An assessment of the occurrences of dispute in public sector infrastructure projects
- Authors: Maseko, Lungisile
- Date: 2016
- Subjects: Dispute resolution (Law) , Construction industry - Management , Construction contracts , Conflict management
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/233028 , uj:23782
- Description: M.Tech. (Quantity Surveying) , Abstract: Construction disputes happen fairly often: they are a reality on every construction project and could happen at any stage during the design or construction phase of the project. The objective of this study is to investigate the causes - and effects of disputes in construction projects however, the study has revealed that stakeholders play a significant role in dispute causation as a result of disputes by the client, consultant - , or contractors, and through design deficiency. Moreover, primary findings from the study outlines four major categories of dispute causation such as construction related causes of disputes; financial/economical causes of disputes, management causes of disputes and contract related causes of disputes. This study further reveals that when disputes are not resolved in timeously, they become very expensive – in terms of finances, personnel, time, and opportunity costs. The visible expenses (e.g., attorneys, expert witnesses, the dispute resolution process itself) alone are significant. The less visible costs (e.g., company resources assigned to the dispute, lost business opportunities) and the intangible costs (e.g., damage to business relationships, potential value lost due to inefficient dispute resolution) are also considerable, although difficult or impossible to quantify, However, if disputes could be minimized and approached accordingly many disputes could be avoided. Nevertheless, if a dispute is not resolved promptly, it may escalate and ultimately require litigation proceedings which can be extremely costly for the parties concerned and even damage business relationships. The study is conducted with reference to existing literature, and unpublished and published research. Hence, this study explores the causes and effects of construction disputes and presents a robust background to the theories of construction project disputes.
- Full Text:
Evaluating the implementation of prequalification of civil engineering contractors
- Authors: Mthembu, Thulani E.
- Date: 2018
- Subjects: Construction contracts , Construction industry - Management - Study and teaching (Higher) , Construction industry - Management - Vocational guidance , Engineers - Study and teaching (Continuing education)
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/393855 , uj:32603
- Description: Abstract : This study seeks to evaluate the implementation of prequalification of contractors in South Africa, a case of Gauteng Province. The Problem statement being; problems associated with contractor procurement processes, which often affect projects success outcomes. A set of objectives are evaluated with regards to; challenges, benefits, efficiency of prequalification, identified most important criterion and evaluated if pre-qualification can possibly contribute in the delivery of civil engineering projects. A pilot study conducted to achieve the content validity of the questionnaire. The feedback from the respondents assists in refining the final questionnaire. The final questionnaire is prepared and distributed to the Construction Industry Development Board (CIDB) registered civil engineering contractors. The internal consistency of the research instrument items are examined based on Cronbach’s Alpha with overall coefficient value of 0.940 and greater than 0.700. The response rate is from a sample size of 74 contractors. It is also worth mentioning that 66% of contractors participated in the study have been previously involved in prequalification and 34% had not. A total of 85% of contractors who participated were based in Gauteng. Findings indicated that the contractor’s most rated challenge is project success or performance measures that differ from one client to another and therefore making it difficult to comply with all clients. The above challenge might be associated with the lack of having a universal prequalification system or model and eventually leading contractors to think that prequalification becomes an obstacle especially for growing contractors. Contractor’s views indicated that prequalification has benefits as they are pre-assessed which then minimizes the risk for contractors and clients; and subsequently helping contractors to identify areas of growth. Contractors still believe in the hard copy prequalification submission systems. Criteria of prequalification indicates that having capital to manage projects is very important with referenced records of previous completed civil engineering projects. The length of operation in the civil engineering industry is also a key criterion. Proper management of Health and Safety matters and compliance is an important attribute in the management of projects. Having registered engineers, qualified management in civil engineering, with in-house control systems all make operations of a contractor effective. Familiarity with local labour matters defined social economic criterion... , M.Phil. (Engineering Management)
- Full Text:
Investigating and assessing the quality of work undertaken by small and medium contractors in South Africa
- Authors: Mohapi, Victalis Lebohang
- Date: 2017
- Subjects: Construction industry - Performance - South Africa - Management , Construction industry - Management , Construction contracts , Engineering contracts
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/286027 , uj:30942
- Description: Abstract: A vision of change for quality of work and innovation within the perspective of revaluing the construction industry is essential to develop a culture of self-sustaining improvement, mutual recognition, respect and support in the long term on construction. Poor quality of work in small and medium contractors is also a major cause of rework, cost overruns as well as late completion which generally result in dissatisfaction of clients, stakeholders and the end users. According to Civil Engineering and Building Contractors(1998) poor construction performance in the form of cost over-runs, rework ,late completion, an unacceptably high accident rate, insensitivity to environment considerations, poor work practices and adversarial relationships result in poor quality and image of contractors and the industry. The purpose of the dissertation was to investigate the quality of work on construction projects under taken by small and medium contractors. The performance of the construction industry in terms of productivity, quality and project functionality has been low in comparison to other industries, and a low rate of innovation has been provided as the major explanation to this situation. The review of the literature indicates that there is a need for fresh look at the construction process and step change improvement in quality of work, productivity and performance in the construction and operations of buildings. The research attempts to put forward a case for restructuring of the construction sector in order to deliver a step in change in quality of output and to realize maximum value to all clients, stakeholders and the end users. Findings from the survey or the results of the study provide valuable information regarding the severity of the problem of quality of work in South Africa in Gauteng as a case study. The study further determines the cost of rework to the client and contractors. The importance of good quality performance improvement has been recognized by various researchers. The extent to which quality output and its implementation has however not been researched extensively especially in Southern Africa. The dissertation therefore provides an insight on the quality performance and improvement in construction projects. The dissertation examines and assesses the existence and severity of barriers for innovation as well as attempting to put forward a case for restructuring of the construction sector in order to deliver a step in change in quality output and to realize maximum value to all clients, stakeholders and the end users. The study also investigates and assesses the causes of poor performance in the construction work as well as determining current innovation practices and identifying key issues that contribute to successful implementation. , M.Tech. (Construction Management)
- Full Text:
Use of site meetings in the prevention of construction claims and disputes in the Swaziland construction industry
- Authors: Mavimbela, Bhekisisa Lawrence
- Date: 2017
- Subjects: Construction industry - Risk management , Construction projects - Management , Construction industry - Quality control , Construction contracts
- Language: English
- Type: Masters (Thesis)
- Identifier: http://hdl.handle.net/10210/280374 , uj:30127
- Description: M.Tech. (Construction Management) , Abstract: The construction industry is usually faced with claims and disputes that have surfaced from various aspects of project management that have been over-looked and under-estimated by the construction professional teams. The main aim of analysing the necessity of construction site meetings in the study was to identify the diverse ways in which site meetings assist in reducing claims that results in disputes. This study examined the use of construction site meetings in preventing construction claims and disputes in the Swaziland construction industry. The data used in this study were collected using secondary data via a literature review and through questionnaire survey in which questionnaires distributed to construction professionals. The findings revealed that the management of time using programme charts, site inspections and testing, cost checking during meetings and adequate specification documentation amongst others were among the measures assessed and analysed to prevent construction disputes and claims. Furthermore, the study indicated that the quality standards that site meetings enforce included; developing a project quality control plan, assessing workmanship during construction; increases communication in the construction team, assessing the specification used and appointing a competent construction manager contribute to the reduction of claims and disputes. In summary, the Swaziland construction industry must identify and discuss reasons why construction projects are completed late and with defects. Hence, the study recommends that construction professionals and clients must appoint competent project managers to assess and analyse all measures that causes construction claims and disputes using construction site meetings.
- Full Text:
The adequacy of IFRS 15 for revenue recognition in the construction industry
- Authors: Van Wyk, Milan , Coetsee, Daniël
- Date: 2020
- Subjects: Construction contracts , Financial reporting , Over time
- Language: English
- Type: Article
- Identifier: http://hdl.handle.net/10210/415922 , uj:35162 , Citation: Van Wyk, M. & Coetsee, D., 2020, ‘The adequacy of IFRS 15 for revenue recognition in the construction industry’, Journal of Economic and Financial Sciences 13(1), a474. https://doi.org/ 10.4102/jef.v13i1.474
- Description: Abstract: , Orientation: The International Financial Reporting Standard 15 (IRFS 15) Revenue from Contract with Customers replaced, amongst others, the industry-specific financial reporting standard (i.e. International Accounting Standard 11 [IAS 11] Construction Contracts), becoming effective on or after 01 January 2018. Construction is regarded as a complex industry with regular changes in contract scope and pricing. Research purpose: The objective of this article was to evaluate the adequacy of the guidance of the IFRS 15 to deal with the complexities of the construction industry in order to recognise revenue derived from construction contracts. In evaluating the application of the principles of the IFRS 15 to construction contracts, a structured approach was followed based on the fivestep approach followed in the IFRS 15. Motivation for the study: The lack of industry-specific guidance for construction revenue, together with the complexities of the construction industry, makes the application of the IFRS 15 challenging for construction entities. Research approach/design and method: The revenue recognition principles developed in the IFRS 15 were assessed through doctrinal research, a research method focusing on the core doctrines developed in practice. Reform-oriented doctrinal research was used to assess the doctrines developed in the IFRS 15 by applying authoritative interpretation. Main findings: This article found that the IFRS 15 provides an appropriate framework for the revenue recognition of construction contracts. However, the application of the guidance is based on the correct interpretation of the rights and obligations in construction contracts, which could create uncertainties in practice. Significant areas of estimation uncertainty and judgements should be disclosed. Practical/managerial implications: The implications of the IFRS 15 are that construction entities need to understand the rights and obligations in contracts and how these affect the revenue recognition of construction contracts. Contribution/value-add: This article provided insights into the application of the IFRS 15 to construction contracts.
- Full Text: