Contract Management

This research paper aims to study the introduction of blockchain technology and cryptocurrencies. They adopted smart contracts and provided a database of blockchain technology and cryptocurrencies for contract management in construction engineering, bringing blockchain technology and cryptocurrencies for contract management in construction engineering. Using a blended research method during qualitative research And quantitative research It consists of data collection from questionnaires and indepth interviews from 15relevant public and private experts and analyzed with a hierarchical hierarchy (Analytic Hierarchy Process (AHP) to analyze the weighted average (W). For implementing and analyzing acceptance levels with the Severity Index (SI), blockchain technology and cryptocurrencies for contract management in construction engineering are implemented. The results of the analysis of the acceptance of factors affecting acceptance ware sorted as follows. Helpful, it has a weighted average (W = 56.40%) and severity index (SI = 72.045%). The ease of blockchain technology and cryptocurrencies has a weighted average (W = 20.72%) and index. Severity (SI = 68.910%), positive attitudes towards blockchain technology and cryptocurrencies are weighted average (W = 14.16%) and severity index (SI = 68.883%), and their adoption intent. Blockchain technology and cryptocurrency for contract management in construction engineering have a weighted average (W = 8.72%) and severity index (SI = 68.658%), respectively, and qualitative analysis blockchain technology implementation. Furthermore, cryptocurrencies for use in contract management in construction engineering reduce any disputes that can occur—however, smart contracts (SCont) are still limited in construction engineering by law.

4735 sayılı Kamu İhale Sözleşmeleri Kanunu'nda sözleşmenin feshedilmesinin koşulları ve sonuçları hem yüklenici hem de idare bakımından ayrı ayrı ele alınarak açıklanmıştır. Ancak yüklenicinin sözleşmeyi feshetmesi konusundaki düzenlemenin, yüklenicilere işlem ve süreç bakımından ilave yük getirdiği buna rağmen herhangi bir avantaj da sağlamadığı görülmektedir. Diğer taraftan 6098 sayılı Türk Borçlar Kanunu hükümleri uyarınca yüklenicinin sözleşmeyi haklı bir nedene dayanarak feshetmesi de mümkündür. Bu durumda da ilk aşamada yüklenicinin, teminatın gelir kaydedilmesi veya kamu ihalelerine katılmaktan yasaklama gibi yaptırımlarla karşılaşması kaçınılmazdır. Ancak yargılama süreci akabinde elde edilecek sonuçlarla birlikte ele alındığında bu olasılığın, gerek sürecin daha hızlı ilerleyecek olması gerekse sağlayacağı avantajlar bakımından nispeten yüklenici lehine olacağı değerlendirilmektedir.

Information technology outsourcing provides several advantages for organizations, such as reducing the cost of ownership of IT products/services, providing rapid access to modern technologies. However, when the outsourcing relationship is not managed effectively, the desired results are not always achieved. This article aims to reveal the role of contract and relationship norms in the success of the IT outsourcing relationship, by focusing on the Turkish domestic market. Firstly, the measurement scales of the research were developed by making use of the previous studies and field interviews. Then the measurement model and hypotheses were tested using the partial least square method. It was concluded that both contract and relationship norms affect IT outsourcing success, but the contract is more effective than relationship norms for IT outsourcing success. Furthermore, it is concluded that relationship norms have a mediating effect between the contract and IT outsourcing success.

We explore of the feasibility of the computationally oriented institutional agency framework proposed by Governatori and Rotolo testing it against an industrial strength scenario. In particular we show how to encode in defeasible logic the dispute resolution policy described in Article 67 of FIDIC.

Outsourcing information te~hnoiogy (IT} and services has received little academic research attention in the UK. The paper details four case studies on sourcing decisions made by UK based organizations. It also draws upon preliminary evidence from 16 further cases to arrive at an assessment of the most favourable conditions under which IT and services may be outsourced.

The price adjustment considered for the fluctuation of cost of materials, labor and equipment. FIDIC Red Book and National Procurement Authority (NPA) of Afghanistan Standard bidding Documents (SBD) for large work demonstrate the same formula and method for variation in cost adjustment . herein a numerical example of price adjustment as of FIDIC Red Book and NPA SBD has been demonstrated in full details.

This paper intends to provide a consultation on a full review functions and providing alternatives to FT Company about deciding whether to outsource or in-source its communication service provision in order to gaining momentum in profitability and giving ways of improving organizational goals and objectivity followed by poor quality of output and lack of accuracy which costs the company to a loss caused by its current outsourced functions. It was found that, in order to accomplish consultation task at FT Company's problems, there are some areas need to be considered and applied, these areas are not limited to; First, review of SWOT analysis of FT Company concentrating on their weakness, strength, opportunities and threats by focusing in providing ways and directions on how to pursue opportunities that are good fit to the company's strength, to overcome weakness to pursue opportunities of the company, to establish a defensive plan to prevent the firm's weakness from making it highly susceptible to external threats and identify ways that the firm can use its strengths to reduce its vulnerability to external threats. Second, a review on Porter's competitive forces is highly used to make decision on how outsourcing can add value to the organization. Issues discussed are concerning roles played by core competences, service providers, competitors, new technology and buyer in making decision on FT Company especially on the importance of outsourcing rather than in-sourcing. Third, application of cost comparison benefits towards decision on outsourcing and in-sourcing is clearly shown in this paper, and what was found is that, most of costs will unnecessary be incurred when the company will opt to in-source, but through outsourcing the company will enjoy some benefits in saving costs such as hidden costs and various overheads. Last but not least, details about the advantages and disadvantages of both in-sourcing and outsourcing are discussed and in the end it has been shown clearly that, outsourcing is more better way of doing to maintain these kinds of Company's goals and objectives. A value of this paper rest on assisting organizations especially FT Company and their likes, the importance of outsourcing part of their non core functions and set strategic outsourcing plans to make appropriate decisions to achieve outsourcing objectives.

Mandatory disclosure of agreements instrument has been a relatively positive and successful instrument of public control of handling public funds through its more than five years history. However, a huge amount of data, frequent opacity of their connections, or the absence of machine-readable forms of contracts pose challenges for the control, which where partly addressed by non-governmental organizations. Programs of Open Government Partnership worldwide strengthen the emphasis on the participation and crowdsourcing in controling of contractual provisions, consultations of contract creation, especially the sector-standardised contracts, or feedback in contract execution, for instance by tracking the warranty and milestones of contracts with objects that allow the involvement of large amount of persons. There is a specific experience with some of these trends in Slovakia, which mainly calls for improved work with data and greater involvement of external users. The article proposes that legal academia participates through existing platforms on deeper categorization of contracts, following analyses of contracts as particular solutions of situations, and standards creation. Contracts with problematic content should be consequently subjected to the control by the non-governmental organizations and media.

This paper introduces a way for approaching electronic contracts management involving two parties. Contract monitoring automation is achieved by giving legal clauses a formal representation. Inspired from the file system properties, a mechanism for dynamic reorganization of contracts on Google Docs is proposed.

A fictional utility company, Ghana Grid, provides gas and electricity distribution systems across the Greater Accra Region of Ghana. They own approximately 3 000km of underground gas pipework, plus transmission and booster stations; 1000km of electricity network (both above and below ground); together with depots, maintenance yards and offices.
Many of their assets are nearing the end of their 50 year life. Ghana Grid needs to invest about ₡40 million per year for the next 10 years on their gas and electricity infrastructure (₡400 million in total). However a third of this program is on routine repair and replacement works and does not form the subject of this exercise.
You are a Contracts Manager of a large Ghanaian consulting firm, and you have been commissioned to advise Ghana Grid on the best contract strategies to carry out the ‘New Work’ part of their programme of about ₡30 million per year.
The New Work Programme comprises over a thousand projects. There is a variety of work which falls into the five categories as explained below.
 The programme comprises five categories of project:
1. Tema underground distribution cable replacement (TCR) requires little design, and construction is simple and repetitive but requires extensive liaison with local businesses in terms of power outages affected by the detail of actual cable location (15% of the programme)
2. A new high voltage power distribution system (HVS) using pylons and overhead lines, from the outskirts of Tema to Accra North, a distance of 25 miles. The construction period for this work is about two years, but extensive local meetings and land acquisition will be needed in the design phase. (10% of the programme).
3. A small new power station at Pokuase. Pokuase Power Station (PPS) has received planning consent after extensive local consultations and a Public
GTUC/COVENTRY UNIVERSITY PROGRAMME | CONTRACT MANAGEMENT
enquiry. However, the design must be supervised by an engineer specifically registered in power station design. A few of the larger Consulting Engineers in Ghana have such engineers, but Ghana Grid does not. However PPS does not have to be completed until the end of year six of the programme. (10% of the programme)
4. A new headquarters building, Grid House, in Tema is needed. Ghana Grid must move out of their existing premises by the end of year 3. The land is owned by Ghana Grid, the outline design is done and Planning consent has been received. Ghana Grid wants a high quality and prestigious new office. The overall size, number of floors and exterior finishes are confirmed. Unfortunately Ghana Grid have not yet determined the internal floor layouts, number of meeting rooms, office furniture, surface finishes; or IT, catering and process systems for the building, because they are dependent on the number of staff moving into the building. This number will not be known until the start of year one, due to Ghana Grid’s planned redundancy programme which will not be completed until early 2020. The design and construction programme for Grid House is therefore very tight. (5% of the programme)
5. The Telemetry & Control System (TCS) is fundamental to the future of the gas operation of Ghana Grid. Most Ghanaian consultants do not have this expertise. There are a few Ghanaian contractors who do have this expertise both for design and construction. This part of the capital programme is front-loaded due to its urgency. It must be completed by the end of year three. (10% of the programme)
 Ghana Grid do not have any design staff of their own, but they do have planners and project managers, who can oversee the Investment Process for this program of works
 Ghana Grid have a reputation for being ‘contractual’. They are totally committed to a more consensual and co-operative strategy for this capital program.
 Many contractors (not all), specialise in certain categories of project
 Note: The percentages of the programme given above are simply to give a sense of scale
 Ghana Grid will fund this Programme as part of their charges to customers
 This is a ten year programme, with design and construction expenditure between 2016 and 2026
 It is now 2014, and so Ghana Grid have ample time to review and adopt contract strategies in accordance with your recommendations and use appropriate tendering and appointment procedures (these are not part of the coursework) in order to have the selected contractors available by 2026.
Critically examine the Contract (Procurement and Payment) Strategies available to Ghana Grid, to implement this 10 year programme.

The administration of construction contracts in
Malaysia is facilitated through a standard form of contract. The
application of each however depends on the type of project, mode
of finance and owner of the project. International Federation of
Consulting Engineers (FIDIC), Public Work Department 203A
(PWD203A), Pertubuhan Akitek Malaysia (PAM) Standards form
of contract are widely implemented in Malaysia. In generally,
each standard form of contract aims at ensuring effective,
efficient and non-disputable contract administration.
Nonetheless, variations arise in certain matters. This paper
appraises the differences in roles and responsibilities of contract
administrator as stipulated in each forms, namely PWD203A,
PAM and FIDIC via literature review on some different types of
forms of contract used in Malaysia. This aim can be achieved by
determining the important factors affecting final account closing
success caused by contract administrator, and investigating the
differences between forms of contract. The understanding of
these roles and responsibilities is important at the preliminary
stage especially in selecting superintending party as well as
identifying the contract liability in the persuasion of the contract.
This paper shows that the use of contract documents either
FIDIC, PAM and PWD 203A is dependent on the project
owner/employer, type of project as well as the nature of a project
and financing involved. Most of the projects under the
government will apply PWD203A contract document while the
private sector will use PAM contract document and FIDIC
contract document will be used for projects involving
international contracts.

The objective of going out to contract is to obtain specific services, equipment, materials or licenses as required to
support the general business objectives.
The FWA can be used as "umbrella agreement" that sets
out the terms (particularly relating to price, quality and
quantity) under which individual contracts "Call Off" can
be made throughout the term of the agreement
Under the terms and conditions of the FWA, the buying
organisation may purchase materials, or works, or services
without any commitment for using such agreement

Nepal is one of the least developed countries in the world and is undergoing peace process after a decade of armed struggle (1996 – 2006). For FY 2070/71 (2013/14), government has unveiled the budget of Rs. 517.24 billion, of which 46.7 % is allocated as development expenditure and 53.3 % as regular expenditure. Only 69.6 % of the budget is expected to be met through its own revenue and 14 % by foreign assistance with projected deficit of 17 %. In general, the government has been able to make expenditure of less than 80 % of the allocated budget. On the other hand, Nepalese economy is facing major challenges like low economic growth rate (less than 5 %), high inflation rate,  import based production system, limited labor market to absorb yearly 400,000 new entrants, lack of physical infrastructure, low institutional capacity, and lack of good governance. In this background, this paper discusses the status of public procurement in Nepalese context against the following core pillars of public procurement:
1. Value for money;
2. Open and effective competition;
3. Ethics and fairness; and
4. Accountability, transparency and reporting
5. Equity
This paper helps in understanding the public procurement challenges in one of the least developed conflict ridden country and the issues associated with it so that the experience of Nepal can be used as lesson learning and in formulating policies and programs for reform in public procurement practices.
This paper will be based on the review of the existing procurement law and the practices in the country.

The main purpose of this study was to examine the challenges of contract management in the public procurement processes in TANESCO. Specifically, the study assessed the awareness on procedures involved in Procurement contract management, examined factors affecting contract management performance in TANESCO and identified area of improvement concerning contract management in TANESCO. Quantitative approach was applied in this study to gather quantitative data through closed questions which appeared in questionnaires. This approach used in this study to collect experience and opinion toward challenges of contract management in the public procurement processes. The study used descriptive research to establish factors associated with certain occurrences, outcomes, conditions or types of behaviour.  The study used non probability sampling to obtain the sample.  The respondents were mainly consisted of staff of TANESCO. The sample comprised of 50 respondents. Data was collected through questionnaires. The quantitative data were processed with the help of Statistical Package for Social Science (SPSS) software program version 25 and were summarized in tables of frequencies, percentages, correlations, t-tests and charts. The results from the analysis revealed that proper strategic decisions and drafting of the right contract influence contract management. Also, availability of competent staff ensure good contract management. Moreover, study findings revealed that improve contract management the company need to recruit staff with relevant skills. The study recommends that there should be a sequence after a while to find out if there are any changes that have occurred and a comparison with this data may be done to measure the extent of change or otherwise. A replicate study may be carried out in other areas of contract management.

This chapter contains sections titled: Contractual Issues Contract Strategy and Type Roles, Relationships, and Responsibilities Time, Payment, and Change Provisions Remedies for Breach of Contract Bonds, Guarantees, and Insurances Claims Dispute Resolution Flexibility, Clarity, and Simplicity Summary References Recommended Further Reading Contractual IssuesContract Strategy and TypeRoles, Relationships, and ResponsibilitiesTime, Payment, and Change ProvisionsRemedies for Breach of ContractBonds, Guarantees, and InsurancesClaimsDispute ResolutionFlexibility, Clarity, and SimplicitySummaryReferencesRecommended Further Reading

Yüklenicinin taahhüdünü ihale dokümanı ve sözleşme hükümlerine uygun olarak yerine getirmemesi veya işi süresinde bitirmemesi üzerine kamu ihale sözleşmesi idarece feshedilmekte ve yüklenici aleyhine pek çok yaptırım uygulanması gündeme gelmektedir. İşin süresinde teslim edilmesinin idareden kaynaklanan sebeplerle mümkün olmadığının ispatlanması halinde ise bu yaptırımlardan kurtulmak mümkün olabilmektedir. Bununla birlikte yüklenicinin gerçekten haklı olduğu hallerde bile sözleşmenin haksız bir şekilde feshedildiğini göstermek ve söz konusu yaptırımlardan kurtulmak adına açılan davalarda yüklenicilerin çoğunlukla alınacak bilirkişi raporunu beklemekle ve savunmayı bilirkişi raporuna dayandırmakla yetindiği görülmektedir. Bu durum ise yargılamanın, yüklenicinin aleyhine sonuçlanmasına sebep olabilmektedir. Oysa çoğu örnekte, işin süresinde bitirilemeyeceği teslim tarihinden aylar öncesinde öngörülebilmektedir. Bu tip durumlarda sözleşmenin uygulanması sırasında, işin süresinde bitirilememesi ihtimali ortaya çıktığı andan itibaren alınacak bazı önlemler ve savunmanın Türk Borçlar Kanunu’nun konuyla ilgili hükümlerine dayandırılması halinde, bilirkişi raporlarına bağımlı olmaksızın sözleşmenin haksız bir şekilde feshedildiğini ispatlamak mümkün olabilecektir.

The unequal bargaining power of the parties in the oil and gas industry has lead to the imbalanced contractual risk allocation in oilfield contracts in Malaysia. In this regard, there is a prospect that the operators pass an unfair share of the risks on to the contractors. However, the contractors might still enter into such imbalanced agreement to secure a job and thereby assume these risks. In this paper, it is argued that a statutory controlling mechanism, such as Unfair Contract Terms Act 1977 (UCTA) in the UK, should be adopted to protect the liability of the contractor in relation to the risk allocation provisions of oilfield contracts in Malaysia. This paper seeks to analyse the deficiencies of the risk allocation provisions of oilfield contracts in Malaysia and to consider whether the principle of reasonableness test as provided in UCTA could provide a potential solution. It will employ a combination of case study and analysis.

Manchester Business School (MBS) in association with IACCM is proposing to launch a suite of programmes including a specialised MBA for Commercial Executives, delivered using blended (distance) learning. To ensure that these programmes meet the requirements of the commercial and contract management community, and engender appropriate skills and abilities, a global survey of IACCM’s worldwide membership was conducted in March 2008, to obtain their views on the proposed content of the MBA programme.
The results of the survey presented in this paper generally validate the proposed content of the MBA for Commercial Executives; they establish that the specific commercial modules (subject areas) are regarded as highly relevant to the C&CM function, while the core MBA modules are considered to be relevant. Importantly, the content of the MBA is found to be appropriate for delegates irrespective of their global location or C&CM function, that is, whether they support the demand, supply or both (supply and demand) sides of organisations. The paper also categorizes 40 skills and abilities, based on their importance to the C&CM function and establishes relationships between these items and the proposed content of the MBA programme. It also confirms the perceived importance of negotiation, communication, problem solving and working in teams to the C&CM function.

A method for evaluating the risk associated with a construction contract has been developed and applied to municipal contracts in Lansing, Michigan. Data on contract costs, change orders, and complexity were collected through an information system developed by the ...

Contract management is the process of overseeing the creation, execution, and analysis of contracts in order to improve operational and financial performance while lowering financial risk. It entails negotiating contract terms and conditions as well as ensuring that the terms are followed. A contract in procurement is a written agreement between a buyer and seller in which the buyer agrees to pay for the goods/services. A procurement contract will define both parties' obligations, payment lists and terms, mode of delivery, and other legal terms and conditions. Judith Mwaisunga founded Mwaisa Construction in 1999. The company began with a small shop on Uhuru Road in Mbeya that sold hardware and building materials. The primary function of the company is construction work for both small and large projects. Mwaisa Construction projects began in 2000, following the company's establishment in 1999. The company received a five-year major contract for the construction of university hostels in 2012. Unfortunately, the project was hampered by cultural differences, particularly corporate cultures, which created difficulties in managing the company's relationship with its clients. After recognizing the existence of numerous contract management challenges and weaknesses, the new director requested that top management allocate funds to facilitate a workshop specifically designed to impart knowledge, skills, and competencies related to procurement contract management to all employees directly involved in project execution. In addition, in order to effectively manage the frequently occurring risks, the new director began to involve procurement professionals more extensively in procurement contract management processes. As a result, the new director's strategies result in efficient contract management, which improves the company's functioning. They also provide better spend visibility and assist the company in monitoring financial transactions.

Highway agencies around the world strive to improve practices for infrastructure maintenance and rehabilitation, using project delivery policies that range from total 'in-house' responsibility to complete privatization, with a number of flexible contracting policies such as performance-based contracting, variants of design-build-maintain, and lane rentals among others between these two extremes. In this paper, we present a methodology that duly accounts for underlying spatial effects and estimates the expected cost savings of innovative contracting policies for highway maintenance and rehabilitation relative to in-house execution of these activities. Spatial econometric modeling is used to analyze highway contract data from 49 countries. We also investigate the marginal effects of key explanatory variables on contract cost savings using spatial multipliers. Our findings show that there are significant relationships between cost savings and contract characteristics, and that there is an apparent direct relationship between the average cost savings of contracts in a country and contract average cost savings and contract sizes in neighboring countries.

Power plant projects are complex and expensive; therefore, the risks will be high especially for engineering, procurement and construction (EPC) fixed price contract projects. In these projects, the contracting company often experiences cost overrun caused by material price increment in several major items of work carried out by their suppliers or subcontractors. This study aims to control project costs by developing contract management and identifying risk factors. Descriptive and qualitative risk analysis was conducted to identify the dominant risks. Risk responses are then developed and integrated within the contract management processes. The results of this study show that there are 38 risk factors causing material price increment in power plant projects, among which 10 are dominant, and several aspects to be developed through 10 risk responses. The risk that affects material price increment the most occurs during the planning and strategy phase at the beginning of the contract formation.

The purpose of this paper is to examine the determinants and constraints of effective contract management and its implications on service delivery since public procurement authority has persistently reported low compliance levels as far as contract management is concerned. Empirical research in this area is relatively sparse. Data was collected using a closed ended questionnaire. Significant predictors of determinants for effective contract management were: clear definition of processes and having in place contract management plans, appropriate methods of capturing key lessons from contract management process, accurate definition of roles and having a knowledgeable contract manager. While the major constraints were found to be: lack of political will to monitor contracts; inadequate capacity and lack of integrity. These findings offer a useful foundation for policy and practical improvement in this important area in Uganda.

This study intends to cover the relationship between contract management and performance characteristics from the context of Indonesia. To address this objective, contract management is observed as the main independent variable while performance through nine items is considered as dependent variable. A questionnaire is developed through some selected factors and distributed among various respondents, dealing directly or indirectly with the projects. A sample of 70 respondents is finalized with no missing values. Empirical findings suggest that for the firm performance different variables such as nature of the solution, cost & benefit analysis are significantly associated with the contract length. While project delivery and project quality are negatively associated with the contract length. Findings of the study are highly recommended for the contract managers and similar individuals, responsible for the smooth business performance. However, future studies can be conducted with the addition of more explanatory factors for contract management with better sample size. Managerial implication of the study defines that Government and construction companies should reconsider the stated factors for the improved results through resolution of the conflict with the customers, cost benefit analysis and timely delivery of the project with budgetary compliance.

Possessing a wide knowledge base and a strong educational background together with good team work and leadership experience, working experience, an understanding of public procurement and disposal of public asset authority based approach, highly motivated to achieve target results, clear logical though and the ability to understand all development issues and wide knowledge in supplies and procurement, computer literate and highly fluent in English. Now having achieved immediate academic objectives, aspiring to gain entry and start a challenging career with high profile institution that offers genuine opportunity for progression like yours and has an unequalled reputation for excellence procurement and development.

The administration of construction contracts in Malaysia is facilitated through a standard form of contract. The application of each however depends on the type of project, mode of finance and owner of the project. International Federation of Consulting Engineers (FIDIC), Public Work Department 203A (PWD203A), Pertubuhan Akitek Malaysia (PAM) Standards form of contract are widely implemented in Malaysia. In generally, each standard form of contract aims at ensuring effective, efficient and non-disputable contract administration. Nonetheless, variations arise in certain matters. This paper appraises the differences in roles and responsibilities of contract administrator as stipulated in each forms, namely PWD203A, PAM and FIDIC via literature review on some different types of forms of contract used in Malaysia. This aim can be achieved by determining the important factors affecting final account closing success caused by contract administrator, and investigating the differences between forms of contract. The understanding of these roles and responsibilities is important at the preliminary stage especially in selecting superintending party as well as identifying the contract liability in the persuasion of the contract. This paper shows that the use of contract documents either FIDIC, PAM and PWD 203A is dependent on the project owner/employer, type of project as well as the nature of a project and financing involved. Most of the projects under the government will apply PWD203A contract document while the private sector will use PAM contract document and FIDIC contract document will be used for projects involving international contracts.

This book examines third party protection in shipping. Today, shipping is not just a part of the supply chain; it is indistinguishable from it. Once at the periphery, third party protection is now a central element of carriage. This matter is addressed by means of analysis of the current legal framework in relation to third parties and an evaluation of how, within this framework, the law applicable to a third party may be uncovered.

Third party protection is analysed under the following:

    the Hague/Hague-Visby Rules;
    the Hamburg Rules;
    the Rotterdam Rules;
    English law and United States law; and
    civil law.

With its breadth of coverage and high-quality analysis, this book is vital reading for both professional and academic readers with an interest in shipping and international trade.

It is widely acknowledged that the ability to clearly articulate a profession’s knowledge base is crucial when defining a discrete professional group. As with project management and supply chain management, the knowledge based of the commercial and contract management (C&CM) function is an amalgam of theories, concepts and models drawn from the research and emerging practice of a variety of academic disciplines. To investigate the interrelationship between and relevance of these theories and concepts to the C&CM function/profession, and the general level of awareness of them among practitioners, a global survey of the IACCM’s membership was conducted in October 2007.
The results of the survey presented in this paper reveal that the most familiar theories, concepts and models were: leadership, best value/value for money, competitive advantage, governance, strategy, globalisation, core competence, commitment, creativity, and negotiation theory. The academic disciplines associated with the most familiar 25 items were: organisational behaviour, strategic management, economics, marketing, law, operations management and accountancy.
Overall, the results indicate a high degree of homogeneity in the respondent’s familiarity with the items irrespective of their location or prior level of education. Significant differences were, however, established in 33 of the items between subgroups based on the function of the C&CM practitioner. Generally, these differences could have been predicted, for example, C&CM practitioners supporting procurement were found to be more familiar with procurement theory, strategic purchasing, supply chains, supplier segmentation and the theory of incentives etc. compare to those practitioners who support sales or both sales and procurement.
In terms of the relevance of the theories, concepts and models to the C&CM function/profession, negotiation analysis, problem-solving interest-based negotiation, negotiation theory, best value/value for money, trust, competitive advantage, and contract law model were considered to be highly relevant. The academic disciplines associated with the most relevant 25 items were: organisational behaviour, strategic management, operations management, economics, marketing, law, and operational research.

This paper compares and contrasts the role of commercial managers from a range of organisations and across industry sectors within the UK, as a first step in developing a body of knowledge for commercial management. It contends that there are persuasive arguments for considering commercial management, not solely as a task undertaken by commercial managers, but as a discipline in itself: a discipline that bridges traditional project management and organisational theories. While finding differences in approach and application both between and within industry sectors, it establishes sufficient similarity and synergy in practice to identify a specific role of commercial management in project-based organisations. These similarities encompass contract management and dispute resolution; the divergences include a greater involvement in financial and value management in construction and in bid management in defence/aerospace.
It advocates the utilisation of the Internet to establish loosely based ‘communities of practice’ as a vehicle to disseminate good practice and cutting edge research pertinent to commercial managers. Also, the development of a body of knowledge for commercial management is recommended and key areas for targeted research to underpin the discipline proposed. These areas include: relationship management, value and value management, risk and uncertainty management, performance measurement, procurement and supply chain management, contract management, dispute resolution and conflict management, cost management, organisational learning and knowledge management, and bidding.

In the actual market conditions, where it is essential to rapidly respond to business opportunities that might emerge, the concept of virtual organization appears particularly well-suited. The possibility of rapidly forming a virtual organization to respond to a business or collaboration opportunity gives companies an expression of agility and survival mechanisms in face of the market turbulence. Nevertheless, in the process of virtual organization creation, the negotiation among partners is essential. It is of extreme importance to have an environment where all potential partners can come together and negotiate the necessary topics towards an agreement to regulate the consortium behaviour. Through this environment it should be possible to conduct and manage the VO negotiation process, reach agreements and commitments among partners, enclose necessary documentation, specify partners' right and duties, etc. To accomplish such environment, a negotiation wizard is proposed. An illustrative scenario of an agreement negotiation in a multicultural context is presented showing the applicability of the wizard. enable to follow up the state and the progress of the bid preparation business process. These delays are not too critical within a small local CNO where the members share the same language and business background and could probably solve all problems by using traditional communication methods like e-mails and phone calls. The situation is however completely different for multicultural and geographical widely spread networks. Consequently, there is a need to improve the effectiveness of the negotiation processes in the formation of virtual organizations (VOs), particularly at the stage of bid preparation.

The objective of this study is to examine the impact of client, consultant and contractor related factors on mismanagement in public and private contracts in the region of Indonesia. A structural questionnaire is developed for the selected items after detailed investigation of present literature. A final sample of 137 respondents associated with various contracts in the region of Indonesia is collected with demographic details and regression analysis. It is observed that factors like lack of strategy, failure to compile the documentary requirements, poor planning, delay in decision making , financial issues, late payments, difficulty in getting work permits and lack of management expertise are core issues, creating mismanagement in public and private contracts. In consultant related factors, role of inexperienced consultant, poor planning, late of instructions from architects, poor contract management, and poor-quality assurance are the key determinants of mismanagement in contracts. While contractor related factors like poor planning and scheduling, late or improper submission of contract, inadequate site supervision and inspection, poor construction methods, weak leadership, and lack of communication between the parties are the key indicators of mismanagement in contracts. As per significance, this study is found to be a reasonable addition in the present literature from the context of contract management. Originality of the study covers the significant findings for the policy makers in the field of public and private contracts. Study can be reworked in future through better sampling, and addition of more factors related to materials, equipment and labor causing for the poor delivery of the contracts.

The purpose of this paper is to examine the determinants and constraints of effective contract management and its implications on service delivery since public procurement authority has persistently reported low compliance levels as far as contract management is concerned. Empirical research in this area is relatively sparse. Data was collected using a closed ended questionnaire. Significant predictors of determinants for effective contract management were: clear definition of processes and having in place contract management plans, appropriate methods of capturing key lessons from contract management process, accurate definition of roles and having a knowledgeable contract manager. While the major constraints were found to be: lack of political will to monitor contracts; inadequate capacity and lack of integrity. These findings offer a useful foundation for policy and practical improvement in this important area in Uganda.

The results of a global survey of the International Association of Contract and Commercial Management’s (IACCM) membership are presented. The survey sought to elicit information on topics such as job satisfaction, performance assessment, professional skills, and future challenges for the profession. The findings suggest that IACCM’s members are a “mature” group, with a high level of experience, formal education and job satisfaction. They are, however, particularly in the Americas, an aging workforce. Further, a high proportion of the respondents were dissatisfied with their potential career path and sceptical as to whether their company rewarded employees for high performance. Also, almost half the respondents stated that they wanted to leave their current position within the next three years. This was particularly true for those who supported the sales function: this subgroup was less satisfied with their current position and believed that their career path was more limited than those who support procurement and both ‘sales and procurement’. Likewise, new entrants to the profession considered their career path was more limited than both ‘directors’ and ‘managers’. These findings suggest that organisations could be faced with a potential problem in recruiting and retaining contract and commercial management professionals. To alleviate this, organisations should consider introducing (or enhancing existing) mechanisms that recognise and reward high performance and enable staff to acquire new skills and knowledge. The survey established a clear positive relationship for both job satisfaction and career path with support from the organisation in the acquisition of skills and knowledge and in providing clear and meaningful rewards for high performance.

Ever since 2007, when Romania became a full member of the European Union, public regulations and internal procedures are being continually changed to transpose the EU Directives effectively. However, employee resistance to change and limited resources are a few of the challenges always hard to face. Public procurement is a permanent topic of discussion, mainly due to significant adverse reports on managing the federal funds, several cases of public procurement fraud, or suspicions of corruption. Both strategic and operational risks can be identified and adequately mitigated, therefore developing a risk management model for public tenders may become one step forward in achieving value for money.

Public procurement is a key aspect of public administration that links the public financial system with economic and social outcomes, and as such is a major determinant of the quality of community services and infrastructure, and the effectiveness of government. This function cuts across almost all areas of planning, program management, and budgeting. However, while public procurement is often a priority, it has become less certain as to how this should be managed to deliver these efficiency and productivity outcomes. The governance structure for public procurement has traditionally been procedures-based, with a focus on integrity in the selection process. Procurement procedures have been reasonably simple and largely define the issues only in terms of whether the value of the transaction is expected to be small (less than US$20,000), medium (up to US$100,000) or large. The characteristics of the supply markets themselves are generally not acknowledged. These procurement procedures ...

The objective of this study is to examine the impact of client, consultant and contractor related factors on mismanagement in public and private contracts in the region of Indonesia. A structural questionnaire is developed for the selected items after detailed investigation of present literature. A final sample of 137 respondents associated with various contracts in the region of Indonesia is collected with demographic details and regression analysis. It is observed that factors like lack of strategy, failure to compile the documentary requirements, poor planning, delay in decision making, financial issues, late payments, difficulty in getting work permits and lack of management expertise are core issues, creating mismanagement in public and private contracts. In consultant related factors, role of inexperienced consultant, poor planning, late of instructions from architects, poor contract management, and poor-quality assurance are the key determinants of mismanagement in contracts. While contractor related factors like poor planning and scheduling, late or improper submission of contract, inadequate site supervision and inspection, poor construction methods, weak leadership, and lack of communication between the parties are the key indicators of mismanagement in contracts. As per significance, this study is found to be a reasonable addition in the present literature from the context of contract management. Originality of the study covers the significant findings for the policy makers in the field of public and private contracts. Study can be reworked in future through better sampling, and addition of more factors related to materials, equipment and labor causing for the poor delivery of the contracts.

The selection of the project delivery method (PDM) for any project is critical-it establishes communication, coordination, and contractual issues between the owner, contractor, and designer. With an increase in the number of green design projects, understanding the relationship between the PDM and green design is paramount to project and contract management. It is reasonable to assume that a positive relationship between green design and design-build (DB) exists since both theoretically are intended to foster an integrated, holistic, and collaborative project. This research examines the relationship between the design-bid-build (DBB), construction management (CM), and DB PDMs and green design with the goal of establishing best practices and identifying potential synergies between them. The research collected information by conducting primarily telephone interviews with approximately twenty-five individuals, including owners, contractors, and designers involved in completed green design projects, mainly in the public sector. The interviews developed a general understanding of the current state of knowledge and experience and not a rigorous quantitative analysis. Upon completion of the interviews, the tabulated results were summarized and green project characteristics and project-PDM interactions emerged. Existing published research was evaluated to reveal aspects of PDMs independent of green design. Best practices were ascertained by combining information from the interviews and published research. Best practices are as follows: 1. Project implementation features. The decision to use DB as PDM on green design or other projects should be based on the specific project features; e.g., well-defined scope and adequate owner staffing. DB will not produce successful results on all projects. 2. Collaboration. Project team collaboration early in the design and construction process is an important aspect of green projects, and collaboration was considered somewhat more important in projects that used DB. 3. Experience. Team experience is important on all green design projects independent of the PDM. Owners should use a 'best value' selection process, which is more prevalent in DB projects, and include team experience as a criterion. The owner's role is critical with DB. 4. Leadership. Leadership is an important feature for all contracting parties involved in green design projects and it is a dominant success factor in DB projects. 5. Scope of work. A well-defined scope of work is important on all projects, independent of the PDM. In DB, improving the scope of work definition by developing a set of documents, typically comparable to the design development phase, as the basis for awarding a contract is called DB bridging. Using contracting techniques such as DB bridging can result in better identification of expected quality and improves the owner's level of control. 6. Funding and Budget. Having adequate funding and budget for the given scope of work is particularly important in a green design project. Public funding restrictions may not allow use of certain PDMs, and the nature of public funding streams may make non-traditional PDMs more difficult. 7. Complexity and Flexibility. Complexity and flexibility is a project feature that is more specific to green design projects and is more frequently associated with DB. 8. Control and Accountability. Control and accountability is a problem associated with DB more than with DBB. It is not specific to green design projects. DB Bridging can be used to offset the lack of control with traditional DB. The use of green design and DB is increasing and understanding the linkage between the two is important. This research has found that while linkages do exist, the owner needs to carefully consider all aspects of a green design project before making the decision of the most appropriate PDM. Pentagon Athletic Center PDM: DB Role: Architect from DB team Interview Response The architect from the DB team for the Pentagon Athletic Center believed this to be a true DB project. The shortlist of design-builders was based on qualifications, with the next step a design competition. The short-listed firms were each given a stipend of about $100,000 to compete in the design competition. Green design was a major part of the selection process. The Pentagon required quarterly reports from the DB team and if the team performed well, then the team was awarded a monetary incentive. This interviewee believes that DB and green design do complement each other because there is not a hand-off of project elements between the players.

The objective of this study is to examine the impact of client, consultant and contractor related factors on mismanagement in public and private contracts in the region of Indonesia. A structural questionnaire is developed for the selected items after detailed investigation of present literature. A final sample of 137 respondents associated with various contracts in the region of Indonesia is collected with demographic details and regression analysis. It is observed that factors like lack of strategy, failure to compile the documentary requirements, poor planning, delay in decision making, financial issues, late payments, difficulty in getting work permits and lack of management expertise are core issues, creating mismanagement in public and private contracts. In consultant related factors, role of inexperienced consultant, poor planning, late of instructions from architects, poor contract management, and poor-quality assurance are the key determinants of mismanagement in contracts. While contractor related factors like poor planning and scheduling, late or improper submission of contract, inadequate site supervision and inspection, poor construction methods, weak leadership, and lack of communication between the parties are the key indicators of mismanagement in contracts. As per significance, this study is found to be a reasonable addition in the present literature from the context of contract management. Originality of the study covers the significant findings for the policy makers in the field of public and private contracts. Study can be reworked in future through better sampling, and addition of more factors related to materials, equipment and labor causing for the poor delivery of the contracts.

Projects are currently characterized by their complexity, size and intensified multiparty involvement. It is therefore difficult to meet between company’s and contractor’s expectations in terms of project objectives. Using different types of contracts, contractors may have different view that is reflected from their price.

In EPC contract that uses a concept of lump sum contract, price submitted by contractor is a promise of each contractor to deliver the project. Contractor will then face risk in executing the project, while in the same time they will have its potential return.

This paper describes behaviour of contractors in submitting price as part of bidding process using CAPM concept. It mathematically proves that risk and return will be going to the same way, e.g. high risk may have high return. It concludes that the price heavily relies on contractor’s experience and risk profile.

Risk is involved in every business, and the construction industry is no exception. Most of the project management issues that impact a project arise from associated uncertainties. The Indian construction industry is worth about $120 billion and this could grow considerably, driven by major projects across the country. There are a number of problems in the construction industry in India that are attributed to various factors. The focus of the present research is to identify factors that influence the smooth completion of a project and develop a risk assessment model. The authors of the paper have made an attempt to analyze the present risk condition in the construction industry by meeting experts in the field to collect first-hand information as a first step towards risk assessment and suggest a risk response strategy. A total of 93 risk factors were identified and listed under various subgroups in this paper. A questionnaire was prepared on the basis of a literature review and was filled by six contractor...