Koc, K and Pelin Gurgun, A (2021) Assessment of readability risks in contracts causing conflicts in construction projects. Journal of Construction Engineering and Management, 147(6): 20202277, ISSN 0733-9364
Abstract
Readability and comprehensibility of contracts are important. A contract would be more practical and functional if the clauses can be interpreted more consistently. Therefore, an analysis of risks influencing readability of construction contracts other than the more common approach of analyzing operational risk is essential. This paper aims to assess risk factors affecting readability of contracts to avoid or minimize conflicts among project parties by adopting a fuzzy Visekriterijumska Optimizacija I Kompromisno Resenje (VIKOR) technique. Readability risks were analyzed based on conflicting potential interpretations of clauses on time, cost, and quality criteria. The results identified the top three risks as: (1) unnecessary complexity in using nouns and improper use of referents; (2) the use of abstract and ambiguous words or sentences leading to multiple interpretations; and (3) unnecessarily long sentence length. To establish consensus among experts, compare stakeholders' perceptions, and ensure the robustness of the model, interrater agreement (IRA) analysis, Mann-Whitney U test, and sensitivity analysis were performed. The findings can help contract drafters recognize the importance of the role of readability of contracts. Improved readability can potentially lead to reduced conflicts, claims, and disputes in construction projects.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | conflict prevention; construction contract; contract interpretation; contractual risk; fuzzy vikor; readability |
| Index terms: | prevention, construction contract, risk factor, dispute, fuzzy logic, complexity, construction project, project party, sensitivity analysis |
| Subjects: | production management, financial risk, environmental hazards, systems engineering, sociology, dispute resolution, contract type, data science |
| Topics: | Digital Applications, Legal Issues, Stakeholder Management, Sustainability, Procurement, Cost Management, Engineering Principles, Project Management |
| Descriptive scope: | 3 PCA |
N.B. Descriptive scope is a count of how many of the five facets of empirical research are indicated by the words used in title, abstract and keywords. It is not intended as a judgement on the research; merely a count of the kind of word we would expect to indicate Phenomenon, Concepts, Theoretical framing, Empirical techniques, Analytical techniques. If all five are present, then a code of “5 PCTEA” will indicate this. If you feel the coding for this record is questionable, we welcome discussion around the terms we matched or the way we categorized them. The facet you would expect may not be coded, or a facet may be coded inappropriately. This can also bear on a larger question, of which facets should be treated as defining in construction management research. Please get in touch, and we will look at it. More details here