Analysis of Three-Party Contracts and Their Impact on Project Costs and Timelines: A Case Study of Construction Delays

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Chan, Melissa ORCID logoORCID: https://orcid.org/0000-0003-1589-6850, Moradinia, SF, Bagherifam, N, Shishehgarkhaneh, MB and Jin, H (2026) Analysis of Three-Party Contracts and Their Impact on Project Costs and Timelines: A Case Study of Construction Delays. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction, 18 (1). ISSN 1943-4162 (In Press)

Abstract

Construction projects require careful planning, activity sequencing, and prioritization to establish an effective schedule. In developing countries, where significant capital is allocated to infrastructure, successfully executing projects within time and budget constraints is critical. However, large-scale construction projects often experience delays and cost overruns, extending timelines and increasing expenses. Analyzing the causes of these issues, particularly in traditional design-bid-build (DBB) contracts, requires a systematic approach. This study investigates key factors contributing to time and cost overruns in projects using the conventional three-party implementation method (client, consultant, contractor). A case study built under a DBB contract identifies and ranks reasons for delays and cost increases. Data were collected through surveys of stakeholders, including employers, consultants, contractors, and government officials. The findings highlight primary factors influencing delays and overruns and provide recommendations for mitigating these issues in future projects. By examining stakeholder interactions and identifying inefficiencies, the study offers strategies for reducing delays and improving cost management in construction.

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Item type Article
URI https://vuir.vu.edu.au/id/eprint/49934
DOI 10.1061/JLADAH.LADR-1319
Official URL https://doi.org/10.1061/jladah.ladr-1319
Subjects Current > FOR (2020) Classification > 3302 Building
Current > Division/Research > Institute for Sustainable Industries and Liveable Cities
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