Critical Evaluation of the Contract Selection Process Used in the Construction Industry of Kuwait

Abstract

The paper investigates and assesses the contract selection procedure used in Kuwait’s construction sector. The ideas and insights of engineers involved in significant Kuwaiti construction projects will be extensively considered. In the Kuwaiti building sector, various ways of choosing the contract form will be discussed. In order to gather pertinent data about the country’s primary construction projects, questionnaires will be used. This methodology ensures a first-hand account of the challenges and preferences within the industry. This data will be analyzed to determine the best ways to enhance the current system utilized for Kuwaiti building contracts for the choice of contract forms and payment terms that could benefit from the inclusion of measures to guarantee those types of task delivery systems and payment terms in the country’s future construction projects. This paper explores the typical contract types and payment mechanisms used in Kuwait, drawing on a thorough analysis of current literature, governmental regulations, and business practices. The Standard Forms of Contract, which offer fixed-priced payments, have become the most popular option. However, when used for extensive and technically challenging projects, this contract form’s simplicity presents difficulties. Additionally, the existing system encourages contract awards based on the lowest tender, which raises questions regarding appropriateness and proportionality. The study suggests an arsenal of criteria for improving the deal selection process, with an emphasis on diverse terms of payment inside the task delivery system, in order to allay these worries. It highlights the need for a more comprehensive approach for deal selection that takes project complexity, financial constraints, and long-term project interest into account. The proposed criteria additionally include adaptability to project complexity, ensuring flexibility for challenges in large projects. Financial considerations, aligning with budgetary requirements, are crucial. The emphasis is on long-term project success, and finding a balance between simplicity and adaptability in contracts is key. These comprehensive criteria aim to improve decision-making in selecting standard contract forms for construction projects, addressing challenges in large, technically demanding endeavors in Kuwait. This research contributes to the field by introducing a novel set of criteria for contract selection, tailored to the Kuwaiti construction context. The study’s originality lies in its approach to addressing the challenges posed by current practices and its focus on refining the system for future projects. Additionally, the study employs a rigorous questionnaire survey to extract firsthand insights from industry professionals, ensuring a robust and contextually relevant exploration of the contract selection landscape in Kuwait’s construction sector.

Keywords

• standard forms
• project delivery system
• payment terms