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Organization, Technology and Management in Construction: an International Journal

Co-published with University of Zagreb, Faculty of Civil Engineering

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1847-6228
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Effect of bond administration on construction project delivery

Ayodeji Emmanuel Oke
Published Online: 2017-03-14 | DOI: https://doi.org/10.1515/otmcj-2016-0001

Abstract

Construction bond administration involves management of bond issues from inception of obtaining bond from guarantor to the point of release of contractor by the client. This process has posted a lot of challenges to construction stakeholders; it is therefore, necessary to examine the relationship between bond administration and project success. Archival data of completed bonded building projects were gathered through a pro forma developed for this purpose. Using Pearson product moment of correlation, it was revealed that the cost of securing a construction bond has a positive and significant effect on the initial and final costs of the project, while the number of days needed to secure a construction bond has no significant effect on the initial and final durations of the construction project. In order to establish the relationship between project delivery indices of cost and time and the construction bond administration variables, iteration of linear regression was adopted to arrive at the best-fit equation. Factors affecting the cost of securing construction bonds from guarantors should be identified and given adequate attention by construction stakeholders in order to minimize the effect of construction bond administration on project delivery.

Keywords: bond; construction bond administration; guarantee; project cost; project duration; project success; risk management

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About the article

Received: 2015-11-24

Accepted: 2016-06-10

Published Online: 2017-03-14

Published in Print: 2016-12-01


Citation Information: Organization, Technology and Management in Construction: an International Journal, Volume 8, Issue 1, Pages 1390–1396, ISSN (Online) 1847-6228, DOI: https://doi.org/10.1515/otmcj-2016-0001.

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© 2017. This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License. BY-NC-ND 4.0

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