Welcome to Open Science
Contact Us
Home Books Journals Submission Open Science Join Us News
Assessing the Impact of Transactional Contract on External Stakeholders Engagement in Traditionally Procured Projects
Current Issue
Volume 5, 2018
Issue 3 (September)
Pages: 62-71   |   Vol. 5, No. 3, September 2018   |   Follow on         
Paper in PDF Downloads: 37   Since Sep. 20, 2018 Views: 1009   Since Sep. 20, 2018
Authors
[1]
Ehizemokhale Oaikhena, Department of Quantity Surveying, Federal University of Technology, Akure, Nigeria.
[2]
Samuel Ekung, Department of Quantity Surveying, University of Uyo, Uyo, Nigeria.
Abstract
Transactional contract is procedural, rigid and inhibits cooperative dealings based on definitive risk allocation. Parties are concerned about self-interest only, thereby exposing non-contractual parties such as the community stakeholders to combative engagement. This study assessed the scope of incentives within transactional-traditional procurement framework with a view to determine their appropriateness to address community stakeholders’ needs towards curbing projects opposition during implementation. The objective was to determine whether transactional contractual characteristics in traditional procurement framework affect the outcome of firm’s engagement with the community. The study involved a questionnaire survey of 200 construction professionals and community leaders in Akwa Ibom and Ondo State, Nigeria. The study data were analysed using the mean item score, and the test of hypothesis involved chi square. The results revealed that fragmented practice, opportunism, moral hazards and adverse selection attributes inherent in traditional procurement framework inhibit progressive dialogue, inclusive progressive interaction, and open and transparent dealings with community stakeholders. Transactional contractual practice therefore hinders effective engagement with the community during project implementation. The finding of the study infers the need to modify transactional attributes to enhance flexibility, solidarity, mutuality and restrain of opportunism in traditional procurement framework. These adaptations will ensure synergistic engagement towards improved efficiency.
Keywords
Adverse Selection, Engagement, External Stakeholders, Moral Hazards, and Opportunism
Reference
[1]
Strahorn, S., Gajendren, T. and Brewer, G. (2015). The Influence of Trust in Traditional Contracting: Investigating the “Lived Experience” of Stakeholders, Construction Economics and Building, 15 (2), 81-101. DOI: http://dx.doi.org/10.5130/AJCEB.v15i2.4408.
[2]
Dada, M. O. (2012). A Second Look: Stakeholders’ Perception of Some Issues in Design-Bid- Build Procurement Practice in Nigeria, Journal of Sustainable Development, 5 (1), 55 – 64.
[3]
Dada, M. O. (2012). Client and Consultant Organisations’ Assessment of Design-Bid-Build Procurement Practice in Nigeria, Journal of Building Performance, 4 (1), 1- 12.
[4]
Idoro, G. I. (2012). The Influence of Project Documents on the Outcome of Construction Projects Procured by Traditional Contracts in Nigeria, Journal of Construction in Developing Countries, 17 (10), 1-19.
[5]
Idoro, G. I., Iyagba, R. O. A. & Odusami, K. T. (2007). Evaluation of the Use of Design-bid- builds Procurement System in the Nigerian Construction Industry, Construction Research Journal, 1 (1), 15-25.
[6]
Ojo, O. S., Aina, O., & Adeyemi, A. Y. (2011). A Comparative Analysis of the Performance of Traditional Contracting and Design build Procurements on Clients Objectives in Nigeria, Journal of Civil Engineering and Management, 17 (2), 227-233.
[7]
Oladinrin, O. T.; Olatunji, S. & Hamza, B. T. (2012). Effect of Selected Procurement Systems on Building Project Performance in Nigeria, International Journal of Sustainable construction Engineering & Technology, 49 (10), 48-62.
[8]
Masterman, J. W. E. (2002). Introduction to Procurement Systems, London: E & FN Spon Ltd.
[9]
Eriksson, P. E. & Pesamma, O. (2007). Modelling Procurement Effects on Cooperation, Construction Management and Economics, 25, 893–901.
[10]
Ibrahim, C. K. C., Costello, S. B. and Wilkinson, S., (2011). Key Practice Indicators of Team Integration in Construction Projects: A Review. 2011 2nd International Conference on Construction and Project Management, 2011. Singapore: IACSIT Press.
[11]
Olander, S. (2007). Stakeholders Impact Analysis in Construction Management, Construction Management and Economics, 25 (3), 277 -88.
[12]
Winch, G. M. (2002). Managing Construction Projects: An Information Processing Approach, Oxford: Blackwell Publishing.
[13]
Aaltonen, K., & Kujala, J. (2010). A Project Lifecycle Perspective on Stakeholder Influence Strategies in Global Projects, Scandinavian Journal of Management, 26, 381‐ 397.
[14]
Teo, M. M. M. and Loosemore M. (2012). A New Research Agenda into Community-based Protest in Construction In: Smith, S. D (Ed) Procs 28th Annual ARCOM Conference, 3- 5 September 2012, Edinburgh, UK, Association of Researchers in Construction Management, 1135-1143.
[15]
Ekung, S. & Lashinde, A. (2016). Exchange Mechanics for Project Interface Management in Selected Traditional Construction Projects in Niger-Delta Area, Nigeria, FUTA Journal of Management and Technology, 1 (2), 32-44.
[16]
Ihugba, B. U. & Osuji, O. K. (2011). Corporate Citizenship and Stakeholder Engagement: Maintaining an Equitable Power Balance, Electronic Journal of Business Ethics and Organisation Studies, 16 (2), 28 -38.
[17]
Ojo, S. O. (2009). Benchmarking the Performance of Construction Procurement Methods against Selection Criteria in Nigeria, Civil Engineering Dimension, 11 (2): 106-112.
[18]
Sancino, A. & Sicilia, M. (2010). The Transactional and the Relational Approach to Contracting Out for Public Services: How Do They Work? Journal of Finance and Management in Public Services, 11 (1), 1-13.
[19]
King, K.; Bethania, M. & Benassi, C. (2013). Comparison between Transactional and Relational Contracts, Summer School Essay, Human Resource Management Employment Relations.
[20]
Baron, J. N. & Kreps, D. M. (1999). Strategic Human Resources: Frameworks for General Managers, New York: John Wiley.
[21]
Katz, A. W. (2005). Contractual Incompleteness: A Transactional Perspective, Case Western Law Review 56 (1), 169-186.
[22]
Ashworth, A.; Hogg, K. & Higg, K. (2013). Willis’ Practice and Procedure for Quantity Surveyors, Oxford: Blackwell Science Publishers.
[23]
Reeves, E. (2008). The Practice of Contracting in Public Private Partnerships: Transaction Costs and Relational Contracting in the Irish Schools, Public Administration, 86, 969-986.
[24]
Gunathikilake, S. & Jayasena, H. (?). Developing Relational Approaches to Contracting: The Sri Lankan Context. Available online at http://uyn.fi/UtN:NvN:fi:3020202459093, accessed 22/2/14.
[25]
Mathews, O. & Howell, G. (2005). Integrated Project Delivery: an Example of Relational Contracting, Lean Construction Journal, 2 (1), 46-61.
[26]
CIOB (2008). Corporate Social Responsibility and Construction; Summary, (Available online http://docs.google.com/viewer?a=v&q=cache:j_KUY9LcrUAJ: www.ciob.org.uk Accessed on 22/5/2013).
[27]
Chinyio, B and Olomolaiye, P (2010). Construction Stakeholder Management, Oxford: John Wiley & Sons, 23- 46.
[28]
Walker, D. H. T., Bourne, L. M. and Shelley, A. (2008). Influence, Stakeholder Mapping and Salience, Wiley-Blackwell.
[29]
Newcombe, R. (2003). From Client to Project Stakeholders: a Stakeholder Mapping Approach, Nottingham UK, Association of Researchers in Construction Management, 43-52.
[30]
Ekung, S. Ekanem, & Ibanga, I. (2016). Analysis of Community Stakeholders Influencing Real Estate Development in Akwa Ibom State, Nigeria, Real Estate Journal, 6 (1), 51-68.
[31]
Jawahar, I. M. & McLaughlin, G. L. (2001). Towards a descriptive Stakeholder Theory: An Organizational Life Cycle Approach, Academy of Management Review, 26 (3), 397-414.
[32]
Ekung, S.; Ogboji, M.; & Okonkwo, E. (2013). Extenuating Community Protest in Controversial Projects Scenarios in the Niger Delta- a Case for CSR, In Ibrahim, A. D. (Ed): Proceeding of the 1st NIQS Research Conference, Innovative and Sustainable Management of Building and Infrastructure Projects, International Conference Centre, Abuja, September 2-5th, 669-679.
[33]
Rosario, V. D. & Goh, K. H. (2007). Community Stakeholder Management in Wind Energy Development Projects: A Planning Approach, Thesis available @ http://www.diva-portal.org/smash/get/diva2:141249/FULLTEXT01.pdf, accessed 6/7/12.
[34]
Olander, S. (2009). Analysis of External Stakeholder Influence on Construction Projects, Proceeding of 5th Nordic Conference on Construction Economic and Organisation, Raykjavik, Iceland, 10 -12 June.
[35]
Loosemore, M. (2000). Crisis Management in Construction Projects, Virginia: ASCE Press
[36]
Post, J. E., Preston, L. E. and Sachs, S. (2002). Redefining the Corporation: Stakeholder Management and Organizational Wealth, California: Stanford University Press.
[37]
Yuan, J., Skibniewski, M. J., Li, Q., & Zeng, L. (2010). Performance Objective Selection Model in Public-private-Partnership Projects Based on the Perspective of Stakeholders, Journal of Management in Engineering, 26 (2), 89-104.
[38]
Winch, M.; Mucha, M.; Roberts, M.; and Shinn, B. (2007). Sustainable Public Involvement¸ Washington State Public Works, Washington, USA.
[39]
Kumaraswamy, M. M.; Rahman, M. M.; Ling, F. Y. Y.; and Pheng, S. T. (2005). Constructing Transactionally Efficient Relational Contracting, Construction Management and Economics, 20, 45-54.
[40]
Bal, M. Bryde, D. Fearon, D. & Ochieng, E. (2013). Stakeholder Engagement: Achieving Sustainability in the Construction Sector, Sustainability, 6: 695-710 doi: 10.3390/su5020695.
[41]
Dada, M. O. (2013). Conflicts in Construction Projects Procured under Traditional and Integrated Systems: A Correlation Analysis, International Journal of Construction Supply Chain Management, 3 (1), 1-15.
[42]
Yang, J.; Shen, Q.; Ho, M.; Drew, D.; Chan, A. P. C. (2009). Exploring Critical Success Factors for Stakeholders Management in Construction Projects, Journal of Civil Engineering and Management, 15 (4), 337-48.
[43]
Oluka, P. N.; Benon, C. & Basheka, C. (2012). Determinant and Constraints to Effective Procurement Contract Management in Uganda: A Practitioner’s Perspective, 5th Annual International Public Procurement Conference
[44]
Ogunsanmi, O. E. (2013). Effects of Procurement Related Factors on Construction Project Performance in Nigeria, Ethiopian Journal of Environmental Studies and Management, 6 (2), 215-222.
[45]
Joshi, A. W. & Stump, R. L. (1999). Determinants of Commitment and Opportunism: Integrating and Extending Insights from Transaction Cost Analysis and Relational Exchange Theory, Canadian Journal of Administrative Sciences, 16 (4), 334-352.
[46]
Miller, G. J. & Whitford, A. B. (2006). The Principal’s Moral Hazard: Constraints on the Use of Incentives in Hierarchy, Journal of Public Administration Research and Theory, 17, 213- 22.
[47]
Pallant, J. (2010). SPSS Survival Manual: A Step by Step Guide to Data Analysis using the SPSS Program, 4th Edition, New York: McGraw Hill Education.
[48]
Hoxley, M. (2008). Questionnaire Design and Factor Analysis, in Knight, A & Ruddock, L. (eds.), Advanced Research Methods in the Built Environment, Chichester: Blackwell Publishing Ltd.
[49]
Nash, S, Chinyio, E, Gameson, R and Suresh, S. (2010). The Dynamism of Stakeholders’ Power in Construction Projects. In: Egbu, C. (Ed) Procs 26th Annual ARCOM Conference, 6-8 September, Leeds, UK, Association of Researchers in Construction Management, 471-480.
[50]
Agren, R.; Widen, K. & Olander, S. (2012). Procurement Procedures as Predicators for Cost and Time Overruns in Construction, International Conference of Public Procurement
[51]
Shwarka S. M. and Anigbogu N. A. (2012). Impact of the Public Procurement Reform on Public Building Projects Delivery in Nigeria In: Smith, S. D (Ed) Procs 28th Annual ARCOM Conference, 3-5 September 2012, Edinburgh, UK, Association of Researchers in Construction Management, 969-977.
Open Science Scholarly Journals
Open Science is a peer-reviewed platform, the journals of which cover a wide range of academic disciplines and serve the world's research and scholarly communities. Upon acceptance, Open Science Journals will be immediately and permanently free for everyone to read and download.
CONTACT US
Office Address:
228 Park Ave., S#45956, New York, NY 10003
Phone: +(001)(347)535 0661
E-mail:
LET'S GET IN TOUCH
Name
E-mail
Subject
Message
SEND MASSAGE
Copyright © 2013-, Open Science Publishers - All Rights Reserved