Bespoke Contract_Mohd Norizam M.S._Thesis (Sypnosis)

7/28/2019 Bespoke Contract_Mohd Norizam M.S._Thesis (Sypnosis)

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TITLE PAGE

OIL & GAS REGISTERED CONTRACTOR SATISFACTION AND WHETHER

COLLABORATION AND PARTNERING ARE HAPPENING IN A BESPOKE

CONTRACT

MOHD. NORIZAM BIN MD. SALLEH

A Masters Project submitted in partial fulfilment of the requirements for thedegree of Master Project Management

Centre for Graduate StudiesOpen University Malaysia

2012


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OIL & GAS REGISTERED CONTRACTOR SATISFACTION AND WHETHER

COLLABORATION AND PARTNERING ARE HAPPENING IN

A BESPOKE CONTRACT


October 2012

ABSTRACT

This dissertation shall spell out some definitions and the differences between thestandard contract and bespoke contract. Most researches that had been conducted in the

past were more focused on the issues faced by the client/project providers with their

registered contractors e.g. qualities of works, reasons of being late, disputes, variation

orders, poor management and planning, voidable of construction contract, extension of

time claims and etc. All those studies were normally concentrating on standard contract

which are widely used in our country e.g. PWD 203a/b (rev. 2007), PAM, CIDB, IEM

and etc. Therefore the author felt there is a need to carry out a study to find out whether

bespoke contract which are commonly used by the oil and gas and telecommunication

sectors can offers better relation between client and the contractors, towards modern

approach such as win-win strategy instead of win-lose, smart partnering, collaboration,

cooperative, shared risk and etc. This study shall concentrate on whether the registeredcontractors involved in this kind of contract trully understood and are satisfied with the

Condition of Contract, which bind their construction works.

A set of questionnaire will be distributed among the respondents which consist of the

companys owner and the contractors management staffs e.g. their project managers,

contract managers, engineers, quantity surveyor and construction manager. The

questionnaires and the survey are designed to measure and identify the level of

satisfaction of the targeted group of a Natural Gas Providers Condition of Contract

and whether collaboration and partnering are practised. Collected data from the

questionnaires will be examined, analysed and is expected to be able to determine the

level of satisfaction of the targeted group and conclusion will later be made. The

findings and conclusions will be able to advise us whether or not the contractors

understand the Condition of Contract correctly, whether it offers a good relationship

between client and contractors towards achieving smart partnership, win-win

approach, long-term relationships, cooperative, collaboration, shared risk and etc.

From the questionnaires gathered and analysed, conclusions and suggestions may

further strengthen the bond between client and the contractors will be made. At the end

of the report, recommendations will be made on what are the requirements for future

studies.

(Keywords: Oil & Gas Registered Contractor Satisfaction, Collaboration, Partneringand Bespoke Contract)


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KEPUASHATIAN KONTRAKTOR GAS & MINYAK BERDAFTAR DAN

SAMADA USAHA-SAMA DAN PERKONGSIAN BERLAKU DALAMKONTRAK BESPOK


Oktober 2012

ABSTRAK

Penulisan ini akan menyentuh sedikit definisi dan perbezaan di antara kontrak standard

dan kontrak bespok. Kebanyakkan penyelidikan yang dilakukan terdahulu lebih terarah

kepada masalah-masalah yang dihadapi oleh pihak pemberi kontrak dengan kontraktor-kontraktor berdaftar mereka seperti kualiti kerja, sebab kelewatan, pertikaian, variasi

kerja, pengurusan dan perancangan yang lemah, kontrak yang terbatal, tuntutan

tambahan masa dan lain-lain. Kebanyakkan kajian tersebut lebih menjurus kepada

kontrak standard yang digunakan dengan meluas di negara ini seperti JKR 203a/b (versi

2007), PAM, CIDB, IEM dan lain-lain. Jestru penulis merasakan satu keperluan untuk

menjalankan kajian untuk mengenal-pasti samada kontrak bespok yang digunakan

dengan meluas oleh sektor minyak dan gas serta telekomunikasi menawarkan hubungan

yang lebih baik di antara pihak pemberi kontrak dengan para kontraktor di dalam

mencapai pendekatan moden seperti strategi menang-menang, perkongsian, kolaborasi,

kerja-sama, berkongsi risiko dan lain-lain. Kajian ini akan mengkaji adakah kontraktor

minyak dan gas berdaftar yang terlibat dalam kontrak sebegini lebih memahami dan

berpuas-hati dengan Kondusi Kontrak yang memeterai kerja-kerja pembinaan

mereka.

Satu set soalan soal-selidik akan diagihkan kepada responden yang terdiri daripada

pemilik syarikat dan staf pengurusan seperti pengurus projek, pengurus kontrak,

jurutera, jurukur bahan dan pengurus pembinaan. Soalan soal-selidik dan kaedah

pemeriksaan telah direka khas agar ianya dapat menilai dan mengenal-pasti tahap

kepuasan kelompok sasaran terhadap Kondusi Kontrak yang digunakan oleh sebuah

syarikat Pembekal Gas Asli, juga samada kolaborasi dan usaha-sama dipraktikkan.

Data-data yang dikumpul akan diperiksa, dianalisis dan dijangka akan membolehkantahap kepuasan kumpulan sasaran dikenal-pasti dan keputusanya diketahui. Keputusan

yang diperolehi akan mengenal-pasti samada pihak kontraktor memahami Kondusi

Kontrak sepenuhnya, samada ianya menawarkan hubungan yang baik di antara pihak

pemberi kontrak dan kontraktor di dalam mencapai kerja-sama bijak, pendekatan

menang-menang, hubungan jangka-panjang, usaha-sama, kolaborasi, perkongsian

risiko dan lain-lain. Daripada soal-selidik yang dikumpul dan telah dianalisis,

kesimpulan di ikuti dengan cadangan akan diberikan yang mungkin boleh

mempereratkan lagi hubungan di antara pihak pemberi kontrak dengan kontraktor. Pada

penghujung laporan, cadangan akan keperluan terhadap kajian lanjutan akan diberikan.

(Kata kunci: Kepuashatian Kontraktor Minyak & Gas Berdaftar, Usaha-sama,Perkongsian dan Kontrak Bespok).


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ACKNOWLEDGEMENT

I would like to thank Allah the Almighty for giving me the strength to complete this

study. To my supervisor Ir. David Lee Seng Thean, I would sincerely express my

gratitude for all the guidance and thoughts that he had given me from the beginning

until the final stage in order to complete this research.

Many thanks to all the respondents who had assisted me in the surveys carried out for

my research and all the CGS staff that had directly or indirectly assisted me too. Not

forgetting my beloved wife, my son other members of my family and friends who had

motivated me throughout the research. Last but not least, I would also like to thank

everyone who had contributed to the success of my research.


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DECLARATION

Name: Mohd . Norizam Bin Md. Salleh

Matric Number: CGS 00534317

I hereby declare that this Masters Project is the result of my own work, except for

quotations and summaries which have been duly acknowledged.

Signature: Date: 12th

October 2012


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TABLE OF CONTENTS

COVER PAGE AND SPINE .................................................................................................. i

TITLE PAGE ......................................................................................................................... ii

ABSTRACT.......................................................................................................................... iiiABSTRAK ............................................................................................................................ iv

ACKNOWLEDGEMENT ..................................................................................................... v

DECLARATION .................................................................................................................. vi

TABLE OF CONTENTS ..................................................................................................... vii

LIST OF ABBREVIATIONS ............................................................................................... xi

CHAPTER 1: INTRODUCTION .......................................................................................... 1

1.1 Background Study ........................................................................................................ 1

1.2 Problem Statement ....................................................................................................... 2

1.3 Objective of the Study .................................................................................................. 3

1.4 Key Questions .............................................................................................................. 4

1.5 Scope of Study .............................................................................................................. 4

1.6 Significance of Study ................................................................................................... 6

1.7 Assumption and Limitation .......................................................................................... 7

1.8 Dissertation Structure ................................................................................................... 8

1.8.1 Chapter 1: Introduction .......................................................................................... 8

1.8.2 Chapter 2: Literature Review ................................................................................. 9

1.8.3 Chapter 3: Research Methodology ......................................................................... 9

1.8.4 Chapter 4: Data Collection and Analysis ......................................................... 10

1.8.5 Chapter 5: Conclusion and Recommendations .................................................... 10

CHAPTER 2: LITERATURE REVIEW ............................................................................. 13

2.1 Introduction ................................................................................................................ 13

2.2 Registered Contractors Satisfaction .......................................................................... 13

2.3 Bespoke Contract ........................................................................................................ 16

2.4 Collaborative Approach .............................................................................................. 18

2.5 Partnering ................................................................................................................... 25

2.6 Research Instrument ................................................................................................... 32

2.7 Summary ..................................................................................................................... 33

CHAPTER 3: RESEARCH METHODOLOGY ................................................................. 35

3.1 Introduction ................................................................................................................ 353.2 Research Design ......................................................................................................... 36

3.3 Survey Method ........................................................................................................... 37

3.3.1 Questionnaires ...................................................................................................... 38

3.3.2 Semi Structures Interview .................................................................................... 40

3.3.3 Pilot Study ............................................................................................................ 41

3.4 Sampling Method ....................................................................................................... 41

3.4.1 Respondents ......................................................................................................... 42

3.4.2 How to Distribute the Questionnaires Forms. ...................................................... 42

3.5 Likert Scale ................................................................................................................. 43

3.6 Data Analysis.............................................................................................................. 43

3.6.1 SPSS to Analyse Data and Identify Their Reliability .......................................... 443.6.2 Average Index (AI) .............................................................................................. 45


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TABLE OF CONTENT, continued

3.6.3 Validation of the Research Instrument ................................................................. 46

3.7 Research Framework .................................................................................................. 48

3.8 Summary ..................................................................................................................... 50

CHAPTER 4: DATA COLLECTION AND ANALYSIS .................................................. 51

4.1 Introduction ................................................................................................................ 51

4.2 Findings ...................................................................................................................... 52

4.2.1 Result from the Pilot Study .................................................................................. 52

4.3 Result from Data Collection ....................................................................................... 53

4.3.1 Demographic of the Respondents ........................................................................ 55

4.3.1.1 Question no 1 ................................................................................................. 55

4.3.1.2 Question no 2, How long the respondent company was already in the

industry? ................................................................................................................... 56

4.3.1.3 Question 3: Respondents Age ...................................................................... 57

4.3.1.4 Question 4: Respondents Gender ................................................................. 58

4.3.1.5 Question 5: Respondents Marital Status ....................................................... 58

4.3.1.6 Question 6: Respondents Education Background ........................................ 59

4.3.1.7 Question 7: Respondents Current Position ................................................... 60

4.3.1.8 Question 8: Respondents Number of Years in the Company ....................... 61

4.3.1.9 Question 9: Respondents Number of Years Working in the Industry .......... 62

4.3.1.10 Question 10: Respondents Total Number of Years of Working

Experiences ................................................................................................................ 62

4.3.1.11 Question 11: Whether Respondents Know What is a Bespoke Contract? . 63

4.3.2 Findings From the Key Questions........................................................................ 64

4.3.2.1 Registered Contractor Satisfaction on the Bespoke Form of ContractUsed ........................................................................................................................... 65

4.3.2.2 Establishment and communication of conflict resolution strategy ................ 68

4.3.2.3 Commitment to Win-win Attitude ................................................................. 70

4.3.2.4 Regular Monitoring of Partnering and Collaboration Process ....................... 72

4.3.2.5 Clear Definition of Responsibilities .............................................................. 73

4.3.2.6 Mutual Trust .................................................................................................. 74

4.3.2.7 Willingness to Eliminate Non-value Added Activities .................................. 75

4.3.2.8 Early Implementation of Partnering Process ................................................. 76

4.3.2.9 Willingness to Share Resources among Project Participants ......................... 77

4.3.2.10 Ability to Generate Innovative Ideas ........................................................... 78

4.3.2.11 Frequency for Subcontractors Involvement ............................................... 794.4 Testing Goodness of Data .......................................................................................... 79

4.4.1 Reliability Statistics ............................................................................................. 80

4.5 Summary ..................................................................................................................... 80

CHAPTER 5: DISCUSSION, CONCLUSION AND RECOMMENDATION .................. 87

5.1 Introduction ................................................................................................................ 87

5.2 Summary of Main Findings ........................................................................................ 87

5.2.1 Research Objective no. 1 ...................................................................................... 87



5.3 Limitations .................................................................................................................. 905.4 Conclusion .................................................................................................................. 91


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TABLE OF CONTENT, continued

5.5 Recommendations for Future Studies ........................................................................ 91

REFERENCES .................................................................................................................... 93

APPENDIX A COVER LETTER TO THE RESPONDENT .......................................... 99APPENDIX B THE QUESTIONNAIRES ..................................................................... 101

LIST OF FIGURES

Figure 1. 1: Research Flow Chart (Adapted from:Chong, 2008) ........................................ 12

Figure 2. 1: Summary of significant factors affecting from partnering success. ................. 31

Figure 3. 1: Five (5) Category Scale to Show the Levels of a Person According to a

Question Asked. ................................................................................................ 43

Figure 3. 2: Framework for Research Methodology ............................................................ 49

Figure 4. 1: Number of Years the Present Company in the Industry. .................................. 56

Figure 4. 2: Respondents Age. ........................................................................................... 57

Figure 4. 3: Respondents Gender. ...................................................................................... 58

Figure 4. 4: Respondents Marital Status. ............................................................................ 59

Figure 4. 5: Respondents Education Background. ............................................................. 60

Figure 4. 6: Respondents Current Position. ........................................................................ 60

Figure 4. 7: Respondents Number of Years Working in Current Company. ..................... 61Figure 4. 8: Respondents Number of Years Working in Oil & Gas Industry. ................... 62

Figure 4. 9: Respondents Total Number of Years Working Experiences. ......................... 63

Figure 4. 10: Whether Respondent Know What Bespoke Contract is? ............................... 64


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LIST OF TABLES

Table 4. 2: Results on the Questions Under Registered Contractor Satisfaction on the

Bespoke Form of Contract Uses ....................................................................... 66Table 4. 3, continued ............................................................................................................ 67Table 4. 4: Frequency for Establishment and communication of conflict resolution

strategy .............................................................................................................. 68Table 4. 5: Results on the Questions under Establishment and Communication of

Conflict Resolution Strategy ............................................................................. 69Table 4. 6: Frequency for Commitment to Win-win Attitude ............................................. 70Table 4. 7: Results on the Questions under Commitment to Win-win Attitude .................. 71Table 4. 8: Results on the Questions under Regular Monitoring of Partnering and

Collaboration Process ....................................................................................... 73Table 4. 9: Frequency for Clear Definition of Responsibilities ........................................... 73Table 4. 10: Results on the Questions under Clear Definition of Responsibilities ............. 74Table 4. 11: Frequency for Mutual Trust ............................................................................. 74Table 4. 12: Results on the Questions under Mutual Trust ................................................. 75Table 4. 13: Frequency for Willingness to Eliminate Non-value Added Activities ............ 75Table 4. 14: Willingness to Eliminate Non-value Added Activities ................................... 76Table 4. 15: Frequency for Early Implementation of Partnering Process ........................... 76Table 4. 16: Results on the Questions under Early Implementation of Partnering Process 77Table 4. 17: Frequency for Willingness to Share Resources among Project Participants ... 77Table 4. 18: Results on the Questions under Willingness to Share Resources among

Project Participants ........................................................................................... 78Table 4. 19: Frequency for Ability to Generate Innovative Ideas ....................................... 78Table 4. 20: Results on the Questions under Ability to Generate Innovative Ideas ............ 78Table 4. 21: Frequency for Subcontractors Involvement ................................................... 79Table 4. 22: Results on the Questions under Subcontractors Involvement ........................ 79Table 4. 23: Reliability Statistics ......................................................................................... 80


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LIST OF ABBREVIATIONS

% percentage

& and

/ Or

APM Association for Project Management

CGS Centre of Graduate Studies

CIDB Construction Industry Development Board

Dr Doctor of Philosophy

DOSH Department of Safety and Health

e.g. Example

EC Energy Commissions of MalaysiaEOT Extension of Time

et al. et al. also known as and others

FIDIC International Federation of Consulting Engineers

GLCs Government Linked Companies

ICE Institution of Civil Engineer

IEM The Institution of Engineers Malaysia

ISO International Organisation for Standardization

JCT Joint Contract Tribunal

JKR Jabatan Kerja Raya

KL Kuala Lumpur

LAD Liquidated Ascertain DamageMBAM Master Builders Association Malaysia

MCMC Malaysia Communications and Multimedia Commission

MPM Master of Project Management

NEC New Engineering Contract

NO Number of

OUM Open University Malaysia

PAM Persatuan Arkitek Malaysia

PMC Project Management Company

PWD Public Road Work

SPSS Statistical Package the Social Sciences for Windows

SOR Standard of Rates

VO Variation Order

Cronbachs Alpha


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CHAPTER 1: INTRODUCTION

1.1Background Study

There are various types of contracts for construction business in Malaysia. For

governmental, government linked companies (GLCs) and private contracts standard

form (PWD 203a/b - revision 2007, PAM, CIDB or IEM) are used. For international

contracts, standard contract forms such as the JCT, APM, ICE, FIDIC, NEC and etc.

might be used depending on the country of origin of the project providers and the

consultant or the project management company (PMC) involved. In some industries

such as Oil and Gas and Telecommunications, a modified type of contract derived from

any existing standard form of contract will be used.

Standard form of contract is always labelled as a traditional contract strategy that was

blamed for the edgy relationship between the project provider and the contractors in

achieving a common desired outcome or in other words led them to later fail to perform

as a team. A good thing about standard form of contracts is that they have endured years

of test, were designed by experts in the field, provide a representative viewpoint of the

industry they served and therefore will normally be a fair contract. The standard form of

contract should represent both parties on an equal and a fair share basis and not one-

sided which are sometimes found in a bespoke contract. Standard forms of contract

normally express the obligation of all the parties involved and clarify the scope of the

project well.


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In Malaysia a bespoke contracts are commonly used in the Oil and Gas and

Telecommunication sectors. As the works that to be carried out are specialist jobs, the

clients normally choose to have their own group of registered contractors to do the job.

Although a bespoke contract is often labelled as one-sided contract but with a good

payment term, safeguard given by the project providers, modern contract strategies such

as win-win approach, partnering, joint decisions, collaboration, rewards, cooperation,

trusts and etc., may help in meeting the common project objectives which is to complete

the project within or ahead of time, within budget and at an acceptable quality, safety

and sustainability.

1.2Problem Statement

In the past, researches were more concentrated on the issues faced by the client/project

providers with their contractors. However, the scope of studies is mainly covering other

subjects for instance, the qualities of works, reasons for being late, disputes, variation

orders, poor management and planning, void construction contract, extension of time

claims, acceleration claims and etc. But all these studies were only concerned and

related to the standard form of contract that are widely used in our country e.g. PWD

203a/b (revision 2007), PAM (with quantities), CIDB, IEM and etc.

Traditional contract strategies were always identified as a hindrance to a good working

relationship between the client and the contractors. On the other hand, the modern

contract strategies which encourage the client and contractors to work as a team, work

collaboratively, smart partnering, win-win approach, trust, cooperative, trust, shared


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risk, reward and etc. are encouraging the client and the contractors to work together

towards achieving the common goals which are to complete the project/task on or ahead

of schedule, within budget and at acceptable or as stipulated quality.

There are few studies related to a bespoke contract. Therefore the author felt that there

is a need to fill up this void. Among the problems to be addressed in this study are as

follows;

i) Are the registered contractors to a bespoke contract satisfied with the form of

contract used and how it is managed by the client?

ii) Whether the modern contract strategy is being practised in a bespoke contract.

1.3Objective of the Study

In order to achieve the purpose of the study, the following objectives have been

suggested:

i) To identify whether the registered contractors fully understand the form of contract

they use, specifically the bespoke form of contract.

ii) To identify whether the registered contractors are satisfied with the bespoke contract

that were commonly used in the Oil & Gas and Telecommunication Sectors.


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iii) To identify whether the modern contract strategies such as collaboration and

partnering are being practiced in their contract.

1.4Key Questions

About 80% of the key questions which are later adopted into research questionnaires are

adapted from Chan A. P. C. et al. (2004) and they are as follows:

i) Registered contractor satisfaction on the bespoke form of contract uses;

ii) Establishment and communication of conflict resolution strategy;

iii) Commitment to win-win attitude;

iv) Regular monitoring of partnering and collaboration process;

v) Clear definition of responsibilities;

vi) Mutual trust;

vii) Willingness to eliminate non-value added activities;

viii) Early implementation of partnering process;

ix) Willingness to share resources among project participants.

x) Ability to generate innovative ideas;

xi)

Subcontractors involvement;

1.5Scope of Study

The scope of this study is focused on the followings:


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a) Whether the registered contractors fully understand the form of contract they use

especially the bespoke form of contract.

b) Whether the registered contractors are satisfied with the bespoke contract that is

commonly used in the Oil & Gas and Telecommunication sectors.

c) Whether the modern contract strategies such as collaboration and partnering are

being practiced in their contract.

A set of questionnaire will be distributed to the respondents which include the

companys owner and the contractors management staff for instance their project

managers, contract managers or engineers. The survey & questionnaires were designed

to identify all the issues which were stated in the problem statements and aimed to a

Natural Gas Operators/Supplier.

Both standard forms of contract and bespoke contract have clauses provided for

employers to determinate the contract according to the reasons as stated. Not all

contractors are familiar with the clauses provided under the form of contract either due

to their background, years of experiences in the fields, the level of academic possessed,

job position and etc. Therefore the study on contractors satisfaction in the form of

contract, the contract strategies, and etc. shall also cover the demographic and

personality profiling patterns of the contractors.


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1.6Significance of Study

There are few studies related to bespoke contract. Therefore the author felt that there is

a need to carry out a study to find out whether bespoke contract that are commonly used

in the oil and gas and telecommunication sectors offers better relation between client

and the contractors, whether the modern approach such as win-win strategy instead of

win-lose that have been practiced in the traditional contract are being practised in these

fields, whether a good relation between the client and the contractors via smart

partnering, collaboration, cooperative, shared risk and etc. are practised.

This study will concentrate on whether the registered contractors have fully understood

and satisfied with the form of contract used works and whether the modern contract

strategies as mentioned above are being practised.

This study can also be used as a basic guide for those who are involved in the industries

that are using a bespoke form of contract. Once a problem statement is clearly

understood towards achieving smart partnering, collaboration, win-win strategy,

cooperative, and etc., other construction industries may also benefited.


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1.7Assumption and Limitation

This study shall be limited to the bespoke form of contract used by a Natural Gas

Operator/Supplier. A set of questionnaire will be distributed to the respondents (the

registered contractors) which include the companys owner and the contractors

management staff for instance their project managers, contract managers or engineers.

Among the reasons are because the duration of the study is very short in which is only

roughly about 6 months.

Being among of the pioneer studies in registered contractor satisfaction and its relation

to the modern contract strategies, this literature might be very useful as a point of

reference and comparison. Therefore the survey that is to be carried out within the same

group of people should contribute to a good result. Although managing contracts among

the client and contractors will include the scope of constructions and form of contract

used, this study will not discuss the details of these areas.

This study will not touch on the comparisons between the bespoke form of contract

used by the company studied in this study and the standard form of contract that are

broadly used in Malaysia such as PWD 203a/b (revision 2007), PAM, CIDB and IEM

and the international standard form of contracts such as JCT, APM, ICE, FIDIC, NEC

and etc.


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1.8Dissertation Structure

This project paper will be presented in five chapters starting with an introduction,

literature review, research methodology, data collections and analysis and concluded

with the conclusion and recommendations.

The chapters are briefly explained as follows:

1.8.1 Chapter 1: Introduction

This chapter will present the background of the dissertation in general. Research issue

pertaining to this study were gathered from intensive reading of books, academic

journals, referred conferences, reports, dissertations, articles, trade journals, handbooks,

and dictionaries which can easily be extracted from the Open University library. It was

based on this information that the problem statement and the objectives were then

identified and clearly explained

This research is carried out to review whether the registered contractors to a bespoke

form of contract uses by a Natural Gas Provider/Supplier fully understood the form of

contract used especially the bespoke form of contract; To identify whether the registered

contractors are satisfied with the bespoke contract that is commonly used in the Oil &

Gas and Telecommunication Sectors; and to identify whether the modern contract

strategies such as collaboration and partnering are being practised in their contract.


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1.8.2 Chapter 2: Literature Review

When the Research Issues and objectives have been determined, various

documentations and literature reviews regarding to the research field will be collected to

achieve the research objectives.

Generally, secondary data are collected from the latest printed reading materials such as

journals, books, research papers, reports, newspapers and from the internet as well. It is

important to identify the determination, background and definition concerning the

subject areas such as the bespoke contract, satisfaction, modern contract strategies e.g.

collaboration, partnering and etc.

1.8.3 Chapter 3: Research Methodology

This chapter reviews on the research design and methodologies used in this research.

Questionnaire and case study by means of semi-structured interviews are applied to

fulfil the research objective within the time frame provided. The structures of research

design and questionnaire construction are clearly elaborated in this chapter.

A set of questionnaire will be designed to meet the study objectives and will be

distributed among the respondents ranging from the companys owner and the

contractors management staffs including their project managers, contract managers,

quantity surveyors and engineers.


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The survey & questionnaires are designed to measure and identify all the issues in the

problem statement and the key questions. The questionnaires will be distributed to the

targeted group who are belongs to the registered contractors to a selected Natural Gas

Operators/Supplier.

1.8.4 Chapter 4: Data Collection and Analysis

Collected data from the questionnaires will be stored, examined and analysed using

Statistical Package the Social Sciences for Windows (SPSS). This software will assist

the author in analysing the data gathered using statistic and graphs. The results will

enable the author in determining and making the conclusion whether the problem

statements and the research objectives are met.

1.8.5 Chapter 5: Conclusion and Recommendations

Finally, the whole process of the study will be reviewed with the intention to determine

whether or not the problem statements are solved and the research objectives have been

achieved. Collected data from the questionnaires will be examined, analysed and are

expected to be able to determine the level of satisfaction of the dedicated group, their

understandings on the stipulated contracts, number of years serviced in the industry,

background and etc.


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The conclusion of these findings will later be concluded. There are a few conclusions

that are anticipated in this dissertation that would be able to advise us whether the

registered contractors fully understood the form of contract they use especially the

bespoke form of contract, whether they are satisfied with the bespoke contract that is

commonly used in the Oil & Gas and Telecommunication sectors and whether the

modern contract strategies such as collaboration and partnering are being practised in

their contract.

Conclusions followed by suggestions are made towards further strengthening of the

relationship between the client and the contractors and how to improve the practices of

the new contract strategies in a project that may benefit the industry. At the end of the

report, recommendations shall be made on what are the requirements to be considered

for future studies.


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Stage 1: Preliminary Study

& Topic Selection

Stage 2: Research Proposal

Stage 3: Data Collection& Analysis

Stage 4: Conclusion

Figure 1. 1: Research Flow Chart (Adapted from:Chong, 2008)

Identify Area of Study

Problem identification and topic selection

Literature Review

Development of research objectives,

questionsand scope

Formation of ResearchMethodology

Decision on Instruments to Use

Conclusion &

Recommendations

Data Collection

Primary Data

Semi-structured

interview

Questionnaires

Secondary Data

Articles

Journals

Books

Website

Data Analysis and

Findings

Validation


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REFERENCES

Achrol, R. S. (1997). Changes in the Theory of Inter-Organizational Relations in

Marketing: Toward a Network Paradigm. Journal of the Academy of Marketing

Science, (25(1)).

American Arbitration Association. (1993). Construction Industry Dispute Avoidance:

The Partnering Process. American Arbitration Association: NCDRC, New York.

Ashworth, A. (2006). Contractual Procedures: In the Construction Industry (5 ed.).

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