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The Effect Of Contract Planning On Construction Project Performance
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1.2 Problem Statement
Contract
planning in construction projects is bedeviled with chronic
inefficiencies that influence the performance of project delivery. These
protracted outcomes are a result of two possible concern, low awareness
and usage, and exogenous and endogenous factors influencing contract
planning. Ashworth (2007) reported that the use of formal contract
planning and management techniques in the UK construction industry is
low. The result culminates in project failures, incessant claims for
variations, huge financial losses and sometimes results in bankruptcy of
Contractors Ashworth (2007). This situation is more prevalent in
redevelopment projects due to the inevitable problems of unexpected
additional work, excessive requirements and scope management issues,
project funding not aligned with project plans, delay, structural
failure, cost overrun, etc. (Naaranoja & Uden, 2007). These problems
or uncertainties, among others, increase the project risk and make
their management crucial if success is desired. Several projects in the
housing and road sub-sectors across Nigeria have witnessed huge
investment of public and private funds without commensurate result
expended. This huge expenditure and apparent failure in the primary
objectives of the project led to complaints, probe panels and subsequent
abandonment of the project. According to Obi (2014), the rate at which
project delays, failures, cost overruns and abandonment are experienced
on many projects handled by indigenous building contractors and clients
in Imo State Nigeria is quite alarming.
A successful project is a
project that has been completed on schedule, within budget, scope and
satisfied the required quality (Allan 1991, 2004; Hatush & Skitmore
1997; Doloi 2007). Projects that do not deliver the required value they
promise and of course do not realize their original objectives are all
failed projects, in other words for a project to fail one or all of
these component time, cost and quality have failed (Frank 2011).
1.3 Research Questions
1. What are the contract planning practices applied in the construction industry?
2. What is the level of awareness and usage of contract planning practices in the construction industry?
3. What are the factors affecting contract planning practices on construction projects?
4. What are the effects of contract planning practices to construction projects performance?
1.4 Aim and Objectives of the Study
The
aim of the study is to investigate the effects of contract planning on
construction project performance, and the objectives are:
1. To determine contract planning practices applied in the construction industry.
2. To assess awareness and usage of contract planning practices in the construction industry.
3. To examine the factors affecting contract planning practices
4. To evaluate the effect of contract planning practices to construction project performance.
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ABSRACT - [ Total Page(s): 1 ]This study examines contract planning on construction projects from clients’ perspective and its effects on performance. The objectives are to determine the contract planning practices applied in the Nigerian construction industry, assess the awareness and usage of contract planning tools and techniques applied by clients on construction projects, evaluate factors affecting contract planning practices on construction projects and determine its effects on performance of construction projec ... Continue reading---
