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Analyzing Existing Challenges of Owner-implementer Contracts in Building Construction Projects

Hedayat, Pooya | 2025

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  1. Type of Document: M.Sc. Thesis
  2. Language: Farsi
  3. Document No: 57887 (53)
  4. University: Sharif University of Technology, International Campus, Kish Island
  5. Department: Science and Engineering
  6. Advisor(s): Alvanchi, Amin; Jafari Fesharaki, Mohammad
  7. Abstract:
  8. The construction system, as a fundamental pillar of any country's development, requires meticulous oversight and the employment of qualified professionals. The introduction of qualified contractors in Iran as a measure to enhance the quality of construction projects and eliminate unqualified individuals from this field has been a valuable step. However, legal and operational shortcomings, as well as challenges in the contracts between contractors and employers, have hindered the effectiveness of this role. This study aimed to identify and prioritize the challenges in the workflows of qualified contractors and propose solutions for their improvement. Key identified challenges include fluctuations in inflation rates, interference by unqualified individuals, particularly employers, in technical matters, corruption and bribery within relevant organizations, employers’ lack of managerial competence, and circumvention of regulations through signature selling and employing fictitious contractors in projects. The major challenges identified in this research were analyzed and assessed from various perspectives. Prominent solutions include delegating the responsibility of material procurement to contractors, with the costs borne by the employer; monitoring the presence and activities of contractors in projects by engineering system supervisors; and requiring contractors to guarantee the quality of completed work. The findings of this research can significantly contribute to resolving critical challenges in contractors' workflows and improving the overall construction processes of building projects in the country
  9. Keywords:
  10. Construction Projects ; Contract Disputes ; Contract Analysis ; Qualified Contractor ; Construction Industry Projects ; Challenges in Building Supervision

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  • Chapter 1 Introduction
    • 1.1 Introduction and Study Motivation
    • 1.2 Construction Contracts and Their Significance
    • 1.3 Balanced Contracts
    • 1.4 Research Objectives
    • 1.5 Research Methodology
    • 1.6 Thesis Structure
  • Chapter 2 Review of the related-literature
    • 2.1 Introduction
    • 2.2 Examination of the Term "Contractor" in Domestic Sources
      • 2.2.1 Duties and Responsibilities of Building Contractors
      • 2.2.2 Classification of Building Contractors (National Building Regulations Office, 2005)
        • 2.2.2.1 Engineering Offices for Building Execution
        • 2.2.2.2 Legal Contractors
        • 2.2.2.3 Mass Builders (Developers)
        • 2.2.2.4 Design and Build Qualified Entities
    • 2.3 Analysis of the Term "Executor" Abroad
    • 2.4 Challenges Identified for Contractors Abroad
    • 2.5 Identified Challenges for Contractors in the Country
    • 2.6 Identifying Gaps and Improvement Needs (Gap Analysis)
      • 2.6.1 Origin and Application
      • 2.6.2 Structure and Content
      • 2.6.3 Risk Allocation
      • 2.6.4 Responsibilities
      • 2.6.5 Dispute Resolution Mechanisms
      • 2.6.6 Execution and Flexibility
      • 2.6.7 Key Differences and Implications
      • 2.6.8 Content Differences
      • 2.6.9 Summary
    • 2.7 Conclusion
  • Chapter 3 Research methodology
    • 3.1 Introduction
    • 3.2 Problem Statement
    • 3.3 Research Steps
      • 3.3.1 Literature Review and Research Background
      • 3.3.2 Extraction of a Long List of Problems from the Literature
      • 3.3.3 Initial Evaluation and Refinement of the Long List of Problems in Interaction with Experts
      • 3.3.4 Prioritization of Problems and Challenges through Field Studies
        • 3.3.4.1 Designing and Distributing the Questionnaire (Pilot - 10 people and Actual - Approximately 100 people) based on the Refined List
      • 3.3.5 Data Analysis and Pattern Identification
      • 3.3.6 Proposing Solutions for Improving the Contractor Selection and Utilization Process
      • 3.3.7 Conclusion and Recommendations for Future Research
    • 3.4 Final Objective
  • Chapter 4 Evaluation of Existing Challenges in the Contracts of Engineering Organization Contractors
    • 4.1 Introduction
    • 4.2 Identified Challenges in International and Domestic Research Facing Construction Contractors
    • 4.3 Editing, Refining, and Categorizing Challenges of Construction contractors
    • 4.4 Initial Evaluation and Refinement of Challenges by Experts
    • 4.5 Questionnaire Preparation
      • 4.5.1 Questionnaire Design
    • 4.6 Pilot Questionnaire Distribution
    • 4.7 Actual Distribution and Questionnaire Review
  • Chapter 5 Evaluation of Existing Contracts for Contractors and Proposing Improvement Solutions
    • 5.1 Introduction
    • 5.2 Analysis and Review of Responses to Main Challenges in Iranian and Global Laws
      • 5.2.1 Inflation Rate Fluctuations
        • 5.2.1.1 Responses in Existing Laws
        • 5.2.1.2 Responses in FIDIC Red Book
        • 5.2.1.3 Common Solutions in Developed Countries
        • 5.2.1.4 Proposed Solution
      • 5.2.2 Intervention of Unqualified Individuals, Especially Employers, in Technical Matters
        • 5.2.2.1 Responses in Existing Laws
        • 5.2.2.2 Responses in FIDIC Red Book
        • 5.2.2.3 Common Solutions in Developed Countries
        • 5.2.2.4 Proposed Solution
      • 5.2.3 Existence of Bribery and Corruption in Municipalities and the Engineering Organization
        • 5.2.3.1 Measures Taken to Combat Corruption in Iran
        • 5.2.3.2 Examples of Measures in Developed Countries:
        • 5.2.3.3 Conclusion
      • 5.2.4 Lack of Employer’s Managerial Capability
        • 5.2.4.1 Responses Observed in the FIDIC Red Book
        • 5.2.4.2 Responses Observed in Existing Regulations
        • 5.2.4.3 Measures Taken in Advanced Countries
        • 5.2.4.4 Proposed Solutions
      • 5.2.5 Bending the Rules Through Signature Selling and Formal Contractors in Projects
        • 5.2.5.1 Responses Observed in Domestic Regulations
        • 5.2.5.2 Responses Observed in FIDIC
        • 5.2.5.3 Measures Taken by Developed Countries
        • 5.2.5.4 Proposed Solutions
      • 5.2.6 Delays in Construction Caused by the Employer’s Failure to Make Timely Payments
        • 5.2.6.1 Responses Observed in Domestic Regulations
        • 5.2.6.2 Responses Observed in FIDIC
        • 5.2.6.3 Proposed Solution
      • 5.2.7 Incompetent Management by the Contractor
        • 5.2.7.1 Responses in Domestic Regulations
        • 5.2.7.2 Responses in FIDIC
        • 5.2.7.3 Proposed Solutions
      • 5.2.8 Inability of the Employer to Finance the Project
        • 5.2.8.1 Responses in Domestic Regulations
        • 5.2.8.2 Responses in FIDIC
        • 5.2.8.3 Proposed Solutions
      • 5.2.9 Time Constraints from Laws, Permits, Ancillary Costs, Price Instability, etc.
        • 5.2.9.1 Proposed Solutions
    • 5.3 Summary
  • Chapter 6 Conclusion
    • 6.1 Introduction
    • 6.2 Innovations of the Research
    • 6.3 Research Limitations
    • 6.4 Future Research Directions
  • References:
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