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Specific Management Strategies in Different Construction Contracts

LITERATURE REVIEW
There are gaps in the literature review which was carried out. The main gap acknowledged was the lack of sources mentioning the specific management of the different contracts in particular in terms of change management, there is a lot of information out there about the management of change, and in construction however there was a lack of research in value for money and how it relates to change management. In the future there should be more researched carried out, perhaps first hand in different companies of what methods are used and how they can be kept uniform in order to provides clients and contractors themselves a saving money.
4.5 PRIMARY DATA
4.5.1 INTERVIEW WITH INTERVIEWEE B & INTERVIEWEE A
Interviewee B is the client for NHS Highland. He has been in the industry for over 40 years and has extensive experience with both types of contracts mentioned in this dissertation.
Interviewee A is a Senior QS for Kier Construction Ltd. She has been in the industry for over 30 years and has extensive experience with both types of contracts mentioned in this dissertation.
They were both interviewed on the questions which will be mentioned below.
These interviews are types of primary data collection, and the interviews seemed to be a good way of gathering research on this topic, more so than doing the literature review.
Although the interview is only targeting one person at a time, between them they have so much experience that it has been quality over quantity in terms of having a more extensive methodology. Due to time constraints the interviews had to be limited to a few people, with one interviewee not getting back to me in time with an interview date.
4.5.3 CASE STUDY – RAIGMORE HOSPITAL
A case study has been done to outline, issues, positive aspects and limitations to the processes of the NEC3 contract. This case study has been done to demonstrate some of the arguments made by industry professionals in a current live project which will make the arguments stronger for, or against.
This case study is a type of primary data collection, and this seemed to be a good way of gathering research on this topic, more so than doing the literature review.
Although there is only one case study, there was time limitations and therefore this was deemed sufficient. Due to time constraints the case study could not be completed in more details.
4.5.4 INTERVIEW WITH PETER CTORI
No response in time to carry out the interview.
4.5.5 CASE STUDY
4.5.5.1 INTRODUCTION
This case study is an in depth, detailed study of the contractor’s team for Kier Construction working on a specific project for the NHS. The intention is to justify the outcome of the research completed, with real life examples of an on-going project. This study was not conducted using any bias.
The project which the team was working on was Raigmore Hospital. It was a small project which was intended to take 3-4 months to complete yet ran for over a year and a half and is still going. All this because of changes, lots of changes.
Some basic facts regarding the project…
– Starting value of the job was 180,000.00
– Current estimated value 1,800,000.00
– Started October 2016
– Still on-going
– 4 members of the team
– 1 client
– No project manager from the clients side
– NEC3 Option A
– Critical Works as it deals with patients
– High Risk
With a difficult scenario, it was important to have a team working on this project which would be able to handle the pressure. The pressure increased when the client started to change things 1 week into the project.
The team consisted of a QS (Quantity Surveyor), PM (Project Manager), SM (Site Manager), and a CM (Contracts Manager)
QS – 28 Years’ Experience
PM – 16 Years’ Experience
SM – 15 Years’ Experience
CM – 25 Years’ Experience
Amongst these professionals there is a very substantial amount of experience. This experience is useful when it comes to tackling problems on a project and the experience would suggest that some changes that may occur would have been foreseen. This is a team that would be able to handle problems and present solutions to problems that would show as a benefit to the project. This team had worked on at least a few projects each with NEC3 contracts, mostly option A.
4.5.5.2  COMPENSATION EVENTS AND RECORD KEEPING
Working for a large company has its ups and downs according to the team. The downs can be that some processes can be very long winded and present a hurdle when it comes to approvals. Working for a big company is difficult enough with all the paperwork and processes that must follow, NEC3 just added on to that. The team says there is so much paperwork involved, that each person needs a personal assistant to just to complete the paperwork.
Project started, and drawings were issued to the sub-contractors, who in turn returned the price of works, this was accepted, by somebody outside of the team (somebody from a pre-construction team. It was then given to the on-site construction team to run it.
One order was just about to be placed, and first start date on site, talks about change took place. The QS was told that there may be additional work, which the client was looking to get done. Before they had completed the final works, more works were added on.
A compensation event was sent to them saying there had been a change in the works information and therefore there may be a time implication, but also a cost one. The client agreed to this and signed and sent back the compensation event to the contractor. The extra works was not defined in detail, and there was only rough information of what needed to be done given to the contractor. Drawings with changes were submitted, and the team went through them and sent the works out to tender. Prices were returned, and the client said it was “too expensive”. Client said he would need approval from the authority above him for funding and extras were put on hold.
Client came back and agreed a date with the team of when the works were to begin and completed. At this stage the process of the NEC3 was not followed. No activity schedule was submitted to the client, and there was no programme. The team was working on several projects, and either due to lack of time, or because nobody took ownership the programme and activity schedule was not done. Normally the project manager, or contracts manager would carry out this activity, depending on the company the process ownership can be placed on different people within an organization, as long as the information is given to the client.
The information wasn’t presented and given to the client in the correct manner, the danger with this behaviour is that depending on situation the different parties loose the right to claim for compensation events. The more robust the records are the better the standing in order to claim for delayed completion etc. the team was supposed to provide information which they didn’t, that left the company in a vulnerable position.
The works were approved by the client, on X amount of work. The day the works were supposed to begin the client changed his mind about what he was wanting, as he had now arranged more funds for more work. Another compensation event was to be issues by the contractor team, this didn’t happen.
As the project progressed, the client was receiving costing information regarding the changes to the project, and each time the client “reviewed” and sent back approvals to the contractor. Once the section of works came to an end, and the final account for that section was to be agreed, the client informed the contractor that the final cost was unacceptable and too high, higher than he expected. This was a short discussion at which point contractor team sat down with the client and explained that all costs had been given to him for acceptance and for keeping the client informed. At this point, the contractor team had done what they needed to and the client couldn’t argue, and had to accept that he hadn’t read the figures properly when the works prices, and information was given.
At one point during the contract, the administrative work was so heavy that there wasn’t enough time to administer compensation events in a timely manner.
4.5.5.3  TIME BARRING ISSUE
The client was not receiving compensation events, nor was he receiving the cost information for the extras that had been instructed. This went on for so long that the 8-week period surpassed. When a meeting was held with the QS, SM, PM, the client insisted that there would be no recovery given for any extras which had not been applied for in a timely manner according to the clauses of the NEC3.  The team had failed to perform, this tends to happen when there is too much to do administratively and can be a barrier to the change management. The team introduced compensation event registers in order to improve the management of the changes, and that helped. The project started to run smoother, compensation events and early warnings started to be issued on time, and the claims that were made were approved more readily. The client satisfaction shot up, as he was getting the information in more reasonable time, allowing him to make sure the funding was there before approving the change prices.
4.6 RATIONALE OF INTERVIEW QUESTIONS
Two interviews were carried out to get the opinions of two professionals who currently work in the industry and have extensive experience, but at least one of either JCT or NEC3 contracts. There is reasoning behind the questions asked and these are the following.
4.6.1 INTERVIEW QUESTIONS
1. How long have you been working for the industry?
This allows the reader to understand how much knowledge this person possesses and therefore how valuable the opinions of this person are.
2. How much have you dealt with NEC3 Contracts?
The answer to this question will show the extent of knowledge by both people in regard to the nec3 contract.
3. How much have you dealt with JCT Contracts?
The answer to this question will show the extent of knowledge by both people in regard to the JCT contract. Following the previous question, it compares the knowledge base and highlights if there is enough knowledge background for this interviewee to provide an answer to future questions and how reliable it will be.
4. What is your opinion of these contracts in relation to change management?
To begin the interview, asking this question to get the general opinion in relation to the aim of the dissertation in regard to change management.
5. How has this affected the productivity of your projects?
This question was asked in order to gain insight to the effect of change management on the projects that they have each dealt with and how it has been affected the productivity of the products just in general at this stage.
6. In your opinion which is a better contract to use for Commercial Projects?
Trying to understand which contract would be better to use for a large commercial project. Large projects are different to smaller projects in many ways, but on a larger project there are naturally more changes, so this question is asked with the intent to find out which contract is better.
7. Which contract have you felt posed more problems?
Problem solving is a major part of construction and finding out which contract would give insight to which one is a better contract to use in terms of problems and which has more to deal with.
8. How do you think the contracts are worded, and which would you think is easier to understand and deal with?
This question is asked to gain insight to the language used in the contracts and whether that is a reason for some change management to be difficult, so if this is a barrier, and for which contract the preference would be to use.
9. The opinion of the industry seems to be that NEC3 is worded in an easy way, and can be understood quite easily by anyone, do you feel this is an accurate comment, and if so how has this helped in your job in relation to change management?
To get the opinion of the interviewees about what the general opinion is of the contracts and how they are worded, the intention is to find out from experienced professionals if they think that this is accurate.
10. How many of your projects have been done by the NEC3 Contract, and the JCT Contract?
To get an appreciation of the knowledge behind each contract for both interviewees’ experience and their ability to answer other questions with quality answers.
11. Managing change is difficult, yet is important to manage correctly, how do you feel that if any projects have had delayed completion date, that this would have played a role?
This question attempts to gain more information regarding the management of change and whether it has had an effect on the delays or the time taken to complete a project, from this answer there will be insight to how much an impact it can have on a project.
12. How do you think change management could be improved in the industry?
From two people who have a lot of experience between them, if they were to be heard and their opinions were to be taken on-board, what they suggest? This gives insight as to what is in the minds of professionals and is it may be time to listen?
13. How come management of change has become increasingly important in recent times, or has this always been an issue?
Why do these industry professionals believe the management of change has become an issue, or is it just being highlighted now, this links back to the importance for different contract and how relevant this issue is in this time?
14. How have clauses in both contracts helped you managed the changes in your projects?
Which clauses do industry professionals feel have helped them manage the contract, this questions is asked to find out if there are any suggestions of improvements in the contracts and to find out which clauses are the useful ones so the improvements could take this into account.
15. Contractually there are clauses which can limit the ambiguity in an NEC3 contract, how have you managed to use this successfully in your projects?
How have the clauses from the previous question helped, this is to gain a better understand of particularly how it has helped to have less ambiguity in the contract and why it has helped.
16. What do you feel are the key issues with change management?
A general question trying to link together the previous questions and to pinpoint what are the key issues.
17. How have you tackled these issues in your projects in the past?
How have these individuals tackled the problems, this is to gain insight to how the problem solving has helped them achieve success in the past in terms of change management in their contract.
18. How will you endeavour to improve this in the future?
If there are any gaps in the way the problems were tackled from the previous question, this is asked to find out if there were any gaps and how those gaps can be identified and potentially filled.
19. When you speak to others about the NEC3 Contract and the JCT contract, how do you feel you are getting the message across? – do you have a positive opinion about the NEC3 and why?
Specifically, to find out if the opinion of the NEC3 is positive and whether this is a preferred contract to use, and why so information can be gathered about what makes it different, easier, harder according to experiences industry professionals.
20. When you speak to others about the NEC3 Contract and the JCT contract, how do you feel you are getting the message across? – do you have a positive opinion about the JCT and why?
Specifically, to find out if the opinion of the JCT is positive and whether this is a preferred contract to use, and why so information can be gathered about what makes it different, easier, harder according to experiences industry professionals.
21. Construction has changed in recent times, how do you feel the industry has changed?
Having been in the industry a long time, it would be appropriate to find out how the industry has changed, to then conclude whether these changes are constant with the previous questions asked and if they can be tackled with the same problem solving methods mentioned previously.
4.7 METHOD OF ANALYSIS
The answers from both people will be compared and contrasted to gain a better understanding of their background and the answers they have given. This will then be linked back to the aim of the dissertation and discussed in terms of what results can be drawn from their responses.
5 ANALYSES OF RESULTS
5.1 INTERVIEWEE B RESPONSES TO INTERVIEW
1. How long have you been working for the industry?
40 years
2. How much have you dealt with NEC3 Contracts?
Used NEC3 over the last 4 to 5 years on majority of projects
3. How much have you dealt with JCT Contracts?
Up to 4 or 5 years ago, predominantly JCT
4. What is your opinion of these contracts in relation to change management?
NEC3 has a lot of positive aspects, and in practice promotes and offers a superior contractual relationship, however it is administratively onerous, and at present, few organisations implement it properly and constructively
5. How has this affected the productivity of your projects?
The outcome is more onerous activity for the Employer’s Project Manager/Team, and less dependence on the QS role for maintaining financial control, and so therefore the ‘project team’ appears to require increased resource, with more time spent on administrative control, albeit that this ought to result in a positive result overall.
6. in your opinion which is a better contract to use for Commercial Projects?
Undoubtedly NEC3 is a better contractual arrangement, however it must be accepted that project administrative costs will be higher
7. Which contract have you felt posed more problems?
JCT
8. How do you think the contracts are worded, and which would you think is easier to understand and deal with?
NEC
9. The opinion of the industry seems to be that NEC3 is worded in an easy way, and can be understood quite easily by anyone, do you feel this is an accurate comment, and if so how has this helped in your job in relation to change management?
NEC is a clearer contract to interpret, and therefore a positive, however, there remain ambiguities resulting from differing interpretations, which when one reads the many queries and clarifications sought on the various Internet platforms, would suggest that NEC still has a way to go, before it clearly, and unequivocally delivers a contract that is free from erroneous challenge.
10. How many of your projects have been done by the NEC3 Contract, and the JCT Contract?
NEC3 – ~ 10, JCT – ~1000s
11. Managing change is difficult, yet is important to manage correctly, how do you feel that if any projects have had delayed completion date, that this would have played a role?
Not clear as to the specific issue this question relates to.
If it relates to the difference in how a delayed completion may be handled under JCT v NEC, then NEC should offer a more defined, non-confrontational solution process, if both parties fully understand and accept the NEC foundation principles.
12. How do you think change management could be improved in the industry?
Before changes may be successfully implemented and embraced by the industry, a complete modification in the mind-set is necessary, with both partners of the contract accepting the principles. My experience is that the majority of contractors retain aspects of the former adversarial contractual relationships and fail to grasp and accept an embedded partnership approach.
13. How come management of change has become increasingly important in recent times, or has this always been an issue?
I believe that management of change has always been there, however in more recent times, is handled in a more aggressive fashion, and with many contractors being such large organisations compared to their clients, the balance required to implement the  partnership approach required by the likes of NEC, no longer exists in the majority of construction projects.
14. How have clauses in both contracts helped you managed the changes in your projects?
NEC clauses have more clearly defined responsibilities and resolution protocols, however not always without opposition. In a way, NEC attempts to encourage/impose a more balanced approach, however, until both parties have this principle fully absorbed into the culture of their organisation, the former JCT contract can at times, present a more effective arrangement.
15. Contractually there are clauses which can limit the ambiguity in an NEC3 contract, how have you managed to use this successfully in your projects?
I have not identified NEC clauses that limit ambiguity to the degree where it specifically addresses and concludes the issue. I believe that if this was the case, then there would not be a purpose or need for all the on-line forums that exist with organisations seeking industry opinion
16. What do you feel are the key issues with change management?
Fairness is the key factor. If the proposal has clear advantages, then ‘selling’ it to all parties will be successfully implemented as they will evident to all. However, the motivation for the change must be honourable, and not be to impose a change that is clearly detrimental to one or more of the partners/stakeholders.
17. How have you tackled these issues in your projects in the past?
I have attempted to highlight the partner approach, and demonstrate that there are benefits for all, if commercial greed is set aside. The principle basis of any successful contract, is that both parties must benefit, but also end the contract with a feeling that a fair price was paid for a product that is what was wanted, fit for purpose, and free from defects.
Ultimately, the Employer is responsible for all cost, but without a bottomless purse. The Contractor must respect this, and not seek to ensure that they are the only partner to benefit from the contract. Therefore, the gain and the pain must be equally shared, and the Contractor must respect that the construction work is most likely not the Employer’s core business or area of expertise, and therefore not seek to exploit this.
18. How will you endeavour to improve this in the future?
Promote the partnership working principle and the benefit of building an honest, fair and respectful relationship.
19. When you speak to others about the NEC3 Contract and the JCT contract, how do you feel you are getting the message across? – do you have a positive opinion about the NEC3 and why?
I think that most in the construction sphere are able to quote the foundation principles of NEC, however struggle to apply them in practice on a daily basis.
I support NEC, however its successful implementation appears to be based on whoever is better resourced to fulfil their contractual obligations, and in a significant proportion of contracts, there is an imbalance, and therefore winners and losers.
20. When you speak to others about the NEC3 Contract and the JCT contract, how do you feel you are getting the message across? – do you have a positive opinion about the JCT and why?
As above
21. Construction has changed in recent times, how do you feel the industry has changed?
I feel the industry is trying to improve relationships between Client and Contractor, however there remains the historical ‘them and us’ mind-set [which is perhaps unavoidable in a commercial climate] which is challenging to break down, particularly in the current financial climate, with emphasis on demonstrating value for money on purely a financial basis – i.e. quality does not always have a price equivalence.
I don’t feel that the contemporary construction industry is delivering a better product in an improved contractual atmosphere.
While innovations such as NEC attempt to promote a less confrontational environment, the fact remains that the Client will remain the principal partner, and will essentially be in control of the project and its funding. Design and Build projects lead to a deterioration of product, as there is an absence of challenge to design and specification, and the role of Architect becomes subservient to the commercial partner.
Recent issues with the quality of product delivered via the Design and Build process [Edinburgh schools, Highland schools, HUB procurement] have demonstrated that Contractors and the ‘self-governing’ concept, simply does not work.
5.2 INTERVIEWEE A RESPONSES TO INTERVIEW
1. How long have you been working for the industry?
28 YEARS
2. How much have you dealt with NEC3 Contracts?
LIMITED 1YR
3. How much have you dealt with JCT Contracts?
27 YEARS
4. What is your opinion of these contracts in relation to change management? DEPENDS ON THE BUILDING PROJECT & THE PROCUREMENT. SHORT DURATION FOR PROJECT & PROCUREMENT FAVOURS JCT SINCE THE CHANGES NEED QUICK RESPONSES.
5. How has this affected the productivity of your projects?
JCT QUICKER BUT MORE RISK FOR THE CONTRACTOR
6. In your opinion which is a better contract to use for Commercial Projects?
BIGGER PROJECTS – NEC, SMALLER PROJECTS -JCT
7. Which contract have you felt posed more problems?
ON A QS LEVEL JCT – THE CHANGE CONTROL VALUE DOESN’T NEED TO BE AGREED UNTIL FA- THE COMMERCIAL RISK IS MORE.  NEC POSES A GREATER OBLIGATION ON THE OPS SIDE
8. How do you think the contracts are worded, and which would you think is easier to understand and deal with?
BOTH ARE OK IN THEIR OWN RIGHT (WHEN YOU USE THEM CONSTANTLY YOU UNDERSTAND THE TERMS BETTER) BUT A STANDARD DEFINITION ACROSS STANDARD CONTRACTS WOULD BE BENEFITION.
9. The opinion of the industry seems to be that NEC3 is worded in an easy way, and can be understood quite easily by anyone, do you feel this is an accurate comment, and if so how has this helped in your job in relation to change management?
NEC MAY BE WORDED EASIER BUT THE FLOW OF INFORMATION IS DIFFICULT TO FOLLOW
10. How many of your projects have been done by the NEC3 Contract, and the JCT Contract?
NEC3 – 3, JCT – 20
11. Managing change is difficult, yet is important to manage correctly, how do you feel that if any projects have had delayed completion date, that this would have played a role?
OBVIOUSLY NEC3 HAS A BEARING ON THIS BUT IT’S IN THE CLIENT COURT TO ACCEPT THIS.
12. How do you think change management could be improved in the industry?
IT STARTS WITH A DESIGN FREEZE EARLY ON AND A TOTAL COMMITTEMENT OF THE STAKEHOLDER TO THAT DESIGN FREEZE WHICH PLACES A OBLIGATION ON THE DESIGN TEAM EARLY ON TO MAKE SURE THE CLIENT UNDERSTAND WHAT HE IS BUYING
13. How come management of change has become increasingly important in recent times, or has this always been an issue?
ALWAYS BEEN AN ISSUE.  DIFFERENCE IS THAT NEC IS TRYING TO NEGATE TO DISPUTE BEFORE IT ARISES
14. How have clauses in both contracts helped you managed the changes in your projects?
NEC- COST CERTAINTY BUT THE RISK ITS IN THE CONSEQUENCE, JCT ALLOWS YOU TIME TO SEE THE REAL EFFCT OF THE CHANGE
15. Contractually there are clauses which can limit the ambiguity in an NEC3 contract, how have you managed to use this successfully in your projects?
(CAN’T ANSWER THIS ONE -WORK WITHIN THE RULES)
16. What do you feel are the key issues with change management?
NOT DESIGNED CORRECTLY, STAKEHOLDER CHANGES.
17. How have you tackled these issues in your projects in the past?
POST CONTRACT SURVEYOR HAS LIMITED ABILITY TO CHANGE THIS.
18. How will you endeavour to improve this in the future?
POST CONTRACT SURVEYOR HAS LIMITED ABILITY TO CHANGE THIS.
19. When you speak to others about the NEC3 Contract and the JCT contract, how do you feel you are getting the message across? – do you have a positive opinion about the NEC3 and why?
ONLY IF THE OP’S GUYS BUY INTO IT – THERE IS MORE ONUS ON THEM WITH PAPERWORK – IT’S A EDUCATION THING
20. When you speak to others about the NEC3 Contract and the JCT contract, how do you feel you are getting the message across? – do you have a positive opinion about the JCT and why?
UNANSWERED
21. Construction has changed in recent times, how do you feel the industry has changed?
THERE IS LESS DESIGN TEAM INPUT – MORE REALLIANCE ON THE CONTRACTOR HAVING THE SKILLS OF A DESIGN TEAM.  MORE PAPERWORK BUT LESS PEOPLE TO MANAGE IT.
5.3 IN DEPTH DISCUSSION OF EACH QUESTION AND ANSWER
Questions
1 Question
Interviewee A has been in the industry for 28 years and Interviewee B has been in the industry for 40. It would be fair to say that these two individuals have been in the industry for what would be considered a long time and would have the knowledge base to answer these questions with valuable responses that would have to be appreciated.
2 Question
Familiarity and experience with NEC3 contracts, Interviewee B has an extensive 4/5 years, and Interviewee A has just 1 year. This time is still sufficient for them to make a fair comparison.
3 Question
Both interviewees have a considerate amount of years in experience with JCT contracts and therefore have the knowledge and experience regarding change management and their answers will be considered to be important and relevant having this in mind.
4 Question
The answers for this question for both interviewees tend to go in two different directions, not necessarily a disagreement, but more of different route for answer.
Interviewee B states that the NEC3 has a lot of positive aspects and promotes a good relationship between contractor and client yet is very demanding in terms of administration. He has a strong statement about how “few organisations implement it properly and constructively”
Interviewee A on the other hand mentions in a short direct manner, that it very much depends on different types of projects and can vary. She believes that “short duration for project & procurement favours JCT since the changes need quick responses” this opinion differs from others in the industry for example according to (hughjames.com, 10 key differences, 19 Feb 2014) “In relation to extensions of time and loss and expense, the JCT contract has relevant matters and relevant events and time and money are dealt with as separate concepts. The NEC contract has the compensation event and it deals with both time and money. The ethos of compensations events is that they are dealt with in real time as much as possible and this is very much process driven. The compensation events also have a condition precedent nature, and failure to notify the compensation event within the 8-week period can have dire consequences.” This suggests that perhaps with only 1 years’ experience Interviewee A doesn’t appreciate the need to be quick in terms of compensation event, instead feels that the need for quick responses is needed in the JCT Contracts. A good comparison can be made from these responses, it gives a good insight to the differences in opinion in the industry, and this may be a barrier to change management.
5 Question
Interviewee A says JCT is quicker, and she means in terms of getting the work done and the administrative work that comes along with it, but she also admits that this is a bigger risk for the contractor. Interviewee B takes a different direction with his answer and continues to mention the NEC3 contract and it is very project team orientated and is dependent on the information flow between the team to be strong and constant. It has a very high dependency liability on the Quantity Surveyor for maintain financial control but agrees that this all results in a positive result. Interviewee B’s opinion is constant with the opinion discussed in the literature review, that the NEC3 is in fact producing positive results, but is very admin heavy.
6 Question
Interviewee B is certain that the NEC3 is a much better contractual arrangement but in line with the literature review feels that this is a costlier project to administer. Interviewee A’s opinion is that smaller projects would be better off with JCT projects, and bigger projects would benefit from using the NEC3 project. There may not be a difference in opinion but there is a difference in the way the questions have been answered yet it still gives insight to what the different elements are that are thought about.
7 Question
JCT, in Interviewee B’s opinion, who chooses not to elaborate. Interviewee A agrees to Interviewee B’s previous comments regarding the change doesn’t need to be agreed until the final account and the commercial risk increases. The NEC poses a great obligation and input from the ops side, in agreement with Interviewee B.
8 Question
Whereas Interviewee B thinks the NEC is an easier contract to understand Interviewee A sheds light on the contracts, and believes they are “ok” in their own right, but highlights benefaction (I believe from the operational team).
9 Question
Interviewee A believes the information is difficult to follow yet doesn’t say the flow of information in a JCT contract is easier to follow. Interviewee B believes the NEC is clearer to interpret but expresses concern over the fact that there are still ambiguities in the contract that result from different interpretations. Interviewee B believes that there is a while to go before it clearly, deliver a contract free from erroneous challenges. This is in line with the research carried out.
10 Question
Interviewee A – NEC – 3 Projects
JCT – 20 Projects
Interviewee B – NEC – 10 Projects
JCT – 1000 Projects
This just justifies why these people are have been chosen to attend the interview, between the two of them they have worked on several projects and will have faced various problems.
11 Question
Interviewee A says that this is up to the individual client, Interviewee B says that NEC offers a defined and civilized way of reaching a solution, but only if both parties have the knowledge and accept the principles of the foundation of the contract.
12 Question
Interviewee A believes that this issue relates to an improvement in the design freezes of projects and the client knowing exactly what he/she wants and is buying. Interviewee B, who is a client, and for Interviewee A no-less believes this can be improved by both parties accepting the principles of the contract and that contractors fail to appreciate the embedded partnership approach. This is different to the literature review, which refers to the idea of improving general aspects, of behaviour, industrial and other specific reasons that these barriers of change are affecting this and need to be improved. Interviewee B mentions something which is unique, in that it is a partnership approach, this needs to motivate the industry to work together as much as needed to provide a successful project.
13 Question
Both agree that this issue has always been present. Interviewee A agrees with Interviewee B with that NEC tries to negate the issues before they arise, and this is in line with the literature review. Interviewee B mentions something which is not previously discussed, he says that the change management is handled more aggressively nowadays and the clients are almost bullied by the large contractor companies. Interviewee B indirectly says that big contractors are bullying the clients to pay out and agree to terms, and changes on a project, or perhaps this is based on a bad personal experience.
14 Question
Interviewee A mentions that there is room to see the true effect of a change as compared to the NEC which will be a risk as the decision has to be made clearly, often the client pays more than they should and lose out.
NEC has a more defined responsibilities and resolution protocols, but as Interviewee B mentioned they are not always without opposition. As previously gained knowledge from the literature review. Interviewee B says that there is a more balanced approach, but at the same time, as mentioned in the barriers to change, Interviewee B says there needs to be a companywide, or industry wide understand of the facts and the contracts in order to use them correctly and get positive results.
15 Question
No response worth interpreting.
16 Question
Interviewee B believes fairness is key. This is in line with the NEC contract, which states that all actions are to be fair and reasonable. Interviewee B also says that the changes should not be detrimental to one or more stakeholder and this answer is in line with Interviewee A’s common that stake holder changes is one of the key issues.
17 Question
Interviewee A’s says ones its done, its done as the QS has very limited ability to change what has happened post contract. Interviewee B on the other hand says that he has attempted to demonstrate for the industry that there are benefits for all, if commercial greed is set aside. The contract he says, should be benefitting both parties, otherwise it’s not worth it, and feels that contractors must not be hungry for money and must respect that there isn’t a bottom less purse and that the employer is responsible for the costs, but contractor must respect this and try to do his bit to keep the costs down to make it worthwhile for both parties.
18 Question
Interviewee B feels that promoting the partnership approach to work together will help this situation improve, as this is a barrier to change management he feels, however Interviewee A feels there isn’t much a surveyor can do post contract and doesn’t feel anything could be improved at that stage.
19 Question
Interviewee B feels that although people have the opinion that NEC3 is a good contract and the principles have been broadly used and appreciated, he feels the industry fails to use the principles on a daily basis and this results in the contract not being used to its full extent. Interviewee A feels that only if the operational guys buy into this and complete the paperwork, as this is a very admin heavy contract, only then it can be used to it full potential. They both agree that it is an education thing, and there are shared views between them and in the literature review, meaning this could be an important issue.
20 Question
Unanswered from Interviewee A, and Interviewee B refers to above answer.
21 Question
This is a very important question, which carries weight. In terms of how the industry has changed and what aspects are changing, can be explained in few words according to Interviewee A design team has left things to the contractor thinking they will have the skills for a design team, and more paperwork is required, however there are less people to manage it, and this is what Interviewee A feels is the barriers to change management in construction nowadays. Interviewee B draws the conclusion that the industry still operates with the old thought of “them and us” mind-set which is challenging and possible unavoidable according to Interviewee B as this is a commercial market, value for money means that quality does not always have a price equivalence and Interviewee B does not feel there is a better result from the better contractual processes such as the self-governing nature simply is not working according to Interviewee B.
6 CONCLUSIONS
6.1 INTRODUCTION
The aim of this chapter is to assess how both the primary and secondary research undertaken have contributed to the aims and objectives of this dissertation. It will also give an explanation of how the hypothesis was valid, finally giving recommendations and then detailing the limitations to the research.
6.2 DISSERTATION AIM
The aim is to establish the key issues with change management and the management processes of the NEC3 contract and JCT Contract that the industry must overcome and improve in order to make construction more efficient and be delivered in a timely manner.
6.3 DISSERTATION OBJECTIVES
In order to achieve the research, aim above, the following objectives were established.
1. Identify the key issues and barriers affecting the change management in construction.
A lot of different barriers were identified in this dissertation.
From the literature review it was researched that there are institutional barriers, attitudinal barriers, lack of planning, indecisive behaviour, they were broken down into external and internal barriers/changes, the internal ones being
 Goals and Values changes in project or company
 Technical System
 Organisational Structure
 Company Policies
 Psychological
 Managerial System
 Ineffective decision making
 Internal Power and control
2. Investigate whether these barriers are easier to overcome in the NEC3 contract or the JCT Contract.
After carrying out extensive research with primary and secondary data, the conclusion can be drawn that within the NEC3 there are procedures and processes that are easier to follow and therefore barriers are easier to overcome in the NEC3, but only IF the contract is properly understood and followed correctly. This conclusion is drawn from carrying out the literature review, which had results agreeing with the interviews carried out with Interviewee B and Interviewee A.
It is easier to overcome barriers that are in the NEC3 as compared to JCT as the JCT contract focuses on solving issues at a later date, which means that things can go severely wrong at the end of the contract duration, and to overcome the barriers in between is too difficult as things are not solved as they go along.
3. Evaluate the reasons for Internal and External Project Changes in Construction.
The conclusion can be drawn that these are the main barriers in project changes both internal and externally in a construction project.
EXTERNAL  INTERNAL
Changes Regarding… Changes Regarding…
Economic and Financial and Environmental Organisational Culture
Ecological The system of project
Technology Planning
Standards and Regulations Political Plan Execution
Force Majeure Overall Change Control Method
Documentation
System Ineffective decision making
Design improvements
Unexpected weather conditions
Design Error
Designer implemented Changes
Design Parameters
Contract Disputes
Staff Disputes
Inexperience among staff
Project Changes
These reasons for change were identified and explained, and discussed in terms of opinions of the industry with different sources.
4. Evaluate the reasons for Internal and External Project Change in Construction.
The conclusion can be drawn that these are the main barriers in project changes both internal and externally in a construction project.
External  Internal
Changes Regarding… Changes Regarding…
Environment Goals and Values changes in project or company
New Technologies Technical System
Marketplace Organisational Structure
Customer/Client Expectations Company Policies
Quality and Standards Psychological
Legislation Managerial System
Political Values Prevailing Ineffective decision making
Demographic  Internal Power and control
Cultural Factors
Competitors
Economy
Ecological
These reasons for change were identified and explained, and discussed in terms of opinions of the industry with different sources.
6.4 HYPOTHESIS VALIDATION
“Change management in its current form with NEC3 Contracts is more efficient as compared to the JCT Contract”
This research has recognised that there are many barriers that prevent a project from carrying out change management in an efficient way, to save money, time, and time spent on processes. There are both industry wide barriers, as well as behavioural barriers which can make it challenging to manage projects. The NEC3 has shown that the processes are simpler to understand, and therefore follow. When people follow this contract to the way its intended, projects are successfully completed, and with none, or minor disputes.
While it is believed there are gaps in the NEC3 contract in terms of clauses, and the risk of misunderstanding them, it is clear that the JCT contract does not have an easy flow and does not promote team-work from the beginning of the project, making it more difficult to manage change in the long run.
The lack of experience in the industry with people always retiring, and people’s lack of education, can lead to the failure to understand processes, follow them, or misunderstand them. This leads to delayed completion, loss of cost due to time-barring, or due to not getting quotes or other information quick enough or running out of time due to the admin heavy nature of the NEC3. The hypothesis, according to the research carried out, is valid.
6.5 RECOMMENDATIONS
6.5.1 LESSONS LEARNT WITHIN THESE CONTRACTS
In the industry, and online forums suggest that there is a lot of people who do not learn from their own, or from other peoples’ “mistakes”. With the lack of knowledge in the industry on how to better a situation that arise, or how a contract is better managed if a certain approach is not working, this causes issues. More research could be done on how the different companies, institutions tackle the situation that they face on a daily basis, and how they tackle the misunderstanding that can be a barrier to moving forwards with the contracts.
6.5.2 THE COLLABORATIVE WORKING ATTITUDE
A lot of massive construction companies have the “get as much as we can” attitude as mentioned by Interviewee B, he feels that the contractors are massive companies that just become greedy and think that the client has pockets that are so deep that they are never ending. There is the opinion that contractors need to work more collaborate together in order to reach the end of a project in a successful way, where both parties are benefitting from the contract. There was a lack of research based on this, and could be something very interesting to research for a future project.
6.5.3 THE BARRIER “LACK OF KNOWLEDGE”
There is a general lack of knowledge in the industry. This is the opinion of several professionals, and this is something that could have been researched further, due to lack of time this was not possible. Lack of knowledge, can be measured by professionally educated people in the industry, in a certain company etc. research can be done on how the lack of knowledge within a team can be a barrier to success in change management and essentially the success in a project. Within a team if the operational people are not providing information to the commercial department this could have a detrimental effect, this could be a very interesting area to carry out research in.
6.6 RESEARCH LIMITATIONS AND FURTHER RESEARCH
6.6.1 INTERVIEWEE B INTERVIEW LIMITATIONS
Interviewee B has been active in the industry for a long time. The limitations in his interview was the quality of the questions asked. Many of the questions are focused, it would have been better in some area to ask for more open and broader questions, and then bring them in to focus on the task at hand. There were not enough questions in the interview and there could have been an improvement with the interview.
6.6.2 INTERVIEWEE A INTERVIEW LIMITATIONS
Interviewee A is a very busy woman, and from some of her answers it seemed like she was in a rush, it would have been better to do the interview at a different time. Furthermore, the questions were not the best of quality as it didn’t get out as much information as could have been useful.
6.6.3 OTHER LIMITATIONS
The research was carried out, with limited sources of information that was recent. Some of the material was old, and although issue has been around for a long time, it would have been more efficient to find sources of information that were relevant (other than the interview). More journals, more newspapers, and more law cases could have been studied to get to a more apt conclusion.
There was very few examples and sources that addressed the exact issue at hand, and therefore extensive research had to be completed in order to derive the results from the research.


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