Project efficiency : effective contract management (New Engineering Contract 3) is a moderator to trust in project success

Abstract

The effects of failed projects from poor performance, poor quality, and cost and time overruns have a huge impact on both private and public sectors in South Africa. Contracts and contract types are some of the causes of failed projects and the degree of failure often leads to mistrust within the project environment of the country. This study examines the effectiveness of the administration of contracts with a narrow focus on the New Engineering Contract (NEC) family of contracts. The fundamentals of these contracts create a platform for clients, consultants and contractors to interact at procedural level. The study attempts to understand whether the effective administration of the contract, based on selected clauses, moderates trust between parties, which in turn leads to a satisfactory working relationship and project success. Furthermore, an attempt is made to ascertain where the degree of participation in this contract differs from the public to the private sector.