de nuvarande problemen i den australiensiska byggindustrin och undersöka om NEC skulle kunna användas i större utsträckning. Studien baseras på intervjuer med yrkesverksamma inom byggbranschen i Australien. Med hjälp av institutionell teori diskuteras NEC:s upplevda roll och bidrag till att utveckla avtalspraxis, hindren för förändring samt de roller som olika aktörer spelar i att driva utvecklingen av NEC. Studien visar att branschen präglas av en rad ekonomiska, kunskapsrelaterade och kulturella faktorer som motiverar behovet av förändring. De har blivit en del av byggindustrins institutionaliserade praktiker, "så här gör vi", och har resulterat i ineffektivitet och kvalitetsbrister. De intervjuade är generellt positiva till NEC, men ser både tydliga fördelar och vissa problem med det. Centrala institutionella aktörer som idag fungerar som hinder för fortsatt implementering är statliga myndigheter, andra offentliga byggherrar och den juridiska professionen. Andra barriärer som identifierats är bristen på yrkesverksamma som är utbildade i NEC samt branschens kultur och tänkesätt. En ökad användning av NEC förutsätter en aktiv roll från myndigheter, kunder, branschorgan och professionsföreningar.

Thesis (MEng)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: After its introduction in 1993, the use of the NEC is still limited in the civil engineering industry of South Africa. The benefits of the NEC however appear to be promising. This research identifies the barriers of a NEC adoption. Moreover, in order to recommend strategies and measures to achieve a better NEC adoption, required success factors for a NEC implementation are investigated. Beneficial insights for South Africa are gained from the Dutch UAV-GC introduction experiences. A literature study is conducted to define the research needs and focus. Both contracts are analysed and compared. These findings are then used to validate the assumed advantages of the NEC by correlating them to the contract content. Subsequently, expert interviews are conducted in which the advantages, disadvantages, barriers for adoption and success factors for implementation of the NEC are explored. Interviews with seven South African experts also contained a short-questionnaire. The short-questionnaire gave a quantitative context as validation for the qualitative advantages. In addition, three interviews with Dutch experts were conducted. In this manner the Dutch UAVGC introduction experiences were explored. In the research synthesis, findings from the various sources are validated. This is achieved through a comparison of the different methods applied in the study. The barriers identified as the main cause of obstruction to the NEC adoption are a lack of knowledge, understanding, education, effective training courses and skills in procurement strategy, contract management and general project management. Furthermore, there is a resistance from industry because of the preference for the South African contract forms. Another resistance is from employers, due to the desire for some grey area in their contract form. Principal success factors necessary for the implementation of the NEC are education, training, promotion, and a proper understanding of the NEC as well as its philosophy and benefits. Consequently, a culture change towards collaborations would be necessary. In addition employers must apply and improve their procurement strategies. As a result, the NEC would be identified as their best tool for procurement. A helpful success factor, extracted from the Dutch experience, is the requirement for knowledge sharing between governmental bodies in order to guide innovations. For optimum industry performance by the more frequent use of the NEC, this research has resulted in the following recommendations: • The industry should not be afraid to question tradition and to initiate the required cultural change towards increasing collaboration • An in uential South African institute should take responsibility for the promotion, monitoring and training of the NEC • Educate students on the NEC and other contracts based on all possible procurement strategies • An adoption strategy should be applied for inexperienced NEC parties • NEC should be used as the stimulator for improvement of South African project management practices in construction projects • Organize regular knowledge sharing meetings between governmental departments to stimulate and improve innovations • Employers should improve their procurement practices. / AFRIKAANSE OPSOMMING: Na sy bekendstelling in 1993, is die gebruik van die NEC steeds beperk in die Suid- Afrikaanse ingenieursbedryf. Die voordele vir die gebruik daarvan blyk egter tog belowend te wees. Hierdie navorsing identifiseer die hindernisse wat gepaard gaan met die gebruik van die NEC in die bedryf. Die studie ondersoek ook die faktore wat 'n rol speel by die implementering van die NEC, om sodoende strategieë vir 'n meer omvattende gebruik van die NEC aan te beveel. Lesse om 'n nuwe kontrakdokument in die bedryf in te bring word geleer uit die Nederlandse ervaring met die UAV-GC. 'n Literatuurstudie is uitgevoer om die behoeftes en fokus van die navorsing te definieer. Beide kontrakvorms is geanaliseer en met mekaar vergelyk. Hierdie bevindinge is daarna gebruik om die voor- en nadele wat die NEC inhou te bevestig, deur dit te vergelyk met die inhoud van die kontrak. Onderhoude is gevolglik gevoer met industriedeelnemers waarin die voordele, nadele, hindernisse vir en die suksesfaktore vir die implementering van die NEC ondersoek is. Die sewe onderhoude wat met Suid-Afrikaanse deskundiges gevoer is, het elk 'n kort vraelys ingesluit. Die kort vraelys verleen 'n kwantitatiewe bevestiging van die bevindinge. Aansluitend is daar ook drie onderhoude met Nederlandse deskundiges gevoer. Op hierdie wyse is die Nederlandse ervarings ondersoek met die inlywing van die UAV-GC. In die navorsingsintese word die bevindinge van die verskillende bronne bevestig. Dit word bereik deur 'n vergelyking van die resultate van die verskillende metodes wat in die studie gebruik is. Hindernisse wat geïdentifiseer is as die hoof oorsaak vir die beperkte inlywing van die NEC in die bedryf, is die tekort aan kennis, begrip, opvoeding, effektiewe opleidingskursusse, vaardighede in aankoopstrategieë, tekort aan kennis oor kontrakbestuur en ook algemene projekbestuur. Boonop is daar teëstand van die bedryf weens die voorkeur vir Suid-Afrikaanse kontrakvorms. Verdere teëstand word verkry deur werkgewers vanweë die behoefte na grys area in hul kontrakte. Die belangrikste faktore wat benodig word vir die suksesvolle implementering van die NEC is opleiding, kennis en begrip van die NEC, asook begrip van sy filosofie en voordele. 'n Kultuur verandering, met die fokus op samewerking tussen partye, is noodsaaklik. Werkgewers moet verder hul aankoopstrategieë verbeter. 'n Nuttige faktor vir die suksesvolle inlywing van die NEC, verkry uit die Nederlandse ervaring, is die vereiste vir die uitruil van kennis onder staatsdepartemente om sodoende die veranderinge te lei. Om die gebruik van die NEC optimaal by die Suid-Afrikaanse ingenieursbedryf in te lei, het die navorsing tot die volgende gevolgtrekkings gelei: • Die bedryf moet nie huiwer om tradisie te bevraagteken nie. Dit is nodig dat kultuurveranderinge gemaak word om samewerking tussen partye te bewerkstellig • 'n Invloedryke Suid-Afrikaanse instituut moet verantwoordelikheid neem vir die bevordering, die monitering en opleiding vir die gebruik van die NEC • Studente moet opgelei word met blootstelling aan die NEC asook blootstelling aan 'n verskeidenheid van aankoopstrategieë • 'n Strategie moet ontwikkel word om partye wat onbekend is met die NEC daarvan bewus te maak • Die NEC moet gebruik word as bron wat die Suid-Afrikaanse projekbestuurs- en kontrakbestuuromgewings kan verbeter • Daar moet skakeling wees tussen staatsdepartemente om sodoende verandering te bevorder en te verbeter in aankoopstrategieë • Werkgewers moet hulle aankoopstrategieë en praktyke verbeter.