Critical Success Factors in Construction Project Management: A Unit Price Contract

Abstract

The application of unit price contract in construction industry is generally used in Thailand particularly in civil works since it fairly provides risk allocation between the contracting parties. This includes project initiation with no clear the quantities of project works. However, it was found that the unit price construction projects fail to meet project deadline, overshoot project budget, and are unable to perform owners’ requirements. This study aims to identify critical success factors in unit price contract. The research methodology is case study. The units of analysis are organizations. Ten organizations were selected. Their organizations have been operated more than 5 years and have worked in unit price construction projects. The results show that critical success factors embed in every stage of project lifecycle against the success criteria of project progress, efficiency, effectiveness, and owners’ satisfaction. In initial phase, owners’ experience in project management, feasibility study, working capital and owners’ risk attitude are the critical success factors. In intermediate phase, the critical success factors consist of transparent bidding method, appropriate project schedule and specifications, project design against owners’ requirements, simple project design and constructability, designers’ ability in project design and planning, reliable contractgors, workers’ skill and weather. In final phase, owners’ evaluation on project performance, contractors’ performance bond and guarantee on work, and corruption in project approval are all the critical success factors.