Impact of Construction Contract Types on Project Performance: A Study

This report examines the effects of construction contract types on project performance, focusing on key arguments and findings from various studies and literature reviews. It explores how different contract types, such as fixed-price and outsourced contracts, influence project outcomes, costs, and overall success. The analysis considers factors like contract management, project objectives, acceptance criteria, and dispute resolution mechanisms. The report highlights the importance of contract performance evaluation, legal frameworks, and the roles of various stakeholders like quality inspectors, architects, contractors, and project managers. It also discusses the potential implications of these findings for research and the practical application of contract clauses in construction projects. The report references multiple articles and studies to support its findings, providing a comprehensive overview of the topic.

Effects of Construction Contract Types into Project Performance
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Effects of Construction Contract Types into Project Performance
Discuss the Key Arguments and Findings
Projects are considered as the fundamental mainstream analogy in the different organizational
systems. Most of the worldwide organizations have embarked on utilizing both the programs and
projects to achieve the set objectives of their companies. The utilization of the programs and
projects in attaining the strategic goals of the company often considers three aspects in line with
the plan. They include uncertainty, complexity as well as the ambiguity elements which affect
the operations and the overall socio-economic issues of the company. It is important to note that
projects assist in the mobilization of competencies and resources with the aim of bringing
strategic change and thus, adding source value and competitive advantage in the long run. The
research on the fixed-price contract established that there are a number of benefits associated
with the project costs (Shrestha and Maharjan 2018 p.22). It is important to note that 95% of the
surveyed work in line with the project established that clear project statement is a fundamental
requirement for the attainment of the project goals. However, it is essential to incorporate the
delivery concept, alternative means of resolving the emerging disputes as well as having a well-
structured project acceptance mechanism.
Conversely, there is a consideration on the projects which yield less success in the long run. It is
important to note that in such situations most firms tend to be satisfied with the results provided
that they adhere to the project goals as well as outsourcing contracts. Preferably, the research
established that there are positive correlations regarding the outsourced projects and overall
performance regarding the different manufacturing enterprises. Some of the critical aspects and
elements which impacts on the project immensely include acceptance criteria, project objectives,
contract type as well as dispute relation mechanism. The study conducted on the management of
the contract influence established that there immense and successful trends depicted in line with
the outsourced project performance. Subsequently, the analysis determined that 66% of the
overall variation reported in the project performance is accounted by both the collective factors
as well as contract management (Mutua, Waiganjo and Oteyo 2014 p.9)
The literature review and studies on the overall performance have established that it is
moderately satisfactory regarding the contract management. This study showcases the most
potent effects in line with the performance of the outsourced project. The analysis on the project
management established that are different avenues often applied in improving the outsourced
project performance. Primarily, the study preferred the involvement of the experts to train the
team members and project managers on the certification and management policies of the
contract. The train targets the manufacturing enterprises with the aim of improving and hastening
the project performance in the parametric medium sectors in the long run (Suprapto, Bakker, Mooi,
and Hertogh 2016 p.1071).
Chen et al. (2015) reported that there different aspects which have significant impacts on the
contract types, sustainability levels as well as project sizes. Some of the elements include project
characteristics, procurement method, and owner type. The analysis of the data often analyzed
statistically, and their effects reported as well. The concept can be represented as indicated below
(Chen et al. 2015 p.04015029).

Figure Illustrating the Statistical Analysis of Different Factors In Line With Contract Type
Describing How You Think They Apply to Your Topic and Specific Research Questions
Notably, it is important to note that the concept of contract performance in engineering
construction is of fundamental advantages in the long run. In essence, the evaluation of the
contract performance not only helps in attaining the success of the project but also the particulars
which one needs to have in achieving the strategic goals of the project (Zhang et al. 2016). Also,
the evaluation of the contract performance ensures that the contractor adheres to the regulations
and legal frameworks outlined in the project specifications. The scorecard of this project
encompasses on the different types of the contract project. The literature reviews elaborated on
the key elements regarding the process and this entails both the traditional and integrated
contract in line with cost performance and the building projects. The specific research question
in line with the literature is essential since it will help in establishing the importance of the
various individuals in line with the construction project. Some of the critical plays which the
thesis focused on and have great significance in this context include quality inspectors,
architects, contractors and project managers in the long run (Olaniran 2015 p.235).
Potential Implications of these Findings for your Research
The findings of this research have immense importance in line with the contract regarding the
legal framework and the overall project performance (William and Ashley 1987 p.521). The
appraisal of the norms, more so, the contract types and the particulars will help in determining
the success of the project as well as the overall costs which one has to incur in the long run. The
legal framework also ensures that all the arising disputes in the project have set criteria and legal
background on which the discussion and resolutions can be made from as far as the project is
concerned (Arditi, Nayak, and Damci 2017 p.136)

References
Three Articles
C. William, I. and Ashley, D.B., 1987. Impact of various construction contract clauses. Journal of
construction engineering and management, 113(3), pp.501-521.
Chen, Q., Xia, B., Jin, Z., Wu, P. and Hu, Y., 2015. Choosing appropriate contract methods for design-
build projects. Journal of Management in Engineering, 32(1), p.04015029.
Mutua, J.M., Waiganjo, E. and Oteyo, I.N., 2014. The influence of contract management on performance
of outsourced projects in medium manufacturing enterprises in Nairobi County, Kenya. International
Journal of Business and Social Science, 5(9).
Other References
Arditi, D., Nayak, S. and Damci, A., 2017. Effect of organizational culture on delay in
construction. International journal of project management, 35(2), pp.136-147.
Olaniran, O.J., 2015. The effects of cost-based contractor selection on construction project
performance. Journal of Financial Management of Property and Construction, 20(3), pp.235-
251.
Shrestha, P.P. and Maharjan, R., 2018. Effects of Change Orders on Cost Growth, Schedule
Growth, and Construction Intensity of Large Highway Projects. Journal of Legal Affairs and
Dispute Resolution in Engineering and Construction, 10(3), p.04518012.
Shrestha, P.P. and Maharjan, R., 2018. Effects of Change Orders on Cost Growth, Schedule
Growth, and Construction Intensity of Large Highway Projects. Journal of Legal Affairs and
Dispute Resolution in Engineering and Construction, 10(3), p.04518012.
Suprapto, M., Bakker, H.L., Mooi, H.G. and Hertogh, M.J., 2016. How do contract types and
incentives matter to project performance?. International Journal of Project Management, 34(6),
pp.1071-1087.
Zhang, S., Zhang, S., Gao, Y. and Ding, X., 2016. Contractual governance: Effects of risk
allocation on contractors’ cooperative behavior in construction projects. Journal of Construction
Engineering and Management, 142(6), p.04016005.