The Effect of Contract Planning on Construction Project Performance
CHAPTER ONE
Aim and Objectives of the Study
The aim of the study is to investigate the effects of contract planning on construction project performance, and the objectives are:
- To determine contract planning practices applied in the construction industry.
- To assess awareness and usage of contract planning practices in the construction industry.
- To examine the factors affecting contract planning practices
- To evaluate the effect of contract planning practices to construction project performance.
CHAPTER TWO
LITERATURE REVIEW
Introduction
This chapter reviews the related literature in relation to the study variables as guided by the study objectives which were: To examine the effect of monitoring intensity on performance of the road construction projects in Imo State – Nigeria; to analyze the relationship between risk management and performance of the road construction projects in Imo State – Nigeria; and to assess the effect of evaluation on performance of the road construction projects in Imo State. Research gaps were identified and this provides a basis for the justification of the study.
Theoretical review
The theoretical basis for the performance outcomes of contract planning was founded on the agency theory. The theory adequately explains the relationship between the two parties in contract planning and conflicts that arise between the contractors and hiring entity, in this case Imo State Local Government which finally affect the performance of road
construction projects. While the district targets the goal of constructing high quality roads, on the contrary, the contractors want to maximize profits out of the contracted projects, which leads them to do substandard work through minimizing inputs to maximize gains.
According to (Allin & Flanagan, 2010), The agency theory occurs when one person or entity, the agent (road project contractor), is able to make decisions on behalf of, or that impact another person or entity (Imo State Local Government) the principal. This dilemma exists in circumstances where the agent is motivated to act in his own best interest, which are centrally to those of principals (timely delivery, quality of work, customer satisfaction), and is an example of moral hazard.
CHAPTER THREE
METHODOLOGY
Introduction
This chapter presents the methodology that was used in the study. The chapter specifically presents the research design, the population, sampling design, sources of data, research instruments, measurement of variables, reliability and validity tests, data analysis and anticipated limitations of the study and how they were addressed.
Research Design
The study design was cross sectional. Both quantitative and qualitative methods were used in the study. The researcher employed a correlation technique which was undertaken in order to ascertain and be able to describe the characteristics of contract planning measures and performance in the road construction projects in Imo State.
CHAPTER FOUR
PRESENTATION OF THE STUDY FINDINGS
Introduction
This chapter presents the findings from the study as guided by the objectives and the study questions which were: To examine the role of monitoring intensity in enhancing performance of the road construction projects in Imo State; to analyze the relationship between risk management and performance of the road construction projects in Imo State; to assess the role of evaluation in enhancing performance of the road construction projects in Imo state.
The presentation starts with the response rate, followed by the background information. Later, findings are presented following the study objectives regarding the relationship of monitoring intensity, risk management and evaluation.
CHAPTER FIVE
DISCUSSION OF THE FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
Introduction
This chapter presents the findings, conclusions, and recommendations of the study. The discussion follows study objectives which were: to examine the role of monitoring intensity in enhancing performance of the road construction projects in Imo State; to analyze the relationship between risk management and performance of the road construction projects in Imo State; to assess the role of evaluation in enhancing performance of the road construction projects in Imo State.
Discussion of the findings
Monitoring Intensity and performance
Monitoring intensity has been one of the most commonly known measures to enhance performance, more especially in an environment that involves a master (the government) and the agent (the contractor). The master normally has objectives and must ensure the agent’s work finally meets his expectations. However, the agent too has objectives which he can achieve by exploiting the weaknesses of the master and among the weaknesses is failure to monitor the projects which give chance to the contractors to do substandard work or fail to complete projects within the budgeted time frame, resulting into cost overruns as was the case for the unsuccessful road construction projects in Imo State. This concurs with Ngosong (2015) who indicated that lack of quality in the construction is manifested in poor or non-sustainable workmanship and unsafe structures; and in delays, cost overruns and disputes in construction contracts.
References
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