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Drivers of cost and time overruns: A client and contractor perspective Cover
By: Peter Dahlin and  Ossi Pesämaa  
Open Access
|May 2021

Figures & Tables

Regression on leadership drivers to change orders

Dependent variable: Leadership drivers to change orders

AllClientContractor
H1a: Opportunism0.24***0.180.24***
H2a: Bargaining cost−0.17*−0.07−0.17*
H3a: Communication cost0.21**0.31**0.21**
R-square10.40%18.10%11.10%
Adj. R-square9.20%15.40%9.10%

Regression on contractual drivers to change orders

Dependent variable: Contractual drivers to change orders

AllClientContractor
H1b: Opportunism0.01−0.090.04
H2b: Bargaining cost0.120.37***−0.07
H3b: Communication cost0.09−0.100.27**
R-square4.00%11.60%6.40%
Adj. R-square2.40%8.70%4.30%

Correlation between composite scores

Composite scoreMeanSDN(1)(2)(3)(4)(5)
1. Opportunism3.570.732340.79
2. Bargaining cost3.340.672340.39**0.75
3. Communication cost3.300.812340.41**0.48**0.82
4. Leadership drivers to change orders3.100.862340.26**0.020.22**0.82
5. Contractual drivers to change orders3.500.902340.100.17**0.16*−0.19**0.83

Mean differences between clients and contractors

QuestionRoleNMeanSDF-valuep-value
OPP1: The counterpart presents misleading information to protect their interests.Client953.581.05
Contractor1393.660.930.410.525
Total2343.630.98

OPP2: The counterpart promises to do things without actually doing them later.Client953.551.01
Contractor1393.690.871.350.247
Total2343.630.93

OPP3: The counterpart does not always act in accordance with our contract.Client953.690.84
Contractor1393.850.762.130.146
Total2343.790.80

OPP4: The contractual partner sometimes breaks informal agreements to maximize their own benefit.Client953.181.01
Contractor1393.241.000.190.663
Total2343.211.00

BC1: Negotiations of financial aspects of the contract are typically difficult and lengthy.Client953.400.97
Contractor1393.450.930.130.715
Total2343.430.94

BC2: When unexpected changes arise, at least one party was dissatisfied with negotiated outcomes.Client953.240.91
Contractor1393.240.910.000.969
Total2343.240.91

BC3: Our negotiations with this contracting partner are usually difficult.Client953.340.96
Contractor1393.140.962.430.120
Total2343.220.97

BC4: Neither party is willing to lower their demands at their own cost.Client953.440.73
Contractor1393.490.720.240.623
Total2343.470.72

CC1: Information from the contractual partner is poorly formulated and difficult to understand.Client953.270.93
Contractor1393.150.921.000.318
Total2343.200.92

CC2: Important information from the contractual partner seldom comes at the right time.Client953.380.99
Contractor1393.460.920.420.520
Total2343.430.95

CC3: Information from the contractual partner is either incomplete or too voluminous to understand.Client953.270.99
Contractor1393.290.960.010.913
Total2343.280.97

LDCO1: The counterpart’s (lack of) interpersonal skills causes change orders.Client953.131.08
Contractor1392.710.989.240.003
Total2342.881.04

LDCO2: The counterpart’s (lack of) leadership skills causes change orders.Client953.181.03
Contractor1392.871.035.030.026
Total2343.001.04

LDCO3: The counterpart’s lack of competence causes change orders.Client953.341.01
Contractor1393.491.141.110.293
Total2343.431.09

CDCO1: Imprecise projecting of on-site conditions causes change orders.Client953.231.26
Contractor1394.200.9146.780.000
Total2343.811.17

CDCO2: Incomplete early-stage planning causes change orders.Client953.121.14
Contractor1393.630.9713.500.000
Total2343.421.07

CDCO3: Incomplete contracts cause change orders.Client952.971.13
Contractor1393.990.8760.820.000
Total2343.581.11

CDCO4: Poor follow-up of similar projects causes change orders.Client952.771.02
Contractor1393.510.99 0.000
Total2343.211.06
DOI: https://doi.org/10.2478/otmcj-2021-0006 | Journal eISSN: 1847-6228 | Journal ISSN: 1847-5450
Language: English
Page range: 2374 - 2382
Submitted on: May 6, 2020
|
Accepted on: Jan 12, 2021
|
Published on: May 18, 2021
Published by: University of Zagreb
In partnership with: Paradigm Publishing Services
Publication frequency: 1 issue per year

© 2021 Peter Dahlin, Ossi Pesämaa, published by University of Zagreb
This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.