Study On Key Success Factors for the Cost-Plus Construction Contract-Lesson Learned from Private Construction Project
Date Issued
2015
Date
2015
Author(s)
Hsu, Chin-Chien
Abstract
Cost-plus contract for construction projects cannot be widely adopted because there are issues of information asymmetry and mutual trust usually existed between the owners and contractors. To solve information asymmetry problem of the cost-plus contract, the study proposes to building a public Information platform for owners and contractors in major process of construction phase, from planning and design review, estimation, procurement and outsource, construction planning, construction drawings, construction management and valuation re-estimation, control, acceptance and settlement and closing, operation, maintenance and repair, health examination service to feedback and design modification. This platform can be functionally as follows: (1) planning design review meeting, budget review meeting, co- procurement and outsource ; (2) joint review construction plan and drawings; (3) project presentations of sub-construction details before implementation, materials and equipment inspection and testing, sample test, sample construction, self- inspection, product quality inspection and testing;(4)providing real-time network cost transparency, organized construction, structure, decoration and housing briefing; (5) holding open visiting of grouting, water pressure and proof test; customer service, repair, management feedback. The research questionnaire is designed through expert interview study regarding building a public information platform for owners and contractors in construction phrase. The results of response questionnaires from owners and constrictors show building a public information platform is able to solve information asymmetry problem of cost-plus contract for construction projects. This platform make contractors be able to provide owners with enjoy participating , communicating, selecting and acquiring real-time equally transparent information service to reduce risks of misunderstanding, rift, dispute caused by information asymmetry and poor communication. The statistical analysis results of communication, interview and questionnaires indicate owners and contractors can generate mutual trust in their interaction process by respecting each other. The results from questionnaire survey also imply that mutual trust is a very critical success factor to cost-plus contract for construction projects. With regard to cost-plus contract for construction projects, the study proposes to build a public information platform for owners and contractors in construction phrase to solve the problems of information asymmetry and mistrust during execution process so that the public information platform will become a very critical success factor to cost-plus contract for construction projects. Academically, this study can be regarded as an exploratory research for construction management model. In practice, it can not only help construction industry to increase the quality of construction process also improve the standard operating procedures of construction.
Subjects
Cost-plus Contract
Information A asymmetry
Public Information Platform
Type
thesis
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ntu-104-P01521718-1.pdf
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