Evalua???? ng the relevance of NEC3 contracts on the collabora???? on between stakeholders in the Dutch building industry
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Last Updated: 2-2016
The development and planning of complex sustainable building projects and the implementation is a multiscale task and especially because of the participation of multiple stakeholders across multiple disciplines (Thabrew & Ries, 2009). The uncertain nature of complex building projects require an effective risk and stakeholder management approach to align conflicting stakeholder interests (Mok, Qiping, & Yang, 2014).
A practical tool to manage these large construction projects could be the New Engineering Contract 3 (NEC3). This collaboration is a family of contracts, which offers a complete end‐to‐end project management for the entire project life‐cycle; from planning, all risks defining legal relations of the stakeholders and the procurement of work (NEC3 contracts, 2014).
The thesis consists of a literature review on NEC3, risk management (RM) & stakeholder management (SM) and a research model that analyses the perceived success factors of NEC3 according to Dutch building experts. The review discusses the importance of the management of stakeholder interaction in complex construction projects with a focus on trust (supported by a trust maturity model), soundness, performance of a team and risk management with the focus on common used risk management tools in the building industry and planning & control. The innovative management concepts of the NEC3 will be elaborated to understand the possible contribution of this contract to the Netherlands. The research model analyses the risk and stakeholder management tools of the contract.
While clients want to make the best decision in selecting the most suitable contractor and subcontractors for the project, a clear understanding of the underlying clauses associated with the project’s contract in the context of achieving successful project outcomes is critical (Doloi, 2011, p. 687). To understand the clauses in the NEC3 contract and the links to the five concepts extracted from the literature review Trust, Soundness of Business, Planning & Control, Quality Performance and Project Success, a structural model is created. The research model uses Structural Equation Modelling because this method’s interest usually focuses on factors as abstract psychological variables like trust and is able to test different hypotheses about the five important aspects of this research and tries to understand the links of these aspects with different clauses in the NEC3 contract. This thesis collected data across construction companies in the Netherlands and the structural model confirmed that the innovative concepts in the NEC3 contract are highly evaluated by the experts. However, the relation between the Planning & Control and the Overall Success of a NEC3 project was not acknowledged. The understanding of the significance of the clauses in the context of the success of NEC3 according to Dutch experts contributes to enhancing the knowledge and the notoriety of the contract: understanding the added value and the contribution of NEC3 in the field of risk & stakeholder management when looking at the overall project success