Construction contract administration in Malaysia using DFD: a conceptual model

The purpose of this paper is to propose a conceptual model which is aimed at assisting end‐users, i.e. construction practitioners who are without a proper legal background for effective administration of construction contracts, to enable them to make correct interpretations and decisions in dealing with vast amount of legal information.

This study proposes the application of data warehouse technology in the contract administration process of the construction industry. Upon identification of a comprehensive list of problems associated with construction contracts based on the feedback from 12 reputed experts in the construction industry, a conceptual model is developed using data flow diagram.

The results show that data warehouse technology is feasible and practical to the construction practitioners in the contract administration process.

This research focuses only on the development of a conceptual model and thus the practicability aspect of the model is a major concern. As such, the resulting practical implications are limited and are constrained only to the construction industry in Malaysia, raising the question of generalizability of the proposed model, as well as across different industries and countries.

It is posited that the proposed conceptual model, when implemented, would enable construction practitioners to administer construction contracts with better clarity and accuracy, so that interpretation errors and disputes can be mitigated. This will facilitate the development of harmonious working relationships.

The application of data warehouse technology in contract administration is rather new in the construction industry. The conceptual model thus offers a more effective and proactive approach in construction contract administration towards dispute resolution and/or prevention.