IDEAS home Printed from https://ideas.repec.org/a/vrs/otamic/v8y2016i1p1390-1396n1.html
   My bibliography  Save this article

Effect of bond administration on construction project delivery

Author

Listed:
  • Oke Ayodeji Emmanuel

    (Department of Quantity Surveying, Federal University of Technology, Akure, Nigeria)

Abstract

Construction bond administration involves management of bond issues from inception of obtaining bond from guarantor to the point of release of contractor by the client. This process has posted a lot of challenges to construction stakeholders; it is therefore, necessary to examine the relationship between bond administration and project success. Archival data of completed bonded building projects were gathered through a pro forma developed for this purpose. Using Pearson product moment of correlation, it was revealed that the cost of securing a construction bond has a positive and significant effect on the initial and final costs of the project, while the number of days needed to secure a construction bond has no significant effect on the initial and final durations of the construction project. In order to establish the relationship between project delivery indices of cost and time and the construction bond administration variables, iteration of linear regression was adopted to arrive at the best-fit equation. Factors affecting the cost of securing construction bonds from guarantors should be identified and given adequate attention by construction stakeholders in order to minimize the effect of construction bond administration on project delivery.

Suggested Citation

  • Oke Ayodeji Emmanuel, 2016. "Effect of bond administration on construction project delivery," Organization, Technology and Management in Construction, Sciendo, vol. 8(1), pages 1390-1396, December.
  • Handle: RePEc:vrs:otamic:v:8:y:2016:i:1:p:1390-1396:n:1
    DOI: 10.1515/otmcj-2016-0001
    as

    Download full text from publisher

    File URL: https://doi.org/10.1515/otmcj-2016-0001
    Download Restriction: no

    File URL: https://libkey.io/10.1515/otmcj-2016-0001?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Peter Kaming & Paul Olomolaiye & Gary Holt & Frank Harris, 1997. "Factors influencing construction time and cost overruns on high-rise projects in Indonesia," Construction Management and Economics, Taylor & Francis Journals, vol. 15(1), pages 83-94.
    2. P. A. Koushki & K. Al-Rashid & N. Kartam, 2005. "Delays and cost increases in the construction of private residential projects in Kuwait," Construction Management and Economics, Taylor & Francis Journals, vol. 23(3), pages 285-294.
    3. D. R. Ogunsemi & G. O. Jagboro, 2006. "Time-cost model for building projects in Nigeria," Construction Management and Economics, Taylor & Francis Journals, vol. 24(3), pages 253-258.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Goutom K. Pall & Adrian J. Bridge & Jason Gray & Martin Skitmore, 2019. "Causes of Delay in Power Transmission Projects: An Empirical Study," Energies, MDPI, vol. 13(1), pages 1-29, December.
    2. Basem Al Khatib & Yap Soon Poh & Ahmed El-Shafie, 2018. "Delay Factors in Reconstruction Projects: A Case Study of Mataf Expansion Project," Sustainability, MDPI, vol. 10(12), pages 1-18, December.
    3. Mauro Bambi & Cristina Girolami & Salvatore Federico & Fausto Gozzi, 2017. "Generically distributed investments on flexible projects and endogenous growth," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 63(2), pages 521-558, February.
    4. Edwin Thomas Banobi & Wooyong Jung, 2019. "Causes and Mitigation Strategies of Delay in Power Construction Projects: Gaps between Owners and Contractors in Successful and Unsuccessful Projects," Sustainability, MDPI, vol. 11(21), pages 1-16, October.
    5. Daeyoun Won & Bon‐Gang Hwang & Soo Jing Chng, 2021. "Assessing the effects of workforce diversity on project productivity performance for sustainable workplace in the construction industry," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(2), pages 398-418, March.
    6. Ihsan Issa Ahmad Hosani & Fikri T. Dweiri & Udechukwu Ojiako, 0. "A study of cost overruns in complex multi-stakeholder road projects in the United Arab Emirates," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 0, pages 1-10.
    7. Mohammad Ajmal Nikjow & Li Liang & Xijing Qi & Samad M. E. Sepasgozar & Nicholas Chileshe, 2021. "Triggers of Delays in International Projects Using Engineering Procurement and Construction Delivery Methods in the Belt and Road Initiative: Case Study of a High-Speed Railway Projects," Sustainability, MDPI, vol. 13(17), pages 1-21, August.
    8. Miranda Sarmento, J.J. & Renneboog, Luc, 2017. "Cost overruns in public sector investment projects," Other publications TiSEM 51799a3e-4c78-4dbd-b330-b, Tilburg University, School of Economics and Management.
    9. Nur Fatin Syazwani Abu Bakar* & Syuhaida Ismail & Rohayah Che Amat & Serdar Durdyev, 2018. "Sustainable Construction in Malaysian Mixed Development Projects: The Barriers and Critical Success Factors," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 885-892:6.
    10. Giuliano Marella & Valentina Antoniucci, 2019. "Time Overrun in Public Works—Evidence from North-East Italy," Sustainability, MDPI, vol. 11(24), pages 1-17, December.
    11. Aftab Memon & Ismail Rahman, 2013. "Analysis of Cost Overrun Factors for Small Scale Construction Projects in Malaysia Using PLS-SEM Method," Modern Applied Science, Canadian Center of Science and Education, vol. 7(8), pages 1-78, August.
    12. Myung-Hun Kim & Eul-Bum Lee, 2019. "A Forecast Model for the Level of Engineering Maturity Impact on Contractor’s Procurement and Construction Costs for Offshore EPC Megaprojects," Energies, MDPI, vol. 12(12), pages 1-18, June.
    13. Ihsan Issa Ahmad Hosani & Fikri T. Dweiri & Udechukwu Ojiako, 2020. "A study of cost overruns in complex multi-stakeholder road projects in the United Arab Emirates," International Journal of System Assurance Engineering and Management, Springer;The Society for Reliability, Engineering Quality and Operations Management (SREQOM),India, and Division of Operation and Maintenance, Lulea University of Technology, Sweden, vol. 11(6), pages 1250-1259, December.
    14. A .Q. Adeleke* & Abimbola Olukemi Windapo & Muhammad Waris Ali Khan & J.A. Bamgbade & Maruf Gbadebo Salimon & Gusman Nawanir, 2018. "Validating the Influence of Effective Communication, Team Competency and Skills, Active Leadership on Construction Risk Management Practices of Nigerian Construction Companies," The Journal of Social Sciences Research, Academic Research Publishing Group, pages 460-465:6.
    15. Sou-Sen Leu & Cheng-Yu Lu & Pei-Lin Wu, 2023. "Dynamic-Bayesian-Network-Based Project Cost Overrun Prediction Model," Sustainability, MDPI, vol. 15(5), pages 1-14, March.
    16. Mehmet Tolga Taner, 2013. "Critical Success Factors for Six Sigma Implementation in Large-scale Turkish Construction Companies," International Review of Management and Marketing, Econjournals, vol. 3(4), pages 212-225.
    17. Marija Z. Ivanović & Đorđe Nedeljković & Zoran Stojadinović & Dejan Marinković & Nenad Ivanišević & Nevena Simić, 2022. "Detection and In-Depth Analysis of Causes of Delay in Construction Projects: Synergy between Machine Learning and Expert Knowledge," Sustainability, MDPI, vol. 14(22), pages 1-23, November.
    18. Bajomo, Mary & Ogbeyemi, Akinola & Zhang, Wenjun, 2022. "A systems dynamics approach to the management of material procurement for Engineering, Procurement and Construction industry," International Journal of Production Economics, Elsevier, vol. 244(C).
    19. Odubiyi Tawakalitu Bisola, 2018. "Nigerian Professional Female Construction Workers in Vocational Occupations: Diversification or Deviation?," Organization, Technology and Management in Construction, Sciendo, vol. 10(1), pages 1696-1703, February.
    20. Myung-Hun Kim & Eul-Bum Lee & Han-Suk Choi, 2019. "A Forecast and Mitigation Model of Construction Performance by Assessing Detailed Engineering Maturity at Key Milestones for Offshore EPC Mega-Projects," Sustainability, MDPI, vol. 11(5), pages 1-21, February.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:otamic:v:8:y:2016:i:1:p:1390-1396:n:1. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.