Key Competencies for Post-Contract Transaction Minimization in Design-Build Projects

Abstract

The construction industry has been struggling with the issue of inconsistent performance with respect to cost of projects, completion time and the delivery of a quality product. These challenges have been addressed by researchers with some success, however in contrast to other industries the construction industry is still seen to be lagging. It is evident that dissatisfaction of clients with the finished product and construction process has prompted many researchers to address the issue of client's requirements. The much-neglected aspect of Post-Contract Transaction Costs (PTCs) that affect project performance, viewed as a sub-system that needs to be minimized for projects to have a clear benefits realization potential. This paper seeks to establish the specific design-build (DB) contractor team competencies for post-contract transaction costs minimization. 357 G7 contractors were selected through systematic sampling technique from 4,625 registered G7 contractors in Malaysia. The data was analysed using Principal Factor Analysis (PFA) in SPSS to establish the specific DB contractor team competency. The findings indicate that functional, and knowledge competency of DB contractors' team are significant towards minimizing PTCs It is also evident that DB project requirement, objectives, and contractor team ability to handle changes as well as communication skills is the most significant competencies for DB contractor team towards minimizing PTCs. These findings establish that functional and social competencies of DB contractor team play a significant role in DB projects in order to leverage on its full potential.