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Abbas, N M A (1998) The impact of construction contract models on construction claims in Saudi Arabia. In: Hughes, W (Ed.), Proceedings 14th Annual ARCOM Conference, 9-11 September 1998, Reading, UK. Association of Researchers in Construction Management, Vol. 2, 438–46.

  • Type: Conference Proceedings
  • Keywords: construction claims; contract models; Saudi Arabia
  • ISBN/ISSN: 0 9534161 0 0
  • URL: http://www.arcom.ac.uk/-docs/proceedings/ar1998-438-446_Abbas.pdf
  • Abstract:
    The construction industry represents one of the important pillars in the national industry and contributes to a handsome portion of the gross national product in Saudi Arabia. This industry has since the seventies undergone a great boom that produced a new infra structure for the country and lasted for almost a decade. During the boom new construction contract models were introduced and extensively applied while still in their imported versions. Furthermore, new procurement methods were tried such as design / build, construction management and build-own-and transfer (BOT). Some new pricing models were introduced as well such as lump sum and cost plus, etc. Some hardships were encountered due to these experiments, either due to non conformity of these ideas to the type of project in which they were applied, or because the personnel on those projects did not fully digest the new concepts. Some disputes and claims arose due to the new application of these concepts, which exhausted all the parties to construction and jammed the litigation bodies. This paper looks into the contract models mostly used in Saudi Arabia and their effect on construction claims. A survey was conducted using a questionnaire to identify these relations and the results were analysed. It was shown that the contract model used in a project will have no direct impact on the type, intensity, or source of claim. Half of all construction projects do not use professionally produced contract forms. Time and money were the two major impacted variables irrelevant of the contract model used. Recommendations and further research were also discussed.