Chen, Y; Wang, W; Zhang, S and You, J (2018) Understanding the multiple functions of construction contracts: The anatomy of FIDIC model contracts. Construction Management and Economics, 36(8), pp. 472-485. ISSN 01446193
Abstract
Construction contracts, such as FIDIC model contracts, are relatively complex and cumbersome, and their composition needs to be better understood. This research uses a multi-functional approach that is widely recognized in the contract literature, and anatomizes FIDIC model contracts in order to gain a holistic and comprehensive understanding of them. Moreover, this research comparatively analyses the distribution of the three functions, namely control, coordination and adaptation, in four forms of FIDIC model contracts to explore how project delivery systems (PDSs) affect contract design. After a classification framework that includes three functions and ten subclasses was established, the FIDIC 1999 series model contracts were coded sentence by sentence using content analysis. The results show that the three functions are all non-trivially reflected in construction contracts and are influenced by project complexity. Regarding different PDSs, the complexity of contract control is relatively rigid; the complexity of contract coordination is largely influenced by PDSs; and the impact of PDSs on the complexity of adaptation provisions depends on the sub-class. The conclusions may help scholars and practitioners understand construction contracts from a functional perspective, and offer references for contract designers to reasonably consider the distribution of the three functions in construction contracts.
| Item Type: | Article |
|---|---|
| Uncontrolled Keywords: | content analysis; contract documentation; contract structure; FIDIC |
| Index terms: | complexity, project delivery, contract structure, FIDIC, coordination, content analysis, model contracts, adaptation, contract documentation, project complexity, designer, practitioner, construction contract |
| Subjects: | project delivery, management, systems engineering, contractual arrangements, standard forms of contract, user focus, organizational theory, contract type, practitioner, profession, data analysis and analytics |
| Topics: | Contract Administration, Procurement, Project Management, Organizational Design, Engineering Principles, Design Practice, Roles and Professions, Research Practice |
| 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