Factors causing mismanagement in public/private contracts: An Indonesian perspective

The objective of this study is to examine the impact of client, consultant and contractor related fac-tors on mismanagement in public and private contracts in the region of Indonesia. A structural questionnaire is developed for the selected items after detailed investigation of present literature. A...

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Main Authors: Norazida Mohamed, A. Muhtadi Ridwan, Oussama Saoula, Mustafa Rashid Issa
Format: Article
Language:English
Published: Growing Science 2019-05-01
Series:Management Science Letters
Subjects:
Online Access:http://www.growingscience.com/msl/Vol9/msl_2019_121.pdf
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author Norazida Mohamed
A. Muhtadi Ridwan
Oussama Saoula
Mustafa Rashid Issa
author_facet Norazida Mohamed
A. Muhtadi Ridwan
Oussama Saoula
Mustafa Rashid Issa
author_sort Norazida Mohamed
collection DOAJ
description The objective of this study is to examine the impact of client, consultant and contractor related fac-tors on mismanagement in public and private contracts in the region of Indonesia. A structural questionnaire is developed for the selected items after detailed investigation of present literature. A final sample of 137 respondents associated with various contracts in the region of Indonesia is collected with demographic details and regression analysis. It is observed that factors like lack of strategy, failure to compile the documentary requirements, poor planning, delay in decision making, financial issues, late payments, difficulty in getting work permits and lack of management expertise are core issues, creating mismanagement in public and private contracts. In consultant related factors, role of inexperienced consultant, poor planning, late of instructions from architects, poor contract management, and poor-quality assurance are the key determinants of mismanagement in contracts. While contractor related factors like poor planning and scheduling, late or improper submission of con-tract, inadequate site supervision and inspection, poor construction methods, weak leadership, and lack of communication between the parties are the key indicators of mismanagement in contracts. As per significance, this study is found to be a reasonable addition in the present literature from the context of contract management. Originality of the study covers the significant findings for the policy makers in the field of public and private contracts. Study can be reworked in future through better sampling, and addition of more factors related to materials, equipment and labor causing for the poor delivery of the contracts.
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spelling doaj.art-9d7906fb739f4d3eb4df8daf54f63e3b2022-12-21T22:59:59ZengGrowing ScienceManagement Science Letters1923-93351923-93432019-05-01991429143810.5267/j.msl.2019.5.008Factors causing mismanagement in public/private contracts: An Indonesian perspectiveNorazida MohamedA. Muhtadi RidwanOussama SaoulaMustafa Rashid IssaThe objective of this study is to examine the impact of client, consultant and contractor related fac-tors on mismanagement in public and private contracts in the region of Indonesia. A structural questionnaire is developed for the selected items after detailed investigation of present literature. A final sample of 137 respondents associated with various contracts in the region of Indonesia is collected with demographic details and regression analysis. It is observed that factors like lack of strategy, failure to compile the documentary requirements, poor planning, delay in decision making, financial issues, late payments, difficulty in getting work permits and lack of management expertise are core issues, creating mismanagement in public and private contracts. In consultant related factors, role of inexperienced consultant, poor planning, late of instructions from architects, poor contract management, and poor-quality assurance are the key determinants of mismanagement in contracts. While contractor related factors like poor planning and scheduling, late or improper submission of con-tract, inadequate site supervision and inspection, poor construction methods, weak leadership, and lack of communication between the parties are the key indicators of mismanagement in contracts. As per significance, this study is found to be a reasonable addition in the present literature from the context of contract management. Originality of the study covers the significant findings for the policy makers in the field of public and private contracts. Study can be reworked in future through better sampling, and addition of more factors related to materials, equipment and labor causing for the poor delivery of the contracts.http://www.growingscience.com/msl/Vol9/msl_2019_121.pdfContract managementPlanning and schedulingContractorConsultantIndonesia
spellingShingle Norazida Mohamed
A. Muhtadi Ridwan
Oussama Saoula
Mustafa Rashid Issa
Factors causing mismanagement in public/private contracts: An Indonesian perspective
Management Science Letters
Contract management
Planning and scheduling
Contractor
Consultant
Indonesia
title Factors causing mismanagement in public/private contracts: An Indonesian perspective
title_full Factors causing mismanagement in public/private contracts: An Indonesian perspective
title_fullStr Factors causing mismanagement in public/private contracts: An Indonesian perspective
title_full_unstemmed Factors causing mismanagement in public/private contracts: An Indonesian perspective
title_short Factors causing mismanagement in public/private contracts: An Indonesian perspective
title_sort factors causing mismanagement in public private contracts an indonesian perspective
topic Contract management
Planning and scheduling
Contractor
Consultant
Indonesia
url http://www.growingscience.com/msl/Vol9/msl_2019_121.pdf
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AT oussamasaoula factorscausingmismanagementinpublicprivatecontractsanindonesianperspective
AT mustafarashidissa factorscausingmismanagementinpublicprivatecontractsanindonesianperspective