Professional Documents
Culture Documents
Panel Contractor Satisfaction and Whether Collaboration and Partnering are Happening in a Bespoke Contract
By;
Content
1.0 2.0 3.0 4.0 5.0 Introduction Review of Literature Research Methodology Data Collection & Analysis Discussion, Conclusion and Suggestion
1.0 Introduction 1. 2. 3. 4. 5. 6. 7. Background Study Problem Statement Objectives of the Study Key Question Scope of Study Significant of the Study Assumption and Limitation
Chapter 1: Introduction
1. Background Study
There are various type of contract uses in construction business in Malaysia. Standard local contract uses are PWD 203a/b, PAM, CIDB, IEM and etc. International standard contract uses namely JCT, APM, ICE, FIDIC, NEC and etc. Modified version or bespoke contract were uses in some industries e.g. oil and gas and telecommunication industries.
Bespoke contracts
In Malaysia its commonly used in the Oil and Gas and Telecommunication sectors. Involved specialist jobs and were carried out by registered panel contractors . (Cons.) Often labelled as one-sided contract as they were designed by the clients. (Pros.) Modern contract strategies such as win-win approach, partnering, joint decisions, collaboration, rewards, cooperation, trusts and etc. that may help in meeting the project common objectives time, cost and quality S & S can be found.
Problems to be addressed in this study are as follows; Are the panel contractors to a bespoke contract satisfied with the form of contract used and how it is managed by the client? Whether the modern contract strategy is being practised in a bespoke contract.
2.1 Introduction
In carrying out this research, the relevant topics in construction contract administration and interpretation such as panel contractor satisfaction, bespoke contract, collaboration and partnering were identified and discussed. The identification of keywords and important terminologies related to these research objectives were also defined.
2.5 Partnering
Partner/partnering can be defined as a friend who shares a common interest or participates in achieving a common goal. In the construction industry partnering approach can be applied in meeting the three project objectives which are time, cost and quality. Ashworth (2006) - It is a procedure for improving working relationships, based on assumption that strong players make each other stronger; weak ones destroy each other and not only about systems and methods but it is essentially about people, enabling them to operate more efficiently, effectively and economically. American Arbitration Association (1993) - Partnering is a synergy, a cooperative, collaborative management effort among contracting and related parties to complete a project in the most efficient, costeffective method possible, by setting common goals, keeping line communication open, and solving problems together as they arise .
2.7 Summary
To achieve satisfaction, whatever form of contract used, the players need to understand and carry out their obligations well as per stipulated in the contract. This study can also determine whether modern contract strategies such as collaboration, partnering, win-win approach, jointly resolve problems, reward, cooperation, trust and etc. were practised. Outcome of this study should be able to determine whether the panel contractors have fully understood the form of contract (bespoke contract) use; whether they are satisfied with the bespoke contract that is commonly used in the oil and gas and telecommunication sectors; and whether the modern contract strategies such as collaboration and partnering are being practised in their contract.
Chapter 3: Methodology
3.1 Introduction 3.2 Research Design 3.3 Survey Method 3.4 Sampling 3.5 Likert Scale 3.6 Data Analysis 3.7 Research Frame Work
3.1 Introduction
Research methodology or research can be defined as a systematic approach in search of specific answers that can be tabled for those problems that have been identified. A research should be carried out to go through a certain systematic process to initiate new findings (Ranjit Kumar, 1996). The moment a method to carry out a research is identified, it is important to make the intentions and objectives are understandable and clear. Masters projects should not be over ambitious and its process must tally with the resources available. It should portray the total research methodology carried out in relation to research design, population, the research instrument, questionnaire design, data collections, data verifications, analysis process and summary.
3.4 Sampling
Respondents
The research will focus on a selected group that will consist of the people who work with the panel contractors of a Natural Gas Provider. Among the respondents that will be targeted in this study are the contractors owner and the contractors management level e.g. the project managers, contract managers, construction manager and engineers.
4.1 Introduction
The questionnaires were focused on the respondents knowledge, understanding and experiences to a form of contract uses by a natural gas provider. All the data gathered were stored and analysed using SPSS 18.0. The data were analysed to determine and identify whether the results collected from the survey are addressing the research objectives;
To identify whether the panel contractors have fully understood the form of contract they use especially the bespoke form of contract. To identify whether the panel contractors are satisfied with the bespoke contract that were commonly used in the oil and gas and telecommunication sectors. To identify whether the modern contract strategies such as collaboration and partnering are being practised in their contract.
4.2 Findings
From 13 panel contractors, 48 respondents filled up and returned the questionnaires. 100% of the survey was carried out among the respondents related to the panel contractors registered with a Natural Gas Provider.
Therefore they should be able to understand the questionnaires and answer them correctly.
More than 70% of the companies have been in this industry 11 years or more.
83.33% were married and 16.67% are single. 62% of them are 30 years of age or older
31.25% are engineers, 22.92% are project managers, 8.33% are construction managers, 29.17% are directors/owners, and 8.33% are others.
About 79% of the respondents have been working in the company for more than 4 years.
87.5% of the respondents have been working in the industry for at least 4 years or more.
83.33% of the respondents claimed they knew what a bespoke contract is and only 16.7% said they do not.
v) Mutual Trust
Cronbach's alpha is a reliability coefficient that indicates how well the items in a set are positively correlated to one another. The result shows that the Cronbach's alpha value is 0.950 and this mean the results are reliable, as the closer it to 1, the higher the internal consistency reliability is (Sekaran, 2003). Cronbach alpha based on standardized items is something similiar but is computed alpha when all scale items are standardized to have equal means and variances.
5.1 Introduction
All the research objectives listed in Chapter 1, will be addressed, imprecisely discussed and concluded via the findings obtained from the research questionnaires.
5.2 Summary of main Findings; Research Objective 1 Research Objective 2 Research Objective 3
Research Objective no. 1: To identify whether the panel contractors have fully understood the form of contract they use especially the bespoke form of contract? Majorities of the respondents have fully understood with the form of contract uses. This can be seen from the answer to question 11 of Part A, where 83.33% of the respondents claimed they knew what is bespoke contract is and only 16.7% do not. In addition when they were asked in question 1 of the Part B, whether they have fully understood about the form of contract uses, majorities answered they do understood with a median value of 3.833.
Research Objective no. 2: To identify whether the panel contractors are satisfied with the bespoke contract that is commonly used in the oil and gas and telecommunication sectors. Satisfaction is low. The feedback gathered from the questions base on the factor of, Panel Contractor Satisfaction on the Bespoke Form of Contract is that, out of twelve (12) questions, two (2) agreed, eight (8) undecided and two (2) disagreeing. Majority of the respondents claimed that they fully understood the bespoke contract that is shown by the mean value of 3.833. But most of them are undecided whether the form of contract use is fairly treated between the clients and the panel contractors.
Research Objective no. 2 (continued): Majority of the respondents are agreed that the payment was paid on time. The survey outcome also determined that no safeguard on the unforeseen risks were given by the client but again the respondents were undecided whether the good relation between the client and the contractors exist via new contract strategy was being practised in this contract and whether the client treated their V.O. and E.O.T. fairly. On the other hand when they were asked about taking legal action shall their V.O. and E.O.T. claims were rejected, majority of the respondents answered they disagreed to proceed with it. This disagreement also contributed to contractors satisfaction in the form of contract as less or no arbitration claims are one of the outcomes towards the practising of modern contract strategy. The form of contract and the client does not protect the panel contractors from the new submerged risk.
Research Objective no. 3: To identify whether the modern contract strategies such as collaboration and partnering are being practised in their contract. Majority of respondents agreed that most questions under the key questions of collaboration and partnering, Establishment and communication of conflict resolution strategy; Commitment to win-win attitude; Regular monitoring of partnering and collaboration process; Clear definition of responsibilities; Mutual trust; Willingness to eliminate non-value added activities; Early implementation of partnering process; and Willingness to share resources among project participants are happening in the contract that they served.
Research Objective no. 3 (continued): Collaboration and partnering are practised but not up to maximum. It was not confirmed until what degree they have been carried out. A new contract strategy which includes collaboration and partnering were practised but they were not properly monitored.
5.3 Limitation
Insufficient sample size for the wide range of questionnaires. Larger group results will be more accurate Honesty of respondents. Some of the respondents might not be truthful either they do not want to disappoint the client or they actually do not understand the questions asked. Respondents do not really understand or lack the knowledge about modern contract strategies that involve collaboration and partnering. No tools in confirming whether these respondents really knew what a bespoke contract is all about and fully understood the form of contract which is currently used.
5.4 Conclusion
Generally, the first second and third objectives are totally depending on the answers given by the respondents. The findings to these objectives were acquired from the data gathered and analyses from the survey questionnaires that were filled by the respondents that belong to the panel contractors of a Natural Gas Provider.
Thank You