Yuting Wang, Hefu Liu and Jie Fang
This paper aims to investigate that how to mitigate the weaker party's risk perception in imbalanced supply chain relationships by framing contracts according to complexity and…
Abstract
Purpose
This paper aims to investigate that how to mitigate the weaker party's risk perception in imbalanced supply chain relationships by framing contracts according to complexity and recurrence. The level of information technology (IT) integration is considered as the moderator influencing the effectuation of contract framing.
Design/methodology/approach
The authors conducted a questionnaire survey with 229 firms involved in imbalanced supply chains. Hierarchical regression analysis was used to test the hypotheses.
Findings
The authors found contractual complexity positively influenced performance and relational risk, while contractual recurrence negatively impacted performance and relational risk. This study further reveals the positive moderating effect of IT integration in influencing contractual complexity on relational risk and performance risk and the negative impact of IT integration in influencing contractual recurrence on relational risk and performance risk.
Research limitations/implications
Overall, this study posits the coordinating role of contracts in reducing the weaker party's risk perception in imbalanced supply chain relationships.
Practical implications
The authors concluded by illustrating how to customize contracts based on the level of IT integration to maximize their role in reducing risk perception.
Originality/value
This study is embedded in imbalanced supply chain relationship, aiming to solve the problem of high-risk perception held by the weaker party, which is a salient threat to the sustainability of collaboration. Contract framing is proposed as an effective approach for mitigating risk perception, which should be carefully designed based on the level of IT integration of the relationship. The authors found that contractual complexity has a positive influence on performance and relational risk, but contractual recurrence has a negative impact on performance and relational risk. This study further reveals the moderating effect of IT integration on the effectuation of contractual framing.
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Haoyang Song, Fangwei Zhu, Ole Jonny Klakegg and Peng Wang
Due to the increasing risk and uncertainty of construction projects, contractual flexibility has been considered as an effective tool to cope with emergences and to promote…
Abstract
Purpose
Due to the increasing risk and uncertainty of construction projects, contractual flexibility has been considered as an effective tool to cope with emergences and to promote cooperation between owners and contractors. However, in practice, owners often failed to build an efficient cooperative relationship via contracts, resulting in a lacking of appropriate justice. Furthermore, due to a lack of available empirical research, the influence of contractual flexibility on the cooperative behavior of contractors requires further investigation. The purpose of this paper is to fill this gap by conducting empirical research from the perspective of justice perception.
Design/methodology/approach
A theoretical model was developed and a series of hypotheses were proposed. Then, partial least squares structural equation modeling analyses were conducted on a sample of 188 respondents.
Findings
The results show that contractual content and executing flexibility both have a positive influence on the cooperative behavior of a contractor, which was partially mediated by distribution, procedural, and interactional justice perceptions. Moreover, content flexibility has a significant impact on all three types of justice perception, and the execution of flexibility has more impact on interactional justice compared to other justice perceptions.
Originality/value
The findings contribute to an improved understanding of how contractual flexibility affects the cooperative behavior of contractors, indicating that the owner could develop a fair exchange relationship through flexible contracting and motivation of the other party.
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Yi-Hsin Lin, Deshuang Niu, Yanzhe Guo and Ningshuang Zeng
This study examines how project uncertainties (environmental uncertainty and participant uncertainty) affect guanxi and contractual governance and assesses the mediating role of…
Abstract
Purpose
This study examines how project uncertainties (environmental uncertainty and participant uncertainty) affect guanxi and contractual governance and assesses the mediating role of guanxi governance between project uncertainty and contractual governance.
Design/methodology/approach
Data were collected in two stages from Chinese contractors. First, in-depth interviews were conducted with nine construction engineering project practitioners in different contracts as a pilot for questionnaire designing. Second, a cross-sectional questionnaire survey was conducted with professionals and practitioners of construction enterprises to collect primary data. Partial least squares structural equation modeling (PLS-SEM) was used to test seven hypotheses based on data collected from 198 respondents.
Findings
Project environmental uncertainty promotes the use of guanxi governance, while project participant uncertainty hinders it; the relationship between both types of uncertainty and contractual governance is the same as with guanxi governance. Furthermore, guanxi governance promotes contractual governance and partially mediates project environmental uncertainty and contractual governance and a complete mediating role between project participant uncertainty and contractual governance.
Research limitations/implications
As the interviewed samples are mainly from China, the study should be replicated using large representative samples from East Asian countries, such as Japan and South Korea, to gain a more comprehensive understanding of the influence of guanxi governance. Further, while the internal consistency reliability and convergent validity of the questionnaire data in this study align with the standards, a larger sample size would improve the reliability and validity of the research results and better represent the overall work situation of contractors, owners and public policymakers.
Originality/value
The results provide insights into project governance research and have implications for construction practitioners in deploying governance-related resources.
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Investigates the differences in protocols between arbitral tribunals and courts, with particular emphasis on US, Greek and English law. Gives examples of each country and its way…
Abstract
Investigates the differences in protocols between arbitral tribunals and courts, with particular emphasis on US, Greek and English law. Gives examples of each country and its way of using the law in specific circumstances, and shows the variations therein. Sums up that arbitration is much the better way to gok as it avoids delays and expenses, plus the vexation/frustration of normal litigation. Concludes that the US and Greek constitutions and common law tradition in England appear to allow involved parties to choose their own judge, who can thus be an arbitrator. Discusses e‐commerce and speculates on this for the future.
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Venetsiya Dimitrova and Monika Grubbauer
The main goal of this paper is to shift the focus from the symbolic and aesthetic features of iconic projects to the complex process of their actual materialisation. Hereby, the…
Abstract
Purpose
The main goal of this paper is to shift the focus from the symbolic and aesthetic features of iconic projects to the complex process of their actual materialisation. Hereby, the authors conceptualise iconic projects as the “collaborative performance” of a wide range of built environment professionals. The authors seek to unravel the complexity of organisational action, professional practices, knowledge and expertise, and the inter-firm networks required for the creation of iconic architecture.
Design/methodology/approach
The analysis is based on an in-depth case study of the Elbe Philharmonic Hall, Hamburg's new icon. This included 26 semi-structured interviews with a broad range of interview partners, which were conducted by an interdisciplinary team.
Findings
Besides by spectacular architectural design, iconic buildings are characterised by the meticulous execution of even the smallest details as well as of more hidden building elements unlikely to be seen by the public. Execution is usually contingent on the specific building processes and construction practices and requires the continuous engagement of project architects, as well as trusting collaborations with their partners in the construction industry. Yet the making of iconic projects is challenging and (financially) risky, and the interfaces between project partners cannot be easily translated into contractual agreements, which potentially compromises the collaboration between architects and construction firms.
Originality/value
This paper advances a cross-sectoral view on professional practices by providing in-depth insight into the work of less prominent project architects and their partners in the construction industry. This paper hereby bridges design and construction practices and provides a more holistic understanding of how iconic projects are constructed on the ground.
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Muhammad Sami Ur Rehman, Muhammad Tariq Shafiq, Fahim Ullah and Khaled Galal Ahmed
The purpose of this study is to investigate the current construction progress monitoring (CPM) process in relation to the contractual obligations, how project management teams…
Abstract
Purpose
The purpose of this study is to investigate the current construction progress monitoring (CPM) process in relation to the contractual obligations, how project management teams carry out this activity in the field and why teams continue to adopt the current method. The study aims to provide a comprehensive understanding of the current monitoring process and its effectiveness, identify any shortcomings and propose recommendations for improvements that can lead to better project outcomes.
Design/methodology/approach
The study conducted semi-structured interviews with 28 construction management practitioners to explore their views on contractual requirements, traditional progress monitoring practices and advanced monitoring methods. Thematic analysis was used to identify existing processes, practices and incentives for advanced monitoring.
Findings
Standard construction contracts mandate current progress monitoring practices, which often rely on manual, document-centric and labor-intensive methods, leading to slow and erroneous progress reporting and project delays. Key barriers to adopting advanced tools include rigid contractual clauses, lack of incentives and the absence of reliable automated tools. A holistic automated approach that covers the entire CPM process, from planning to claim management, is needed as a viable alternative to traditional practices.
Research limitations/implications
The study's findings can inform researchers, stakeholders and decision-makers about the existing monitoring practices and contribute to enhancing project management practices.
Originality/value
The study identified contractually mandated progress monitoring processes, traditional methods of collecting, transferring, analyzing and dispensing progress-related information and potential incentives and points of departure towards technologically advanced methods.
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Christopher Amoah and Hlatshwayo Nkosazana
Contract risk management has become a critical mission, as contract issues may lead to a loss of vast amounts of money to parties involved or cause project failure. This study…
Abstract
Purpose
Contract risk management has become a critical mission, as contract issues may lead to a loss of vast amounts of money to parties involved or cause project failure. This study sought to identify effective management strategies to mitigate construction contract issues that might emerge during construction.
Design/methodology/approach
A quantitative research approach was adopted for the study. Structured questionnaires made up of close-ended questions were distributed to construction professionals in South Africa via the SurveyMonkey platform. The data were then analysed using descriptive statistics.
Findings
The findings indicate that the critical sources of contract-related disputes are ambiguous definitions of the contract parties' scope of their rights and obligations, lack of precise arrangements regarding the calculation of contractual penalties for failure to meet the deadline, lack of detailed specification of the works and specific milestones, lack of provisions regulating changes to the project documentation during the construction stage, an excessive amount of contractual penalties on contractor's side and lack of provisions regarding the rules of performing additional and replacement works and their settlement. However, for these disputes to be effectively managed, strategies such as reduction uncertainties in project's phases, setting up contingency plans, construction guarantee, extension of time claims, payment guarantee, retention and escalation clause should be implemented by the parties involved.
Research limitations/implications
Even though the empirical study focused on construction professionals in South Africa, the findings could be applied to other countries outside of South Africa.
Practical implications
To effectively manage and prevent contract disputes from averting project failures and losses to parties involved in the contract, construction professionals need to be aware of strategies that must be implemented before and during the project execution. If well implemented, these strategies will help a construction project be successful and experience fewer contractual disputes.
Originality/value
The study has identified the knowledge gap concerning suitable contract risk management strategies available for implementation to effectively prevent any contract parties from losing money, time and project failure.
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Amer Jazairy and Robin von Haartman
The purpose of this study is to measure the gaps between the engagements of shippers (i.e. logistics buyers) and logistics service providers (LSPs) in different green logistics…
Abstract
Purpose
The purpose of this study is to measure the gaps between the engagements of shippers (i.e. logistics buyers) and logistics service providers (LSPs) in different green logistics practices (GLPs) throughout the key phases of the logistics purchasing process: request for proposal, negotiations, contracting and execution.
Design/methodology/approach
A large-scale survey of shippers and LSPs in Sweden was conducted. Respondents were 331 firms (169 shippers, 162 LSPs). Mean values of the actors' perceptions were analysed using independent- and paired sample t-tests.
Findings
While this study supports previous research indicating that LSPs engage more extensively in selling GLPs than shippers do in buying them, it shows that this conclusion does not uniformly apply to all GLPs nor all purchasing phases. Three patterns emerged for the gaps between the actors' buying-selling engagements throughout the purchasing process: (1) steady and wide gaps, (2) steady and narrow gaps and (3) emergent gaps. Distinct GLPs were associated with each pattern. It is also shown that the prioritisation of GLPs is fairly aligned between shippers and LSPs.
Research limitations/implications
This study contributes to the green logistics purchasing literature by systematically and simultaneously creating three types of distinction, between (1) shippers and LSPs, (2) different GLPs and (3) different logistics purchasing phases. Future studies could replicate the analysis in countries other than Sweden.
Practical implications
Managers of shipper/LSP firms learn tips to spot the GLPs that their partners prioritise, enabling them to modify their purchasing/marketing strategies accordingly.
Originality/value
The three types of distinction represent a novel approach in the green logistics purchasing literature.
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Jingya You, Yongqiang Chen, Yuanyuan Hua and Wenqian Wang
This paper aims to explain how contractual complexity, including contractual control, coordination and adaptation, makes a difference to the task and relationship conflict, and…
Abstract
Purpose
This paper aims to explain how contractual complexity, including contractual control, coordination and adaptation, makes a difference to the task and relationship conflict, and then, to investigate the moderating roles played by both, total interdependence and interdependence asymmetry, in altering the association between the two types of conflicts.
Design/methodology/approach
This study obtained data through a questionnaire survey in the Chinese construction industry and the final sample consisted of 232 responses. The data were analysed using hierarchy analysis using SPSS.
Findings
The results are as follows: first, higher contractual control and coordination reduce the level of relationship conflicts, and higher contractual coordination also reduces the level of task conflicts; second, task conflict positively affects relationship conflict; third, task conflict mediates the relationship between contractual coordination and relationship conflict; and finally, when total interdependence is higher, task conflict induces more relationship conflict. On the contrary, high interdependence asymmetry weakens the positive relationship between task and relationship conflicts.
Practical implications
This study highlights the importance of contracts in conflict management. The findings can guide practitioners in drafting suitable contracts to deal with task and relationship conflicts more effectively.
Originality/value
This study differentiates the effects of distinct components of contracts on task and relationship conflicts, and then reveals the contingent effects of interdependence on the relationship between task and relationship conflicts in inter-organisational transactions.
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Manish K. Dixit, Varusha Venkatraj, Mohammadreza Ostadalimakhmalbaf, Fatemeh Pariafsai and Sarel Lavy
The purpose of this study is to investigate factors that impede the integration of facilities management (FM) into building information modeling (BIM) technology. The use of BIM…
Abstract
Purpose
The purpose of this study is to investigate factors that impede the integration of facilities management (FM) into building information modeling (BIM) technology. The use of BIM technology in the commercial construction industry has grown enormously in recent years. Its application to FM, however, is still limited. The literature highlights issues that hinder BIM–FM integration, which are studied and discussed in detail in this paper.
Design/methodology/approach
A review of literature is conducted to identify and categorize key issues hampering the application of BIM to FM. This paper has also designed a questionnaire based on a literature review and surveyed FM professionals at two industry events. Using the collected responses, these issues are analyzed and discussed using non-parametric statistical analyses.
Findings
A total of 16 issues are identified through the literature review of 54 studies under the four categories of BIM-execution and information-management, technological, cost-based and legal and contractual issues. The results of the survey of FM professionals (with 57 complete responses) reveal that the single most important issue is the lack of FM involvement in project phases when BIM is evolving.
Originality/value
The findings of this study could assist the construction industry (e.g. building-material and equipment manufacturers, design professionals, general contractors, construction managers, owners and facility managers) with creating guidelines that would help in BIM–FM integration. BIM is a virtual database that contains important design and construction information, which can be used for effective and efficient life cycle management if building data are captured completely and accurately with a facility manager’s involvement.