Selecting Standard Form of Construction Contracts using Text Analysis and Multi Criteria Decision-Making Techniques

Abstract

Delivering successful projects is a quite challenging task that requires establishing a well-drafted contract between the parties that fulfills all the parties’ needs through setting balanced rights and obligations between them. Standard Forms of Construction Contracts (SFCCs) are international standard forms that are used in construction projects to set all the contractual related issues that may take place during the course of the project. Furthermore, identifying the main causes of construction conflicts is the key to overcome these problems. Therefore, this research identifies five main aspects with fifteen sub-aspects that are considered the factors affecting contract selection. This research analyzes three of the most commonly used SFCCs; FIDIC Red Book 2017, JCT Standard Building Contract with Quantities 2016, and NEC4 Engineering and Construction Contract. Firstly, contract analysis is performed using a text analysis tool to extract hidden information found in unstructured data. Afterward, the clauses and provisions of the three SFCCs are compared based on the output of the text analysis process. Accordingly, forty-nine questions are developed to assist the user in selecting the most suitable SFCC based on a hybrid Multi-Criteria Decision-Making model. Finally, a recommendation system is developed to advise the user for some tips to be considered in the contract formation stage