Driving the adoption of standardized contracts in the construction industry
Shehroz Inam, Tayyab Ahmad, Muhammad Usman Hassan, Seyed Ashkan ZarghamiPurpose
Contractual inefficiencies in the construction industry frequently result in cost overruns, project delays and legal disputes, underscoring the necessity of standardized contracts. While existing research has extensively explored the legal and technical dimensions of contract standardization, limited attention has been given to stakeholders' behavioral intention to adopt such contracts. This study addresses this critical gap by examining key factors associated with stakeholders' intention to adopt standardized contracts in the construction industry, particularly Fédération Internationale des Ingénieurs-Conseils (FIDIC).
Design/methodology/approach
Grounded in the technology acceptance model (TAM), this study employs structural equation modeling (SEM) to analyze survey data from 200 construction professionals.
Findings
The findings highlight perceived compatibility, awareness of socio-economic benefits and resource availability as significant predictors of adoption intention. A key insight is the identification of a resource-compatibility-intention pathway, demonstrating that adequate resources are associated with enhanced perceived compatibility, which in turn is linked to adoption intention.
Originality/value
The study advances theoretical discourse by extending TAM to contract adoption and offers practical recommendations for policymakers and industry leaders, emphasizing strategic resource allocation, compatibility demonstration, leadership engagement and governance enhancement.