Contract management and performance characteristics: An empirical and managerial implication for Indonesia

• Main Authors: Kamaruzzaman Muhammad, Oussama Saoula, Mustafa Rashid Issa, Umair Ahmed
• Format: Article
• Language: English
• Published: Growing Science 2019-05-01
• Series: Management Science Letters
• Subjects: Contract management; Firm performance; Project delivery; Indonesia
• Online Access: http://www.growingscience.com/msl/Vol9/msl_2019_100.pdf

This study intends to cover the relationship between contract management and performance characteristics from the context of Indonesia. To address this objective, contract management is observed as the main independent variable while performance through nine items is considered as dependent variable. A questionnaire is developed through some selected factors and distributed among various respondents, dealing directly or indirectly with the projects. A sample of 70 respondents is finalized with no missing values. Empirical findings suggest that for the firm performance different variables such as nature of the solution, cost & benefit analysis are significantly associated with the contract length. While project delivery and project quality are negatively associated with the contract length. Findings of the study are highly recommended for the contract managers and similar individuals, responsible for the smooth business performance. However, future studies can be conducted with the addition of more explanatory factors for contract management with better sample size. Manage-rial implication of the study defines that Government and construction companies should reconsider the stated factors for the improved results through resolution of the conflict with the customers, cost benefit analysis and timely delivery of the project with budgetary compliance.