The efficiency of cost-reimbursable contracts in government projects

Ghassabi, Ali; Jani, Rasoul; Dabiri, Rouzbeh

doi:10.22075/ijnaa.2023.30597.4438

The efficiency of cost-reimbursable contracts in government projects

Document Type : Research Paper

Authors

Ali Ghassabi

Rasoul Jani

Rouzbeh Dabiri

Department of Civil Engineering, Faculty of Engineering and Civil Engineering, Tabriz Branch, Islamic Azad University, Tabriz, Iran

10.22075/ijnaa.2023.30597.4438

Abstract

This study aimed to evaluate the relationship between the identification and impact of influential factors on the efficiency of cost-reimbursable contracts in government projects for eliminating and reducing problems. Delayed exploitation of projects causes them to lose their technical and economic justification while wasting national capital. When unstable conditions and inflation dominate the economy, contractors do not accept plans due to reduced profit and abandon projects. The mentioned cases increase the number of construction plans and projects in the form of escrow contracts, indicating the efficiency of escrow contracts in government projects. Therefore, these cases should be examined to determine the advantages and disadvantages and provide solutions to solve and reduce the problems. Thus, a field study was conducted to identify the influential factors in cost-reimbursable contracts of construction projects. This survey correlation study surveyed various sources and research to determine the significant factors through a questionnaire. The research population comprises 150 people, 108 selected using Cochran's sampling method. The data were collected by field research using closed questionnaires with Likert and five-option Likert scales. A questionnaire with 28 questions was designed for the research variables in total. The questionnaire’s validity and reliability were distributed among several consultants, contractors, and municipal employees, and information was collected. Then the research hypotheses were tested by data analysis at two descriptive and inferential statistics levels and using SPSS software and Pearson's correlation coefficient test. The results indicated a positive and significant relationship between the factors related to the contractor's employer, design, labor, materials required for construction, external intervening factors, the nature of the project, design/equipment, and delay in cost-reimbursable contracts of government projects.

Keywords

Cost-reimbursable contract

Government projects

Employer

Questionnaire

SPSS software

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