An examination of the key drivers of amendments to the standard forms of contract in the South African construction industry

Mewomo, M C; Aigbavboa, C and Lesalane, P (2018) An examination of the key drivers of amendments to the standard forms of contract in the South African construction industry. Journal of Construction in Developing Countries, 23(1), pp. 115-124. ISSN 1823-6499

Abstract

Some of the perceived benefits of standard forms of contract are standardisation, uniformity, stability and the availability of well-established terms and conditions which allow predictability and greater certainty in legal relations. Thus, the standard forms are widely adopted in the construction industry to facilitate the contractual arrangements between contracting parties in a construction project. Having become commonplace in construction transactions, they are often generally accepted by the various contracting parties and their advisers. Notwithstanding its importance, literature suggests that it is practically unfeasible to devise a standard form of contract that would cater for all eventualities and construction issues that might occur in construction projects. As a result, the existing standard forms are sometimes amended or modified in order to fit the clients' requirements and also to suit the contractors' expectations. This paper therefore investigates the key factors that drive amendments to the standard forms of contract in the South African construction industry. Considering the fact that this paper presents findings that relied on a descriptive survey method, the mean item score was used for presenting the results. The data was obtained through an online questionnaire survey sent to the construction professionals who are usually involved in the selection of contract forms for the client in the Gauteng Province of South Africa (SA). The data was analysed using the statistical package for the social sciences (SPSS) and the results indicate that "altering risk allocation", "inserting additional obligation" and "correcting something which is not applicable" are the three prominent factors that highly drive the amendment of standard forms of contract in the Gauteng Province of South Africa.

Item Type: Article
Uncontrolled Keywords: amendments; contracting; drivers; South Africa; standard forms of contract
Index terms: stability, survey, construction project, questionnaire, South Africa, package, contracting party, standard form of contract, social science, construction professional, standardization, risk allocation, construction industry
Subjects: industry analysis, structural engineering, performance measurement, theoretical framing, Geography, production management, financial risk, professional development, contractual arrangements, data collection methods, practitioner
Topics: Cost Management, Engineering Principles, Information Management, Project Management, Geographical Context, Research Practice, Roles and Professions, Procurement, Quality Management
Descriptive scope: 5 PCTEA

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