A model of criteria system for evaluation of rationality of construction contraction agreements

Abstract

Construction contract is one of the steps of the construction process. In order to conclude acceptable and thought-out construction contracts, effective methodologies for their evaluation and comparison must be developed. In order to prepare such methodologies, it is necessary to analyse not only technical, organisational and economic aspects in construction but also legal aspects of a construction contract. Contract making has great influence on economic success of both parties. It is necessary to analyse provisions of the contract properly considering the criteria defining them: contractor’s liabilities, provided guarantees, client’s liabilities, contract termination and suspension, etc. Scientific literature increasingly pays attention to analysis of construction contracts. The fact is witnessed by extensive attention of various authors paid to increase of effectiveness in construction contract making. However, such an important issue as integrated evaluation of construction contracts remains almost untouched. Even when the construction contractor is selected and the price and work terms are negotiated, it’s possible to choose at least several variants of contracts. Selection of the most favourable variant is a multiple criteria task, and a methodology must be created for its solution. The aim of this article is to develop a hierarchical model of criteria of a construction contract based on their functions. Construction contracts can be concluded, evaluated and compared on the basis of this model.