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Article

Variations and Claims in International Construction Projects in the MENA Region from the Last Decade

by
Ahmed Mohammed Abdelalim
1,*,
Ruqaya Al-Sabah
2,
Mohamed Salem
3,
Salah Omar Said
4,
Mohamed Tantawy
5 and
Mohamed Ramadan Ezz Al-Regal
4
1
Founder of PMSC Program, Department of Civil Engineering, Faculty of Engineering—Mataria, Helwan University, Cairo 11795, Egypt
2
College of Engineering and Petroleum, Kuwait University, Kuwait City 13060, Kuwait
3
Collage of Engineering, Australian University, Safat, West Mishref 13015, Kuwait
4
Faculty of Engineering at Mataria, Helwan University, Cairo 11795, Egypt
5
Department of Civil Engineering, Faculty of Engineering—Mataria, Helwan University, Cairo 11795, Egypt
*
Author to whom correspondence should be addressed.
Buildings 2024, 14(8), 2496; https://doi.org/10.3390/buildings14082496
Submission received: 29 May 2024 / Revised: 15 July 2024 / Accepted: 7 August 2024 / Published: 13 August 2024
(This article belongs to the Section Construction Management, and Computers & Digitization)

Abstract

:
This study delves into the dynamics of ‘Variations’ and ‘Claims’ in construction projects. This study aims to identify, categorize, and devise mitigation strategies for critical types of variations and claims that are aligned with the contract’s FIDIC conditions. The research draws on input from construction industry professionals, including contract administrators and project managers, and focuses on the MENA region. The region’s extensive adoption of FIDIC standards and the rapidly growing construction sector drive this choice. Data collection encompassed a questionnaire distributed to 80 industry experts, predominantly through interviews focused on countries such as Saudi Arabia, the UAE, Kuwait, and Egypt. Utilizing SPSS-V.25 for statistical analysis, this study uncovers the most prevalent and impactful causes of variations and claims, highlighting the critical need for managerial intervention. A key feature is the integration of scientometric analysis into a quantitative finding. Implementing a k-means clustering analysis is a significant addition to the methodology. The survey had high internal consistency with a Cronbach’s alpha of 0.97, and the respondents reported frequent and significant claims such as delayed drawings, ambiguous documents, and client changes. The results showed that effective claims management requires clear communication and balanced contracts, while poor design and contract documentation cause variations and claims. The correlation analysis showed strong positive correlations between claim types and causes. To reduce claims and address these factors, most respondents said the survey could predict and reduce claims.

1. Introduction

The construction industry plays a crucial role in gauging the economic health of a country; its success fosters development and stability, while its failure can negatively impact the economy [1,2,3]. According to market research conducted until 2020 for the “construction industry” worldwide, this study focuses on global construction forecasts up to the year 2020 and the evolution of the “construction industry” in all major countries. According to the CIC (Construction Intelligence Center) Global 50s (2010–2020), this encompasses over 50 of the world’s biggest and most significant markets. This is largely due to the significant investments made in infrastructure and buildings in these regions despite fluctuations in oil prices and their vulnerability to economic growth [1]. The report also confirmed that the Asia–Pacific region accounts for a growing portion of the global construction industry, rising from 40% in 2010 to nearly 49% in 2020. “Variations” and “claims” are common in the construction industry because of its requirements and needs, as well as the growing complexity of construction processes. However, construction industry contracts with huge funding values undergo many “variations” during the project’s design, contracting, and construction stages [1,2,3,4,5,6,7,8]. The primary objectives of this study are to identify and characterize contractual variants and raised claims in compliance with the employer’s FIDIC-Red Book 1999 [9]. Additionally, we aim to identify the significant causes of these variations and claims and provide suggestions for their resolution.
Much research on construction project management has yet to address “variations” and “claims”. Abdelalim et al. [1,2,3,5,6] have improved risk management, quality control, and productivity. Still, there needs to be more focused research on systematically identifying and characterizing significant variations and claims under FIDIC contracts for construction conditions [9]. Existing studies [4,7,8] focus on risk factors rather than contractual issues, making it difficult to determine the causes of these variations and claims. Last, while some studies [9,10,11] suggest strategic management and risk mitigation, there is a clear need for targeted recommendations and practical solutions that directly address and prevent construction project variations and claims. This gap highlights the need for a more integrated and focused approach to studying variations and claims, aligned with contractual frameworks such as the FIDIC, to develop construction industry strategies. Based on feedback from construction professionals’ experience, clients, consultants, contractors, and experts advocate for the use of survey questionnaires. Other research has tried to find “variations” and “claims” in the terms of the contract for the construction of buildings and engineering works that have already been planned [9]. This study aims to find and describe the main types of “variations” and “claims” in construction projects by looking at the terms of construction contracts [9]. Therefore, this study develops the research objectives:
  • Identification and characterization of the significant types of “variations” and “claims” in construction projects by the terms of the conditions of construction contracts [9].
  • Study the significant causes of the “variations” and “claims” in construction projects.
  • Suggest recommendations and proposed solutions to benefit from this study’s results and avoid the causes of “variations” and “claims.”
  • Investigate the causes of claims and variations in the MENA region, which recently has a booming construction market with the involvement of international AEC firms with tremendous budgets.
  • Extending the investigation to the last decade will be an advantage, as most current research concentrated on COVID-19 after 2019 and neglected other causes that had been started before the pandemic, which may have more significant effects on the construction industry.

2. Research Methodology

The research methodology adopts a multi-faceted approach, essential for comprehensively addressing the intricacies of Variations and Claims in International Contracts, specifically under FIDIC guidelines. The methodology is structured into distinct but interrelated stages, each contributing uniquely towards achieving our research objectives, as shown in Figure 1.

Scientometric Analysis

In the scientometric analysis phase of this research, a thorough and systematic examination of the existing scholarly literature on variations and claims in international contracts, with a specific focus on those under the Fédération Internationale Des Ingénieurs-Conseils (FIDIC) framework in the MENA region for the study period, is carried out. This examination is pivotal for pinpointing the dominant themes, trends, and notable gaps within this academic field. The research delves into a carefully curated collection of academic journals, conference papers, and industry reports using advanced data analysis tools.
To initiate this analysis, Scopus and Web of Science, a database known for its wide array of scientific publications and rapid indexing, was selected as the primary source for data retrieval. This choice enhances the likelihood of accessing the relevant and recent literature in this field. In December 2023, a specific search query was employed to gather these data. The query, formulated as “(TITLE-ABS-KEY (“Construction” AND “FIDIC” AND “Claim”) OR TITLE-ABS-KEY (“Construction” AND “FIDIC” AND “Variation”) AND (LIMIT-TO (LANGUAGE, “English”) AND (LIMIT-TO (DOCTYPE) OR LIMIT-TO (DOCTYPE, “ar”)”, is designed to capture publications that focus on ‘Construction’, ‘FIDIC’, along with either ‘Claim’ or ‘Variation’.
Recognizing the enduring significance of ‘construction claims’ as a research topic in the construction sector, the authors decided against setting a time restriction for the publications. Initially, 62 articles were retrieved through this process. The inclusion and exclusion criteria ensure the review’s quality and relevance. Articles not in English and those not categorized as ‘journal articles’ or ‘conference articles’ were excluded. This refining process narrowed down the selection to 49 manuscripts, which were then downloaded and meticulously reviewed.

3. Literature Review

Variations and claims generally arise between the employer and the contractor because of their respective rights and obligations under the contract clauses or some events or circumstances.
The FIDIC Conditions of Contract tried to ensure the balanced rights of all parties, even when the employers, engineers, and contractors were exposed to claims; the following sections exhibit classification and causes of variations and claims.

3.1. Classification of Variations and Claims

According to the terms and conditions of the contract for the construction of building and engineering works designed by the employer [9], variations and claims between the employer and the contractor are classified into time, cost, and profit claims (Table 1).

3.2. Causes of Variations and Claims

According to the terms and conditions of the contract for the construction of building and engineering works designed by the employer [9], causes of variations and claims can be classified as shown in Table 2.

3.3. Significance and Avoidability

Significance and avoidability are two critical issues addressed in a real strategy for reducing variations and claims. Avoidability concerns the precautions and preventive procedures that can reduce the consequences of variations and claims. Both are essential in studying the causes of claims and recommended responses.
Avoidability, as a procedure that reduces the negative impacts of claims and variations, can be considered a risk mitigation strategy for construction projects.

4. Results

For deeper analysis, visualization of similarities (VOS), an open-source tool acclaimed for its capability to construct and visualize bibliometric networks, is utilized. This software applies the VOS-viewer technique [10] for this analysis. The process includes examining all keywords in the selected publications, with a predetermined threshold set to include those appearing at least twice. Among 324 keywords, 54 meet this criterion, revealing six main thematic clusters in the analysis, as shown in Figure 2.
These clusters were visually represented in a keyword co-occurrence network, where each cluster is color-coded, and the size of each node (keyword) indicates its frequency of occurrence. The relationships between keywords were depicted through arcs, with the thickness of each line signifying the strength of the relationship. The clusters identified were the yellow cluster representing ‘contractors’, the red cluster for ‘construction industry and EOT’, the green cluster signifying ‘construction project management’, the purple cluster for ‘civil engineering’, the blue cluster denoting ‘construction and FIDIC’, and the sky-blue cluster for ‘construction contracts’. The most prominent keyword, serving as the central node in this network, is ‘construction projects’.
Despite not being constrained by strict keyword thresholds, this visualization highlights a critical observation: previous studies have yet to extensively explore the causes of claims and variations within the context of FIDIC contracts. This gap in the literature underscores the necessity for this research to delve deeply into these aspects, thereby contributing to a more comprehensive understanding of Variations and Claims in construction contracts under FIDIC regulations. There were no similar scholars covering the same period (10 years) in the MENA region.

4.1. Characteristics of the Survey Targeted Participants and Statistical Investigation

The sample size for the survey was determined considering the limited availability of claims and disputes experts. To ensure a statistically representative sample of the population, the following formula was used for the initial calculation:
Sample   Size :   m = z 2 × p × 1 p ε 2 = 1.96 2 × 0.5 × 1 0.5 0.05 2 = 384 .
This calculation is based on:
A confidence level value (z) of 1.96 indicates a 95% confidence level, and an estimated proportion (p) of 0.5 is commonly used when the exact proportion is unknown. A margin of error (ε) set at 0.05 equals 5%.
The initial sample size calculated using this formula was 384. However, a correction was applied to this initial figure because of the finite population of Claims and Disputes experts. The corrected sample size (n) was determined by the following equation, which accounts for the limited population size:
Correction   for   Limited   Sample   Population :   n = m 1 + m 1 N = 384 1 + 384 1 110 80
In this equation, N represents the total population of Claims and Disputes experts. This adjustment resulted in a final sample size of approximately 80. This methodological approach is critical to ensure that the sample size adequately represents the expert population, enhancing the reliability of the survey results.
As shown in Figure 3 and Figure 4, the characteristics of respondents were classified and denoted into six groups: PC01, PC02, PC03, PC04, PC05, and PC06.

4.2. Participant Profiles and Group Classifications in the Survey

The survey categorized respondents into six distinct groups, each defined by specific criteria that captured various dimensions of their professional profiles. This categorization facilitated a detailed data analysis, allowing for nuanced insights into industry practices. The groups were as follows:
  • PC01—Role of the Respondent (Identity): This classification focused on the professional role of each respondent, identifying their specific position or function within their organization.
  • PC02—detailed Managerial Level: Respondents were classified based on their organization’s managerial level, offering insights into the decision-making hierarchy and leadership structure.
  • PC03—years of Experience: This category evaluated the individual professional experience of respondents, highlighting the depth and range of their expertise in the industry.
  • PC04—organization/Firm’s Experience (Firm’s Number of Years in Business): This group focused on the longevity and historical context of the organizations represented, providing an understanding of the firm’s experience and stability in the industry.
  • PC05—Organization/Firm’s Annual Number of Projects: This classification detailed the scale and scope of operations of the respondents’ firms based on the number of projects managed or undertaken annually.
  • PC06—Organization/Firm’s Number of Employees: This group provided insights into the organizations’ size and human resource capacity, highlighting the scale of their operations regarding personnel.
Figure 3 and Figure 4 follow to provide visual representations of these classifications, illustrating the diversity and distribution of the participant pool across these varied criteria.

4.3. Evaluation of Survey Validity and Reliability

The survey underwent a rigorous evaluation for validity and reliability, focusing on types of variations and claims regarding frequency, impact, and underlying causes. The validity was quantitatively established with a Cronbach’s alpha value of 0.97, indicating a high level of internal consistency since this value notably surpasses the commonly accepted threshold of 0.70. Furthermore, the lowest item-total statistic in the survey did not fall below 0.969, reinforcing the validity of the findings. Regarding reliability, the corrected item-total correlation for all dependent and independent survey factors exceeded 0.30.

4.4. Relative Importance Index Test (RII)

The survey incorporated the relative importance index (RII) to analyze participants’ perceptions of various factors. The respondents were requested to assign a rating to each factor, ranging from 1 (‘very rare’) to 5 (‘very high’). Absent responses were not assigned any weight in the RII calculation. This rating system facilitated categorizing responses into five levels of importance: extremely rare (deficient), rare (low), average, high, and very high.

4.5. Assessment of Frequency for Types of Variations and Claims

The respondents, including clients, consultants, and contractors, were collectively evaluated to assess the frequency of different variations and claims, as summarized in Table 3. This analysis identified fifty-one distinct types of variations and claims, initially detailed in Table 1. Ten types emerged as the most frequently encountered in projects, consistently reported across all respondent groups. The remaining forty-one types were notably less frequent, indicating a lower occurrence rate in construction projects.

4.6. Assessment of Impact for Types of Variations and Claims

The impact assessment of variations and claims is based on the collective feedback from clients, consultants, and contractors (Table 4). This evaluation aimed to understand the severity of different types of variations and claims as experienced in the industry.
The analysis revealed that 32 variations and claims were frequently identified as significantly impacting construction projects. In contrast, 19 types were perceived to have a less severe impact, suggesting that their occurrence typically results in less disruption or fewer consequences for the projects involved.

4.7. Causes of Variations and Claims (Perceived Agreement Assessment)

Every replying group affirmed the possibility that the majority of the causes listed above could result in claims and variances in construction projects. With varying degrees of agreement, each group concurred that 31 possible causes could lead to these construction variations and claims.
This illustrates the disparities in agreement as each group perceived it. The assessment of the cause by different responding groups (i.e., clients, consultants, and contractors) was compared using Table 5. The generation of different construction variations and claims can be attributed to these thirty-one proposed causes. However, this bias is not unexpected, as others have already noted [11].

4.8. Causes of Variations and Claims (Perceived Significance Assessment)

The responses for the cause’s significant assessment from the viewpoint of all respondents for the first ten categories of variations and claims are shown in Table 6.

4.9. Causes of Variations and Claims (Perceived Avoidability Assessment)

An analysis was conducted on the responses from the different groups about the avoidability of factors that can lead to or “trigger” the kinds of variations and claims.
Nonetheless, an analysis of total response data is presented in Table 7. The answers for the top 10 avoidable causes of variations and claims are shown in Table 7.

5. Discussion

In this study, various statistical analysis methods were pivotal for comprehensively understanding the intricate dynamics of Variations and Claims in FIDIC contracts in the MENA region. Each method contributed uniquely to unraveling different facets of the data, starting with descriptive and inferential statistics. This allowed for establishing a foundational understanding of these data’s distribution and relationships among variables.
Advancing to more complex analyses, such as the relative importance index (RII) and Spearman’s correlation, obtained more profound insights into the significance and interconnectedness of factors influencing variations and claims.

5.1. Analysis of the Findings (Statistical Hypothesis—Kruskal–Wallis Test)

According to the null hypothesis, each population median is equal. A significance threshold of 0.05 (represented as α or alpha) is typically adequate. A 5% chance of determining that a difference exists when there is not one is indicated by a significance level of 0.05. p-value < α indicates statistical significance in the discrepancies between some medians. The null hypothesis is true if the p-value is less than or equal to the significance level.
Most of the six group respondents to this statistical test said that except T12, which is statistically significant about personal experience (PC03) with a p-value of less than 0.05. The differences between the medians are not statistically significant. As a result, not all group medians are equal, and the null hypothesis was rejected. Furthermore, the relationship of T14 to the organization/firm’s experience (PC04) was statistically significant with a p-value of 0.01. The null hypothesis was rejected, indicating that not all item medians are identical, and T16 was also statistically significant regarding the organization/firm’s experience (PC04), with a p-value of =0.009 (lower than 0.05). T39 showed statistical significance about the organization or firm’s annual number of projects (PC05) with p-value = 0.007. Regarding frequency, it is evident that most variations and claims have no statistically significant disparities between the medians; refer to Appendix B.

5.2. Kruskal–Wallis Test (Types of Variations and Claims—Impact)

For this statistical test, most of the group respondents (PC01, PC02, PC03, PC04, PC05, and PC06) responded that the differences between the medians are not statistically significant except for the PC01 group we find that T11, T49, T02, T21, T45, T27, T38 and T43 with p-values of 0.002, 0.005, 0.007, 0.035, 0.040, 0.041, 0.042, and 0.049 respectively. In addition, for the Managerial level PC02 group, it was found that T32, T29, T22, and T25 are statistically significant with p-values of 0.026, 0.028, 0.038, and 0.046, respectively. In addition, for the PC03 group, note that only one type, T49, is statistically significant with a p-value of 0.0.044. For the PC04 group, the T02 and T11 types are statistically significant, with p-values of 0.012 and 0.021, respectively. For the PC05 group, the T16 and T39 types are statistically significant, with p-values of 0.009 and 0.013, respectively. Finally, the PC06 group has three types, T16, T47, and T26, that are statistically significant with p-values of 0.032, 0.040, and 0.040.
Most variations and claims in terms of impact have no differences between the group respondents’ medians, which are not statistically significant, as shown in Appendix C.

5.3. Kruskal–Wallis Test (Cause of Variations and Claims—Agreement)

For this statistical test, most of the group respondents (PC01, PC02, PC03, PC04, PC05, and PC06) responded that the differences between the medians are not statistically significant except for the PC01 group; it was found that one cause, C31 with a p-value of 0.029. In addition, in the PC02 group, no causes are statistically significant. However, for the PC03 group, note that only one type, C12, C11, C19, C20, C30, C14, and C10, are statistically significant with p-values equals 0.006, 0.009, 0.021, 0.024, 0.026, 0.026, and 0.027 respectively. For the PC04 group C04, C06, C08, C10, C14, C07, C12, C29, C11, C17, C20, C25, C13, C28, C24, C03, C27, and C2 are statistically significant with p-values of 0.00, 0.00, 0.001, 0.003, 0.005, 0.005, 0.005, 0.010, 0.011, 0.019, 0.021, 0.027, 0.027, 0.039, 0.041, 0.044, 0.048, and 0.050, respectively. In addition, the PC05 group C06, C05, C12, C03, C11, C25, C09, and C29 are statistically significant with p-values of 0.002, 0.003, 0.004, 0.011, 0.015, 0.023, 0.025, and 0.042, respectively. Finally, the PC06 group C27, C24, C29, C25, C17, C14, C13, C03, C06, C16, C02, C20, C28, C18, C11, C09, C30, and C19 are statistically significant with p-values lower than 0.05.
Most of the causes of variations and claims in terms of agreement have no differences between the group respondents’ medians that were not statistically significant, as shown in Appendix D.

5.4. Kruskal–Wallis Test (Cause of Variations and Claims—Significance)

Similarly, most of the group respondents (PC01, PC02, PC03, PC04, PC05, and PC06) responded that the differences between the medians are not statistically significant except for the PC01 group we found that causes C29, C20, C12, C03, C01, C07, C23, C15, C28, C05, C11, C18, and C09 with p-values of 0.001, 0.004, 0.009, 0.011, 0.012, 0.012, 0.019, 0.025, 0.031, 0.0310, 035, 0.037, and 0.046, respectively. In addition, the PC02 group has no statistically significant causes. However, the PC03 group has three types, C04, C10, and C20, that are statistically significant with p-values of 0.025, 0.039, and 0.043, respectively. In addition, the PC04 group has three causes: C04, C11, and C18, which are statistically significant with p-values of 0.014, 0.020, and 0.039, respectively. In addition, the PC05 group C20, C15, C21, C10, C05, C01, C29, C16, and C29 are statistically significant with p-values of 0.003, 0.006, 0.009, 0.009, 0.012, 0.013, 0.027, 0.027, and 0.048, respectively. Finally, for the PC06 group; C17, C15, C05, C07, C10, C19, C21, C16, C08, C24, C13, C06, and C29 are statistically significant with p-values lower than 0.05.
Most of the causes of variations and claims in terms of significance have no differences between the group respondents’ medians that are not statistically significant (see Appendix E).

5.5. Kruskal–Wallis Test (Cause of Variations and Claims—Avoidability)

Similarly, most of the group respondents (PC01, PC02, PC03, PC04, PC05, and PC06) responded that the differences between the medians are not statistically significant except for the PC01 group; it was found that three causes, C06, C08, and C21 with a p-value of 0.011, 0.017 and 0.034 respectively. In addition, the PC02 group has no causes statistically significant. However, the PC03 group has three types, C09, C30, and C10 are statistically significant with p-values = 0.010, 0.036, and 0.044, respectively. The PC04 group has three causes; C06, C13, and C02 are statistically significant with p-values = 0.020, 0.029, and 0.032, respectively. However, the PC05 group has no statistically significant causes. Finally, the PC06 group has one statistically significant cause, C13, with a p-value lower than 0.05, which = 0.008.
Most causes of variations and claims regarding avoidability have no differences between the group respondents’ medians, which were not statistically significant (see Appendix F).

5.6. Spearman’s Correlation Test

It is known that the relationship appears in three phases; the first phase was (−r < 0), meaning a negative relationship exists between the two variables. The second phase is that (+r > 0), which means a positive relationship exists between the two variables. The third phase is (r = 0), meaning there is no relationship between the two variables.
To understand the Spearman correlation coefficient, if the correlation coefficient value (r) = 0, there is no relationship between variables. While the correlation coefficient value (0.0 < r < 0.25) indicated a weak positive relationship. The correlation coefficient value (0.25 ≤ r < 0.75) indicated an average positive relationship. However, there was a strong positive relationship if the correlation coefficient value (0.75 ≤ r < 1). The relationship is entirely positive if the correlation coefficient value equals 1 (r = 1).
Regarding the correlation hypothesis, if r = 0, there is no relation between the two variables and accepting the zero hypothesis (H0), but if r is not equal to 0, there is a relation between the two variables and rejecting the zero hypothesis (H0) and accept the alternative hypothesis (H1). While if sig. > 0.05, accept the zero hypothesis (H0), but if sig. < 0.05 the zero hypothesis (H0) will be refused.

5.6.1. Spearman’s Correlation Test (Types–Frequency) and (Causes–Significance)

It appears that there was a highly positive correlation, denoted by red color, related to the p-value (see Appendix G). Moreover, those denoted by green revealed the correlation between significant causes: C21, C10, and C05 and frequented types T16, T23, T38, and T31. While it was lower than 0.05, the H0 hypothesis was not accepted, and the H1 hypothesis was accepted alternatively. Similarly, for significant causes, C15, C16, and C17 correlated with frequented types T16, T23, and T31. In addition, a significant cause of C19 is the correlation between frequented types T16, T23, T45, and T31. In addition, the significant cause of C20 correlated with frequented types T16, T23, T38, and T31.
The same is true for significant cause C01, which correlated with frequented types T16, T38, T31, T07, and T09. Finally, significant cause C06 had a correlation relationship with frequented types T16, T23, T38, T31, T34, and T10. For the correlation hypothesis, while the significance is lower than 0.05, the H0 zero hypothesis was rejected, and the H1 alternative hypothesis was accepted; see Appendix G.

5.6.2. Spearman Correlation Test (Types–Impact) and (Causes–Significance)

There appears to be a highly positive correlation for the mentioned correlation coefficient by red color, related to the p-value. The green color reveals that there was a correlation relationship between significant causes C21, C16, C17, C20, and C01 and Impacted types T39, T47, T16, T41, T27, T38, T33, T23, and T26, while it is lower than 0.05. Therefore, the H0 was rejected, and the H1 hypothesis was accepted. Similarly, for significant cause C10 that had a correlation relationship with Impacted types T39, T47, T16, T41, T27, T38, T33, and T26.
In addition, significant causes C05, C15 have a correlation relationship with impacted types T39, T47, T16, T41, T27, T38, T33, T23, T26, and T48. In addition, significant cause C19 had a correlation relationship with Impacted types T39, T47, T16, T41, T27, T38, T33, T26, and T48. Finally, significant cause C06 has a correlation relationship with Impacted types T39, T47, T16, T41, T27, T38, T33, and T26. For the correlation hypothesis, while the significance was lower than 0.05, we will not accept the H0 zero hypothesis and accept the H1 alternative hypothesis; see Appendix H

5.6.3. Spearman Correlation Test (Types–Frequency) and (Causes—Avoidability)

Similarly, there was a highly positive correlation for the mentioned correlation coefficients by red color, related to the p-value (significant), which had green color revealing a correlation relationship between avoidable cause C10 and frequented types T23 and T38. In addition, for avoidable causes, C13 correlated with frequented types T38, T45, and T31, and avoidable cause C06 correlated with frequented types T16, T23, T38, and T31. In addition, the avoidable cause C05 correlated with frequented types T16, T31, and T09. Moreover, avoidable causes C01, C04, and C09 correlate with frequented type T09. On the other hand, the avoidable cause C05 correlated with frequented types T38 and T09. However, the avoidable cause C02 correlated with frequented types T38, T07, T09, and T10. Meanwhile, the avoidable cause C07 did not correlate with any frequented types.
Finally, the avoidable cause C08 correlated with frequent T38, T09, T45, and T10 types. For the correlation hypothesis, the significance was lower than 0.05, so the H0 zero hypothesis was rejected, and the H1 alternative hypothesis was accepted; Appendix I.

5.6.4. Spearman Correlation Test (Types–Impact) and (Causes—Avoidability)

The correlation between the most impacted types and the most avoidable causes was investigated using Spearman’s test (see Appendix J). It appears that there was a highly positive correlation denoted by red color, related to the p-value, which has green color reveals that there is a correlation relationship between avoidable cause C10 and impacted types T47, T16, T41, and T27 while significant was lower than 0.05, so we will not accept the H0 and accept the H1 alternative hypothesis. For avoidable causes, C13 correlated with impacted types T47, T41, T27, and T38. In addition, avoidable cause C06 had a correlation with impacted types T39, T47, T18, T41, T27, T38, T33, and T26. In addition, avoidable cause C05 had a correlation with impacted types T39, T47, T16, T27, T38, T33, and T26.
Moreover, for avoidable causes, C01 and C01 correlated with impacted types T47 and T33. On the other hand, the avoidable cause C24 correlated with impacted types T47, T27, T38, T33, T23, T26, and T48. However, avoidable cause C02 correlated with impacted types T41, T27, T38, T33, and T26. In contrast, avoidable causes C04 and C09 do not correlate with any impacted types. Moreover, the avoidable cause C08 had a correlation with impacted types T47, T16, T27, T38, T33, T26, and T48. Finally, avoidable cause C07 correlated with impacted type T33

5.7. Overall, the Questionnaire Participant’s Assessment

The respondents were asked to score the questionnaire’s overall coverage in this area and the variables under each section. Additionally, they provided any other remarks on the parts of the variable and any related issues.
Table 8 presents respondents’ responses regarding the types of variations and claims and their significance, where 94.1% of the clients think that the common types of variations and claims are significant, for the consultants, 88.4% think that it was significant, and 93.8% for the contractors.
Table 9 presents respondents’ responses regarding the causes of variations and claims and their significance, where 88.2% of the clients think that the common types of variations and claims are significant, for the consultants, 95.3% think that it was significant; finally, for the contractors, 93.8 think that it was significant.
Table 10 presents respondents’ responses and questions to help managers predict the significance of types and causes of variations and claims. A total of 94.1% of the clients think that the survey questions will help managers predict the significance of types and causes of variations and claims, 83.7% of the consultants think that it will help, and 93.8% of the contractors think it will help positively.
The questionnaire responses, shown in Table 11 below, will assist managers in forecasting and suggesting tactics to prevent or lessen variations and claims. Meanwhile, 76.5% of clients believe managers can anticipate and provide ways to prevent or lessen variations and claims. A total of 79% of consultants believe it would be helpful, and 87% of contractors believe it will be beneficial.

5.8. K-Means Analysis

This section delves into the K-means clustering algorithm, a pivotal tool in data analytics renowned for its simplicity and efficiency. This method is particularly valuable for this study as it complements the previously discussed Spearman’s Correlation and Kruskal–Wallis tests, offering a unique perspective on understanding the dynamics of factors influencing variations and claims in construction contracts. K-means clustering is a widely embraced and substantiated technique in clustering [12].
To determine the appropriate number of clusters (k), various methodologies such as the Hubert statistic, Davies Bouldin index, Dunn index, score function, elbow plot, and silhouette plot have been devised [13]. In this study, the elbow plot method, known for its reliability [14,15,16,17,18,19,20,21,22], was employed for cluster count determination.
The primary aim of the k-means algorithm is to minimize cluster inertia or the within-cluster sum-of-squares criterion, as delineated by Equation (3), wherein X i represents samples and U j stands for the mean of samples within each cluster. The determination of a suitable number of clusters is validated through the elbow plot, displaying distortion scores for a selected number of clusters as per Equation (3). The “elbow” point designates the cluster count at which further additions do not significantly reduce WCSS. Notably, in this analysis, the optimal number of clusters was identified as four, evident in Figure 5.
W C S S = i = 0 n m i n U j C X i U j 2
Cluster 0—selective high-impact causes: This cluster includes causes T45, T40, T35, T25, and T24. It is characterized by a significant impact with fewer occurrences and demands focused attention due to its potential substantial effect on projects.
Cluster 1—diverse low-impact causes: With 17 causes (T1, T49, T44, T42, T41, T27, T50, T20, T18, T26, T51, T6, T5, T4, T3, T15, and T14), this cluster represents varied and numerous issues of lower individual impact but requiring broad management strategies due to their collective presence.
Cluster 2—frequent mid-impact causes: The largest cluster with 26 causes (T47, T48, T34, T2, T7, T39, T38, T37, T8, T46, T43, T33, T31, T17, T19, T13, T21, T22, T32, T12, T10, T9, T28, T29, T30, and T11), posing a consistent challenge and requiring regular monitoring.
Cluster 3—critical high impact and high-frequency cause: Comprising T23, T36, and T16, these issues are high in impact and frequency, pivotal in the project lifecycle, and necessitating strategic management. Figure 6 and Figure 7 visually support this analysis by showing the network model colored by cluster and detailing the causes of claims within each cluster. Table 12 illustrates these findings, providing a granular view of each cluster’s characteristics.

6. Conclusions

6.1. Frequent Types of Variations and Claims

Using the types and causes, RII was applied to construction industry workers in this research. Fifty-one types of variations and claims have been identified in Section 1, Part 2, based on a questionnaire survey of 80 respondents. These fifty-one significant types have been ranked according to respondents’ perceptions, and the top ten are frequent and severe types.
Thus, these types require managerial attention and focus to avoid their frequencies, consequently providing positive benefits in managing construction projects, Table 13.

6.2. Concluding Remarks

Based on the presented results, it is recommended that contract clauses dealing with such issues be given special consideration. The best way to cope with the risk of construction variations and claims is to reduce or avoid them altogether.
Certain fundamental ways and methods can reduce the number of variations and claims encountered (see Appendix A).

6.3. Comparative Analysis and Correlations Summary

The Kruskal-Wallis test in Appendix B shows that project-related issues vary by respondent characteristics. For example, “a failure to rectify defects” has a significant variation based on personal experience (PC03) with a p-value of 0.030, suggesting that people with different experience levels perceive this issue differently. The firm’s experience (PC04) and number of employees (PC06) also significantly affect “termination initiated by the contractor” (p-values of 0.039 and 0.004, respectively). These findings emphasize the importance of personal and organizational experience in addressing frequent project failures and contractor actions. Appendix C examines ways causes affect project outcomes. The Kruskal-Wallis test finds several significant results. For example, “failure to pay the agreed amount due” differs by respondents’ role (PC01) and firm experience (PC04), with p-values of 0.007 and 0.012, respectively. Additionally, “delayed drawings or instructions” significantly affect the firm’s number of projects (PC05) and employees (PC06), with p-values of 0.009 and 0.032. These findings suggest that financial issues and communication delays can significantly affect project performance, highlighting managerial improvement opportunities. The agreement analysis in Appendix D uses the Kruskal-Wallis test to identify significant causes of project issues. “Inadequate design” and “inadequate brief”, with p-values of 0.008 and 0.007, respectively, significantly affect employee numbers (PC06). With a 0.000 p-value, “unclear and inadequate specifications” are significant for the firm’s experience (PC04).
The significance analysis in Appendix E shows how causes affect project outcomes. With p-values of 0.012 and 0.001, “inadequate/inaccurate design” and “inappropriate contract type” affect the firm’s number of projects (PC05) and employees (PC06). With a p-value of 0.002, “inadequate contract administration” negatively impacts project outcomes, particularly employee numbers (PC06). These findings emphasize the importance of accurate design information and contract management for project success and problem mitigation. The Kruskal-Wallis test in Appendix F shows factors related to project issue avoidability. With a p-value of 0.032, “inadequate design” affects the firm’s experience (PC04), suggesting that better design processes could prevent related issues. “Inappropriate contact form” significantly affects respondents (PC01) and personal experience (PC03), with p-values of 0.011 and 0.223.
Appendix G examines variation/claim frequency and cause relationships using Spearman’s correlation. Strong correlations exist between “changes by the client” and “delayed drawings or instructions” (r = 0.397, p < 0.001) and “inappropriate contractor selection” and “delayed payments” (r = 0.411, p < 0.001). The interconnectedness of project variations and their causes suggests that addressing root causes could reduce related claims. Appendix H uses Spearman’s correlation to examine variations/claims and their causes. Significant correlations link “changes by the client” to “loss or damage to the works caused by employer’s risks” (r = 0.447, p < 0.001) and “inappropriate contractor selection” to “client breach of contract” (r = 0.417, p < 0.001). These findings demonstrate the importance of strategic risk management because specific causes can significantly affect project outcomes. Appendix I examines project issue avoidability and variation/claim correlations. Significant correlations include “inappropriate payment method” and “acceleration of works” (r = 0.334, p = 0.003) and “inadequate site investigation” and “ambiguous documents” (r = 0.250, p = 0.029). These correlations suggest better payment methods and site investigations could prevent related project issues. Appendix J compares impactful variations/claims to avoidability causes. Significant correlations exist between “inappropriate contractor selection” and “client’s breach of contract” (r = 0.307, p = 0.007) and “inadequate contract documentation” and “loss or damage to the works caused by employer’s risks” (r = 0.310, p).
In conclusion, Kruskal-Wallis’s test and Spearman’s correlation analysis across appendices reveal how respondent roles, personal and organizational experience, and project causes affect project variation and claim frequency, impact, agreement, and avoidability.

Author Contributions

Conceptualization, A.M.A.; Data curation, A.M.A., M.T. and M.R.E.A.-R.; Formal analysis, A.M.A. and M.R.E.A.-R.; Funding acquisition, A.M.A., R.A.-S. and S.O.S.; Investigation, A.M.A., M.S., M.T. and M.R.E.A.-R.; Methodology, A.M.A.; Project administration, A.M.A.; Resources, A.M.A.; Software, A.M.A., M.T. and M.R.E.A.-R.; Supervision, A.M.A.; Validation, A.M.A., M.S., R.A.-S., S.O.S., M.T. and M.R.E.A.-R.; Visualization, A.M.A., M.S., R.A.-S., S.O.S., M.T. and M.R.E.A.-R.; Writing—original draft, A.M.A. and M.R.E.A.-R.; Writing—review and editing, A.M.A., M.S., R.A.-S., S.O.S. and M.T. All authors have read and agreed to the published version of the manuscript.

Funding

There is no available funding.

Data Availability Statement

The data presented in this study are available on request from the corresponding author.

Conflicts of Interest

The authors declare no conflict of interest.

Appendix A

Table A1. Guidelines and Techniques to Control Significant and Avoidable Causes of Claims and Variations.
Table A1. Guidelines and Techniques to Control Significant and Avoidable Causes of Claims and Variations.
#Avoidable Causes of Variations and ClaimsRecommended Mitigation/Response Strategy
1Changes by Client (C21)
  • Ensure that the project brief is comprehensive and clear/ensure agreement on the project brief.
  • Ensure early discussion with other authorities to anticipate their requirements.
  • Spend adequate time on project planning.
  • Ensure and approve the full development and coordination of the design.
  • Identify allocated risks and adopt suitable criteria such as value for money to evaluate and manage risk.
  • Adopt change control procedures and try to minimize changes as much as possible.
2Inappropriate Contractor Selection (C10)
  • The selection of the contractor should be based on multiple decision criteria, both price- and non-price-related.
  • Consider financial ability, past performance, experience, and key personnel availability.
  • Consider the contractor’s current workload, experience in terms of the size of completed projects, management resources in terms of formal training regime, and past performance.
  • Consider technical ability, management capability, and health and safety performance.
  • Consider the contractor’s reputation, including claims and disputes.
3Inappropriate Contract Type/
Strategy—C05
  • (Feasibility) Link strategic business goals to initial project goals and justify facility.
  • (Concept) Translate the business objectives to the initial scope of work and select alternatives (project delivery, contracting).
  • (Detailed Scope) Design decisions and delivery and contracting strategy.
  • (Design) Determine the full project delivery and contracting strategy and control plans.
  • (Construction) Explain construction methodology, operations, contracting strategy, and procedures.
  • (Commissioning, start-up, and operation) Finalize commissioning, start-up, and update operations contracts, as well as hand over operations.
  • Consider attributes of optimal contracts:
    -
    Align (owner and contractor) objectives
    -
    Value for money contractor
    -
    Quality (valued or truthful) Information/Trust and Relationship management long-term commitment and renegotiation/
    -
    Optimal risk sharing.
    -
    Optimal wage scheduling/optimal incentive contracting.
4Inappropriate/
Unexpected Time Control (Target)-(C15)
  • Establish Schedule Control Procedures/System
  • Establish a Time Border: by fixing the overall project duration either by specific constraints or by contract strategy to use it as a key parameter
  • Assure Time Auditing System: Monitor actual time spent on each activity against planned time
  • In case of any exceeds of time allowance:
    -
    Allow the re-sequencing of later activities
    -
    Allow the shortening of time by increasing the resource (crashing will result in extra cost)
    -
    Allow the program for the time impacts of identified risks to occurring
    -
    Assess and revise the contractor’s program of work
5Inappropriate/
Unexpected Cost Control (Target)-C16
  • Run efficient planning of strategies and management of the site and supervision of the project.
  • Keep organized regulatory mechanisms and use proper methods for construction; the organizational strategies include:
    -
    Appropriate prominence on previous experience
    -
    Regular coordination between the associated parties
    -
    Increasing human resources in the industry
    -
    Conduct administration of contracts
    -
    Regular meetings on development
    -
    Employ proficient subcontractors and suppliers, attributing less weight to prices and more weight to abilities and earlier performance of contractors to improve the contracts and their reactive and organizational strategies/procedures.
  • Use channels for perfect information and communication.
  • Utilization of the latest technology is a proactive and reactive strategy.
  • Undertake preconstruction planning regarding the project procedures and resources.
6Lack of Information for Decision-Making;
Decisiveness-(C19)
  • Define and clarify the issue—does it warrant action? If so, now? Is the matter urgent, important, or both?
  • Gather all the facts and understand their causes.
  • Think about or brainstorm possible options and solutions.
  • Consider and compare the ‘advantages and disadvantages ‘of each option—consult others if necessary or useful—and for bigger complex decisions where there are several options, create a template that enables measurements according to different strategic factors.
  • Select the best option—avoid vagueness and weak compromises in trying to please everyone.
  • Explain your decision to those involved and affected and follow up to ensure proper and effective implementation.
7Inappropriate
/Unexpected Quality Control (Target)-(C17)
  • Improve interactions and processes between the project knowledge areas.
  • Ensure project objectives are met.
  • Reduce expenses due to avoidance of mistakes.
  • Less rework is necessary, which leads to saving time.
  • Result in better working conditions and wellbeing of the workforce.
  • Improve communication between team members through well-defined processes.
  • This leads to good quality products as they become a company’s minimal requirement.
8Slow Client Response-(C20)
  • Develop project monitoring mechanisms.
  • Establish regular meetings.
  • Seek assistance to obtain information from others and experts to expedite the response.
9Inadequate/
Inaccurate Design Information-(C01)
  • Planning: Describe who does what, when, at what cost, and with what specifications.
  • Final Design Kick-Off Meeting to review project requirements, project schedule, and all project significant decisions, and ensure that all parties clearly understand issues indicated by the approved preliminary design.
  • Assure the completeness of all drawings and fully define the work as required.
  • Assure the coordination of all drawings with the specifications required.
  • Incorporate all adjustments as per the approved design drawings.
  • All drawings should be drafted clearly.
  • Include all composite drawings for clarification.
  • Assure the inclusion of borings and other subsurface/geotechnical information in the drawings.
  • Use graphic and alphanumeric scales to avoid confusion on reduced prints and appropriate drafting scales and include symbols, legends, and abbreviations.
  • Assure the preparation of final specifications, including the format of specifications, coordination of specifications, revision of final submission, and commissioning specifications for HVAC, plumbing, and electrical systems.
  • Ensure conformity of final design drawings and specifications with requirements in terms of drawing format, conformity with comments, stamps, signatures, approvals of the regulatory agency, and clarity and completeness of specifications.
  • Ensure the production and review of the final cost estimate.
  • Develop, review, and follow final design procedures such as submittal and reviews, utility and regulatory agency approval, and resolution of questions.
  • Prepare the bid form, general conditions, and special conditions of the contract, and include any contractor’s special experience requirements.
  • Conduct a constructability review to facilitate the production of contract documents, including technical specifications that are clear, coordinated, and complete.
  • Conduct a design review of plans, specifications, bid booklet, and addendums.
10Inappropriate Contract Form-(C06)
  • The contract should describe the following:
    -
    What will occur/How long will it take to complete/How much will it cost, and the payment terms;
    -
    What will occur if either party defaults;
    -
    The extent to which the common law, which would usually apply, is adhered to.
  • Determine the construction contract parties:
    -
    Employer: Requires the construction work and provides payment
    -
    Employer’s Representative: Acts on behalf of the employer and may be referred to as engineer, project manager, principal-agent, etc.
    -
    Contractor: Commissioned to construct the works
    -
    Subcontractor: Appointed by the contractor to perform a part of the construction works under a subcontract
    -
    Adjudicator/Arbitrator/Court: Settles disputes between the parties
  • Decide contract form:
    -
    Bespoke contract/Standard form contracts
  • Identify way of contracting:
    -
    Main contractor/Joint venture partner/Subcontractor
  • Decide Construction contract arrangement:
    -
    Pure construction contract/Design-build/Engineer, procure and construct
  • Define the contract party’s rights:
    -
    Timeous payments/Extensions of time/Access to site/Upon termination of the contract/Appointment of subcontractors
  • Draw contract party’s responsibilities:
    -
    Completing works/Guarantees/Insurances/Administrative procedures/compliance with all applicable laws
    -
    Response to communications/Substantiation of claims/Subcontracts
  • Balance contract party’s risks:
    -
    Errors in calculations/Poor management/Delays/Penalties/Insolvency of employer
11Inappropriate Payment Method-(C13)
  • Define the stakeholders and supply chain.
  • Identify project program.
  • Define the project process mapping responsibility assignment matrix.
  • Define the products, services, management, design, engineering, and prefab and assembly needed for a project.
  • Approve a common framework for managing and controlling projects in order to meet the client’s business needs.
  • Refine and improve continually such processes (framework for managing and controlling).
  • Detail all the required actions that must be taken under the common framework of a process map.
  • Analyze such a detailed process map to simulate the payment requirements within the design and construction stages in order to analyze the effect of using alternative payment mechanisms on the cash flow of the stakeholders and supply chain members.
  • Note that the concept of stakeholders and supply chains is emerging as significant performance enablers for the construction industry.
  • After the payment mechanism is defined, start planning your cash flow lifecycle.
  • Compare your payment mechanism with preferable forms of payment: reimbursable cost-plus a percentage fee/reimbursable cost-plus a fixed-fee/target cost (shared over-run and/or under-run)/unit-rate (including re-measure)/guaranteed maximum price/lump-sum services and materials with reimbursable construction/Lump-sum (i.e., wholly lump-sum)/open-book accounting/stage payments/incentive contracting/direct payment/trust accounts/funds/mobilization advance payment.
12Inadequate Site Investigations-(C24)
  • Define building design concept/set terms of reference.
  • Describe preliminary site characterization.
  • Test holes and sampling/test hole number and depth/test hole stratigraphic description and sampling.
  • Laboratory testing/soil classifications/take photographs/ground temperature measurements.
  • Determine report including:
    -
    Restate project definition;
    -
    Characterize the site so that surrounding conditions that may impact the design and performance of the building foundation are understood and designed for;
    -
    State the present and the projected end of the building service life, climate, and ground temperatures;
    -
    Classify the soil strata according to recognized ASTM Standards based on quantitative laboratory results.
  • Identify foundation options appropriate for the proposed service life of the building and
  • Provide guidance for the construction scheduling of the foundation for the building/peer review.
13Unclear and Inadequate Specifications-(C04)
  • Be aware of different types of specifications, including output-based and performance or prescriptive-based.
  • Developing the project specifications according to the scope of the user’s requirements, quality and performance characteristics, and technical characteristics.
  • Apply value management.
  • Proper structuring of the project specifications.
  • Assess the whole-life cost implications of specifications.
  • Obtain final approval of the specifications.
  • Proper coordination with other contract documents.
14Inadequate Design Documentation-(C02)
  • Establish a well-defined client brief comprising key drivers and parameters such as budgets, functions, quality, sustainability, urban issues, and commercial returns.
  • Better articulation of requirements by the client equates to better consultant response.
  • Client brief to include any requirements for document checking and coordination.
  • Clients may require additional advice in brief preparation, budgeting, and programming and engage specialists’ expertise, as in the case of highly complex projects. This may include the engagement of facilities planners and/or independent cost advisors who may not necessarily be part of the project team.
  • Clearly articulate client expectations of the consultant in the request for proposal and state criteria for selection.
  • Clearly articulate the conditions of the contract and obligations of the consultant, i.e., quality control and assurances.
  • Consultant selection is based on technical abilities and past experiences in addition to financial offers.
  • Clients may insist on demonstrable quality control consultants. Consultant obligations and functions.
  • Consultants will articulate the project methodologies, including design approaches and quality controls, in response to invitations to submit proposals.
  • Primary consultants should select any secondary consultants on a value-for-money basis and submit the rationale for the selection of their consultant team with their proposals.
  • Team formation and project integration.
  • At the commencement of the project, the client and project team should ensure that the roles, responsibilities, and obligations of all parties are clearly understood.
  • Establish and agree on a design and documentation review process, including review points, and agree on milestones for client and project team sign-off.
  • Develop a quality plan, including procedures for communication, document control, and coordination.
  • Clients may create obligations on consultants to report on risk and options for managing risk.
  • Obtain approvals and sign off progressively throughout the project.
  • Encourage project teams and clients to utilize tools to assist, e.g., value management.
  • Encourage the establishment of integrated teams and articulate procedures for problem resolution.
  • Encourage design and documentation teams to bring construction expertise to the team to provide greater confidence, e.g., early use of contractors on build-ability decisions.
  • Quality management incorporates project implementation, design, and documentation.
  • Actively consider the total cost of the project (over the life cycle) as part of the design and documentation process.
  • Develop a range of quality management tools, including checklists, review procedures, and audit processes.
  • The client and project team consider the role of independent reviewer or value management.
  • Consultants will provide advice on the quality of documentation that could be reasonably expected from the agreed resources allocated and timelines established for the period.
  • Consultants to warrant that they have undertaken the design and documentation consistent with the quality plan.
  • Consultants use technology to assist in documentation control and coordination.
  • The project team is to agree upon and nominate an experienced person responsible for documentation coordination.
  • Obtain approvals and segmental sign-off.
  • Advise the client on the adequacy of the brief and the risks associated with any inadequate allowance for proper documentation in both budgets and programs.
  • Coordinate secondary consultants, obtain their sign-off on the completeness of their documentation, and provide overall sign-off to the client that project documentation is comprehensive.
  • Ensured version control of documents for secondary consultants.
  • Create design and documentation coordination roles within the project team.
15Inadequate Contract Documentation-
(C08)
  • Clearly define contract documentation.
  • Assure that the contract conveys a clear understanding of the scope of the project.
  • Carefully define the responsibilities, authorities, roles, and line of communication of the contract parties.
  • Develop and monitor progress according to preset monitoring.
  • Assure adequacy and accuracy of design information.
  • Assure adequacy, accuracy, and consistency of tender information.
  • Conduct a constructability review.
  • Review contract documentation for consistency and clear ambiguities before tendering.
  • Correct ambiguities and inconsistencies when discovered during the tender stage by issuing addenda.
  • Use clear words when defining terms, especially the terms “Works” and “Approved.
  • Carefully draft the definitions section of the contract.
  • Assure the completion of all final contract documentation.
16Inadequate Contract Administration-(C07)
  • Project Management Discipline: All work to be performed should be appropriately led, planned, scheduled, coordinated, communicated, tracked, evaluated, reported, and corrected, as necessary.
  • Contract Analysis and Planning: Before the contract award, each party should develop a contract administration plan and assign the responsibility of administering the contract to the contract manager.
  • Kick-off Meeting or Pre-performance Conference: Before performance begins.
  • Performance Measuring and Reporting: During contract performance, the project manager, contract manager, and responsible business managers must observe performance, collect information, and measure actual progress.
  • Payment Process: Every contract must establish a clear invoicing and payment process.
  • Contract Change Management Process: As a rule, any party that can make a contract can agree to change it. Changes are usually inevitable in contracts for complex undertakings.
  • Dispute Resolution Process.
  • Contract Closeout Process: Contract closeout refers to verification that all administrative matters are concluded on a contract that is otherwise physically complete.
17Incomplete Tender Information-
(C09)
  • Perform careful review/audit of all tender documents prior to tendering to avoid ambiguities and discrepancies.
  • Assure clarity, consistency, and completeness.
  • Adequate information for solicitation, such as the project brief, place of collecting and reviewing bids, bid security requirements, bid due date, time, and location
  • Ensure adequate instructions and information to bidders, such as the type of bid, preparation of the bid, bid bonds and security, permits, and bid opening.
  • Arrange a pre-tender site visit for potential bidders.
  • Ensure adequate bid response forms’ information such as project identification, to whom the bid is directed, the person submitting the bid, the validity of the bid acknowledgments, pricing, and start and completion dates.
  • Provide specifications, drawings, contract forms, general and specific Conditions, and bill of quantities.
  • Identify the award criteria and the essential requirements of a complete bid.
  • Clarify the areas of concern within the tender document.
  • Send all clarified questions and answers to all bidders.
  • Avoid all unofficial communication with bidders
  • All communication should be in writing.
  • Make a written notice of the award after the evaluation.
  • Keep accurate records of the tender process in case they are needed.

Appendix B

Table A2. Kruskal–Wallis test and p-value (Types of variations and claims—in terms of Frequency).
Table A2. Kruskal–Wallis test and p-value (Types of variations and claims—in terms of Frequency).
CodeTypeRole of the Respondents (PC01)Managerial Level (PC02)Personal Experience (PC03)Organization/Firm’s
Experience (Years)
(PC04)
Organization/Firm’s Annual Number of Projects (PC05)Organization/Firm’s Number of Employees (PC06)
Kruskal-
Wallis H
(p-Value)Kruskal-
Wallis H
(p-Value)Kruskal-
Wallis H
(p-Value)Kruskal-
Wallis H
(p-Value)Kruskal-
Wallis H
(p-Value)Kruskal-
Wallis H
(p-Value)
T12A failure to rectify defects3.7570.1530.8800.64410.7160.0300.270.8661.4950.8281.233 0.873
T14Contractor’s failure to insure0.3890.8231.9350.3804.3510.36112.0580.0176.5960.1592.8530.583
T16Delayed drawings or instructions0.7410.6902.6960.2601.4020.84413.6140.0096.4510.1681.1030.894
T36Termination initiated by the contractor5.6760.0592.7760.2503.3720.49810.0770.0392.3450.67315.4130.004
T39Loss or damage to the works caused Employer’s Risks1.2320.5400.9490.6226.3400.1757.5780.10814.2200.0076.1470.188

Appendix C

Table A3. Kruskal–Wallis test and p-value (Types of variations and claims—in terms of Impact).
Table A3. Kruskal–Wallis test and p-value (Types of variations and claims—in terms of Impact).
CodeTypeRole of the Respondents (PC01)Managerial Level (PC02)Personal Experience (PC03)Firm’s Experience
in business) (PC04)
Firm’s Annual Number of Projects (PC05)Firm’s Number of Employees (PC06)
Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)
T02Failure to pay the agreed amount due.9.8100.0070.8530.6535.7110.22212.8680.0121.6680.7970.9410.919
T11Failed tests on completions12.1430.0020.9800.6131.2860.86411.5670.0214.1060.3921.2910.863
T16Delayed drawings or instructions4.2360.1201.2860.5266.1770.1865.8230.21313.6150.00910.5380.032
T21Fossils, archaeological or geological6.7220.0350.8060.6680.7930.9397.1270.1291.8360.7664.5590.336
T22Additional tests by the engineer4.4370.1096.5320.0384.6710.3231.8410.7653.4700.4821.2010.878
T25Shortage of personnel or goods4.3340.1156.1740.0466.8410.1452.1210.7132.7260.6051.8700.760
T26Employer’s delay or impediment2.1200.3464.1850.1230.4140.9811.6320.8032.0380.72910.0350.040
T27Delays caused by authorities6.3760.0411.0030.6061.8820.7574.6400.32611.7460.0195.3430.254
T29Employer using works partially0.1050.9497.1490.0283.8640.4254.4350.3505.4050.2482.9940.559
T32Adopt value engineering proposal2.3260.3127.3270.0260.2480.9932.1230.7133.2470.5170.4910.974
T38Ambiguity in Documents6.3570.0420.6630.7182.9170.5721.0280.9060.9640.9154.4040.354
T39Loss or damage to the works caused Employer’s Risks3.1030.2122.3440.3105.5510.2353.1170.53812.5960.0139.1850.057
T43Refusal of contractor objection to nomination6.0200.0492.2100.3316.1010.1923.9290.4162.4980.6451.3740.849
T45Acceleration of Works6.4460.0401.9290.3817.4920.1124.2390.3753.1310.5362.1530.708
T47Client’s Breach of Contract4.4350.1090.2940.8631.7450.7835.4170.2478.7800.06710.0510.040
T49Currency Fluctuation10.4130.0052.8010.2469.7760.0446.1540.1882.4550.6533.4810.481

Appendix D

Table A4. Kruskal–Wallis test and p-value (Types of variations and claims—in terms of agreement).
Table A4. Kruskal–Wallis test and p-value (Types of variations and claims—in terms of agreement).
CodeCauseRole of the Respondents (PC01)Managerial Level (PC02)Personal Experience (PC03)Organization/Firm’s Experience (PC04)Organization/Firm’s Annual Number of Projects (PC05)Organization/Firm’s Number of Employees (PC06)
Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)
C02Inadequate Design.1.2210.5432.1810.3365.0710.2804.8550.3036.4330.16913.8180.008
C03Inadequate Brief0.9970.6080.0450.9784.9240.2959.8230.04412.9670.01114.0550.007
C04Unclear and Inadequate Specs.4.9410.0851.8260.4012.4620.65121.7490.0005.6550.2265.3670.252
C05Inappropriate Contract Type2.7730.2501.1780.5557.1090.1307.5200.11116.3490.0034.9170.296
C06Inappropriate Contract Form2.0150.3652.2370.3276.8170.14620.4420.00017.1440.00214.0430.007
C07Inadequate Contract Administration5.2670.0721.3340.5132.0200.73214.6740.0054.5530.3360.8540.931
C08Inadequate Contract Documents2.4330.2962.5080.2858.5100.07518.1800.0018.7290.0689.3140.054
C09Incomplete Tender Information1.5770.4550.0460.9775.3890.2506.8980.14111.1870.02511.2880.024
C10Inappropriate Contractor Selection2.7070.2583.8050.14910.9490.02715.9950.0037.6540.1056.0370.196
C11Unrealistic Tender Pricing2.5570.2783.7680.15213.5410.00913.0120.01112.2900.01511.3340.023
C12Unrealistic Client Expectations3.2240.1992.8110.24514.4040.00614.6680.00515.1870.0047.8660.097
C13Inappropriate Payment Method4.2180.1211.5260.4666.9190.14010.9750.0279.0800.05916.0760.003
C14Inappropriate Document Control2.5810.2751.7000.42711.0510.02615.0910.0057.0380.13416.0940.003
C16Inappropriate/Unexpected Cost Control (Target)2.0240.3641.7310.4217.4690.1135.7330.2205.9490.20313.8230.008
C17Inappropriate/Unexpected Quality Control (Target)4.7580.0930.1060.9488.5350.07411.8440.0199.1880.05719.0210.001
C18Poor Communications3.5060.1730.3580.8366.8130.1464.1590.3852.6650.61513.0690.011
C19Lack of (Decisiveness)1.2210.5430.8040.66911.5000.0217.1380.1297.6860.10410.9050.028
C20Slow Client Response3.4720.1764.6480.09811.2520.02411.5890.0218.6020.07213.7420.008
C21Changes by Client3.9590.1381.5370.4646.2850.1799.4890.0505.4260.2464.7770.311
C24Inadequate Site Investigations0.4640.7930.0110.9956.3240.1769.9650.0417.8530.09723.0560.000
C25Unrealistic Expectations (By the Contractor)2.5740.2760.7260.6966.8480.14410.9940.02711.3130.02319.1550.001
C27Personality Clashes of Participants2.4630.2920.8660.6485.9090.2069.5810.0489.2590.05525.7070.000
C28Poor Management by Participants0.7380.6920.0470.9778.4420.07710.0640.0395.5250.23813.3430.010
C29Adversarial Cultural Affairs2.1410.3430.6400.7266.9800.13713.2520.0109.9250.04219.6600.001
C30Uncontrollable External Events1.2130.5450.8570.65111.0950.0267.1430.1293.2480.51710.9130.028
C31Exaggerated Claims7.1080.0291.2280.5417.0470.1337.5270.1117.7320.1024.6640.324

Appendix E

Table A5. Kruskal–Wallis test and p-value (Types of variations and claims—in terms of significance).
Table A5. Kruskal–Wallis test and p-value (Types of variations and claims—in terms of significance).
CodeCauseRole of the Respondents (PC01)Managerial Level (PC02)Personal Experience (PC03)Organization/Firm’s Experience (Firm’s Number of Years) (PC04)Organization/Firm’s Annual Number of Projects (PC05)Organization/Firm’s Number of Employees (PC06)
Kruskal-Wallis Hp-ValueKruskal-Wallis Hp-ValueKruskal-Wallis Hp-ValueKruskal-Wallis Hp-ValueKruskal-Wallis Hp-ValueKruskal-Wallis Hp-Value
C01Inadequate/Inaccurate Design8.920.0120.3720.8302.0690.7234.0380.40112.6990.0138.4930.075
C03Inadequate Brief9.090.011.8940.3887.3870.1177.1140.1303.2630.5156.7460.150
C04Unclear and Inadequate Specifications5.040.0802.8020.24611.1110.02512.5510.0146.0640.1947.5150.111
C05Inappropriate Contract Type6.950.0310.7020.7047.8520.0977.3950.11612.8820.01218.9440.001
C06Inappropriate Contract Form3.0020.2232.1100.3485.0360.2843.5650.4689.5630.04811.9760.018
C07Inadequate Contract Administration8.910.0120.5790.7493.0590.5484.4360.3507.7960.09917.4000.002
C08Inadequate Contract Docs.1.830.4002.2670.3224.0090.4054.6190.3294.8000.30812.9480.012
C09Incomplete Tender Information6.140.0462.4110.3006.9700.1387.9810.0923.7130.4464.6700.323
C10Inappropriate Contractor Selection2.000.3672.0250.36310.1130.0398.1030.08813.5160.00916.4150.003
C11Unrealistic Tender Pricing6.710.0350.2330.8908.0690.08911.7100.0202.5400.6378.4740.076
C12Unrealistic Client Expectations9.490.0091.1830.5541.8800.7585.1530.2725.9570.2029.0150.061
C13Inappropriate Payment Method4.630.0990.8460.6553.4830.4802.2530.6897.1750.12712.0420.017
C14Inappropriate Document Control1.720.4210.1080.9474.1410.3871.2380.8725.5150.2384.5520.336
C15Inappropriate/Unexpected Time Control (Target)7.340.0250.0110.9957.8690.0967.2470.12314.3520.00621.280.000
C16Inappropriate/Unexpected Cost Control (Target)4.140.1261.4560.4835.8460.2115.8210.21310.9560.02713.440.009
C17Inappropriate/Unexpected Quality Control (Target)4.850.0882.9250.2325.2860.2597.2270.1247.6610.10521.7050.000
C18Poor Communications6.590.0371.3790.5023.1320.53610.0640.0393.3270.5052.7390.602
C19Lack of Decisiveness4.630.0992.3450.3103.8960.4204.5940.3328.4820.07515.250.004
C20Slow Client Response10.960.0040.8190.6649.8640.0434.3530.36016.1490.0036.9140.140
C21Changes by Client4.2710.1181.2450.5366.8820.1427.3310.11913.5840.00915.2140.004
C23Poor Workmanship7.9480.0190.6680.7163.6920.4497.8430.0984.7640.3121.1420.888
C24Inadequate Site Investigation0.8370.6580.3200.8521.9040.7538.1130.0885.4190.24712.3870.015
C28Poor Management6.9530.0310.2400.8878.5900.0723.5150.4762.0220.7326.4830.166
C29Adversarial Cultural Affairs15.060.0010.0750.9634.0510.3997.5280.11010.9680.02710.0250.040

Appendix F

Table A6. Kruskal–Wallis test and p-value (Types of variations and claims—in terms of avoidability).
Table A6. Kruskal–Wallis test and p-value (Types of variations and claims—in terms of avoidability).
CodeCauseRole of the Respondents (PC01)Managerial Level (PC02)Personal Experience (PC03)Organization/Firm’s Experience (Firm’s Number of Years) (PC04)Organization/Firm’s Annual Number of Projects (PC05)Organization/Firm’s Number of Employees (PC06)
Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)Kruskal-Wallis H(p-Value)
C02Inadequate Design0.3360.8450.9890.6103.9950.40710.5900.0329.1090.0582.4900.646
C06Inappropriate Contract Form9.0550.0115.0860.0795.6910.22311.6930.0206.9230.1406.2640.180
C08Inadequate Contract Documents8.1580.0171.2320.5403.8890.4211.5880.8112.1930.7005.1750.270
C09Incomplete Tender Information2.0930.3512.7170.25713.1750.0104.1110.3911.7530.7812.3160.678
C10Inappropriate Contractor Selection2.7690.2502.1210.3469.7980.0441.4630.8333.2120.5232.8810.578
C13Inappropriate Payment Method1.0310.5970.1530.9275.5760.23310.7970.0297.4270.11513.6730.008
C21Changes by Client6.7430.0344.6930.0961.2100.8761.1910.8802.1010.7175.2040.267
C30Uncontrollable External Events0.3780.8281.4680.48010.3000.0362.8470.5842.7270.6043.5850.465

Appendix G

Table A7. Spearman coefficients and p-values between the most frequented types of variations/claims and causes.
Table A7. Spearman coefficients and p-values between the most frequented types of variations/claims and causes.
TYPE (Frequency)T16T23T38T45T31T34T25T07T09T10
CAUSE (SIGNIFICANCE)Correlation (Coefficients)Delayed Drawings or InstructionsA Variation or Significant Change to the QuantitiesAmbiguity in DocumentsAcceleration of WorksAn omission of Work FormingDelayed PaymentsShortage of Personnel or GoodsRejection of Defective Plant and/or MaterialsRevised Methods of Working Due to Slow ProgressDelay Damages
C21Changes by ClientCorrelation0.397 **0.242 *0.280 *0.1480.366 **0.0460.0330.054−0.0250.114
Sig. (2-tailed)0.0000.0350.0140.2020.0010.6940.7800.6440.8300.325
C10Significance Inappropriate Contractor SelectionCorrelation0.346 **0.279 *0.236 *0.1260.411 **0.0180.070−0.002−0.0050.179
Sig. (2-tailed)0.0020.0150.0410.2770.0000.8800.5460.9840.9690.122
C05Significance Inappropriate Contract Type (Strategy)Correlation0.291 *0.328 **0.251 *0.1020.460 **0.034−0.0380.0660.0490.140
Sig. (2-tailed)0.0110.0040.0280.3820.0000.7680.7420.5740.6740.227
C15Significance Inappropriate/Unexpected Time ControlCorrelation0.229 *0.258 *0.1460.1350.320 **0.037−0.0050.1400.0930.187
Sig. (2-tailed)0.0460.0250.2090.2440.0050.7480.9680.2290.4230.106
C16Significance Inappropriate/Unexpected Cost ControlCorrelation0.268 *0.306 **0.1330.2200.426 **0.1570.0840.2000.2040.240 *
Sig. (2-tailed)0.0190.0070.2530.0560.0000.1750.4720.0830.0780.037
C19Significance Lack of DecisivenessCorrelation0.320 **0.333 **0.1790.266 *0.426 **0.019−0.0360.1250.1470.119
Sig. (2-tailed)0.0050.0030.1230.0200.0000.8680.7600.2810.2060.306
C17Significance Inappropriate/Unexpected QC (Target)Correlation0.304 **0.250 *0.1420.0770.297 **0.021−0.0850.0510.0390.096
Sig. (2-tailed)0.0080.0290.2230.5070.0090.8550.4630.6620.7360.408
C20Significance Slow Client ResponseCorrelation0.389 **0.321 **0.334 **0.0990.457 **0.2110.1320.142−0.0160.196
Sig. (2-tailed)0.0010.0050.0030.3930.0000.0670.2560.2220.8900.089
C01Significance Inadequate/Inaccurate Design InformationCorrelation0.297 **0.1920.237 *0.0620.317 **0.1770.1680.236 *0.240 *0.207
Sig. (2-tailed)0.0090.0960.0390.5950.0050.1270.1460.0400.0370.073
C06Significance Inappropriate Contract FormCorrelation0.263 *0.291 *0.265 *0.1970.440 **0.259 *0.004−0.015−0.0250.246 *
Sig. (2-tailed)0.0220.0110.0210.0880.0000.0240.9750.8970.8270.032
* are significant values, ** are highly significant values.

Appendix H

Table A8. Spearman coefficients and p-value between frequented: Types of variations/claims and causes.
Table A8. Spearman coefficients and p-value between frequented: Types of variations/claims and causes.
TYPE (Impact)T39T47T16T41T27T38T33T23T26T48
CAUSE (SIGNIFICANCE)Correlation (Coefficients)Loss or Damage to the Works Caused Employer’s RisksClient’s Breach of ContractDelayed Drawings or InstructionsForce MajeureDelays Caused by AuthoritiesAmbiguity in DocumentsChanges in LegislationA variation or Change of QuantitiesEmployer’s Delay or ImpedimentInflation/Price
Escalation
C21Changes by ClientCorrelation0.447 **0.424 **0.470 **0.389 **0.548 **0.468 **0.529 **0.252 *0.392 **0.136
Sig. (2-tailed)0.00000.0000.0000.0010.0000.0000.0000.0280.0000.240
C10Inappropriate Contractor SelectionCorrelation0.559 **0.417 **0.385 **0.462 **0.595 **0.490 **0.432 **0.1740.479 **0.189
Sig. (2-tailed)0.0000.0000.0010.0000.0000.0000.0000.1330.0000.102
C05Inappropriate Contract TypeCorrelation0.501 **0.481 **0.433 **0.438 **0.560 **0.507 **0.542 **0.295 **0.457 **0.276 *
Sig. (2-tailed)0.0000.0000.0000.0000.0000.0000.0000.0100.0000.016
C15Inappropriate/Unexpected Time ControlCorrelation0.461 **0.492 **0.487 **0.398 **0.581 **0.391 **0.410 **0.256 *0.383 **0.313 **
Sig. (2-tailed)0.0000.0000.0000.0000.0000.0000.0000.0260.0010.006
C16Inappropriate/Unexpected Cost ControlCorrelation0.438 **0.453 **0.453 **0.390 **0.539 **0.469 **0.519 **0.345 **0.357 **0.136
Sig. (2-tailed)0.0000.0000.0000.0000.0000.0000.0000.0020.0020.243
C19Lack of Information for (Decisiveness)Correlation0.556 **0.561 **0.377 **0.309 **0.538 **0.448 **0.486 **0.2070.462 **0.336 **
Sig. (2-tailed)0.0000.0000.0010.0070.0000.0000.0000.0730.0000.003
C17Inappropriate/Unexpected QCCorrelation0.447 **0.413 **0.489 **0.412 **0.455 **0.457 **0.474 **0.287 *0.404 **0.098
Sig. (2-tailed)0.0000.0000.0000.0000.0000.0000.0000.0120.0000.402
C20Slow Client ResponseCorrelation0.360 **0.398 **0.438 **0.331 **0.539 **0.503 **0.445 **0.280 *0.451 **0.162
Sig. (2-tailed)0.0010.0000.0000.0040.0000.0000.0000.0140.0000.162
C01Inadequate/Inaccurate Design InformationCorrelation0.402 **0.473 **0.312 **0.420 **0.486 **0.355 **0.418 **0.273 *0.417 **0.224
Sig. (2-tailed)0.0000.0000.0060.0000.0000.0020.0000.0170.0000.052
C06Inappropriate Contract FormCorrelation0.566 **0.414 **0.443 **0.304 **0.557 **0.585 **0.499 **0.1820.455 **0.115
Sig. (2-tailed)0.0000.0000.0000.0080.0000.0000.0000.1160.0000.324
* are significant values, ** are highly significant values.

Appendix I

Table A9. Spearman coefficients and p-value between the most frequented: Types of variations/claims and causes.
Table A9. Spearman coefficients and p-value between the most frequented: Types of variations/claims and causes.
TYPE (Frequency)T16T23T38T45T31T34T25T07T09T10
CAUSE AVOIDABILITYCORRELATION
(Coefficients)
Delayed Drawings or InstructionsA Variation or Significant Change to the QuantitiesAmbiguity in DocumentsAcceleration of WorksAn Omission of Work FormingDelayed PaymentShortage of Personnel or GoodsRejection of Defective Plant and/or MaterialsRevised Methods of Working Due to Poor ProgressDelay Damages
C10Inappropriate Contractor SelectionCorrelation 0.0660.231 *0.283 *0.0640.100−0.075−0.0340.1410.1270.114
Sig. (2-tailed)0.5700.0450.0130.5840.3900.5210.7720.2250.2730.325
C13Inappropriate Payment MethodCorrelation 0.0960.0840.268 *0.334 **0.405 **−0.0220.2080.1010.1330.136
Sig. (2-tailed)0.4110.4730.0190.0030.0000.8520.0720.3850.2510.243
C06Inappropriate Contract FormCorrelation 0.229 *0.318 **0.294 **0.1420.458 **0.083−0.0100.0820.1730.286 *
Sig. (2-tailed)0.0460.0050.0100.2210.0000.4780.9330.4790.1350.012
C05Inappropriate Contract Type Correlation 0.333 **0.1700.1680.1570.264 *0.096−0.0810.0460.348 **0.192
Sig. (2-tailed)0.0030.1420.1470.1750.0210.4120.4890.6950.0020.097
C01Inadequate/Inaccurate Design Correlation −0.0670.0200.1490.1620.1090.0770.0240.1980.262 *0.173
Sig. (2-tailed)0.5660.8630.1980.1630.3480.5090.8340.0860.0220.136
C24Inadequate Site InvestigationCorrelation 0.0550.1970.250 *0.0120.162−0.080−0.0760.2140.259 *0.212
Sig. (2-tailed)0.6350.0880.0290.9200.1610.4940.5130.0640.0240.066
C04Unclear and Inadequate SpecificationsCorrelation −0.0410.0270.0680.035−0.0250.012−0.0670.1170.235 *0.070
Sig. (2-tailed)0.7240.8140.5600.7650.8310.9150.5670.3130.0410.546
C02Inadequate/Inaccurate Design InformationCorrelation 0.1480.1750.290 *0.0910.1810.1090.0320.393 **0.361 **0.373 **
Sig. (2-tailed)0.2020.1310.0110.4320.1170.3500.7820.0000.0010.001
C08Inadequate Contract DocumentationCorrelation 0.1390.1620.227 *0.276 *0.1760.1700.0080.2110.397 **0.335 **
Sig. (2-tailed)0.2300.1630.0480.0160.1290.1410.9450.0680.0000.003
C07Inadequate Contract AdministrationCorrelation 0.055−0.1630.148−0.0620.2010.0100.0220.1690.094−0.032
Sig. (2-tailed)0.6390.1580.2030.5970.0820.9300.8520.1450.4210.782
C09Incomplete Tender InformationCorrelation 0.1010.2160.0510.1920.1800.0220.0560.1640.329 **0.167
Sig. (2-tailed)0.3870.0600.6640.0960.1200.8510.6290.1560.0040.150
* are significant values, ** are highly significant values.

Appendix J

Table A10. Spearman coefficient and p-value between the most impacted types of variations/claims and most avoidability causes.
Table A10. Spearman coefficient and p-value between the most impacted types of variations/claims and most avoidability causes.
CAUSE AVOIDABILITYTYPE (IMPACT)T39T47T16T41T27T38T33T23T26T48
CORRELATIONLoss of Works Caused Employer’s RisksClient’s Breach of ContractDelayed Drawings or InstructionsForce MajeureDelays Caused by AuthoritiesAmbiguity in DocumentsChanges in LegislationA Variation or Significant Change to the QuantitiesEmployer’s Delay or ImpedimentInflation/Price Escalation
C10Inappropriate Contractor SelectionCorrelation Coefficient0.2220.307 **0.305 **0.244 *0.308 **0.1850.359 **0.227 *0.1790.294 **
Sig. (2-tailed)0.0540.0070.0070.0340.0070.1090.0010.0480.1210.010
C13Inappropriate Payment MethodCorrelation Coefficient0.1430.370 **0.2060.240 *0.271 *0.360 **0.226 *0.2050.1900.042
Sig. (2-tailed)0.2160.0010.0740.0370.0180.0010.0500.0760.0990.717
C06Inappropriate Contract FormCorrelation Coefficient0.301 **0.354 **0.330 **0.237 *0.510 **0.520 **0.434 **0.1860.459 **0.150
Sig. (2-tailed)0.0080.0020.0040.0390.0000.0000.0000.1090.0000.195
C05Inappropriate Contract Type (Strategy)Correlation0.251 *0.275 *0.295 **0.1830.388 **0.298 **0.352 **0.1450.258 *0.198
Sig. (2-tailed)0.0290.0160.0100.1130.0010.0090.0020.2120.0250.087
C01Inadequate/Inaccurate Design InformationCorrelation0.0700.295 **0.0550.0660.0730.1760.299 **0.1320.1650.088
Sig. (2-tailed)0.5480.0100.6350.5720.5330.1280.0090.2560.1530.449
C24Inadequate Site InvestigationCorrelation0.1640.266 *0.2220.1840.302 **0.254 *0.306 **0.303 **0.248 *0.241 *
Sig. (2-tailed)0.1560.0200.0540.1110.0080.0270.0070.0080.0300.036
C04Unclear and Inadequate SpecificationsCorrelation0.0430.1660.006−0.0080.0730.0640.1600.2100.0630.104
Sig. (2-tailed)0.7120.1510.9570.9490.5310.5800.1690.0690.5900.369
C02Inadequate/Inaccurate Design InformationCorrelation0.1780.1830.1420.325 **0.381 **0.229 *0.415 **0.1450.344 **0.116
Sig. (2-tailed)0.1250.1150.2210.0040.0010.0460.0000.2120.0020.318
C08Inadequate Contract DocumentationCorrelation0.2190.310 **0.227 *0.1910.434 **0.278 *0.483 **0.1930.305 **0.342 **
Sig. (2-tailed)0.0580.0060.0480.0990.0000.0150.0000.0940.0070.003
C07Inadequate Contract AdministrationCorrelation0.0160.1900.0860.0480.1520.1270.277 *0.0710.1710.183
Sig. (2-tailed)0.8930.0990.4580.6790.1900.2760.0150.5400.1400.113
C09Incomplete Tender InformationCorrelation0.0970.0950.0620.1760.116−0.0330.1640.2140.1350.115
Sig. (2-tailed)0.4030.4140.5920.1280.3170.7790.1570.0630.2470.322
* are significant values, ** are highly significant values.

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Figure 1. Research Methodology.
Figure 1. Research Methodology.
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Figure 2. Co-occurrence of the top keywords.
Figure 2. Co-occurrence of the top keywords.
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Figure 3. Respondent Profiles (Groups PC01, PC02, and PC03).
Figure 3. Respondent Profiles (Groups PC01, PC02, and PC03).
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Figure 4. Respondent Profiles (Groups PC04, PC05, and PC06).
Figure 4. Respondent Profiles (Groups PC04, PC05, and PC06).
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Figure 5. Elbow plot for the distortion score for the number of clusters.
Figure 5. Elbow plot for the distortion score for the number of clusters.
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Figure 6. K-Means Clustering for Causes of Claims.
Figure 6. K-Means Clustering for Causes of Claims.
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Figure 7. Assigned Causes of Claims for the Four Analyzed K-Means Clusters.
Figure 7. Assigned Causes of Claims for the Four Analyzed K-Means Clusters.
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Table 1. Classification of Claims according to FIDIC 1999.
Table 1. Classification of Claims according to FIDIC 1999.
No.FIDIC Sub-ClauseClaim DescriptionClaim PartySort of Claim (Additional)
Employer
(E)
Contractor (C)Cost
(C)
Profit (P)Time
(T)
14.2.aFailure to extend the validity of the performance securityE C
24.2.bFailure to pay the agreed amount due.E C
34.14Avoidance of InterferenceE C
44.16Damages, losses, and expenses resulting from TransportE C
54.19Payment of electricity, water, or gasE C
64.2Employer’s equipment or free-issue materialsE C
77.5Rejection of defective plant and/or materialsE C
87.6Contractor’s failure to remedy defectsE C
98.6Revised methods of working due to poor rate of progressE C
108.7Delay damagesE C
119.4Failed tests on completionE C
1211.4A failure to rectify defectsE C
1315.4Termination by employerE C
1418.1Contractor’s failure to insureE C
1518.2Contractor’s inability to insureE C
161.9Delayed drawings or instructions CCPT
172.1Right of access to or possession of the site CCPT
184.2Delay of performance security payment after performance certificate issuing CCPT
194.7Errors in setting out information CCPT
204.12Unforeseen physical conditions CC T
214.24Fossils, ancient artifacts, archaeological or geological items CC T
227.4Additional tests instructed by the engineer CCPT
238.4.aA variation or significant change to the quantities C T
248.4.cUnusual bad weather C T
258.4.dShortage of personnel or goods C T
268.4.eEmployer’s delay or impediment C T
278.5Delays caused by authorities C T
288.9Suspension and/or resuming work after suspension CC T
2910.2The employer using part of the works CCP
3010.3Prevention from undertaking tests on completion CCPT
3112.4An omission of works CC T
3213.2An adopted value engineering proposal CCP
3313.7Changes in legislation CC T
3414.8Delayed payment CC
3516.1Suspension initiated by the contractor CCPT
3616.4Termination initiated by the contractor CCP
3717.1Damage or injury caused by Employer’s personnel agents CC
3817.4Ambiguity in Documents CCPT
3917.4Loss or damage to the works caused by Employer’s Risks (poor design, etc.) CCPT
4018.1Insurances supplied by the Employer’s CC
4119.4Force Majeure CCPT
4219.6Optional payment and release due to termination CCP
435.2Refusal of contractor objection to nomination CCPT
4411.8An instruction to search for defect CCPT
458.3Acceleration of Works CCPT
468.10Payment for plant and material in the event of suspension CC
4716.2Client’s Breach of Contract CCP
4816.2Inflation/Price Escalation CCP
4916.2Currency Fluctuation CCP
505.2Default of Nominated Subcontractor or Suppliers CCPT
5119.6Rectification of Damage Due to Unexpected Risk CCPT
Table 2. Causes of Claims [9].
Table 2. Causes of Claims [9].
No.List of CausesNo.List of Causes
01Inadequate/Inaccurate Design Information16Inappropriate/Unexpected Cost Control (Target)
02Inadequate Design Documentation17Inappropriate/Unexpected Quality Control (Target)
03Inadequate Brief18Poor Communications Among Project Participants
04Unclear and Inadequate Specifications19Lack of Information for Decision Making (Decisiveness)
05Inappropriate Contract Type (Strategy)20Slow Client Response
06Inappropriate Contract Form21Changes by Client
07Inadequate Contract Administration22Lack of Competence of Project Participants
08Inadequate Contract Documentation23Poor Workmanship
09Incomplete Tender Information24Inadequate Site Investigation
10Inappropriate Contractor Selection25Unrealistic Information Expectations (By Contractor)
11Unrealistic Tender Pricing26Lack of Team Spirit Among Participants
12Unrealistic Client Expectations27Personality Clashes Among Project Participants
13Inappropriate Payment Method28Poor Management by One or More Project Participants
14Inappropriate Document Control29Adversarial Culture Among project Participants
15Inappropriate/Unexpected Time Control30Uncontrollable External Events
31Exaggerated Claims
Table 3. Classification of claims.
Table 3. Classification of claims.
Code#TypeType FrequencyType Frequency Index
Very LowLowAverageHighVery HighMeanRIIRank
T16Delayed drawings or instructions15481663.2865.531
T23A variation or significant change to the quantities34441963.2865.532
T38Ambiguity in Documents513431142.9558.953
T45Acceleration of Works31054902.9158.164
T31An omission of work forming31848702.7855.535
T34Delayed payment22543422.7254.476
T25Shortage of personnel or goods23829432.5851.587
T07Rejection of defective plant and/or materials33630702.5450.798
T09Revised methods of working due to slow progress33828612.5350.539
T10Delay damages33633222.5350.5310
Table 4. Causes of Claims according to Respondents.
Table 4. Causes of Claims according to Respondents.
Code #TypeType ImpactType Impact Index
Very LowLowAverageHighVery HighMeanRIIRank
T39Loss or damage to the works caused Employer Risks (War, riots, munitions, poor design.62418464.2685.261
T47Client’s Breach of Contract45221444.2685.262
T16Delayed drawings or instructions13734314.2083.953
T41Force Majeure37724354.0781.324
T27Delays caused by authorities24346214.0581.055
T38Ambiguity in Documents14742224.0581.056
T33Changes in legislation73240243.9378.687
T23A variation or change in the quantities211642153.8877.638
T26Employer’s delay or impediment41234173.6172.119
T48Inflation/Price Escalation322734103.6172.1110
Table 5. Causes of Claims Assessment.
Table 5. Causes of Claims Assessment.
CodeCause DescriptionClientsConsultantsContractorsOverall
C01Inadequate/Inaccurate Design Information100.00%100.00%93.80%98.68%
C21Changes by Client100.00%97.70%87.50%96.05%
C19Lack of Information for Decision Making (Decisiveness)100.00%93.00%93.80%94.74%
C23Poor Workmanship100.00%90.70%100.00%94.74%
C30Uncontrollable External Events100.00%93.00%93.80%94.74%
C02Inadequate Design Documentation94.10%95.30%87.50%93.42%
C04Unclear and Inadequate Specifications94.10%97.70%81.30%93.42%
C16Inappropriate/Unexpected Cost Control (Target)100.00%93.00%87.50%93.42%
C09Incomplete Tender Information88.20%95.30%87.50%92.11%
C15Inappropriate/Unexpected Time Control (Target)100.00%93.00%81.30%92.11%
C22Lack of Competence of Project Participants94.10%93.00%81.30%92.11%
C05Inappropriate Contract Type (Strategy)88.20%95.30%81.30%90.79%
C08Inadequate Contract Documentation94.10%93.00%81.30%90.79%
C18Poor Communications Among Project Participants100.00%90.70%81.30%90.79%
C20Slow Client Response100.00%90.70%81.30%90.79%
C31Exaggerated Claims100.00%93.00%75.00%90.79%
C07Inadequate Contract Administration88.20%95.30%75.00%89.47%
C11Unrealistic Tender Pricing100.00%86.00%87.50%89.47%
C14Inappropriate Document Control100.00%86.00%87.50%89.47%
C24Inadequate Site Investigation94.10%88.40%87.50%89.47%
C03Inadequate Brief94.10%88.40%81.30%88.16%
C12Unrealistic Client Expectations100.00%86.00%81.30%88.16%
C17Inappropriate/Unexpected Quality Control (Target)100.00%81.40%93.80%88.16%
C26Lack of Team Spirit Among Participants94.1%90.70%75.00%88.16%
C28Poor Management by One or More Project Participants94.1%86.00%87.50%88.16%
C10Inappropriate Contractor Selection94.1%88.40%75.00%86.84%
C06Inappropriate Contract Form88.20%88.40%75.00%85.53%
C25Unrealistic Information Expectations (By the Contractor)94.10%86.00%75.00%85.53%
C27Personality Clashes Among Project Participants94.10%86.00%75.00%85.53%
C29Adversarial (industry) Culture Among project Participants94.10%86.00%75.00%85.53%
C13Inappropriate Payment Method94.10%86.00%68.80%84.21%
Table 6. Assessment of claims significance (Top 10).
Table 6. Assessment of claims significance (Top 10).
Code #Cause DescriptionCause SignificanceCause Significance Index
Very LowLowAverageHighVery HighMeanRIIRank
C15Inappropriate/Unexpected Time Control (Target)33716474.3386.581
C10Inappropriate Contractor Selection13823414.3286.322
C05Inappropriate Contract Type43812494.3086.053
C16Inappropriate/Unexpected Cost Control (Target)34715474.3086.053
C21Changes by Client33620444.3086.053
C19Lack of (Decisiveness)26518454.2985.794
C20Slow Client Response25528364.2083.955
C17Inappropriate/Unexpected QC521022374.1182.116
C01Inadequate/Inaccurate Design23738264.0981.847
C06Inappropriate Contract Form54625364.0981.847
Table 7. The Top Ten Avoidable Causes of Variations and Claims.
Table 7. The Top Ten Avoidable Causes of Variations and Claims.
Code #Cause DescriptionCause AvoidabilityCause Avoidability Index
Very LowLowAverageHighVery HighMeanRIIRank
C10Inappropriate Contractor Selection25234153.5571.051
C13Inappropriate Payment Method43204723.5370.532
C06Inappropriate Contract Form372531103.5070.003
C05Inappropriate Contract Type (Strategy)363124123.4769.474
C01Inadequate/Inaccurate Design Information25343143.3967.895
C24Inadequate Site Investigation15392653.3867.636
C04Unclear and Inadequate Specifications17402533.2965.797
C02Inadequate Design Documentation18441943.2264.478
C08Inadequate Contract Documentation110422123.1763.429
C07Inadequate Contract Administration44511523.0961.8410
C09Incomplete Tender Information18531133.0961.8410
Table 8. Respondents’ responses regarding the types of variations and claims and their significance.
Table 8. Respondents’ responses regarding the types of variations and claims and their significance.
Identity (Role of the Respondents)FrequencyPercentValid %Cumulative %
ClientNot Sure15.95.95.9
Yes1694.194.1100.0
Total17100.0100.0
Client Representative/ConsultantNo37.07.07.0
Not Sure24.74.711.6
Yes3888.488.4100.0
Total43100.0100.0
ContractorNo16.36.36.3
Yes1593.893.8100.0
Total16100.0100.0
Table 9. Respondents’ responses regarding the causes of variations and claims and their significance.
Table 9. Respondents’ responses regarding the causes of variations and claims and their significance.
Identity (Role of the Respondents)FrequencyPercentValid %Cumulative %
ClientNo15.95.95.9
Not Sure15.95.911.8
Yes1588.288.2100.0
Total17100.0100.0
Client Representative/ConsultantNo12.32.32.3
Not Sure12.32.34.7
Yes4195.395.3100.0
Total43100.0100.0
ContractorNo16.36.36.3
Yes1593.893.8100.0
Total16100.0100.0
Table 10. Will questions help managers predict the types and causes of variations and claims?
Table 10. Will questions help managers predict the types and causes of variations and claims?
Identity (Role of the Respondents)FrequencyValid %Cumulative %
ClientNo15.95.9
Yes1694.1100.0
Total17100.0
Client Representative/ConsultantNo12.32.3
Not Sure614.016.3
Yes3683.7100.0
Total43100.0
ContractorNot Sure16.36.3
Yes1593.8100.0
Total16100.0
Table 11. Can questions help managers predict strategies for reducing variations and claims?
Table 11. Can questions help managers predict strategies for reducing variations and claims?
Identity (Role of the Respondents)FrequencyValid %Cumulative %
ClientNo211.811.8
Not Sure211.823.5
Yes1376.5100.0
Total17100.0
Client Representative/ConsultantNo12.32.3
Not Sure818.620.9
Yes3479.1100.0
Total43100.0
ContractorNot Sure212.512.5
Yes1487.5100.0
Total16100.0
Table 12. Causes of claims and variations assigned to K-means clusters.
Table 12. Causes of claims and variations assigned to K-means clusters.
ClusterCauseCount
0T45, T40, T35, T25, T245
1T1, T49, T44, T42, T41, T27, T50, T20, T18, T26, T51, T6, T5, T4, T3, T15, T1417
2T47, T48, T34, T2, T7, T39, T38, T37, T8, T46, T43, T33, T31, T17, T19, T13, T21, T22, T32, T12, T10, T9, T28, T29, T30, T1126
3T23, T36, T163
Table 13. Causes of Claims and Variations.
Table 13. Causes of Claims and Variations.
No.Significant Causes of Variations and ClaimsNo.Avoidable Causes of Variations and Claims
01Changes by Client (C21)01Inappropriate Contractor Selection (C10)
02Inappropriate Contractor Selection (C10)02Inappropriate Payment Method (C13)
03Inappropriate Contract Type (Strategy) (C05)03Inappropriate Contract Form (C06)
04Inappropriate/Unexpected Time Control (Target) (C15)04Inappropriate Contract Type (Strategy) (C05)
05Inappropriate/Unexpected Cost Control (Target) (C16)05Inadequate/Inaccurate Design Information (C01)
06Lack of Information for Decision Making; (Decisiveness) (C19)06Inadequate Site Investigation (C24)
07Inappropriate/Unexpected Quality Control (Target) (C17)07Unclear and Inadequate Specifications (C04)
08Slow Client Response (C20)08Inadequate Design Documentation (C02)
09Inadequate/Inaccurate Design Information (C01)09Inadequate Contract Documentation (C08)
10Inappropriate Contract Form (C06)10Inadequate Contract Administration (C07)
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MDPI and ACS Style

Abdelalim, A.M.; Al-Sabah, R.; Salem, M.; Said, S.O.; Tantawy, M.; Ezz Al-Regal, M.R. Variations and Claims in International Construction Projects in the MENA Region from the Last Decade. Buildings 2024, 14, 2496. https://doi.org/10.3390/buildings14082496

AMA Style

Abdelalim AM, Al-Sabah R, Salem M, Said SO, Tantawy M, Ezz Al-Regal MR. Variations and Claims in International Construction Projects in the MENA Region from the Last Decade. Buildings. 2024; 14(8):2496. https://doi.org/10.3390/buildings14082496

Chicago/Turabian Style

Abdelalim, Ahmed Mohammed, Ruqaya Al-Sabah, Mohamed Salem, Salah Omar Said, Mohamed Tantawy, and Mohamed Ramadan Ezz Al-Regal. 2024. "Variations and Claims in International Construction Projects in the MENA Region from the Last Decade" Buildings 14, no. 8: 2496. https://doi.org/10.3390/buildings14082496

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