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Structural equation model of construction contract dispute potential

Molenaar, Keith, Washington, Simon, & Diekmann, James (2000) Structural equation model of construction contract dispute potential. Journal of Construction Engineering and Management, 126(4), pp. 268-277.

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Abstract

This paper presents the results of a structural equation model (SEM) for describing and quantifying the fundamental factors that affect contract disputes between owners and contractors in the construction industry. Through this example, the potential impact of SEM analysis in construction engineering and management research is illustrated. The purpose of the specific model developed in this research is to explain how and why contract related construction problems occur. This study builds upon earlier work, which developed a disputes potential index, and the likelihood of construction disputes was modeled using logistic regression. In this earlier study, questionnaires were completed on 159 construction projects, which measured both qualitative and quantitative aspects of contract disputes, management ability, financial planning, risk allocation, and project scope definition for both owners and contractors. The SEM approach offers several advantages over the previously employed logistic regression methodology. The final set of structural equations provides insight into the interaction of the variables that was not apparent in the original logistic regression modeling methodology.

Impact and interest:

60 citations in Scopus
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43 citations in Web of Science®

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ID Code: 34497
Item Type: Journal Article
Keywords: construction, contract, industrial disputes
ISSN: 0733-9364
Subjects: Australian and New Zealand Standard Research Classification > MATHEMATICAL SCIENCES (010000) > STATISTICS (010400) > Applied Statistics (010401)
Australian and New Zealand Standard Research Classification > COMMERCE MANAGEMENT TOURISM AND SERVICES (150000) > BUSINESS AND MANAGEMENT (150300) > Industrial Relations (150306)
Divisions: Current > Research Centres > Centre for Accident Research & Road Safety - Qld (CARRS-Q)
Past > QUT Faculties & Divisions > Faculty of Built Environment and Engineering
Past > Schools > School of Urban Development
Deposited On: 17 Feb 2011 09:01
Last Modified: 11 Aug 2011 02:14

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