The use and abuse of programmes in construction contracts

Kidd, A; Appelbe, S and Morgan, A (2015) The use and abuse of programmes in construction contracts. Proceedings of Institution of Civil Engineers: Management, Procurement and Law, 168(6), pp. 294-301. ISSN 17514304

Abstract

Many disputes arise on engineering and construction contracts due to the risks that are inherent in the realisation of complex projects in challenging environments. While contracts encourage collaboration between parties, the commercial consequences of managing risk and uncertainty can create tension. This paper reflects some of the authors’ experience of the use of programmes in international construction contracts. It identifies some of the issues that arise from integrating the rights and obligations set out in contract conditions with time, cost and risk management activities. It highlights the challenges that face project funders, contract administrators, project managers, designers, contractors and their suppliers in planning and reporting on the progress achieved in their project. This paper illustrates the tension between the commercial consequences of risk and transparency of contractor performance. It discusses how issues can arise that reduce the effectiveness of the programme as a collaborative management tool. It also proposes how some of these issues can be guarded against when establishing the contracting environment and in the subsequent administration of the contract.

Item Type: Article
Uncontrolled Keywords: contracts & law; planning and scheduling; project management
Index terms: scheduling, project manager, complex project, collaborative management, construction contract, collaboration, contract administrator, designer, contract condition, funder, contractor performance, programme, project management, face, international construction, effectiveness, dispute, transparency, risk management
Subjects: project controls, operations research, risk assessment, dispute resolution, psychology, contract type, contract structure, management, project management theory and practice, performance management, strategic management, strategic project management, contract management, profession, practitioner, professional development
Topics: Time Control, Information Management, Business Strategy, International Construction, Contract Administration, Procurement, Quality Management, Risk Management, Project Management, Organizational Design, Roles and Professions, Legal Issues
Descriptive scope: 2 PC

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