System dynamics modelling of contractural relationships between the owner and the contractor in the construction projects | |
| Author | Nasir, Muhammad Kamran |
| Call Number | AIT Diss no.CM-19-01 |
| Subject(s) | Construction contracts--Management Construction projects--Management |
| Note | A dissertation submitted in partial fulfilment of the requirements for the degree of Doctor of Engineering in Construction, Engineering and Infrastructure Management, School of Engineering and Technology |
| Publisher | Asian Institute of Technology |
| Series Statement | Dissertation ; no. CM-19-01 |
| Abstract | Relationships between the owner and the contractor have substantial impact on efficiency of the construction projects, and on performance of the construction industry as a whole. Owner/contractor (O/C) relationships in the construction industry are designed through a contractual arrangement in the form of a contract document. Typically, a contract document is drafted before the project construction stage by defining the scope of work to be executed under specific terms of agreements between the owner and the contractor. However, O/C relationships evolve over the time when different contract management activities are performed during the project construction stage. While performing various activities the owner and the contractor respond differently in different situations and behave in certain ways which can generate both intended and unintended outcomes depending upon the project situation at that particular time of the activity. Although, the owner and the contractor aspire to maintain good relationships due to their interdependence in order to achieve contract objectives, goals, and products; intended and unintended outcomes become observable units built upon their different feedback effects, which means the relationships are dynamic and important to manage. Therefore, this thesis elaborates on the dynamics of O/C relationships to identify their underlying building process. The overall research question is: how do O/C relationships evolve over the time during the construction stage of a construction project? Since managing O/C relationships is strongly connected to various contract management activities which can be responded differently at different times by the owner and the contractor, without considering the dynamic characteristics (such as cause and effect relationships, simultaneous activation of different feedback loops which resist the impact of each other on the output, nonlinear relationships, and time-delayed responses), O/C relationships will be vulnerable to confrontation, particularly in the project construction phase. To date, not many studies have highlighted the interconnections among various causes and effects of O/C relationships. Efforts to investigate the dynamics of O/C relationships are rarely found as well. The major intention of this research work is two folded. First is to probe different theories, models, constructs, and problems related to O/C relationships in the construction projects in order to identify the nature of O/C relationships and key variables affecting them. Second is to examine the dynamics of O/C relationships to uncover the underlying process of their development in the construction stage of projects and then recommend policies for the process improvement. The first objective is preliminary and is related to the exploratory kind of research to fully understand O/C relationships in the construction industry. The second objective is considered as the chief purpose of this study which was framed and executed to develop, verify, and validate a dynamic model of O/C relationships in the construction projects. To achieve the first objective, a list of variables was identified through a comprehensive literature review of different theories, models, constructs, and problems related to O/C relationships in the construction projects. A preliminary survey was implemented to confirm and update the list of previously identified variables. Updated variables provided foundation of the questionnaire used in the subsequent data collection process. For the second objective, data was collected from fifteen organizations performing the construction projects (i.e., three project owner organizations, four project consultant organizations, and eight project contractor organizations). The data was analyzed by using the system dynamics methodology. This resulted into a comprehensive and integrated model iii which identifies the underlying structure of O/C relationships in the project construction stage. The modelling process was based on a dynamic hypothesis which was developed through semi structured interviews with field experts and mapped by using cause and effect relationships between the variables affecting O/C relationships. The results show that, for better management of O/C relationships, they must be regarded as an integration of multiple feedback processes, which are interconnected and codependent with O/C relationships. Subsequently, a general simulation model of O/C relationships was formulated using stocks and flows diagram which is another important tool for systems thinking. The model was quantitatively and qualitatively validated by the application of several standard tests and data from a real construction project. The model can replicate the general behavior during the evolution of O/C relationships. Furthermore, several individual policies and their different combinations were explored through extensive simulation to analyze their effects on the dynamics of O/C relationships. In general, policy combinations produced better results than individual policies. A critical policy comparison proved that the combined effect of pre-construction stage policies was more influential on relationships in the construction stage than the combined effect of construction stage policies. The best result was found when both policy combinations were implemented simultaneously. |
| Year | 2019 |
| Corresponding Series Added Entry | Asian Institute of Technology. Dissertation ; no. CM-19-01 |
| Type | Dissertation |
| School | School of Engineering and Technology (SET) |
| Department | Department of Civil and Infrastucture Engineering (DCIE) |
| Academic Program/FoS | Construction Engineering and Infrastructure Management (CM) |
| Chairperson(s) | Hadikusumo, Bonaventura H.W.; |
| Examination Committee(s) | Chotchai Charoenngam;Kunnawee Kanitpong; |
| Scholarship Donor(s) | Higher Education Commission (HEC), Pakistan;AIT Fellowship; |
| Degree | Thesis (Ph.D.) - Asian Institute of Technology, 2019 |