Critical Assessment of Post-Award Contract Administration Performance in Construction Projects

Abstract

While proper construction contract administration (CCA) is a core competency and a principal success factor for projects, the process is inevitably complex and improper performance of the associated tasks and processes may lead to disputes whilst further imposing unnecessary risks to the project. Therefore, there is need for an extensive investigation of factors that affect CCA performance. This study proposes an assessment tool to improve the CCA implementation by introducing an operational, systematic, and multidimensional contract administration performance model (CAPM) at the project level. Past research, semi-structured interviews, and a two-round Modified Delphi study were employed to identify the importance of 93 indicators that affect CCA performance in 11 process groups. The worst-case scenario of the mode score, mode value, and standard deviation to mean ratio (SDMR) were conducted to check the overall agreement on Delphi rounds. The mean value and IRA analyses were applied to quantify the significance and strength of the agreement of the identified items. The agreement level represents 94.6 and 100 % of the proposed factors and groups, respectively. After the Delphi study, the data collected from 366 construction professionals through an online survey was utilized to develop a Fuzzy- Structural Equation Model (SEM). The second-order Confirmatory Factor Analysis of the SEM supported and validated the research hypotheses. Upon model validation, a Construction Contract Administration Performance Index (CCAPI) was formulated, an alternative short model with 33 factors was introduced, and CAPM cross-platform mobile app was developed. Models were practically utilized in the 13 construction projects to capture and benchmark the CCA performance levels. The study captured a significant correlation between CCA indicators, groups, and overall performance. Communication & relationship; performance monitoring & reporting; and quality & acceptance management were the top 3 groups that affect CCA performance. The study set 30 recommendations for construction professionals. Moreover, the practical model implementation showed that contractual risk management might need further attention.