Analysing the novated design and construct contract from the client's, design team's and contractor's perspectives

Doloi, H (2008) Analysing the novated design and construct contract from the client's, design team's and contractor's perspectives. Construction Management and Economics, 26(11), pp. 1181-1196. ISSN 1466433X

Abstract

The novated design and construct (ND&C) contract is one of the increasingly preferred options among developers of large commercial and residential projects across Australia. As a consequence of novation, the design team's obligation to the client gets transferred to the contractor who becomes responsible for carrying out the detailed design work at a later stage of project life cycle. Subsequently, there are some inherent factors that can depict the effectiveness of how all parties in the process interact leading to a successful delivery of project through ND&C contracts. A common set of 31 influencing attributes have been identified through a systematic research approach and their relative significance and impacts have been determined based on a structured questionnaire survey in selected construction projects. By performing the factor analysis, a total of eight factors significant to ND&C contracts were extracted, namely (1) impact of initial design; (2) client's involvements in post novation design; (3) selection of design team; (4) contractor's obligation; (5) morale in post novation; (6) experience of design team; (7) relationship between contractor and design team; and (8) expertise of DT in ND&C projects. With a clear understanding of the roles of clients, design team and the contractors, these findings could potentially contribute to develop a company's procedures or enhance existing knowledge in relation to the ND&C procurement approach.

Item Type: Article
Uncontrolled Keywords: design novation; factor analysis; procurement practice
Index terms: Australia, morale, life cycle, factor analysis, effectiveness, option, survey, design team, questionnaire, construction project, residential project
Subjects: performance management, economic development, Geography, production management, decision analysis, statistical analysis, leadership, data collection methods, value management, professional practice
Topics: Risk Management, Research Practice, Geographical Context, Project Management, Organizational Design, Quality Management, Design Practice, Urban Studies
Descriptive scope: 4 PCEA

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