Berends, T C (2007) Contracting economics of large engineering and construction projects. PhD thesis, Delft University of Technology, Netherlands.
Abstract
Large Engineering and Construction Projects (LECPs) form an important area of economic activity, covering a range of different artefacts. These projects have in common that they are massive undertakings, spanning long time periods and they involve large capital investments. Uncertainty and risk are the ruling paradigms. In the oil, gas and petrochemical industry, Engineering Contractors (ECs) play a key role in the development and implementation of the LECPs for processing facilities. The contract between owner and EC formalises their relationship, specifying the obligations and liabilities of the parties as well as the allocation of risk. The contracting process (covering the entire project life-cycle) comprises an important governance mechanism on LECPs. An experience-based theoretical framework of contracting for LECPs is developed by analysing and modelling contracting strategies and tactics and validation through normalised data. The research considers: 1. Contracting and market conditions; 2. Competitive lump sum bidding; 3. Reciprocal dependency between owner and EC; 4. Relational risk in cooperative contracting; 5. Earned value and cost phasing; and 6. Contract types and performance. The findings provide guidelines for effective contracting (efficiently with the ability to adapt to changing circumstances), facilitating the development and execution of LECPS faster and at lower cost than with traditional approaches.
| Item Type: | Thesis (Doctoral) |
|---|---|
| Thesis advisor: | Dhillon, J S |
| Uncontrolled Keywords: | project contracting; engineering procurement construction; contract management; risk allocation; large projects; oil and gas industry |
| Index terms: | paradigm, risk allocation, economic activity, oil and gas, implementation, modelling, engineering contractor, governance, owner, construction project, validation, artefact, bidding, contract management, liability, capital investment, strategy, market condition |
| Subjects: | firms, professional development, education and knowledge transfer, management, industry analysis, sociology, economic and policy analysis, business, production management, financial risk, contract management, liability law, contractual arrangements, bidding, economic analysis, analytical methods |
| Topics: | Legal Issues, Procurement, Project Management, Engineering Principles, Contract Administration, Governance, Stakeholder Management, Roles and Professions, Research Practice, Information Management, Cost Management, Business Strategy |
| Descriptive scope: | 3 PCT |
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