Assignment 2: Management of Change Assignment

Assignment 2: Management of Change Assignment

Background of the research

Introduction of issue

The construction projects have mainly relied on different types of contract, which differs in the approaching way of the project during the execution time. The contracts of this type of project have different characteristics which can change the project management process. This study consists of a detailed discussion of two construction contracts JCT and NEC4. The issue of this study is to change of approach with the application of contracts during project execution.

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Identification of limitation

The limitation of this study, to proper identification of JCT and NEC4 contracts in the construction projects. This particular study also consists of proper examples of issues in construction projects and a discussion of the contract documents, which is not always available. In this aspect, the change management during the project cannot be properly identified by the project managers, so the differences between these two contracts are properly traced, which can be considered a limitation.

Aims and Objectives

This study is aimed at understanding the difference between the approach of JCT as well as NEC4 contracts during the construction project execution.

The objectives of this study are

• To understand the features of JCT as well as NEC4 contracts
• To evaluate the impact of these two contracts on the construction projects
• To provide effective recommendations for managing change during project execution

Balanced perspective

It is seen that the JCT contract is a traditional one, which is mostly used in construction projects. The project managers along with employees are very used to this contract, so in the UK, JCT is mostly used. In contrast, in the current situation, NEC4 contracts have emerged in this industry with different new features (Staddon et al. 2019). This contract can change the project execution process totally and it makes the project less time-consuming as well as cost-effective. Another important aspect is that the NEC4 contract has relied on different innovative technologies, which is essential for the current technical era. In this aspect, the construction project should implement the contracts with a balanced perspective and need to evaluate, the best best contract for the project.

Analysis and Synthesis

Discussion of relevant issues

JCT contracts or “Joint Contracts Tribunal” refer to a collection of off-the-shelf contracts, which are available to purchase by anyone for proceeding with construction projects. This contract suits all industry-standard forms of construction projects and that is why the project manager uses this contract for documentation of construction projects. It is seen that this type of contract is mostly used for “home extensions, refurbishment and maintenance”. The principal issue of this contract it is not easily modifiable. That means JCT contracts are difficult to modify for each party as per their requirements. It is also seen that any kind of alternation can cause delays in the project execution process, as several norms can be changed with alternations (Charlson, and Dimka, 2021). Apart from that, this construction contract mainly deals with a traditional way of contract, which sometimes became questionable. On the other hand, this contract provides standardisation along with provides protection over different issues that commonly arise in this type of project.

NEC4 contracts refer to the “New Engineering Contract”, which is suitable for standard forms of procurements procedures as well as principal contracts in construction projects (Chappell, 2020). This construction contract was amended in 2017 and it covers different contract particulars such as activity schedule, bill of quantities, cost-reimbursable process and different types of management contract. This contract is very much applicable to all types of construction projects because of its unique features. For example, in case the client is not satisfied with the project manager's thoughts or understanding, then the individual can break the contract, which is difficult in a JCT contract. This contract makes an “early collaboration and involvement between the employer and client”, so the success rate and the transparency of this contract are very high rather than JCT (Yadeta and Pandey, 2020). In this contract, all types of people get proper importance such as project managers, contractors along with subcontractors. This is because all individuals are fully acceptable in this contract, which is very much important to make the contract valid and effective.

Importance of balanced Arguments

It can be argued that the JCT contract mainly deals with fixed price rates, whereas NEC4 mainly deals with target cost contracts. On the other, NEC4 contracts do not contain any provisional sums like the JCT contract. In addition, an argument can also arise that a cost scrutiny process is seen in the JCT contract with the analysis of the project sum as well as tender negotiations (Charlson, and Dimka, 2021). In another case, NEC4 contracts contain an open book process with the concept of disallowed cost. Besides this ground risk factors are associated with the JCT contract, while “ICE forseeability test in relation to ground conditions”. In this aspect, the JCT contract deals with “relevant matters and relevant events” in terms of loss and expense in the construction project but NEC4 contracts deal with time as well as money (Ndekugri et al. 2021). In the ultimate discussion process, the construction project followed JCT projects, especially in the UK, but in the current situation, several construction projects also proceeded with NEC4 contracts.

Development of personal ideas and views

Considering the above text, it can be stated that traditional JCT contracts are very rigid in characteristics, which can be effective for proceeding with big construction projects. According to me, this particular contract needs to be amended as it refers to a “fixed price lump sum contract”, which sometimes creates some issues in this project. I think that the construction industry policy has changed in the last 10 years, so the contract characteristics also need to be changed. I think that all individuals in the construction projects can be included in this contract, which creates the contract more valid and this particular contract became forseeability, which increases the standard of the contract (Alqahtani et al. 2022). According to my point of view, a contractual document is very much required, which is not seen in the JCT contract and it needs to be updated with time. On the other hand, I think that all particular activities of the contract need to be concerned with all individuals associated with the construction projects.

Conclusion and Recommendations

Taking into consideration the above study it can be concluded that the approach of JCT as well as NEC4 contracts can change the construction project execution process. Apart from that, it is also seen that the principal issue of JCT contracts is that these are difficult to modify for each party as per their requirements. NEC4 contract is very much applicable to all types of construction projects because of its unique features such as “early collaboration and involvement between the employer and client”. It is augmented that NEC4 contracts contain an open book process with the concept of disallowed cost, while JCT contracts deal with fixed price rates.

Recommendations

Coming to the end of this discussion, it is seen that both JCT and NEC4 contracts have some issues, which can affect the construction project in a negative way, such as delay in project execution or an increase in the tenure of the construction project.

• It can be recommended that the contracts should be amended after some period. This is because the policies and nature of the construction projects are changed accordingly, which can be a mismatch with the contract (Tung et al. 2020). Apart from that, all new policies need to be included in the contracts.
• Another recommendation for this aspect is to choose the contract intelligently for the construction project. This is because each construction is different in terms of characteristics (Hai et al. 2020). In this aspect, choose the best contract, which is suitable for the project and all individuals became comfortable.

References

Alqahtani, F.K., Alabduljabbar, A., Alsaqer, T. and Abotaleb, I.S., 2022, May. Evaluation of using building information modelling in green building in Saudi Arabia construction contracts. In IOP Conference Series: Earth and Environmental Science (Vol. 1026, No. 1, p. 012053). IOP Publishing.

Chappell, D., 2020. Construction Contracts: Questions and Answers. Routledge.

Charlson, J. and Dimka, N., 2021. Design, manufacture and construct procurement model for volumetric offsite manufacturing in the UK housing sector. Construction innovation, 21(4), pp.800-817.

Hai, D.T., Trung, N.N. and Huyen, K.D., 2020, June. Contract Form for Building Information Modelling (BIM) Projects Applied on Construction Industry in Vietnam. In IOP Conference Series: Materials Science and Engineering (Vol. 869, No. 6, p. 062005). IOP Publishing.

Ndekugri, I., Ankrah, N.A., Adaku, E. and Mzyece, D., 2021. An analysis of health and safety provisions in NEC contracts. Proceedings of the Institution of Civil Engineers-Management, Procurement and Law, 176(2), pp.65-75.

Staddon, M.F., Cavanaugh, K.E., Munro, E.M., Gardel, M.L. and Banerjee, S., 2019. Mechanosensitive junction remodeling promotes robust epithelial morphogenesis. Biophysical Journal, 117(9), pp.1739-1750.

Tung, C., MEMON, S.A. and JAVED, A.A., 2020. Better Management (Risk and Change) through NEC Contracts in Hong Kong. In The 8th International Conference on Construction Engineering and Project Management, Hong Kong. Retrieved (Vol. 4, No. 02, p. 2022).

Yadeta, A.E. and Pandey, D., 2020. Analysis of the global impact of the pandemic (COVID-19) on construction industry: possible scenarios. Current Trends in Civil & Structural Engineering, 6(4), pp.1-8.