Factors causing mismanagement in public/private contracts: An indonesian perspective

Abstract

The objective of this study is to examine the impact of client, consultant and contractor related factors on mismanagement in public and private contracts in the region of Indonesia. A structural questionnaire is developed for the selected items after detailed investigation of present literature. A final sample of 137 respondents associated with various contracts in the region of Indonesia is collected with demographic details and regression analysis. It is observed that factors like lack of strategy, failure to compile the documentary requirements, poor planning, delay in decision making, financial issues, late payments, difficulty in getting work permits and lack of management expertise are core issues, creating mismanagement in public and private contracts. In consultant related factors, role of inexperienced consultant, poor planning, late of instructions from architects, poor contract management, and poor-quality assurance are the key determinants of mismanagement in contracts. While contractor related factors like poor planning and scheduling, late or improper submission of contract, inadequate site supervision and inspection, poor construction methods, weak leadership, and lack of communication between the parties are the key indicators of mismanagement in contracts. As per significance, this study is found to be a reasonable addition in the present literature from the context of contract management. Originality of the study covers the significant findings for the policy makers in the field of public and private contracts. Study can be reworked in future through better sampling, and addition of more factors related to materials, equipment and labor causing for the poor delivery of the contracts.