Course syllabus

Construction Contract Relationships: Course PM

MSc Course TEK140, 7.5 he credits

 

Updated Oct 31st, 2019

 

Teachers

Examiner: (PG) Pernilla Gluch, Professor, Service Management & Logistics (Examiner, lecturer and tutor), pernilla.gluch@chalmers.se, 031-772 19 61.

Course responsible: (DT) Daniella Troje, Service Management & Logistics (Lecturer and tutor), daniella.troje@chalmers.se, 031-772 81 22.

Lecturers and tutors:

(AaH) Anna af Hällström, Service Management & Logistics (Tutor), anna.af.hallstrom@chalmers.se

(AK) Anna Kadefors, Professor, KTH (Lecturer)

(JB) Jan Bröchner, Professor, Service Management & Logistics (Lecturer and tutor), jan.brochner@chalmers.se, 031-772 54 92.

(JA) Jeanette Andersson, Department of Law, Gothenburg University (Lecturer) jeanette.andersson@law.gu.se

(HK) Henrik Kristensen, NVR, Henrik.kristensen@nvr.se (Lecturer)

 

Administrative support (Ladok): Jenny Weijland, jenny.weijland@chalmers.se

 

Prerequisites

For students admitted to the DCPM MSc programme. Also, for students that have passed 30hp in other master level courses in Architecture or Civil Engineering.

 

Aim

Construction projects are carried out in collaboration between several firms and other organizations, related to each other by contracts. Because of close contacts and needs for information exchange between the parties, managing these contractual relationships requires attention to both risks and responsibilities as defined in the formal contract, and also to softer relationship management issues. This is especially important in relation to sustainability goals and ethical concerns. The aim of this course is to provide students with the knowledge necessary to choose an appropriate form of contract, organize procurement and to successfully manage contracts in the area of built environment.

 

By the end of this course, students will be able to:

• describe procurement principles and processes, including basic aspects of public procurement regulations and sustainable procurement
• evaluate and identify procurement routes and contractual arrangements suitable for a specific project or service, including award criteria and principles for specification, risk management, payment principles and monitoring.
• be able to describe and design relationship management systems and activities to support trust, cooperation and innovation
• describe differences between legal systems. Understand and analyse basic principles of general contract law and apply this knowledge in the analysis of cases 
• understand, analyse and apply basic principles of negotiation theory

 

In this course the generic skills concern abilities to:

• evaluate contributions to theory and apply to empirical contexts
• apply qualitative research methodology
• critically review and discuss peer students work
• read and write academic texts
• present results for other students

 

 

Contents

• The nature of contracts.
• Basic contract law, conflict resolution.
• Contracts for consultancy services and for facilities services.
• Principles of construction law, standard contracts and their roles.
• Procurement: auctions and similar procedures, award criteria for contracts.
• Procurement routes, risk allocation in contracts. Specification principles.
• Procurement for social and environmental sustainability.
• Public procurement, EU directives.
• Payment principles, incentive systems and relation to motivation.
• Public-Private Partnerships, concessions.
• Partnering and collaboration: types, systems, relation to trust and communication.
• Certification and management standards.
• Negotiations: theory and practice.
• Qualitative research methods.
• Academic reading and writing.

 

Organization

The course consists of:

• lectures
• workshop
• literature seminars
• a project assignment

 

Changes from the 2018 course

The study visit, the workshop on academic writing and one lecture have been taken away to address the students’ wish for more time spent on the project assignment and also decrease the total study pace in the course.

 

Lectures are partly rearranged in terms of content and order for better structure.

Three literature seminars instead of two, so that less literature need to be read before each seminar.

 

Course Outline

Location: For lecture halls and rooms, continuously visit Time Edit for most recent information.

Tutoring will be carried out at Division of Service Management and Logistics, Dept. of Technology Management and Economics, Vera Sandbergs allé 8. Staircase B, 3^rd floor.

 

 

 

 

Abbreviations in the “Literature” column indicate which parts of the course literature are relevant for each lecture. See the subsequent list of literature for keys to abbreviations.

Week No In SP 2/ 19/20	Date Time Location	Type of lecture: Topic	Literature	Lecturer
2019
1/45	Tue 5 Nov 09.00-11.45 SB-H6	Lecture: Introduction.   Roles in construction   Procurement routes for construction projects: contracts, payment principles and tendering.	P-A Ch. 1,2, 10,11,12	DT/PG/JB/ AK
	Wed 6 Nov 9.00-11.45 SB-H3	Lecture: Procurement routes, etc. (cont.)	P-A Ch. 3,10-12, S	AK
	Thu 7 Nov 9.00-11.45 SB-H6	Lecture: Contract law 1. What is a contract? National legal systems. Swedish Law and European provisions. Sales contracts.	ELSI 1	JA
	Thu 7 Nov 13.15-17.00 SB-M500	Project assignment: Introduction to the project assignment (compulsory)	Handouts B-Be Ch. 4	PG
	Fri 8 Nov 15.00	Project assignment: Choose topic for project assignment using link posted on Canvas.
2/46	Mon 11 Nov	Topic for each group and respective tutor announced.
	12 or 13 Nov	Project assignment: Brief tutoring meeting. Make individual arrangements with your tutor.		JB, DT, PG
	Tue 12 Nov 9.00-11.45 FB	Lecture: Contract law 2. Contracts for services. Principles for dispute resolution.	ELSI 2	JA
	Thu 14 Nov 09.00-10.45 SB-L208 SB-L216	Literature seminar 1	Separate instructions on Canvas	DT/PG
	Fri 15 Nov 09.00-11.45 SB-H6	Lecture: Contract economics	W-B	JB
3/47	Thu 21 Nov 09.00-11.45 SB-H6	Lecture: Facilities management contracts. PFI contracts	K2, B-Ba P-A Ch 5	JB
	Thu 21 Nov 13.15 - 15.00 SB-M415	Workshop: Construction contracts	Additional material (will be uploaded to Canvas)	AK
	Fri 22 Nov 8.00 - 11.45 SB-H6	Lecture: Negotiations 1: Theory and practice	D	HK
4/48	26 or 27 Nov	Project assignment: Q&A session project assignment. Make individual arrangements with your tutor.		JB, DT, PG
	Tue 26 Nov 8.00-9.45 Vasa C	Lecture: Negotiations 2: Theory and practice	D	HK
	Thu 28 Nov 09.00-11.45 SB-H6	Lecture: Risk management in construction	P-A Ch. 8	JB
	Thu 28 Nov 13.15-15.00 SB-L200 SB-L208	Literature seminar 2	Separate instructions on Canvas	DT/JB
5/49	Tue 3 Dec 09.00-11.45 SB-H6	Lecture: Partnering and collaborative business relationships.	K1; B-D-L; P-A Ch. 2,10	AK
	Thu 5 Dec 9.00-11.45 SB-H6	Lecture: Public procurement. Sustainable procurement.	vW, T-K, RLKG	DT
	Fri 6 Dec 10.00-11.45 SB-H3	Lecture: Extra session if necessary.
6/50	Tue 10 Dec 9.00-11.45 SB-H6	Lecture: Audits, management standards and certification systems	R	PG/guest
	Tue 10 Dec Deadline 23.55	Project assignment: Submit first draft of your assignment paper to opposition groups and tutor on Canvas.
	Wed 11 Dec 8.00-9.45 SB-L208 SB-L300	Literature seminar 3	Separate instructions on Canvas	DT/PG
	12, 13 or 16 Dec	Project assignment: Tutor meeting. Make individual arrangements with your tutor.		JB, DT, PG, AaH
7/51	Tue 17 Dec 08.30 – 11.45 SB-L200 SB-L216	Project assignment: Final presentations NB: Attendance compulsory		JB, DT, PG, AaH
	Tue 17 Dec 13.15-15.00 SB-H3	Course summary		DT, PG, JB

 

2020

8/1	10 January 23.55	Project assignment: Final deadline to upload of written assignment paper and individual reflection on Canvas.
X/3	14 January 14.00-18.00	Exam
	8 April 08.30-12.30	Re-exam 1
	26 August 08.30-12.30	Re-exam 2

 

 

Literature seminars and workshop

There are three literature seminars scheduled. The literature seminars are important elements for your learning and attendance is strongly advised. Active participation in the seminars gives points that are added to the final grade: 1p if you in advance prepare questions for the seminar and 1p for actively participating in the discussions at the seminar.

 

The course has one workshop focusing on contracts. The workshop is an important element for your learning and attendance is strongly advised. Active participation in this workshop earns 2 p.

 

Project assignment

The project assignment will be introduced on 7 November, 13.15 where more detailed information will be given.

 

Project assignment process

The project assignment builds on a literature study and an interview study. The assignment is carried out in groups of 4-5 students. The group will be formed by the teachers and announced at the project assignment introduction on 7 November, when the team also start the topic selection process. Selection of topic need to be done no later than 15.00 on 8 November. A list of topics will be presented on Canvas in relation to the project assignment introduction.

 

The purpose of the literature study is to provide a deeper theoretical understanding of a topic related to the course. In this assignment, you will search for literature sources on a specific topic. These can be books, articles and web pages. Thus, you will train skills in searching for information and writing academic texts with formally correct references. A minimum of 8 different academic references should be used. Use the Harvard model for references. A good advice is to manage all references in Endnote. Search for articles in, for example, www.scopus.com and www.scholar.google.com.

 

The purpose of the interview study is that students should develop a deeper understanding of practitioners’ perspectives on contracts and relationships in construction projects. The group is responsible for finding 1-3 interviewees and organizing the interviews. The interviews will have two parts. One with general interview questions that concern the interviewees’ perceptions, preferences and experiences of various procurement routes and contracts (traditional, design-build, partnering, management, etc.), and one part that focuses on the topic chosen for the project assignment. For the first part a general guideline will be provided on Canvas and adapted by each group to fit the interviewees’ organizational belonging. The second part of the interviews each group will develop depending on chosen topic. You will be given support on how to conduct interviews at the project assignment introduction.

 

Tutoring

The group will be assigned a tutor after the selection of topic. The group will be informed about topic and tutor 11 November.

 

Each tutor will make separate arrangements for her/his groups. Dates for each tutoring session are recommended in the schedule above, but arrangements are made with each individual tutor and can be held outside of these dates if better suited for the groups and tutor.

 

Normally, a group should have a brief tutoring meeting in study week 2 to discuss the assignment topic and possible approaches. A mid-term Q&A session with your tutor will be arranged in study week 4 focusing on data collection and analysis. A longer tutoring session focusing on the written assignment paper draft is held in study week 6. General questions and advice, for example concerning topic choice, will be handled in connection with lectures and/or by email.

 

Normally, tutoring will be carried out at Division of Service Management and Logistics, Dept. of Technology Management and Economics, Vera Sandbergs Allé 8. Staircase B, 3^rd floor.

 

Compulsory presentation and opposition

Oral presentation (compulsory). Upload your power point presentation on Canvas before 12:00 on Monday 16 December OR bring a memory stick to the presentation session. Please be on time for the presentation since the schedule is tight. We will start the presentations at 8.30 sharp. Teachers will be in the room 15 minutes ahead.

 

Opposition (compulsory): Before the presentation (deadline 23.55 on 10 December) you submit a first draft of your assignment paper on Canvas to make it available for opponents and teachers. You will oppose on two other works, as main opponent and as second opponent. As opponent group you provide oral feedback and written comments (1-2 pages) to these two other groups. Bring a printed copy of your comments to the presentation/opposition session. The teachers will provide a list of peer groups.

 

Final hand-in

Individual reflection on group work: At the course closure, you will do a reflection of your own group work together with your group members. You will also be asked to hand in a 1-2 pages individual reflection on Canvas regarding your own contributions to the group work, group dynamics and the work process as a whole. The individual reflection is due 10 January.

 

Academic paper: Groups should upload their finished assignment paper on Canvas not later than 23.55 on 10 January. The paper is checked for plagiarism in Urkund. The file should be named Group_X_project_assignment. The paper must follow the Paper Template TEK140 provided on Canvas. Your final papers will be compiled into a digital anthology and distributed to you after the course. 

 

Guidance on how to write an academic paper is given in online lectures available on Canvas.

The text should be within the range of 3000-4000 words excl. reference list.

 

Requirements and grading

Examination requirements are:

• a completed project assignment, including:
  • a written academic paper
  • an oral presentation,
  • a one-page individual reflection on your own work
  • a completed opposition, including written feedback to the two groups
• a written examination

 

Your course grade will be based on the sum of your points on the written exam, the project assignment, and additional points for attendance as described below. Project assignment papers are graded between 0 and 25 points, and 12 points are required for Pass. A specific assessment report is used (available on Canvas), and each report is graded independently by two tutors and by the examiner. The grading takes account of both contents and readability (language, clarity, correct references, etc.). Apart from grading, short feedback indicating strong and weak points will be provided. You must pass the written exam in order to pass the course.

 

Assessment criteria	Point range
Written exam	0-50 (a minimum of 24 is required for pass)
Written assignment paper	0-25 (a minimum 12 is required for pass)
Attendance on (max points): 1 workshop (2p) 3 literature seminars (3 x 2p = 6p)	0-8
TOTAL	83 (maximum)

 

Grade limits:

Grade	Minimum points
3	36
4	52
5	68

 

Literature

NB: Course literature also includes handouts from lectures continuously posted on course homepage.

 

Main course book:

(P-A) Potts, K. and Ankrah, N. (2013) Construction Cost Management. Learning from Case Studies (2nd ed.) London: Routledge.

 

Articles and papers:

Articles are available through Chalmers Library (E-journals) or other web services.

 

(B-Ba) Bröchner, J. and Badenfelt, U. (2011) Changes and change management in construction and IT projects. Automation in Construction, Vol. 20, No. 7, pp. 767-775.

 

(B-Be) Bryman, A. and Bell, E. (2007), Business research methods (2nd ed.), Oxford: Oxford University Press. Ch. 4. (Available on Canvas)

 

(B-D-L) Bygballe, L.E., Dewulf, G. and Levitt, R.E. (2015) The interplay between formal and informal contracting in integrated project delivery. Engineering Project Organization Journal, Vol. 5, No. 1, pp. 22-35.

 

(D) De Dreu, C. K. W., Beersma, B., Steinel, W. and Van Kleef, G. A. (2007) The psychology of negotiation: Principles and basic processes. In A. W. Kruglanski & E. T. Higgins (Eds.), Handbook of Basic Principles in Social Psychology(2nd ed., pp. 608-618). New York: Guilford. (Available on Canvas)

 

(K1) Kadefors, A. (2004) Trust in project relationships: inside the black box. International Journal of Project Management, Vol. 22, No. 3, pp. 175-182.

 

(K2) Kadefors, A. (2008) Contracting in FM: collaboration, coordination and control. Journal of Facilities Management, Vol. 6, No. 3, pp. 178-188.

 

(RLKG) Raiden, Loosemore, King & Gorse (2019) Ch. 1 Introduction, pp. 10–26 & pp. 30–32. In Social value in construction. Routledge: Abingdon. (Available on Canvas).

 

(R) Rainville, A. (2017) Standards in green procurement – A framework to enhance innovation. Journal of Cleaner Production, Vol.167, pp. 1029-1037.

 

(S) Sporrong, J. (2011) Criteria in consultant selection: public procurement of architectural and engineering services. Australasian Journal of Construction Economics and Building, Vol. 11, No. 4, pp. 59-76.

 

(T-K) Troje, D. and Kadefors, A. (2018) Employment Requirements in Swedish Construction Procurement: Institutional Perspectives. Journal of Facilities Management, Vol. 16, No. 3., pp. 284-298.

 

(vW) Van Weele, A.J., (2018) Public procurement, In Purchasing and supply chain management: Analysis, strategy, planning and practice. Cengage Learning EMEA, pp. 120-139. (Available on Canvas).

 

(W-B) Waara, F. and Bröchner, J. (2006) Price and nonprice criteria for contractor selection. Journal of Construction Engineering and Management, Vol. 132, No. 8, pp. 797-804.

 

Legal texts:

 

(ELSI 1) European Legal Studies Institute, Study group on a European Civil Code, Sales team: Principles of European Law: Sales: Chapters 1-6, December 2004. (Available on Canvas).

 

(ELSI 2) Services Team: Principles of European Law on Service Contracts (PELSC): Chapters 1 (General provisions), 2 (Construction), 3 (Processing) and 5 (Design) October 2005. (Available on Canvas).