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Contract management behavior of Turkish construction companies in international contracts

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2009
Yiğit, Muhammet Alper
Contract management starts with the contract negotiations and lasts until the end of the contract, and is the process that covers three fundamental functions required to compensate the goals of the project; Relationship Management, Project Delivery, and Administration of the contract. This thesis focused on investigating contract management behavior of Turkish construction companies in international projects. A survey was composed and interviewed with professionals for investigating the contract management behavior of contractors. The survey aimed to investigate; factors influencing contractors’ behaviors, key success factors for contract management, company contract management organizations, claim issues, and conflict and dispute resolution behavior of firms. 51 companies participated to the survey. The survey results revealed that Turkish contractors consider contract management to be significant for success at international markets. Contractors are aware of the need for a continuous contract management application although this rate cannot be achieved in practice. Considering awareness as a driving factor for improvement it can be estimated that in future Turkish contractors will be managing their contracts in more efficient, organized and systematic ways than today. Results revealed that; contract management behaviors are mostly affected by the risk and complexity of the project, regular contract process is the most impactful process on the success, and change order requests of the owners are the most frequent reasons of claims. According to respondents contract management can reduce number of conflicts and disputes.