Journal of Legal Affairs and Dispute Resolution in Engineering and Construction

Forum papers are thought-provoking opinion pieces or essays founded in fact, sometimes containing speculation, on a civil engineering topic of general interest and relevance to the readership of the journal. The views expressed in this Forum article do not necessarily reflect the views of ASCE or the Editorial Board of the journal.

The complex nature of construction projects makes achieving positive outcomes challenging, and cost overruns, which frequently occur in all three construction phases, are one of the major impediments to success. When indicators of cost overruns are determined early in a project, however, strategies for reducing or eliminating them can be adopted. Therefore, this study aimed to identify primary cost performance indicators (CPIs) and assess their robustness during the engineering, procurement, and construction (EPC) phases of heavy industrial projects. To accomplish this, an extensive survey was designed and distributed to experienced construction professionals to gather information on tried and true cost performance indicators they had successfully employed. The chi-square test, two-sample $t$-test, and the Kruskal-Wallis test were used to evaluate their responses, and a final list of cost performance indicators was developed using the all-possible combination regression analysis approach. The robustness or fragility of the indicators was investigated using extreme bounds analysis (EBA), and the results were analyzed using Sala-i-Martin and Leamer’s EBA methods. Because Leamer’s approach concentrates exclusively on the indicators’ extreme boundaries and Sala-i-Martin’s approach considers the entire distribution of the variables, the conclusions were drawn using the Sala-i-Martin method. The results revealed that the three determinants of cost performance indicators in all three construction phases are a project’s alignment, effective management strategies, and the staff turnover rate. Two more robust indicators in all three phases were the fundamental essence of a project and the number of designer/engineering organizations. The study findings will help project managers of construction projects effectively allocate their financial, human, and machinery resources.

The management structure, culture, and environment of the construction industry present challenges to women and have resulted in their being underrepresented in a male-dominated workforce that includes only a tenth as many women as men. The purpose of this study was to identify and categorize the barriers faced by female workers in the construction field and offices and to ascertain, weight, and rank strategies for overcoming them. This was accomplished by performing a thorough review of the literature, in which 22 occupational barriers were identified. Interviews were conducted with 12 female professionals employed in the construction industry to provide more data, and the barriers were classified into five categories. The top four challenges were determined to be extended working hours, discrimination based on gender, sexual harassment, and musculoskeletal disorders. From the literature, 26 strategies were identified. Ten female subject matter experts who held construction-related positions participated in a two-round Delphi process exercise to rank and weight the strategies. The four strategies ranked highest were (1) providing adequate sanitary facilities for female employees on work sites; (2) providing women with challenging roles and responsibilities for career progression; (3) promoting flexible organizational cultures, and (4) providing role models. The findings of this study provide guidance to employers and policymakers as they implement strategies and policies to benefit women as they advance in the construction industry amid a more diverse working environment.

Given inherent difficulties in construction, optimizing labor efficiencies is paramount to project success. Research described in this article conducted demonstrates that an analysis of planned activities in a critical path methodology (CPM) schedule may be used to forecast future productivity inefficiencies. Specifically, this study relies on the concept of CPM schedule’s density, which is defined as the number of overlapping like-trade activities on any given workday. This metric is directly related to the required labor resources required to complete that work within the activities’ planned durations. Schedule density increases where more planned activities overlap with each other; for instance, occurrence of such increases is common when the schedule is accelerated. Regression models were derived using metrics drawn from CPM schedule updates’ activities and durations and compared to actual labor productivity experienced. Strong correlation findings support development of predictive models that quantify potential labor inefficiencies before they occur. However, the question remains as to the strength and applicability of predictive models in formal litigation. This paper presents findings of this research and discusses how such findings may be used to facilitate settlement in dispute resolution procedures.

Within the construction sector, arbitration remains widely used as an alternative form of dispute resolution, its attraction being that it enables disputing parties to reach a final, conclusive, and binding settlement of their dispute. However, reaching finality depends on both internal factors (such as the conduct of arbitration proceedings), and external factors such as legislative constitutional frameworks and the attitudes of judges toward these frameworks. Drawing upon relevant South African domestic and international comparative case law, we examine the nature of the interrelationship between the finality principle within construction arbitration and two constitutional provisions: (1) the powers of the courts to develop the common law, and (2) the requirement to consider and/or interpret domestic legislation in a manner that is consistent with international law. We find that while South African courts have adopted a more nuanced and cautious attitude toward their mandate to develop the common law, they have more readily embraced their international consideration law mandate. However, embracing their mandate to consider international law does not appear to have gone as far as developing the common law in a manner that allows for nonstatutory grounds, which features in international arbitration jurisprudence to impeach the finality principle.

Requirement management is crucial in the design stage of infrastructure project delivery to ensure the designed facility satisfies the owner expectations and avoids any costly redesign, rework, and disputes. The requirements are primarily described in design codes and standards. The relevant requirements from codes are transformed into a set of in computer-readable rules required for computer-aided design and compliance verification. Prior to the construction of rules, the requirements in codes must be converted into an organized, structured format in terms of risks to support easy retrieval of the relevant applicable requirements. However, the unavailability of risk information in the requirement text makes it challenging for a designer to extract the relevant requirements of specific risks to support design tasks, including compliance checking. The manual process of requirement classification according to risk factors is time-consuming, laborious, and error-prone because the codes are mostly voluminous, including thousands of specifications. Much less attention has been paid to develop an automated framework to organize the requirements in terms of risks addressed in them. To address this need, this study has attempted to develop an ontology-based framework to identify relevant risk factors addressed in bridge design requirements to support requirement management. The nine risk factors of bridge engineering used in this study included flood, earthquake, fire, snowfall, wind, temperature, overloading, vessel collision, and blast loading. A risk ontology was developed to represent the conceptualized semantic knowledge associated with each of the nine risk factors. The algorithm was validated on a human-annotated requirement dataset based on the AASHTO bridge design specifications and state design manuals. The developed model yielded a Spearman, Kendall tau, and Pearson correlation coefficient of 0.7223, 0.6021, and 0.7222, respectively. The proposed model is expected to improve specifications retrieval for rules construction, thereby enabling ease of requirement classification for the design process.

Abstract

Management of delays is one of the critical issues in construction contract management. To fix responsibility and avoid disputes in construction projects, delays attributable to the client or contractor and those beyond the control of either party need to be appropriately identified and accounted for in the contract document. The present study critically examined construction contracts for different government organizations in India for various provisions concerning delays, delay damages, and levy of compensation; improvement measures are suggested. In this study, a mathematical framework for calculating the levy of compensation for delays attributable to the contractor, incorporating various relevant factors, was proposed. The findings were based on a detailed study of standard contract documents, manuals, and standard operating procedures for three government organizations—Central Public Works Department (CPWD), Delhi Metro Rail Corporation (DMRC), and National Highway Authority of India (NHAI)—and on subsequent interviews with senior construction professionals working in these organizations. The study found that existing contract provisions for calculating delay compensation are sometimes flawed and biased. Moreover, the prevalent methods for determining the levy of compensation do not consider many relevant factors, such as delays that occurred due to the client and total delay. The proposed framework can help construction practitioners calculate the compensation levy for delay damages in a fair and balanced manner.

Practical Applications

Delays in construction projects are a chronic issue worldwide. Different contract documents have specific provisions to deal with the delays, delay damages, and the levy of compensation. This study evaluated these provisions in the contract documents used by three large public sector Indian organizations. The fixed percentage–based approach to calculating the levy of compensation in standard contract documents fails to acknowledge many relevant delay factors attributable to different stakeholders and, consequently, often results in an unfair allocation of delay damages to contractors, leading to contractor financial problems, contract disputes with clients, and further project delays. The proposed framework for calculating the levy of compensation offers a rethinking of the scope and coverage of levy of compensation calculation clauses in standard construction contracts, which may protect the financial interests of different stakeholders and reduce conflicts and disputes. Practitioners can use the framework to appropriately account for different categories of delays and other relevant factors while determining the levy of compensation.

The public construction industry brings together diverse groups of subindustries with multiple stakeholders, all of whom should ideally endeavor to deliver a project without any disagreement. However, stakeholders attempting to protect their interests in accordance with a predetermined agreement and departmental code enter a potential zone of dispute. If all stakeholders understand and comply with their contractual obligations, the number of disputes in public construction projects could be reduced. To this end, it was hypothesized that a determination of success factors could be helpful in avoiding disputes. A questionnaire-based survey resulted in 14 success attributes that exhibit a significant influence on avoiding disputes. Analysis was undertaken using a one-way ANOVA. Applying varimax orthogonal rotation of principal component analysis on the attributes yielded three primary success factors for avoiding disputes: understanding of scope and effective monitoring; top management support; and competence of the contractor’s design consultant. The present study covers only public construction projects, and the uniformity of the respondents’ perceptions was maintained by selecting only professionals involved in public construction projects. A comparison of the success factors obtained was made with the findings of an independent expert committee for validation purposes. The results are expected to guide practitioners so that they focus on the selected success factors and mitigate the potential for disputes.

Dispute resolution is employed to assist project parties in overcoming situational friction and to help them move ahead with project execution. Understanding available binding dispute resolution methods and selecting a proper resolution method can reduce the negative impact of disputes on construction duration and cost. In many countries, dispute resolution is limited and is channeled through official agencies; litigation and judicial arbitration are adopted as binding settlement techniques. This study compared litigation and judicial arbitration in Kuwait by analyzing a sample of 98 real cases collected through convenience sampling from a population of around 1,000 cases that took place between 1995 and 2018. The collected cases consisted of 48 litigation cases and 50 cases of judicial arbitration and represented all the cases available to the research team from Kuwait’s Ministry of Justice. The study’s main objectives were to (1) characterize the time and cost effectiveness of the two techniques and investigate their influencing factors; (2) collect and analyze real data on litigation and judicial arbitration; and (3) compare the two techniques in order to identify their value to owners and contractors. Data on litigation and judicial arbitration cases were categorized according to claim values. It was found that the litigation process consumed more time than judicial arbitration due to multiple legal levels of courts. When claim values exceeded $1.6 million, the results showed that judicial arbitration was more cost effective, but it was not always legally applicable. In contrast, when claim values were below $1.5 million, contrary to existing beliefs, the results showed that judicial arbitration can be more costly than litigation. These findings will help stakeholders better understand both methods and their suitability for settling disputes.

Arbitration is one of the most popular and widely applied dispute resolution mechanisms used in the construction sector. There are purported advantages in using arbitration relative to litigation. Among these advantages are the final, conclusive, and binding nature of arbitration proceedings and the awards that flow from the proceedings. Yet the finality of arbitration is dependent on a number of interrelated factors, including historical legal traditions, judicial attitudes toward the finality principle, and the operation of national legislative frameworks and constitutional provisions. Drawing upon its historical evolution and utilizing relevant domestic case law and legislation in South Africa, this study explored the finality principle within arbitration jurisprudence through an analysis of two seminal construction dispute cases. The study found that the courts engaged in major and delicate balancing of constitutional considerations when considering the finality of arbitration and that, ultimately, these constitutional considerations trumped the finality of arbitration.

The construction environment is fractious. The sector underperforms globally with low profitability and a significant contributing factor to these poor financial outcomes is the characteristics of the construction supply chain. The result of the unique nature of construction projects, which consist of multiple contractors, subcontractors, and suppliers all vying to reap the maximum financial benefit during the project’s life, is a bespoke supply chain for each new project. There is little research evaluating how the construction supply chain affects productivity at the aggregated firm financial level. The aim of this paper is to address this dilemma by putting forward a model to deliver business outcomes to minimize this fractious nature and improve performance. By reviewing the operational, management, and supply chain literature, the authors propose a model to enhance company financial performance by integrating the compound constructs of strategy, process, and information. The literature has not arrived at a theory for integration, remains disjointed, and cannot elaborate on either what to integrate or how to integrate. A novel approach that links the three compound constructs of strategy, process, and information, and their component parts, direct to financial outcomes has the possibility of modernizing construction management, unifying the literature, and ultimately increasing productivity in construction through reduced disputes and better resource allocation.

Disputes in the real estate sector are unavoidable and are considered the most crucial aspect in the timely completion of real estate projects. There are numerous causes of disputes arising in the real estate sector leading to delays in projects. A proper complaint system was unaccounted for until 2016, when the Indian government formulated a framework to secure the sector into the legal and regulatory structure. The Real Estate Regulatory Authority (RERA) enforces the Real Estate (Regulation and Development) Act 2016 (RERA Act), which has brought about positive reform in the unorganized sector in the interest of the allottees and the promoters. This study attempts to identify and categorize the disputes concerning real estate projects registered with RERA. A brief discussion is included on the dispute resolution technique adopted by RERA. A mathematical model using logistic regression analysis is formulated and adopted to estimate the factors causing disputes leading to project delay. Sensitivity and robustness analyses of the model outcomes is presented. The disputes are analyzed based on 70 judgments collected from Gujarat State, India. The findings indicate that the significant dispute is a result of the documentation lapses among the stakeholders. A competent grievance redressal mechanism has been established after the enactment of the RERA Act, with the purpose of resolving conflicts in the sector as quickly as possible. Analysis of the model implies that the project cost is the primary factor responsible for the delay. Mixed developments of residential and commercial projects are more delayed than individual residential and commercial projects. Causes of disputes identified by this study can be focused on while amending the act, and all stakeholders must address them to avoid any future occurrence of disputes.

Arbitration remains a popular means of resolving construction industry disputes. Among its purported advantages is an emphasis on the notion of finality; in other words, that awards made following arbitration proceedings are final and should bring the dispute to a conclusive and binding settlement. However, in most jurisdictions, such as in South Africa, the finality principle can be impeached by the courts, who are able to vacate awards on the basis of statutory (legislative) or common law provisions (or both). While the finality principle and vacatur are both generally well espoused in arbitration literature, our appreciation of broader theoretical discourse in arbitration is arguably, more limited. With this in mind, framed within the law and society school of thought, we set out in this paper to elucidate upon existing theories that are regularly relied upon to explain how finality may be generated, dispersed, endorsed, and modified through vacatur. In doing so, we clarify and demonstrate (set within the context of South African domestic commercial arbitration) how the finality principle in general and vacatur in particular are regulated by the state through legislation. An analysis of some specific construction arbitration case examples is also undertaken.

Cumulative impact of changes can be a factor impacting labor productivity. It is considered as the ripple effect of multiple changes. Because individual change orders for scope changes normally cover their direct effects, it is difficult to accurately predict the cumulative impacts and adequately capture them in the forward priced change orders. Though certain research on the timing of changes was done through statistical analyses, the timing of changes and the severity of their cumulative impact have not been rigorously defined mathematically. This paper presents a rigorous mathematical model defining the timing of changes and the severity of their cumulative impact, which is applied to the published data. Due to limited size of the published data, the numerical research remains conceptual. Through numerical analysis, this paper investigates how changes affected the labor productivity for the base scope work before, during, and after the performance of changed work, under the premise that cumulative impact of changes negatively impacted labor productivity. For various sections of a specific project, productivity losses due to cumulative impact of changes need to be assessed on a case-by-case basis in the light of the timing of changes.

Abstract

Public–private partnership (PPP) has become the most popular contract agreement form for infrastructure projects. To fully enjoy the benefits of PPP contracting, the value of the concession price should be carefully determined with quantitative justification. Traditional methods of determining the value of concession price are based on the evaluation of financial indexes such as net present value and financial return on investment. However, more and more research has highlighted the importance of evaluating social benefits in decision-making due to its capability to assess not only the financial performance of the projects but also the social and environmental values. Therefore, this research innovatively investigates the role of social benefit in concession price negotiation and aims to determine the optimal concession price with a specific focus on government-pays PPPs. Following quantification of social benefits, the payoffs of project parties for concession price negotiation are modeled mathematically, and bargaining game theory is employed to explore the bargaining behaviors of project parties during negotiation. A numerical example is used to demonstrate the developed negotiation-based determination process. The data analysis results show that the proposed method can successfully determine the optimal concession price. Also, considering the monetary value of social benefits in concession price negotiation, the payoffs for the government and corporate social responsibility (CSR)–oriented concessionaire are significantly improved. When determining other critical concession parameters such as the concession period, scholars and practitioners can follow the modeling process developed in this research to incorporate social benefit into the discussion.

Practical Applications

In practical implementation, governments can conduct a prospective social benefit analysis during the project feasibility studies. The social benefit quantification results should be added to the request for proposal (RFP) so that CSR-oriented concessionaires can also update their payoffs by incorporating the monetary value of the social benefits. Other key financial parameters, e.g., government subsidy and maximum financial return rate on investment, should also be clearly stated in the RFP, which will allow both parties to estimate their payoffs and determine the concession price negotiation range. After receiving the responses to the RFP and shortlisting the tenders, governments can simulate the negotiation process using the proposed method and determine the optimal concession price to avoid unnecessary negotiation or even renegotiation after tendering. The calculated concession prices can be used as a reference for the final tender selection. For example, if the government believes that the opportunity cost for a concessionaire should range from 10% to 15% of the investment, the government can calculate the optimal concession prices (${\mathit{CP}}_{\mathit{COl}}$ and ${\mathit{CP}}_{\mathit{COh}}$) as per the proposed method. If the bidding price is lower than ${\mathit{CP}}_{\mathit{COl}}$, then the tender may deliberately lower the price in order to win or there is a high possibility that the tender will initiate a concession price negotiation after being selected. On the other hand, if the bidding price is higher than ${\mathit{CP}}_{\mathit{COh}}$, then it may be too high to be accepted. For concessionaires, they can also utilize the developed method to design the bidding price and avoid proposing a price that is not favored by the government.

This paper provides a detailed review of rework clauses in the standard form of contracts. The terms and conditions of construction contracts have a significant impact on project performance. Construction contract clauses govern the interactions between parties and may affect the completion date and final cost of projects. Depending on the complexity of a construction projects, a chain of contract clauses must be written that fits together. The main purpose of construction contracts is to create a fair situation for the parties involved to share their risks. It is more advantageous to a project if clauses are spelled out as comprehensively and as precisely as possible. Well-prepared clauses help to avoid debate over complicated provisions and may result in fewer conflicts and disputes. Contractual clauses in standard forms of a contract are referred to as general contract conditions. However, even though many aspects of contracts have been studied previously across various contract conditions, an assessment of rework in a contract’s clauses is of paramount importance. In this study, a three-step methodology was utilized to study rework in contract conditions: (1) conducting a series of professional interviews, (2) reviewing contract documents and contract provisions on the leading rework issues, and (3) comparing the outcomes to set up guidelines. Relevant clauses were identified, and a discussion of rework was prepared. This paper contributes to the body of knowledge on construction contracts by addressing rework in contract conditions. A flowchart to address gaps and issues in rework provisions across various contract clauses was developed with a checklist of items addressing to the contract parties. This study provides recommendations to improve contract conditions, which may, in turn, reduce contractual claims, disputes, and conflicts. It helps construction practitioners revise relevant clauses at the time of contract preparation.

Construction is a dynamic industry due to the existence of uncertainties surrounding evolving technologies, budgets, resources, and the development process. Because construction environments are relatively complicated, project managers may face significant challenges in delivering timely and effective project outcomes. Delays may occur throughout the design, procurement, and construction (DPC) phases of all construction projects, including those involving heavy industry; however, indicators of schedule delays can be identified early in a project’s life cycle, and appropriate strategies can be applied. This purpose of this study was to identify indicators that lead to the poor schedule performance of a project during the DPC phases and to examine the robustness of each schedule performance indicator. To accomplish this objective, a survey questionnaire was designed and sent to a diverse group of experienced construction professionals. Statistical methods, such as the chi-squared test, the two-sample $t$-test, and the Kruskal-Wallis test, were employed to evaluate and screen the DPC schedule performance indicators of heavy industrial projects, and a list of schedule delay indicators was developed using the all-possible combination regression analysis approach. The extreme bound analysis (EBA) technique was used to determine the robustness of each indicator’s relationship to the model. The results revealed nine robust schedule performance indicators in each of the DPC phases. The findings of this study can be used by the decision makers in construction projects to emphasize more reliable factors and minimize the number of revisions required during a project’s execution.

The adoption of digital fabrication—fabrication based on digital design—in the early design phase in projects requires a thorough understanding of the liability factors to design the contract. This paper addresses this issue using a two-stage research approach. First, a case study research maps the process from digital design to digital fabrication in an existing project that adopted digital fabrication using the design-bid-build model. Second, a three-round Delphi survey of 14 stakeholders of that project identifies and ranks 163 liability factors under eight categories: actors, resources, conditions, attributes, processes, artifacts, values, and risks. The resources of management capability and building information modeling (BIM) expertise rank as the two most important liability factors. Building on these findings, the paper presents a conceptual framework for contract design and discusses how the existing project delivery models—design-bid-build, construction management, design-build, and integrated project delivery (IPD)—can consider the liability factors in contracts.

In Australia, building surveyors and inspectors perform the statutory duty of carrying out mandatory inspections. Some of these duties involve making firm decisions with serious implications. In recent years, at least two life-threatening cases against government officials have occurred; they involved a building inspector and an environmental officer. The increasing complexity of building inspections, in which building surveyors/inspectors operate in hostile environments, requires radical rethinking around the need for in-person inspections. The state of Victoria is on the cusp of making major changes that could reassign the majority of building inspection work currently undertaken by private building surveyors and inspectors to be under the council in the next 1–2 years. The additional workload for the council and increased strictness by them makes it all the more pertinent to consider the possibility of technological aids. To address present and emerging concerns around the safety and inefficiency of in-person inspections, this study explains the merit behind the proposed adoption of reality capture as a collaborative virtual preinspection tool that commences with ubiquitous reality capture for virtual preinspection and concludes with a mandatory in-person inspection.

Disputes are described as an epidemic of the construction industry because they slow construction or even stop a project completely for a period of time, leading to a breakdown of business relationships, delayed project times, and inflated costs. The most common kind of disputes are contractual based. The need for contractual clarity is immense when there are many different contracts being drafted by different companies. Most common causes of disputes in construction and to what extent the standard forms assist in mitigating disputes in Australia is not well studied and is addressed in this study. The research method involved review of a sample of legal cases that were caused by construction contractual disputes. Accordingly, 10 cases were analyzed, with some using standard forms of contracts and some using customized contracts. The findings revealed that time and cost overruns were the most common cause of construction disputes. The research further reviewed specific terms and clauses that relate to time and cost in the standard forms and found both local and international contracts assist to mitigate disputes when the contracts are managed as agreed by parties. This research offers useful implications to mitigate contractual disputes in construction and suggest further to consider new technologies such as blockchain and smart contract. Further research can extend to explore more contexts and other forms of contracts.

Construction projects can be delivered through various approaches; nevertheless, all practitioners and involved parties have a mutual goal, which is completing the project within the original scope, defined budget, and schedule. Reviewing the literature on public–private partnerships (PPPs) showed that many efforts have been made to cover different research areas, including policies, risks, roles and responsibilities, and finance. The existing literature lacks studies involving the comprehensive process of preparing and implementing PPP contracts associated with highway projects in the US. This research, therefore, fills this noticeable gap in the body of knowledge on the PPP delivery method. The main objective of this research was to develop a framework for PPP contracts focusing on highway projects. To meet this objective, the authors conducted a Delphi study with highway professionals to identify the major issues that they should carefully deal with during contract document preparation, contract procurement, and contract implementation phases to make PPP highway projects successful. The Delphi study consisted of two rounds, with 25 open-ended interview questions over three phases. The study found that highway agencies must fix the scope of a project before a PPP project starts. They should also choose a lump sum contract type and a design-build-finance-operate-maintenance PPP type with a 35 to 40-year concession period for highway projects. Contracts should consist of incentive and disincentive clauses along with availability payments as the mode of compensating concessioners for their work. Before initiating a PPP contract, agencies should make sure that their state legislation allows this type of contract. The study also found that during the contract procurement phase, owners should use the best-value selection method to choose a PPP contractor; the competition should be fair and transparent, and the owner must have expertise in order to successfully procure PPP contracts. The experts recommended setting performance standards for PPP concessioners, performing inspections using independent third parties, and handing over condition data to maintenance personnel at the end of construction. The primary contribution of this research to the body of knowledge was to highlight the fact that each country, with the help of professional expertise and key stakeholders, background, and/or lessons learned, needs to develop a framework that lists the main issues and processes to be considered in implementing PPP highway contracts. This study presents a framework that can work nationwide, something that is missing in previous research studies. This framework can guide professionals in the transportation industry toward effective contract document preparation, procurement, and implementation of PPP highway projects in addition to giving academicians better insights to understand PPP highway projects in the US.

Valuation of interim payment by a quantity surveyor may be a cause of dispute for the parties involved in construction projects. Quantity surveyors as professionals must act and perform their duties in accordance with the statutes, avoid disputes, and meet the expectations of clients in evaluating interim payments. Valuation of interim payment must be made in an acceptable, reasonable, and judicious recommendation. This research seeks to enhance and enrich the process for a better and reliable payment to avoid disputes. The data were gathered through semistructured face-to-face in-depth interviews involving four types of respondents, namely, employers from the public and private sectors, contractors, and consultants. The content analysis approach was used to identify the current issues encountered by the parties involved in relation to interim payment. This research identified 10 common issues, which among others include accuracy, impartiality, justification, and guidelines that need careful consideration by a quantity surveyor in a valuation of interim payment process in order to avoid disputes.

The increasing number of extremely hot days globally has made outdoor workers more vulnerable to heat-related illnesses such as heat syncope, heat exhaustion, heat edema, and heat stress. The objective of this article is to identify and analyze the challenges experienced by construction workers who work in extremely hot weather conditions for extended periods of time. To achieve this objective, a questionnaire was developed and distributed through the online platform QuestionPro. The 100 responses that were collected were analyzed using the Kruskal-Wallis test, and analyses were performed based on physiological indicators such as heart rate and blood pressure and personal indicators such as climate acclimatization and clothing comfort. The results of the analyses revealed that challenges such as physical fatigue, dehydration, excessive sweating, inability to concentrate, and frequent mood fluctuations were unique to individuals based on their acclimatization level, heart rate, and blood pressure. Optimized work-rest hours, the provision of adequate time for workers to acclimate to extreme conditions, and adoption of technologies such as cooling vests and continuous monitoring of workers’ physical parameters are some of the strategies that can be used to protect workers from heat-related health hazards. The article also briefly discusses the practices and regulations that are currently in effect to protect construction workers who are exposed to prolonged hot weather conditions. The findings presented in this article will help professionals in the construction sector effectively manage and safeguard workers’ health in extreme hot weather conditions.

Construction projects are notoriously complex, and so are the disputes arising out of them. To resolve this complication, a multitiered dispute resolution clause setting out alternative dispute resolution (ADR) mechanisms, such as through a dispute resolution board or mediation prior to arbitration, has an important role to play. Therefore, this paper seeks to contribute to the existing scholarship by focusing on ADR in the world and its specificities in Vietnam regarding these issues as follows. First, this paper presents the variety of ADR forms in the construction sector in the world and in Vietnam. Second, it explores issues arising from the application of the multitiered dispute resolution clause, such as the impact of noncompliance with the prearbitration procedure on arbitral proceedings and arbitral award; determining the statute of limitations period if the parties to dispute followed the prearbitration mechanism prior to arbitration; and finally, considering jurisdiction of the arbitral tribunal as to the enforcement of the solution given from prearbitration step.

Payment is regarded to be the construction industry’s lifeblood. Late and nonpayment concerns have plagued the construction industry. Previous research has only looked at the cause and effect of payment problems in the construction industry, not the link between the variables. The purpose of this study is to look at the causes and repercussions of nonpayment, as well as their interactions. The study’s list of causes and consequences was compiled from a literature review, and nine were retrieved. The Decision-Making Trial and Evaluation Laboratory (DEMATEL) technique was used to create a causal relationship between the causes and effects of nonpayment so they may be understood and intervened in. Paymaster’s inadequate financial management (C1), local culture and attitude (C2), document error (C6), contractual provision (C8), and disagreement on the valuation of work done (C9) are the major cause factors, according to the data collected from 13 respondents. The key repercussions, on the other hand, include cash flow problem (E2), bankruptcy and liquidation (E4), project abandonment (E5), delay (E7), and disputes (E8). The conclusions of this study can assist major players in the construction sector, as well as the government, in establishing a strategy to effectively address the nonpayment problem in the industry.

A recent growing delivery method used in highway projects is public–private partnerships (PPPs). PPPs are when public agencies collaborate with private parties for private financing at risk or operating services, which makes PPPs significantly different from other delivery methods used by public agencies—for example, design-bid-build, construction management at risk, and design-build. Despite the efforts of previous studies, questions remain unanswered: What are the contributing critical success factors that fit PPP highway projects? What are the risk factors that play key roles in PPP highway projects? This study aimed to address these questions through a Delphi study approach with the help of experienced professionals at state departments of transportation. Participants participated in interviews in the first round and completed a survey questionnaire in the second round of a Delphi study. After achieving an acceptable level of consensus from the first round of responses, the study identified and ranked the top critical success and risk factors for PPP highway projects. The study found that the top three critical success factors were (1) proper risk assessment and allocation to private parties; (2) realistic assessment of project estimates, risks, and revenues; and (3) avoidance of ambiguous language in contracts. In addition, the top risk factors identified were (1) revenue stream projections; (2) construction risks; and (3) design risks. The primary contribution of this research to the body of knowledge is to draw the attention of professionals in both industry and academia to the PPP highway industry, critical factors for PPP success and risks, and the successful completion of future PPP projects.

Among various project delivery methods, there is a growing tendency to deliver transportation infrastructure projects, particularly highway projects, through public–private partnerships (PPPs). This necessitates further investigations on PPP arrangements. Despite previous research efforts, a question remains unanswered: What are the contributing criteria for selecting projects that fit the PPP method, and of these, which factors play key roles? This study aims to address such a question through a Delphi study approach. To meet this objective, experts at state DOTs participated in interviews and questionnaire surveys during two rounds of a Delphi study. After achieving a consensus among responses, this study identified factors: the PPP project’s screening factors and characteristics, requirements for an evaluation panel to assess a potential project, common risks, risks needed to provide appropriate incentives to private parties, requirements for involved staff, specializations required in PPP units to facilitate project phases, roles of the public sector or federal government or state, associated factors to enabling legislation, economic analysis, and suitable project size. Some of the major findings are that PPPs are suitable for large projects, the value of money should be a mandatory study, an economic analysis must be performed by comparing different delivery methods, and it should be determined whether PPPs are legal (and allowed) in the state. The primary contribution of this research to the body of knowledge is to focus academicians’ and industry professionals’ attention on PPP highway project selection criteria and the factors that are required to maximize project performance and benefits.

In Australia, the building code prescribes where glass in buildings must adopt certified safety glass. However, this standard still permits the certification and installation of toughened glass with a residual surface stress that is insufficient to ensure fragmentation in a safe manner. Until the standard is amended to assure safe fragmentation, other precautions need to be taken to ensure that glass installed in buildings is not potentially lethal. This paper discusses safety glass testing, explaining why the current testing procedure does not assure safe fragmentation, and, in the absence of adequate statutory-backed guidance, how building surveyors should navigate the compliance pathway for toughened safety glass.

The COVID-19 crisis has presented the construction sector with challenges that the world has never seen before. Productivity is down, costs have increased, conflicts and claims are increasing, delays are high, health and safety practices are increasing, and profit margins have been reduced. The challenges require unprecedented, sudden, and unplanned changes to construction management practices and strategies. Through an open-ended survey questionnaire, this research investigated how COVID-19 causes disputes in construction projects and the measures that quantity surveying firms take to resolve the disputes in construction contracts due to the pandemic. The data revealed that disputes and claims have increased by some 80% due to the COVID-19 pandemic. In addition, the data revealed that the COVID-19 pandemic has increased project costs by more than 40%. Shortages of materials, compliance with standard operating procedures, social distance, fluctuation, and shortages of labor are the causes of disputes. Unlike prior to the COVID-19 crisis, disputes are not caused by variations, ambiguous contract clauses, mistakes, errors, and competencies of the parties to the contracts. To resolve COVID-19-induced claims, contract clauses, negotiations, conciliation, trust management, and contingency provisions are the most effective. This research provides new information on claim management during a crisis. From an ontological standpoint, the main findings of this study are generalizable to construction projects in and outside of Nigeria.

Abstract

The success of infrastructure projects of government organizations depends primarily on government policies, which include the rules, regulations, manuals, standard contract documents, systems, and practices that govern mutual relations between the government and private contractors to a large extent. This study aimed to critically examine this part of the project management system of government organizations and to suggest measures for its improvement. The systems of three government organizations were studied in detail by examining their documents and interviewing their senior officers. Their salient features were compared and best practices grouped to frame propositions and determine the opinion of experts regarding their implementation. Consensus on the suggested propositions was measured using a questionnaire survey and a Delphi analysis, and out of 11 propositions, consensus was found on nine; therefore, these nine propositions were suggested for adoption by the three organizations to bring about system improvements. Said improvements were expected to be the authentication of the tender process, a less time-consuming and dispute-free process, enhancement of the financial liquidity of the contractor through assurance of timely payments, compensation for losses due to idling of labor and machinery, adoption of strict measures in the contract through the introduction of a debarment clause for failure to perform, and deemed termination of the contract in case of abnormal delays in preconstruction activity. The most crucial recommendation that emerged in the study was the introduction of a focus-on-delivery clause in the work manual, which would enhance bona fide decisions in favor of work while addressing various issues faced during work execution.

Practical Applications

The paper aims to critically examine the infrastructure project management system of government organizations and suggests measures for improvement. This includes rules, regulations, manuals, standard contract documents, systems, and practices, which form an important base for an amicable relation between the contractor and the client (government departments) resulting in favorable conditions for successful completion of the projects. For this purpose, systems of three government organizations were studied in detail and their salient features were compared to formulate important propositions. Delphi analysis with two rounds of questionnaire survey was conducted to measure the consensus of the experts with the propositions. Finally, consensus was achieved on nine propositions suggested for improvement. These improvements are expected to authenticate the tendering process, make it less time-consuming, make it dispute-free, and increase the financial liquidity of the contractor. Further, adoption of strict measures in the contract and introduction of the focus-on-delivery clause in the work manual will enhance bona fide decisions in favor of work while addressing various issues faced during the execution of work. All these improvements are directly related to the actual works being performed by the organizations and thus they would prove to be of high practical relevance.

Consumer centricity (C-C) in the Indian real estate sector has gained prominence since the introduction of the Real Estate (Regulation and Development) Act in 2016. For a growing economy such as India’s, with significant dependence on the construction industry to catalyze economic development, real estate consumerism is of vital importance to spearhead growth in the construction industry. This study critically examined the positioning of consumers in the Indian real estate sector over the years and to date in order to identify areas requiring interventions. Within the framework of the law, key factors defining and contributing to consumer centricity with regard to the delivery of real estate assets were identified. Various real estate sector–specific statutes were traced back along a timeline; they were assessed for the presence of the identified consumer-centric factors. The changes in legislative intent over time were coupled with timely judicial interpretations of laws in courts and regulatory forums. Lastly statutes of significance to real estate asset delivery were probed for inherent loopholes in their frameworks. The growing impetus to consumer centricity both in the making and interpretation of real estate laws was clearly established in the present study. However, existing laws of importance to real estate asset delivery were identified to be contributors to the creation and preservation of an inherent imbalance in the design and power structure of the sector, to the detriment of consumers of real estate assets. The findings undoubtedly indicate that to stimulate growth in the construction industry, the need of the hour is to place consumer centricity at the heart of affairs through the correction of inherent loopholes in the framework of law governing real estate asset delivery.

Effective communication is essential to the successful completion of construction projects, but achieving it can be difficult when there are several stakeholders. Various studies have identified and analyzed effective project-based communication indicators (EPCIs), but most have not addressed their impact. This paper strives to fill that knowledge gap by investigating the impacts of EPCIs on primary (owners, designers, and contractors) and secondary (subcontractors and suppliers) stakeholders in construction projects. To this end, a comprehensive study of the previous literature was performed to identify and classify the EPCIs. Data from 40 case studies of regional and global construction projects were collected, and a survey questionnaire was designed and disseminated to collect additional data. Cohen’s $d$ method was employed to weight each of the EPCIs for all five stakeholders’ groups, and the findings revealed that a lack of financial resources, high turnover of craft labor, the owner’s lack of understanding of the project’s goals and objectives, a large number of approvals needed by primary stakeholders, and the number and depth of quality requirements significantly impact the quality of communication. The findings of this research will help management teams understand how project parameters impact the quality of communication among stakeholders and will enable them to develop strategies to prevent unintended consequences caused by miscommunications.

Abstract

Naturally, negotiations can settle any issue between contractual parties, such as one party seeking to terminate a relationship. This study acquires perspectives on the critical components of construction negotiations and effective negotiation skills using a qualitative approach derived from evaluating case study project documents and key informant interviews, covering various perspectives on negotiation skills needed in the Malaysian context. The findings established preparation as a critical component. Negotiation is not necessarily time consuming, but negotiation preparation requires careful attention. A negotiation map was created to demonstrate the perspectives on key negotiation skills and strategies. Construction negotiation is primarily driven by constant soft skills: communication, leadership, and problem solving to deal with the subject of negotiations that are identified as contractual issues, technical issues, design-related issues, and obstacles on the site. Technical competencies are typically teachable, whereas soft skills, such as effective communication, are valuable and should be strengthened. These skills are the foundation for building trust, explaining clear direction, and improving performance in a construction negotiation.

Practical Applications

In the case study, the contractor requested to discharge the contract due to the consequences of default by the government, which included land acquisition issues. Several events (including the application for mutual termination) sparked negotiations in resolving project-related issues and agreeing on the project’s execution. The government was determined to succeed in the negotiations to avoid the retendering process, delayed completion, and a negative reputation. The negotiations were successful when the contractor agreed to uphold their contractual duties. This study discusses perspectives on the crucial component of construction negotiations, negotiation skills, and specific skills needed for negotiation in Malaysian construction. The authors believe that acknowledging the value of negotiation skills is an essential context for research. All interviewees gave their perspectives on the skills required for better negotiation outcomes in the case study and the future (not limited to termination issues).

On the morning of June 24, 2021, around 1:22 a.m., the Champlain Tower South in Surfside, Florida partially collapsed killing 98 people. This building was 12 stories high with 136 condo units located oceanfront. There are multiple theories as to why a part of the building collapsed and resulted in one of the deadliest construction failures in modern history. The original construction of the building was determined to have design flaws and inadequate structural support. The building experienced environmental damage, and repairs were delayed. It was contended by the plaintiffs that the pile driving for the neighboring building construction of Eighty-Seven Park caused ground vibrations during excavation that affected the structural condition of Champlain Towers South. A class action lawsuit was filed, representing the residents, victims’ families, and condo owners, and had nine defendants, which included developers, consultants, insurance agencies, geotechnical engineers, and other engineers. This lawsuit was expected to go to trial in March 2023. The major culpability issues revolved around destabilized foundations and consequent damage. The study examined news articles that reported after investigating the catastrophe. Among the end results, all parties to the dispute thought it prudent to settle in multiple settlement deals for a total value of over $1 billion.

Abstract

The application of building information modeling (BIM) is in its early stages in Iran and there is a lack of contract forms for BIM projects to overcome its barriers. To propose a contract form for BIM, this study conducted a literature review followed by an expert interview to identify legal issues and risks associated with the adoption of BIM in the Iranian construction industry. Through the literature survey, 31 items were extracted as BIM legal issues. This list was validated and completed through interviews, and hence a list of 41 legal considerations to be addressed in BIM contracts was identified. The 41-item list was used to propose contract provisions as a BIM contract addendum. Two local design-bid-build (DBB) and design-build (DB) contractual standards of Iran were reviewed. Then the proposed contractual conditions were incorporated into the contract forms in Iran to achieve BIM-based DBB and DB contractual standards. This research adds to the body of knowledge by developing a complete BIM contract addendum. The literature review of the study is not confined to Iranian literature; therefore, the results of the study are expected to be suitable for other countries at a similar or more advanced level of BIM perception.

Practical Applications

Building information modeling is one of the emerging concepts in the architecture, engineering, and construction (AEC) industry. Despite its numerous advantages, the implementation of BIM gives rise to some issues and challenges throughout the project life cycle. One major challenge in BIM adoption is the lack of contractual guidelines, which leads to ambiguity in BIM legal aspects. Many of the legal risks associated with BIM can be managed through contractual provisions. However, the current legal system and common contract forms are major impediments to full implementation of BIM as a novel collaborative technology. Therefore, a well-structured and clear set of BIM-specific contractual provisions will establish a legal foundation for BIM, help overcome barriers to its adoption, and encourage its utilization in projects. The current study first identifies the most common legal issues associated with BIM adoption in construction projects. Then the study proposes a comprehensive contract form that includes all the required clauses and provisions to address all these legal risks.

Abstract

While construction projects continue to grow rapidly every year, the industry still faces challenges in the form of underperformance as the result of inefficient project management. This is reflected in low productivity and cost and time overruns for construction projects. Better planning and scheduling are important in order to increase the success of construction projects. This study aimed to investigate factors influencing scheduling activities of construction projects in Indonesia. A systematic literature review was performed, leading to the identification of twenty factors influencing scheduling activities at the planning stage and twelve factors influencing scheduling activities at the implementation stage. Questionnaire surveys were distributed to obtain the primary data in this study. Following data collection, factor analysis was conducted to discover comprehensive underlying concepts influencing scheduling activities. Six groups of factors influencing scheduling activities at the planning stage and three groups influencing scheduling activities at the implementation stage were identified. These findings were synthesized to develop a framework. Therefore, this study contributes by identifying key factors influencing scheduling activities in both planning and implementation stages through factor analysis within a context-specific environment and presenting the scheduling-dispute framework as a practical tool for managing delay-related disputes that may arise due to these factors. Construction professionals can take advantage of this study to implement better scheduling practices and minimize construction disputes; such improvements ultimately lead to project success.

Practical Applications

Construction contracts typically include provisions for contractors to create construction programs based on their scheduling activities. However, contracts are usually silent with regard to scheduling fundamentals and the form of programs. The time aspect is one of the main aspects that must be met in the execution of a construction contract. Failure to complete work on time may result in the contractor being obliged to pay damages. Although many studies have been conducted concerning scheduling and delay-related disputes, the industry still suffers from challenges related to proper scheduling and delays. A context-based study is needed that focuses on the factors influencing scheduling activities in order to improve scheduling performance. This study is unique in that it presents these factors in two scheduling stages, planning and implementation. Based on the identification of primary influencing factors, a scheduling-dispute framework that describes the relationship between these various factors and delay-related disputes that occur was developed in this study. Contractors can take advantage of this framework and align their best practices with it to enhance their readiness in an effort to prevent delays through proper scheduling.

This study highlights construction claims and payment disputes between the project owner and the contractor in one of Nepal’s physical infrastructure development projects to address and emphasize the importance of following binding alternative dispute resolution (ADR). In this project, the contractor submitted four claims, of which the adjudicator and the arbitrator favored three to the contractor, but the project owner disagreed and proceeded with the litigation. The court decided in favor of the contractor, ordering the project owner to bear all the litigation fees and interest charges accrued during litigation. The findings show that the project owner went to court (a full judicial process) believing that obeying the court order would prevent them from being questioned later by a third party during an external audit for bribery or wrongdoing. This study presents why the project owner thought appealing to litigation was necessary. The lessons learned and findings presented in this study could help contractors and owners prevent unnecessary misunderstanding and mistrust among parties and encourage contracting parties to be more cautious when adopting the ADR strategy in resolving disputes. This paper also presents how two parties are affected by additional costs incurred throughout the litigation process and presents lessons learned that could benefit owners, contractors, and project managers in resolving disputes through ADR.