doi:10.3850/978-981-08-7920-4_S1-CP20-cd

ABSTRACT

Earlier project completion is the main purpose of fast-tracking strategy in construction projects. Reducing project duration is achieved by starting the construction phase of the project before completing the design package as well as overlapping activities in each phase. Starting an activity without complete data and information in fast-track projects creates more risks and uncertainties than normal situations. Contract is a mechanism to allocate these extra risks and liabilities between contracting parties. Inappropriate risk assignments in contractual relationships results in more risk premiums and contingencies which will end with greater overall project cost. This study explains the critical shortfalls of applying traditional contractual frameworks in fast-tracking and illustrates the main characteristics of a convertible contractual framework as an appropriate strategy for fast-track projects. In this paper, execution and conversion processes of convertible contracts are discussed and significant advantages of this strategy are identified. Also, the contracting execution process of a project with a conventional contract and a similar project with a convertible contract are compared through an industrial case analysis.

Keywords: Project contract, Fast-tracking, Cost reimbursable, Lump sum, Convertible contract, Two-stage tendering.

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