Avoiding and Mitigating Delay and Disruption Claims Conflict

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Avoiding and Mitigating Delay and Disruption Claims Conflict: Role of Precontract Negotiation Presented by

Avoiding and Mitigating Delay and Disruption Claims Conflict: Role of Precontract Negotiation Presented by Mansour Ali Al-Zahrani Author: Ajibade Ayodeji Aibinu

OUTLINE Ø INTRODUCTION Ø RESEARCH METHOD Ø DATA ANALYSIS Ø FINDINGS Ø CRITIQUES &

OUTLINE Ø INTRODUCTION Ø RESEARCH METHOD Ø DATA ANALYSIS Ø FINDINGS Ø CRITIQUES & LIMITATIONS ØQ&A

INTRODUCTION Ø Delay and disruption claims often generate conflict and contract dispute. Ø Avoiding

INTRODUCTION Ø Delay and disruption claims often generate conflict and contract dispute. Ø Avoiding construction delay climes lead to substantial financial saving projects ØExplores the effect of precontract negotiation as a means of avoiding or mitigating delay and disruption claim conflict

Why Delay and Disruption Claims Are Contentious The complex nature of Delay and Disruption

Why Delay and Disruption Claims Are Contentious The complex nature of Delay and Disruption claims The inconsistency of the available techniques/ methods for quantifying and analyzing delay and disruption claims. The position of the owner-appointed contractor administratorin the traditional contracting system. The nature of the conflicts in delay and disruption claims.

Role of Precontract Negotiation in Delay and Disruption Claims Resolution Seek to enhance mutual

Role of Precontract Negotiation in Delay and Disruption Claims Resolution Seek to enhance mutual understanding among parties regarding methodologies, techniques, and procedure for assessing and quantifying anticipated delay and disruption claims. Seek to improve the quality of information needed for assessing the impact of anticipated delay and disruption

Theoretical Framework and Hypothesis Primary Hypothesis Precontract Negotiation between the owner and contractor on

Theoretical Framework and Hypothesis Primary Hypothesis Precontract Negotiation between the owner and contractor on the rules of assessment and quantification for anticipated delays would moderate the relationship between the outcome favorability and the intensity of conflict on delay. Secondary Hypothesis High precontract negotiation- High perceive the quality of decision making-lower the intensity of conflict

RESEARCH METHOD Ø Using data obtained from a questionnaire survey was adopted to test

RESEARCH METHOD Ø Using data obtained from a questionnaire survey was adopted to test the research hypotheses. Ø The constructs of hypothesis were operational zed into measurable indicators. ØThe items investigated the antecedents of construction conflicts and dispute. ØItems developed in form of statements to measure individual construct of the main hypothesis

RESEARCH METHOD Ø Of 200 contractors contacted, 41 responded representing a response rate of

RESEARCH METHOD Ø Of 200 contractors contacted, 41 responded representing a response rate of 20. 5%. Ø Three procedure for testing the interaction hypothesis: Ø Multigroup procedure ØTwo-step construct score procedure ØProduct indicator approach with (PLS-SEM)

RESEARCH METHOD Ø Product indicator approach with (PLS-SEM)

RESEARCH METHOD Ø Product indicator approach with (PLS-SEM)

DATA ANALYSIS Reliability of constructs The minimum Cronbach’s alpha value is 0. 6 Discriminate

DATA ANALYSIS Reliability of constructs The minimum Cronbach’s alpha value is 0. 6 Discriminate Validity: Used Analysis of cross loading.

DATA ANALYSIS Correlation Analysis Test of Interactive Effect Hypothesis Early participation of parties through

DATA ANALYSIS Correlation Analysis Test of Interactive Effect Hypothesis Early participation of parties through precontract discussion mitigate the parties reaction to unfavorable decision on the claim when they arise during construction

Findings Ø Whether administrator's decision favorable or not the contractor reported lower intensity of

Findings Ø Whether administrator's decision favorable or not the contractor reported lower intensity of conflicts when there is clear precontrac negotiation and agreement. ØHigher levels of precontract negotiation were also associated with higher quality of decision making. ØWhile higher levels of the quality of the decision-making process were associated with a lower intensity of conflict.

CRITIQUES & LIMITATIONS Ø Positive: 1 - Article shows the benefit of prcontract negotiation

CRITIQUES & LIMITATIONS Ø Positive: 1 - Article shows the benefit of prcontract negotiation and its importance. Ø Negative: 1 - The number of participants in survey questionnaire is very small and response based on their experience. 2 - use many previous research model, scales and statistical analysis that are not clear in his article.

Q&A

Q&A