Since 1976 public agencies in Oregon have been allowed to select construction contractors using a "qualification" based competition instead of the more typical lowest responsible bid or Design-Bid-Build (DBB) basis. Since 1985, at least 136 such selections, commonly known as CM/GC for Construction Manager/General Contractor, have been made. The results of this policy have not previously been analyzed. This research compares these selection methods, seeking to answer the following questions: Does the CMl/GC method result in projects that differ from DBB projects regarding cost and schedule control? Are CMl/GC projects more efficient than DBB projects, where efficiency is defined as the data envelopment analysis (DEA) technical efficiency score? Does efficiency depend on an interaction between project type and the selection method? How do project stakeholders evaluate the benefits and drawbacks of the two selection methods? How do projects compare when the only apparent difference between them is the selection method? To answer these questions, we identified 407 Oregon public building construction projects and obtained a variety of data, including cost and schedule results, for 215 jobs (111 CMl/GC and 104 DBB). We analyzed the data several ways, including statistical analysis, DEA, and various qualitative methods. Results: There was no statistically significant difference between the CMl/GC and DBB projects regarding cost and schedule control. The DEA technical efficiency scores showed that CMl/GC projects outperformed the DBB projects. There was no interaction effect between project type and selection method. Project stakeholders stated that reduction of risk is the principal benefit of using CMl/GC; however, architects and subcontractors are less enthusiastic than owners and general contractors. Data on two nearly identical projects indicated that the DBB project was less costly than the comparable CMlGC project and also incurred less cost growth; both projects were completed on time. To summarize, this research fails to find support for the current Oregon law that exempts certain projects from competitive bidding based on the presumption that CMl/GC will lead to substantial cost savings but does indicate that the CMl/GC projects may be better able to accommodate accelerated project schedules.

Sammanfattning Syfte: Utvecklingen inom bygg- och anläggningssektorn går emot att företag måste bidra positivt till samhället där de är verksamma för att få kontrakt på entreprenader inom offentlig upphandling, exempelvis genom att bidra till den sociala hållbarheten. Sverige är ett av flera länder i Europa som sticker ut med initiativet att främja och förbättra det samhällsutvecklande arbetet som företag gör. Social hållbarhet kan defi-nieras med orden; hälsa, utbildning, säkerhet, styrning, samhällsengagemang och lika förutsättningar. Målet med arbetet är att ge insyn och exempel på medelstora kommu-ners syn på social hållbarhet i upphandlingar av bygg- och anläggningsentreprenader. Metod: Litteraturstudier, dokumentanalyser och intervjuer har genomförts. Tillsam-mans utgör de en fallstudie av tre medelstora kommuner. Litteraturstudierna har ge-nomförts för att skapa ett teoretiskt ramverk för arbetet. Dokumentanalyser av doku-ment från kommunerna har varit del av empiriinsamlingen. Intervjuer med företrädare för organisationer inom kommunerna som upphandlar bygg- och anläggningsentre-prenader har genomförts som en del av empiriinsamlingen. Resultat: Diskrepans rådde mellan intervjurespondenternas uppgifter angående socia-la krav i upphandlingar av bygg- och anläggningsentreprenader och kommunala poli-tiska beslut. Respondenterna ansåg i stort att politiska initiativ angående sociala krav i nämnda upphandlingar saknades. Politiska beslut och upprättade dokument påvisade att motsatsen skulle råda; kommunernas arbete med social hållbarhet var högst aktivt enligt politikerna. Konsekvenser: Intresset i frågan angående sociala krav i upphandlingar av bygg- och anläggningsentreprenader är påtagligt från såväl politiker som tjänstemän. En utökad kommunikation dem emellan är av stor vikt för arbetets utveckling. Begränsningar: Studien utfördes inom tre medelstora kommuner i före detta Skara-borgs län. Regional utveckling i frågan om social hållbarhet kan ha påverkat kommu-nerna i en gemensam riktning avskild från andra delar av landet. / Abstract Purpose: The current development in the construction sector is trending towards a required positive contribution to the society in which they're active in order to procure construction contracts in the public sector, for example by contributing to social sus-tainability. Sweden is one of several European countries that stand out in the initiative to further and improve the socially developing work done by companies. Social sus-tainability can be defined as follows: health, education, public safety, government, social engagement and equal opportunity. The aim of this work is to provide perspec-tive and examples of midsized municipalities' thoughts on social sustainability in pro-curement of construction contracts. Method: Literary studies, document analysis, and interviews have been conducted. Together, they embody a case study of three midsized municipalities. The literary studies were conducted in order to create a theoretical framework for the essay. Doc-ument analyses of documents from the municipalities have been a part in the empiri-cal acquisition process. Interviews with representatives from municipal organisations which procure construction contracts have been conducted as part of the empirical acquisition process. Findings: There was a discrepancy between the information provided by the inter-viewees regarding the social demands in the procurement of construction contracts and the political decisions made by the municipalities. The interviewees usually posit-ed that political demands in these procurements were thoroughly lacking or nonexist-ent. Political decisions and established documents showed the opposite; municipal work with social sustainability was very active according to the politicians. Implications: The interest in the question of social demands in the procurement of construction contracts is significant, both from politicians and white collar workers. An expanded communication between the two is of grave importance for the devel-opment in the sector. Limitations: This study was conducted in three midsized municipalities in what used to be the fief of Skaraborg. Regional development in the question of social sustaina-bility may have affected the municipalities in a collective direction without regards to the rest of the country.

Thesis (LLM)--Stellenbosch University, 2013. / Bibliography / ENGLISH ABSTRACT: In order for the government to function, it needs goods and services. It may acquire these goods and services by using its own resources, or by contracting with outside bodies. The latter method is generally referred to as public or government procurement. Government procurement usually contributes a large deal to a country’s economy and is therefore of great importance. With South Africa’s political transformation in 1994, the construction industry was used as the model for public sector procurement reform. The industry regulates all infrastructure and constituted 3.8% of the country’s gross domestic product (GDP) in 2011 with the private sector as its biggest client. The legal regulation of construction procurement in South Africa is therefore significant. Section 217 of the Constitution¹ sets the standard for government procurement in South Africa. Section 217(1) provides that organs of state in the national, provincial or local sphere of government or any other institutions identified in national legislation when contracting for goods or services must do so in accordance with a system which is fair, equitable, transparent, competitive and cost-effective. Organs of state are not prevented from implementing procurement policies which provide for categories of preference in the allocation of contracts and the protection or advancement of persons, or categories of persons, disadvantaged by unfair discrimination in terms of section 217(2). Section 217(3) in turn provides that national legislation must prescribe a framework in terms of which section 217(2) must be implemented. The rules for construction procurement in South Africa are found in the Construction Industry Development Board (CIDB) Act² and the Regulations to the Act.³ The Construction Industry Development Board has been established by the Act and is empowered to regulate construction procurement in terms of the Act and to publish best practice guidelines for further regulation and development of construction procurement. This thesis aims to answer the question as to whether the legal regulation of construction procurement complies with section 217 of the Constitution. Chapter one sets out the research question to be answered, the hypothesis on which the thesis is based and the methodology employed. Chapter two establishes the constitutional standard for government procurement in South Africa and is the standard against which the rules discussed in subsequent chapters are tested. Following this, the procurement procedures in terms of which supplies, construction works and services are procured are described and analysed in chapter three. It appears that the Regulations to the CIDB Act exclude contracts for supplies and services in the construction industry. Therefore, the qualification criteria for construction works contracts are examined in chapter four. Thereafter, the evaluation and award of construction works, supplies and services contracts are explained and analysed in chapter five. Government procurement may further be used for objectives not directly connected to the main goal which is the procurement of goods and services at the best possible price. It may also be used for the promotion of socio-economic objectives, for example. Therefore, in the sixth chapter, the use of government procurement as a policy tool in the South African construction industry is discussed and analysed. The concluding chapter collectively refers to what was discussed in the preceding chapters including the conclusions and attempts to answer the research question as to whether the legal regulation of construction procurement in South Africa complies with section 217 of the Constitution. / AFRIKAANSE OPSOMMING: Die staat het goedere en dienste nodig om te funksioneer. Dit kan hierdie goedere en dienste verkry deur die staat se eie bronne te gebruik, of dit kan instansies van buite kontrakteer. Daar word oor die algemeen na laasgenoemde metode verwys as staatsverkryging. Gewoonlik lewer staatsverkryging ‘n groot bydrae tot ’n land se ekonomie en dit is dus van groot belang. Met Suid-Afrika se politieke transformasie in 1994 is die konstruksiebedryf as die model voorgehou vir die hervorming van die staatsverkrygingstelsel. Die konstruksiebedryf reguleer alle infrastruktuur in die land en het in 2011 3.8% tot Suid- Afrika se Bruto Binnelandse Produk (BBP) bygedra, met die private sektor as die grootste kliënt in die bedryf. Dit is dus noodsaaklik dat staatsverkryging in die Suid-Afrikaanse konstruksiebedryf wetlik gereguleer word. Artikel 217 van die Grondwet4 stel die standaard vir staatsverkryging in Suid-Afrika. Artikel 217(1) bepaal dat staatsorgane in die nasionale, provinsiale of plaaslike regeringsvertakkings, of enige ander instelling in nasionale wetgewing vermeld, wat vir goedere of dienste kontrakteer, sodanige goedere of dienste moet verkry ooreenkomstig ’n stelsel wat regverdig, billik, deursigtig, mededingend en koste-effektief is. Staatsorgane word verder nie verhinder of belet om staatsbeleid te implementeer wat voorsiening maak vir die bevordering van sekere mense, of kategorieë mense, wat ingevolge artikel 217(2) deur onbillike diskriminasie benadeel is nie. Artikel 217(3) bepaal dat nasionale wetgewing ’n raamwerk moet voorskryf ingevolge waarvan artikel 217(2) geïmplementeer moet word. Die Wet op die Ontwikkelingsraad vir die Konstruksiebedryf (Construction Industry Development Board Act)5 en die Regulasies tot die Wet6 omskryf die regsreëls vir staatsverkryging in die Suid-Afrikaanse konstruksiebedryf. Die Ontwikkelingsraad vir die Konstruksiebedryf het ingevolge hierdie Wet tot stand gekom en is gemagtig om staatsverkryging in die konstruksiebedryf te reguleer. Dit mag ook goeie praktykriglyne publiseer vir verdere regulering en ontwikkeling van staatsverkryging in die konstruksiebedryf. Hierdie tesis het ten doel om die vraag te beantwoord of die wetlike regulering van staatsverkryging in die konstruksiebedryf aan artikel 217 van die Grondwet voldoen. Hoofstuk een gee ‘n uiteensetting van die navorsingsvraag wat beantwoord sal word, die hipotese waarop die tesis berus en die metodologie wat aangewend word. Hoofstuk twee omskryf die grontwetlike standaard vir staatsverkryging in Suid-Afrika en word as standaard gebruik waarteen die regsreëls vir staatsverkryging in die konstruksiebedryf in die daaropvolgende hoofstukke getoets word. Vervolgens word die verkrygingsprosedures ingevolge waarvan voorraad, konstruksiewerk en dienste verkry word, in hoofstuk drie bespreek en ontleed. Dit blyk dat die Regulasies tot die Wet op die Ontwikkelingsraad vir die Konstruksiebedryf (CIDB Act) kontrakte vir die verkryging van voorraad en dienste uitsluit. Gevolglik word die tendervereistes vir konstruksiewerk in hoofstuk vier bespreek. Vervolgens word die evaluering en toekenning van konstruksiewerk, voorraad- en dienskontrakte uiteengesit en ontleed in hoofstuk vyf. Dit blyk verder dat staatsverkryging gebruik mag word vir doelwitte wat nie direk verband hou met die primêre doel, naamlik die verkryging van goedere en dienste teen die beste prys, nie. Dit mag byvoorbeeld ook gebruik word vir die bevordering van sosio-ekonomiese doelwitte. Gevolglik word staatsverkryging as ’n beleidsinstrument in die Suid-Afrikaanse konstruksiebedryf in hoofstuk ses bespreek en ontleed. Die laaste hoofstuk gee ‘n opsomming van wat bespreek is in vorige hoofstukke, maak gevolgtrekkings en probeer die navorsingsvraag beantwoord of die regsreëls wat staatsverkryging in die konstruksiebedryf reguleer, voldoen aan artikel 217 van die Grondwet.

Thesis (MDF)--Stellenbosch University, 2015. / ENGLISH ABSTRACT: The Western Cape Education Department (WCED), through the Department of Public Works (DTPW), launched the Grade R classroom programme in 2009 to increase primary school enrolment in less privileged communities. Due to the low construction contract values the programme has attracted SME contractors. These SMEs have stalled the programme by either not delivering on time or by going insolvent whilst building Grade R classrooms. This research investigated the challenges encountered by SME contractors in delivering Grade R classrooms. The objectives of the research were achieved by means of a questionnaire administered through telephonic interviews and face-to-face interviews. Thirteen contractors have taken part in the programme since 2009. All contractors who have built the classrooms in the Cape Metropole region were contacted for a telephonic interview of which 12 agreed to participate in the telephonic interviews. Descriptive statistics were used to collate and discuss the challenges reported by the contractors. The findings are similar to other studies of SME contractors. SME contractors that took part in the survey confirmed that financial factors, economic and external environment, management skills and expansion and growth factors have been affecting their businesses. The fifth factor, which is the project specific factor, had the most interesting data. Nine out of twelve contractors interviewed indicated that they were not satisfied with the grade R contract working environment. If it was not for scarcity of work, they would not tender for Grade R classrooms. Nine out of twelve contractors interviewed indicated that the DTPW and its agents hindered the successful delivery of Grade R projects through their actions. The main reasons given were the late handover of sites, incomplete construction information, unreasonable construction period, numerous specification changes and delays in processing information. What emerges from the data collected is that the DTPW needs to address the challenges highlighted in this research report. Addressing the challenges will ensure the success of the Grade R programme. This will be beneficial to both the SME contractors and the DTPW. The study also makes recommendations on how to address the challenges.

Thesis (MEng)--Stellenbosch University, 2014. / Construction projects have developed over several decades through the advancement of technology, increased scarcity of resources and the ever increasing pressure of time and cost constraints. Because of new technology and modern construction methods, construction projects have become increasingly complex. These complexities inherently bring new risks that must be dealt with accordingly. A contract is the primary method through which risks are allocated between the Employer and the Contractor. The conditions allocating the risks legally bind both parties to accept responsibility of those risks, therefore it is important to understand the aspects of law that has bearing on contracts. In this thesis the scope is restricted to construction contracts. Because of the role that a contract plays, especially in the construction industry context, it is important to know the requirements of a modern contract to ensure the successful completion of projects and the continued sustainability of Employer-Contractor relationships. In South Africa, the Construction Industry Development Board (CIDB) is a body that monitors developments in the construction industry. The CIDB has the authority to enforce legislation to ensure that contracts conform to a standard that protects the interests of both the Employer and the Contractor. One of the procurement documents endorsed by the CIDB is the General Conditions of Contract for Construction Works published by the South African Institution of Civil Engineering (SAICE). The first edition of the GCC was published in 2004 (GCC 2004) and a revised second edition was published in 2010 (GCC 2010). In this study the GCC 2010 and the GCC 2004 are compared first through a content analysis, to establish the effect the revisions on the bias of the document (or favouring a particular party) and then by means of a survey. The objectives are: a. To test whether revisions to the GCC from the 2004 edition to the 2010 edition resulted in a change in bias (assuming it exists) and compliance with the requirements of the modern contract; b. To determine the extent and effect of alterations to standard clauses of the GCC 2010 on the way in which the contract favours a particular party; c. Providing recommendations for future revisions that would potentially improve project success, relationship building and reduce the need for significant alterations to the standard clauses. Although a construction contract is undertaken between the Employer and the Contractor, the Consultant (who is not party to the contract) commonly drafts the contract on behalf of the Employer. The findings of the study show that the revision had a significant impact on improving the clarity of the roles of the Employer and the Contractor. A marginal improvement was found in the area of payment operating mechanisms. The perceived fairness of the document neither increased nor decreased. Clauses on claims and disputes and risk and related matters were the two areas that respondents identified as having the most bias that may be detrimental to the success of a construction project. Despite survey respondents finding the GCC 2010 procurement document to be fair, clauses are still altered by Employers (probably through Consultants) resulting in a biased contract favouring the Employer. Employers and Consultants should thus be educated more on bias and fairness in contracts and on the implications of shifting more risk to Contractors by altering clauses. Ultimately, the success of any construction project is dependent on the attitudes of the participants. Even the most fair procurement document is not a substitute for a relationship built on honesty and trust.

published_or_final_version / Real Estate and Construction / Master / Master of Science in Construction Project Management

Empreendimentos de construção apresentam potencial expressivo para o surgimento de conflitos, os quais, quando se tornam disputas, podem representar o comprometimento de prazos e resultados. O aumento da ocorrência mundial de desentendimentos em contratos de construção tem estimulado a criação de métodos de prevenção e de solução de disputas alternativos aos processos judiciais. Nesse contexto, destacam-se os Dispute Boards, que consistem em conselhos formados por profissionais experientes que acompanham a execução das obras, com a função de prevenir e solucionar conflitos por meio de recomendações e decisões ao longo da realização dos empreendimentos. Este trabalho tem como objetivo apresentar a dinâmica dos Dispute Boards e identificar as perspectivas de utilização do mecanismo na realidade brasileira. Por meio de uma revisão da literatura, são expostos conceitos, características, vantagens e o panorama internacional de implantação dos Dispute Boards em contratos de construção. No que diz respeito ao contexto nacional, o trabalho levanta as principais iniciativas de incentivo aos Dispute Boards no país e, a partir do estudo de caso da primeira adoção do método no Brasil, evidencia experiências e lições aprendidas. Com base em questionários aplicados a profissionais envolvidos com disputas no setor da construção, também são discutidos desafios, oportunidades e expectativas de crescimento dos Dispute Boards no curto, médio e longo prazo em contratos de construção no Brasil. / Construction projects have significant potential for the emergence of conflicts, which may become disputes and represent the commitment of deadlines and results. The increase of disagreements at construction projects worldwide has stimulated the creation of methods of prevention and solution of disputes, alternatively to standard legal proceedings. In this context, Dispute Boards stand out because they consist of councils formed by experienced professionals who monitor the execution of the works, by preventing and solving conflicts through recommendations and decisions during the construction phase. This work aims to present the dynamics of Dispute Boards and identify the perspectives of its use in the Brazilian outlook. Based on a literature review, concepts, characteristics, advantages and the international panorama of implementation of Dispute Boards in construction contracts are exposed. Regarding the national context, this research highlights the main initiatives to encourage Dispute Boards in the country and, by means of the case study of the first adoption of the method in Brazil, shows experiences and lessons learned. Through surveys applied to professionals involved with disputes in the construction industry, this work also discusses challenges, opportunities and growth expectations for Dispute Boards in the short, medium and long terms in Brazilian construction contracts.

IASB och FASB utkom i maj 2014 med IFRS 15, en ny redovisningsstandard för intäktsredovisning. IFRS 15 kommer att ersätta de nuvarande standarderna för intäktsredovisning, IAS 18 och IAS 11. Tillämpningen av IFRS 15 kan resultera i mer eller mindre omfattande förändringar av intäktsredovisningen. Intäktsredovisning och effekten som följer av att tillämpa olika standarder och redovisningsprinciper har länge varit föremål för diskussion. Diskussionen bottnar i olika synsätt gällande när recognition av intäkter skall ske, det vill säga vilka rekvisit som skall föreligga för att en intäkt skall tas upp i resultaträkningen/rapport över totalresultat.I denna uppsats tillämpas rekvisitet för intäktsredovisning i enlighet med IFRS 15 och IAS 11 för att belysa effekten i resultaträkningen när respektive rekvisit tillämpas i samband med entreprenaduppdrag. Effekten av de olika rekvisiten för intäktsredovisningen av entreprenader, analyseras genom att tillämpa en modell som belyser olika informationsvärden som uppstår till följd av att rekvisiten tillämpas.Finansiella rapporter syftar till att delge information till intressenter. Vilka rekvisit som underbygger intäktsredovisningen har en nära koppling till informationsvärdet som erhålls. Olika intressenter efterfrågar olika informationsvärden i de finansiella rapporterna. I vissa fall premieras aktualitet och relevans, i andra fall tillförlitlighet. I denna uppsats analyseras två intressentperspektiv kopplat till det informationsvärde som tillämpningen av IAS 11 respektive IFRS 15 resulterar i. Decision-usefulness och stewardship utgör de primära intressentperspektiven som analyseras i denna studie.Syftet med denna studie är således att genom tillämpning av IAS 11 och IFRS 15, analysera konsekvenserna vid respektive tillämpning avseende intäktsredovisning av entreprenader. Vidare utvecklas en förklaringsmodell, underbygg med litteratur inom ämnesområdet, som konsekvent tillämpas för att analysera informationsvärdet som tillämpningen av respektive standard ger upphov till. Studien visar att tillämpningen av de olika rekvisiten kan ge upphov till information som tilltalar olika intressenter utifrån deras informationsbehov. Tillämpningen av IFRS 15 ledde i större utsträckning till varierande informationsvärden än tillämpningen av IAS 11. I studien framkommer även att rekvisiten för intäktsredovisning kan ge upphov till olika effekter i resultaträkningen. / In May 2014 the IASB and the FASB published IFRS 15, a new accounting standard for revenue recognition. IFRS 15 will replace the current standards on revenue recognition, IAS 18 and IAS 11. The application of IFRS 15 may result in more or less extensive changes in revenue recognition. Revenue recognition and the effect resulting from the application of different standards and policies has long been a subject of discussion. The discussion stems from the different views regarding when the recognition of revenue take place, i.e. the necessary prerequisites which must exist for income to be included in the income statement/statement of comprehensive income. In this paper the necessary prerequisite for revenue recognition is applied in accordance with IFRS 15 and IAS 11 in order to highlight the effect in the income statement when the respective necessary prerequisites is applied in the context of construction contracts. The effect of the various necessary prerequisites for revenue recognition of construction contracts is analyzed by applying a model that illustrates the different information values arising from the application of the necessary prerequisites. Financial reports are designed to communicate information to stakeholders. The necessary prerequisites that underpin revenue recognition have a close connection to the information value that is obtained. Different stakeholders demand different information values in the financial statements. In some cases timeliness and relevance is rewarded, in other cases reliability. In this paper a stakeholder perspective is illustrated which is linked to the information value that the application of IAS 11 and IFRS 15 results in. Decision-usefulness and stewardship are the primary stakeholder perspectives that are analyzed in this study. The purpose of this study is to analyze the consequences on revenue recognition by applying IAS 11 and IFRS 15 on construction contracts. The information value resulting from the application of the standards is analyzed through an explanatory model with basis in the subject area. The findings shows that the application of the various necessary prerequisites can lead to information that appeals to different stakeholders based on their information needs. The application of IFRS 15 led in larger extent to various information values than the application of IAS 11. The findings also show that the necessary prerequisites for revenue recognition may give rise to different effects on the income statement. This paper is written in Swedish

Object of the research. The research object includes a CCA and a model of a web-based decision support system developed by integrating basic knowledge in the sphere of construction management, civil law, mathematical methods and advanced computer technologies; the model system enables effective implementation of aims of various parties of a CCA. Aim and tasks of the work. The main aim of the dissertation is to develop a theoretical model of a web-based decision support system for legal regulation of CCAs, taking in to consideration principles of construction management, improvement of effectiveness of legal regulation of CCAs, employing computer technologies, theoretical assumptions related to development of e-business systems, and etc. In order to make an effective theoretical model of a web-based decision support system for legal regulation of CCAs, the following tasks are stated: • To analyse importance of e-business in improvement of effectiveness of preparation of CCAs. • To make a feasibility study of the potential of e-business principles, of factors determining effectiveness and of decision support measures in preparation of CCAs. • To analyse principles of operating decision support systems intended for construction, law and agreement preparation. • To prepare several models for evaluation of CCAs and to select the best. • To analyse the potential of application of currently used multiple criteria analysis methods in a web-based decision support system for legal... [to full text]

This thesis is concerned with accounting for construction contracts in the accounting records of a contractor. The first chapter is focused on accounting for construction contracts according to IAS 11 -- Construction contracts and contains also a brief description of interpretations IFRIC 12 and IFRIC 15, which are connected with IAS 11. Next chapter describes accounting for construction contracts according to the US GAAP. One chapter is also dedicated to the requirements of Czech accounting legislature that Czech contractors have to take into account when accounting for construction contracts. Last chapter is conceived as a case study which was prepared in order to determine how construction companies -- concretely three European and three American construction companies -- deal with construction contracts in practice.