Factors affecting termination of constraction contracts

Joint Authors

Abu Id, Khalil
al-Sawalihi, Nabil Ibrahim

Source

المؤتمر الدولي الهندسي الرابع : “نحو هندسة القرن الحادي و العشرين” : الذي نظمته كلية الهندسة بالجامعة الإسلامية-غزة يومي الاثنين و الثلاثاء الخامس عشر و السادس عشر من تشرين أول / أكتوبر 2012.

Publisher

Islamic University of Gaza Faculty of Engineering

Publication Date

2012-10-31

Country of Publication

Palestine (Gaza Strip)

No. of Pages

18

Main Subjects

Engineering & Technology Sciences (Multidisciplinary)

English Abstract

Construction contracts are one of the high risky contracts because of its unique features such as long period, complicated processes, unexpected environment, financial intensity and dynamic organization structures.

All these uncertainties make the termination of construction contracts is one of the pitfall of the construction industry.

The major objective of this paper was to identify and investigate the factors affecting the construction contracts termination in the Gaza strip.

Moreover, to check the current situation for construction contracts termination in Gaza from contractor’s perspective.

A questionnaire was designed in the light of the literature review and distributed sample to 73 of contracting companies.

The collected data was manipulated by Excel and SPSS software using many statistical tools.

The results of analyzing 51 causes of contracts termination showed that the main causes of termination are: closure, lack of resources, contractors bankrupting, increment of material prices, lack of experience, wrong cost estimation, lack of capital, working at hot (dangerous) areas, low margin of profit due to competition and difference of local currency exchange with contract currency.

40 % of the most important factors affecting the construction contracts termination are related to financial issue while 30 % of the most important factors are related to political issue.

Data Type

Conference Papers

Record ID

BIM-777171

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