The current practice and problems of contractual arrangement in construction industry

Abstract

There are risks involved in any type of contract arrangement in any construction project. The most appropriate contract method for the project needed to ensure optimum efficiency in the future. The present tendency that numerous disputes are arising from contracts in the industry is an indication that aspect of the administration of contract needs to be strengthened. This project paper aims to determine the most prefer applicability and effectiveness of contracts in the industry. The methodologies used will consist of a literature review and questionnaire survey distributed to the prominent in the industry. The questionnaire survey for this study was using Likert Scale and the respondents would indicate how strong they agreed and disagreed with each question. The method of selecting respondents would be from the well known Group 1 ? Clients and developers, Group 2 ? Consultants and Group 3 ? Contractors and Sub-contractors working each other before and the unknown who is introduce through the recommendation of the above respondents. The paper briefly describes the types of contractual arrangement available and the criteria need to be considered in deciding the preferred contractual arrangement. The paper provides conclusions regarding the most appropriate contract arrangement and recommendations factors in selection of contractual arrangement to ensure optimum efficiency in the future.