Viva for Master's Project

7/29/2019 Viva for Master's Project

1/66

Panel Contractor Satisfaction and Whether

Collaboration and Partnering are Happeningin a Bespoke Contract

B

Masters Project Presentation;

Mohd. Norizam Md. Salleh(MPM September 2010 Intake)

Matric No: CGS00534317

Date: Nov. 2012


2/66

Content

1.0 Introduction

2.0 Review of Literature

.

4.0 Data Collection & Analysis

5.0 Discussion, Conclusion and

Suggestion


3/66

1.0 Introduction

1. Background Study2. Problem Statement

3. Objectives of the Study

4. Key Question5. Scope of Study

6. Significant of the Study

7. Assumption and Limitation


4/66

Chapter 1: Introduction

1. Background Study

There are various type of contract uses in constructionbusiness in Malaysia.

, ,

CIDB, IEM and etc.

International standardcontract uses namely JCT, APM,

ICE, FIDIC, NEC and etc.

Modified version orbespoke contractwere uses insome industries e.g. oil and gas and telecommunication

industries.


5/66

Standard form of contract

(Pros.)

They have endured years of test. Designed by experts in the field. Provide a representative viewpoint of the industry they

served and normally be a fair contract.

Represent both parties on an equal and a fair share basis and

not one-sided. Normally express the obligation of all the parties involved and

clarify the project scope well.

(Cons.)

Always labelled as a traditional contract strategy. Blamed for the edgy relationship between the project

provider and the contractors. Fail to perform as a team.


6/66

Bespoke contracts

In Malaysia its commonly used in the Oil and Gas andTelecommunication sectors.

Involved specialist jobs and were carried out by registered

panel contractors .

(Cons.)

O ten a e e as one-si e contractas t ey were esigneby the clients.

(Pros.)

Modern contract strategies such as win-win approach,

partnering, joint decisions, collaboration, rewards,

cooperation, trusts and etc. that may help in meeting the

project common objectives time, cost and quality S & S can befound.


7/66

1.2 Problem Statement

Traditional contract strategies were always identified as ahindrance to a good working relationship between the

clientand the contractors.

On the other hand, the modern contract strategies,

work collaboratively, smart partnering, win-win

approach, trust, cooperative, shared risk, rewardand etc.

Its encouraging the client and the contractors to work

together towards achieving the common goals - to completethe project/task - on or ahead of schedule, within budget

and at acceptable stipulated quality, safety and

sustainability.


8/66

Problems to be addressed in this study are as follows;

Are the panel contractors to a bespoke contractsatisfied with the form of contract used and how it is

managed by the client?

Whether the modern contract strategy is being

practised in a bespoke contract.


9/66

1.3. Objectives of the Study

To identify whether the panel contractors fully understand the

form of contract use, specifically the bespoke form of

contract.

To identify whether the panel contractors are satisfied withe espo e con rac a were common y use n e

Gas and Telecommunication Sectors.

To identify whether the modern contract strategies such as

collaboration and partnering are being practiced in theircontract.


10/66

1.4. Key Questions

80% of the key questions are adapted from Chan A. P.

C. et al. (2004) and they are as follows;

1) Panel contractor satisfaction on the bespoke form ofcontract uses;

2) Establishment and communication of conflict

resolution strategy;3) Commitment to win-win attitude;

4) Regular monitoring of partnering and collaboration

process;5) Clear definition of responsibilities;

6) Mutual trust;


11/66

1.4. Key Questions (cont.)

8) Willingness to eliminate non-value addedactivities;

9) Early implementation of partnering process;

participants.

11) Ability to generate innovative ideas;

12) Subcontractors involvement;


12/66

1.5 Scope of Study

Whether the panel contractors fully understand the

form of contract they use especially the bespokeform of contract.

bespoke contract that is commonly used in the Oil &

Gas and Telecommunication sectors.

Whether the modern contract strategies such ascollaboration and partnering are being practiced in

their contract.


13/66

1.6 Significant of Study Only a few study conducted related to bespoke

contract.

Whether the modern contract strategy such ascollaboration and partnering are practised.

Whether the panel contractor fully understood thebespoke contract.

Might benefit other sectors.


14/66

1.7 Assumption & Limitation

Due to limited time this study is limited to a bespoke

form of contract used by a Natural GasOperator/Supplier.

The tar eted rou is the anel contractors ersonel

that exposed to form of contract uses.

Will not discuss in detail the construction scope and

form of contract used.

Will not discuss detail comparison between bespoke

form of contract and standard contract.


15/66

Chapter 2: Literature Review

1. Introduction

2. Panel Contractors Satisfaction

3. Bespoke Contract

4. Collaborative Approach5. Partnering

6. Research Instrument7. Summary


16/66

2.1 Introduction

In carrying out this research, the relevant topics

in construction contract administration and

interpretation such as panel contractor

satisfaction, bespoke contract, collaboration and

.

The identification of keywords and important

terminologies related to these research objectives

were also defined.


17/66

2.2 Panel Contractors Satisfaction

Geyskens, I & Steenkamp (2000) urged that, the satisfaction level isone of the key factors which affect partnership development.

However, satisfaction is a vague/unclear term. The contemporary

measurement for partnership is concentrated in economicsatisfaction and social satisfaction (Cited by Wong, 2009).

Wong (2009) - There are five sub-directions to support fine tuningo Economican Socia Satis actions. T ey are pro ita e; iscount;

quality enhancement; effectiveness; selling and marketing for

Economic Satisfactions and feeling hostility; tactful criticism;

mutual interaction; apocalypse; and polices for Social

Satisfactions.

Therefore its concluded, the panel contractors satisfaction to theform of contract uses in the contract can be seen at the level of

pleasure the contractors feel such as how the contract were carried

out and whether it satisfies them economically and socially.


18/66

2.3 Bespoke ContractBespoke is a British English word meaning an item made to a

buyer's specification (personalised or tailored).

The characteristic points of bespoke/tailoring contracts are theclient/project provider's are in total control over the form of

contract terms and the way the project should be managed.

Basically, "bespoke contract" describes a high degree of

"customisation" on how the form of contracts are structured and

the relation between the client/project provider's and

contractors. That is the reason why it is usually used in the

specialised industries such as oil and gas, telecommunication,

power plant and etc.


19/66

2.4 Collaborative Approach

The meaning of collaboration, is working together to achieve

common goal.

In traditional adversarial system, conflict, hostility and litigation

between the client and contractors are normal phenomena. Such a

climate actively militates against collective learning and knowledge

sharing between parties. In opposition, under collaborative

wor ng , con rac ors s are r s s, poo now e ge an wor oge er

to solve problems at all stages and levels in the productive system, a

process conceptualised as knotworking by some theorists (Bishop

et al., 2009).

Collaborative innovation occurs when organisations tap into a usersexpertise, and through collaborative support, is able to reduce their

costs and increase satisfaction. Collaboration is a shift from a

command-and-control state of mind to connect and collaborate

which is towards modern strategy (Sawhney, 2002).


20/66

2.5 Partnering

Partner/partnering can be defined as a friend who shares a

common interest or participates in achieving a common goal. In the

construction industry partnering approach can be applied in meeting

the three project objectives which are time, cost and quality.

Ashworth (2006) - It is a procedure for improving working

relationships, based on assumption that strong players make each

other stron er weak ones destro each other and not onl about

systems and methods but it is essentially about people, enabling themto operate more efficiently, effectively and economically.

American Arbitration Association (1993) - Partnering is a synergy, a co-

operative, collaborative management effort among contracting and

related parties to complete a project in the most efficient, cost-

effective method possible, by setting common goals, keeping line

communication open, and solving problems together as they arise .


21/66

2.6 Research Instrument

Only item/factor i), was designed by the author and the rest

items/factors ii) to xi) (80% of the questionnaires) were adapted

from Chan A. P. C. et al., (2004);

i. Panel contractor satisfaction on the bespoke form of

contract uses;

ii. Establishment and communication of conflict resolution

strategy;

iii. Commitment to win-win attitude;iv. Regular monitoring of partnering and collaboration

process;

v. Clear definition of responsibilities;

vi. Mutual trust;vii. Willingness to eliminate non-value added activities;

viii. Early implementation of partnering process;

ix. Willingness to share resources among project participants.

x. Ability to generate innovative ideas;xi. Subcontractors involvement;


22/66

2.7 Summary

To achieve satisfaction, whateverform of contract used, the players

need to understand and carry out their obligations well as per

stipulated in the contract.

This study can also determine whether modern contract strategies

such as collaboration, partnering, win-win approach, jointly resolve

, , , . .

Outcome of this study should be able to determine whether the

panel contractors have fully understood the form of contract

(bespoke contract) use; whether they are satisfied with the

bespoke contract that is commonly used in the oil and gas andtelecommunication sectors; and whether the modern contract

strategies such as collaboration and partnering are being practised

in their contract.


23/66

Chapter 3: Methodology

3.1 Introduction

3.2 Research Design3.3 Survey Method

.

3.5 Likert Scale

3.6 Data Analysis

3.7 Research Frame Work


24/66

3.1 Introduction

Research methodology or research can be defined as a systematic

approach in search of specific answers that can be tabled for those

problems that have been identified.

A research should be carried out to go through a certain

systematic process to initiate new findings (Ranjit Kumar, 1996).

The moment a method to carry out a research is identified, it isimportant to make the intentions and objectives are

understandable and clear. Masters projects should not be over

ambitious and its process must tally with the resources available.

It should portray the total research methodology carried out in

relation to research design, population, the research instrument,

questionnaire design, data collections, data verifications, analysis

process and summary.


25/66

3.2 Research DesignThis research is a descriptive study and will use quantitative

method to address all the questions arising in the problem

statements and the key questions. The survey will be carried outusing structured questionnaires and semi-structured interviews

that are distributed and conducted within a specific group.

Mohd. Majid (2000) stated that a descriptive research is a studyto assemble information and to explain what is happening. This

statement has been supported by Wiersma (1995) and he had

added that the descriptive study is able to portray or give the

information about certain thing, at certain time and decisionmaking for future plan.


26/66

3.3 Survey Methodi) Semi structures interview

ii) Questionnaires.

Part A Respondents Background

Part B - contain the necessar uestions that are

designed in order to identify and determinewhether the researchs problem statements and

the study objectives can be met. 80% of the

elements in these questionnaires were adaptedfrom Chan A. P. C. et al. (2004).


27/66

3.4 SamplingRespondents

The research will focus on a selected group that will consist of

the people who work with the panel contractors of a Natural Gas

Provider. Among the respondents that will be targeted in this

study are the contractors owner and the contractors

management level e.g. the project managers, contract managers,construction manager and engineers.

Distribution of the Questionnaires

Via postage, email and by hand.


28/66

3.5 Likert Scale

Likert scale with a measurement point 1 to 5 to examine how

strongly subjects agree or disagree with a statement is adopted

in this study.


29/66

3.6 Data AnalysisAll the data collected will be stored and analyse

using Statistical Package for Social Science 18.0 for

Windows (SPSS).

It also uses to identify the reliability of the data

co ecte .

SPSS assist the author to elaborate on various

statistical tests and the interpretation of the result

analysed


30/66

3.7 Research

Frame Work

These research steps

provided a clear

methodology framework.

- Provides proper steps

on how the study shouldestablish the conceptual

model and

- to improve the level of

understanding to theresearch methodology.


31/66

Chapter 4: Discussion, Conclusion andRecommendation

4.1 Introduction4.2 Findings

.

4.4 Testing Goodness of Data

4.5 Summary


32/66

4.1 Introduction

The questionnaires were focused on the respondents knowledge,

understanding and experiences to a form of contract uses by a

natural gas provider. All the data gathered were stored and

analysed using SPSS 18.0.

The data were analysed to determine and identify whether the

results collected from the survey are addressing the research

objectives;

To identify whether the panel contractors have fully understood theform of contract they use especially the bespoke form of contract.

To identify whether the panel contractors are satisfied with thebespoke contract that were commonly used in the oil and gas andtelecommunication sectors.

To identify whether the modern contract strategies such as

collaboration and partnering are being practised in their contract.


33/66

4.2 Findings

From 13 panel contractors, 48 respondents filled

up and returned the questionnaires.

100% of the survey was carried out among the

respon en s re a e o e pane con rac ors

registered with a Natural Gas Provider.


34/66

4.3 Result from Data Collection4.3.1 Demographic of the Respondents

The finding was considered good for this research as

the respondent involved were;

consisted of matured and experiences workers

exposed to the form of contract uses&involves in construction management.

Therefore they should be able to understand thequestionnaires and answer them correctly.


35/66

Figure 4. 1: Number of Years the Present Company in the Industry

More than 70% of the companies have been in this industry 11 yearsor more.


36/66

Figure 4. 2: Respondents Age.

62% belong to 30 - 39 and 40 49 age groups.


37/66

Figure 4. 3: Respondents Gender.

81.25% of the respondents are male and 18.75% are female.


38/66

Figure 4. 4: Respondents Marital Status.

83.33% were married and 16.67% are single. 62% of

them are 30 years of age or older


39/66

Figure 4. 5: Respondents Education Background.

87.5% pose at least a diploma or higher.


40/66

Figure 4. 6: Respondents Current Position

31.25% are engineers, 22.92% are project managers, 8.33% are

construction managers, 29.17% are directors/owners, and

8.33% are others.

Fi 4 7 R d N b f Y W ki i


41/66

Figure 4. 7: Respondents Number of Years Working in

Current Company

About 79% of the respondents have been working in the

company for more than 4 years.

Figure 4 8: Respondents Number of Years Working in Oil


42/66

Figure 4. 8: Respondents Number of Years Working in Oil

& Gas Industry.

87.5% of the respondents have been working in the industry

for at least 4 years or more.

Fi 4 9 R d t T t l N b f Y f


43/66

Figure 4. 9: Respondents Total Number of Years of

Working Experiences

93.75% of respondents have at least 4 years of working

experiences.

Figure 4 10: Whether Respondents Know What Bespoke


44/66

Figure 4. 10: Whether Respondents Know What Bespoke

Contract is?

83.33% of the respondents claimed they knew what a

bespoke contract is and only 16.7% said they do not.


45/66

4.3 Result from Data Collection

4.3.2 Findings From the Key Questions


46/66

i)Panel Contractor Satisfaction on the Bespoke Form of Contract

Uses


47/66

ii) Establishment and Communication of Conflict Resolution

Strategy


48/66

iii) Commitment to Win-win Attitude


49/66

iv) Regular Monitoring of Partnering and Collaboration Process

iv) Clear Definition of Responsibilities


50/66

v) Mutual Trust

vi) Eliminate Non-value Added Activities

vii) Early Implementation of Partnering Process


51/66

ix) Willingness to Share Resources among Project Participants

x) Ability to Generate Innovative Ideas

xi) Subcontractors Involvement


52/66

4.4 Testing Goodness of Data

4.4.1 Reliability Statistics

It is important to check the reliability of the data.Therefore the data were analysed between their initial

attributes, the whole data were tested for the averageinter-correlations among the items measuring the

concept using SPSS 18 to verify the datas reliability.

Carried out on all 50 questions and the questionnaires

fill up by the 48 respondents.


53/66

Cronbach's alpha is a reliability coefficient that indicates howwell the items in a set are positively correlated to one another.

The result shows that the Cronbach's alpha value is 0.950 andthis mean the results are reliable, as the closer it to 1, thehigher the internal consistency reliability is (Sekaran, 2003).

Cronbach alpha based on standardized items is somethingsimiliar but is computed alpha when all scale items arestandardized to have equal means and variances.


54/66

Chapter 5: Discussion, Conclusion and

Recommendation

5.1 Introduction

5.2 Summary of main Findings

Research Ob ective 1

Research Objective 2 Research Objective 3

5.3 Limitation

5.4 Conclusion

5.5 Recommendation for Future Studies


55/66

5.1 Introduction

All the research objectives listed in Chapter 1, will

be addressed, imprecisely discussedand concluded

via the findings obtained from the research

.


56/66

5.2 Summary of main Findings;

Research Objective 1 Research Objective 2

esearc ec ve


57/66

Research Objective no. 1: To identify whether the panel

contractors have fully understood the form of contract they useespecially the bespoke form of contract?

Majorities of the respondents have fully understood with the

form of contract uses. This can be seen from the answer toquestion 11 of Part A, where 83.33% of the respondents

claimed the knew what is bes oke contract is and onl 16.7%

do not.

In addition when they were asked in question 1 of the Part B,

whether they have fully understood about the form of

contract uses, majorities answered they do understood with amedian value of 3.833.

Research Objective no 2: To identify whether the panel


58/66

Research Objective no. 2: To identify whether the panel

contractors are satisfied with the bespoke contract that iscommonly used in the oil and gas and telecommunication

sectors.

Satisfaction is low. The feedback gathered from the questionsbase on the factor of, Panel Contractor Satisfaction on the

Bespoke Form of Contract is that, out of twelve (12)

quest ons, two agree , e g t un ec e an two

disagreeing. Majority of the respondents claimed that theyfully understood the bespoke contract that is shown by the

mean value of 3.833. But most of them are undecided

whether the form of contract use is fairly treated between the

clients and the panel contractors.

Research Objective no. 2 (continued):


59/66

Majority of the respondents are agreed that the payment waspaid on time. The survey outcome also determined that no

safeguard on the unforeseen risks were given by the client but

again the respondents were undecided whether the good

relation between the client and the contractors exist via newcontract strategy was being practised in this contract and

whether the client treated their V.O. and E.O.T. fairly. On the

other hand when they were asked about taking legal action shall

their V.O. and E.O.T. claims were rejected, majority of the

respondents answered they disagreed to proceed with it. This

disagreement also contributed to contractors satisfaction in the

form of contract as less or no arbitration claims are one of theoutcomes towards the practising of modern contract strategy.

The form of contract and the client does not protect the panel

contractors from the new submerged risk.

Research Objective no 3: To identify whether the modern


60/66

Research Objective no. 3: To identify whether the modern

contract strategies such as collaboration and partnering arebeing practised in their contract.

Majority of respondents agreed that most questions under

the key questions of collaboration and partnering,Establishment and communication of conflict resolution

strategy; Commitment to win-win attitude; Regular

monitoring of partnering and collaboration process; Clear

definition of responsibilities; Mutual trust; Willingness to

eliminate non-value added activities; Early implementation of

partnering process; and Willingness to share resources among

project participants are happening in the contract that theyserved.


61/66

Research Objective no. 3 (continued):

Collaboration and partnering are practised but not up tomaximum. It was not confirmed until what degree they have

been carried out.

A new contract strategy which includes collaboration andpartnering were practised but they were not properly

monitored.

5 3 Limitation


62/66

5.3 Limitation

Insufficient sample size for the wide range of questionnaires.

Larger group results will be more accurate

Honesty of respondents. Some of the respondents might notbe truthful either they do not want to disappoint the client or

they actually do not understand the questions asked.

Respondents do not really understand or lack the knowledgeabout modern contract strategies that involve collaborationand partnering.

No tools in confirming whether these respondents really knew

what a bespoke contract is all about and fully understood the

form of contract which is currently used.


63/66

5.4 Conclusion

Generally, the first second and third objectives are

totally depending on the answers given by therespondents. The findings to these objectives were

ac uired from the data athered and anal ses from

the survey questionnaires that were filled by therespondents that belong to the panel contractors of

a Natural Gas Provider.

5.5 Recommendation for Future Studies


64/66

The study on panel contractor satisfaction can also be furtherdeepened such as to determine their level of satisfaction or

dissatisfaction.

On the partnering and collaboration, further study can beconducted in order to determine to what extent they were

practising and the success factors required in order to

improve them.

To widen the studies to include the clients representatives

but surely some modification to the questionnaires are

required in order to make them suitable for parties, the panel

contractors and the clients representative to answer. To widen the studies and to carry out studies/surveys among

the other Oil and Gas companies for comparison purposes.

5.5 Recommendation for Future Studies (cont.)


65/66

A study to include the Telecommunication sector too. This isimportant as in the later stage comparisons not only can be

made among the companies in the same sector but also

between these two industries.

A study can be carried out to identify what are the factors that

dissatisfied the panel contractors and the measures required

to e ta en n or er to mprove t ese s tuat ons.

A study can also be carried out among the panel contractorswho are dissatisfied with the form of contract and the way

they were practises. This is to determine the reasons what

make these panel contractors are still in this industryespecially when this initial study had shown 70% of the

companies were in this business for 11 years or more but yet

majorities are undecided whether they are satisfied with the

way the contract is managed.


66/66

Thank You

Date post:	04-Apr-2018
Category:	Documents
Upload:	izam-muhammad
View:	216 times
Download:	0 times

Viva for Master's Project

Documents