by Jeffrey C Kadlowec, Architect

Abstract

Labor laws regulate working relations between employers and employees to protect the fair conduct of business, reduce risks, and prevent accidents. Construction organizations are tasks with the challenges of performing and competing in an environment fraught by delays and inefficiencies. Lean production, total quality and earned value were developed as methods of analyzing and managing scenarios. Ever increasing knowledge and technology of a globalized economy require strict adherence to governing laws and contractual agreements. Social responsibility has become the ‘catch-all’ term for ethical and sustainable business practices.

Keywords:  contract law, project management, construction productivity, social responsibility

Construction Contracts

Labor laws were established to regulating relations, rights and responsibilities of employers and employees by defining working conditions, employment contracts, occupational health and safety, recruitment and dismissal, wages and social rights, unions, and collective bargaining. The laws maintain a balance between parties to protect the fair conduct of business, reduce occupational risks, and prevent workplace accidents through consultations with experts and continuous inspections [Arici 2024]. This improves worker morale and motivation, increases productivity and efficiency, ensures compliance with regulations, prevents criminal sanctions, and has a positive effect on business reputation.

Construction organizations are facing unpresented challenges to manage, perform and remain competitive, forcing the rethinking of processes to improve productivity, efficiency and quality. The construction sector comprises buildings, facilities and infrastructure with the industry providing every aspect and activity of construction, addition, alteration, installation, maintenance, repair, and demolition [Bin Ibrahim 2010]. Lean production system (LPS) is focused on reducing waste by eliminating non-value adding activities to improve delivery time, overall cost and total quality. Total quality management (TQM) integrated computers with construction for developing solutions to complex problems and improve methods through project planning, control tools and organizational methods that ensure success. Cost estimation has become a primary focus with earned value management (EVM) as an accurate metric for analyzing deviation from schedule and budget constraints by comparing labor input against production output.

International construction and major civil works projects that followed the industrial revolution and two world wars incorporate many of the new materials, mechanization and manufacturing methods developed in that time period. Modern design is highly dependent upon the scientific knowledge and technologic advancements with computers aiding in the engineering and prefabrication of building components [Ngowi 2005]. Robotics and artificial intelligence are currently being integrated into several construction processes, further improving the production, manufacturing, contracting, and consulting. Globalization has led to international participation in several economic booms through multilateral agreements and multinational corporations. Building construction still relies heavily on the labor skills of local contractors and leadership of highly educated personnel. Competitive advantage is determined by the quality of products and services through cost value, timely delivery and innovative processes.

Standard libraries of construction elements have developed over centuries with ingenious uses the hallmark of unique design and competitive advantage in the industry. Building information modeling (BIM) provides opportunities to solve more complex design problems while creating legal concerns over patents, trademarks and copyrights on intellectual property in a digital environment. The courts are struggling to find answers in proving originality for the complex process of architectural and engineering works with a fine line between creativity and imitation [Adibfar 2020]. Traditional two-dimensional (2D) paper-based drawings made modification difficult, reducing the likelihood of copyright infringement or unauthorized use. Digital drawings formats and three-dimensional (3D) integrated project delivery has made copying and modifying much easier. Owners have exclusive rights to legally reproduce, display, distribute, and share media for teaching, criticism and review, while greater protection, security and prevention of copyright infringement is becoming necessary.

Construction contracts provide the right of either party to terminate over major disagreements or breach of terms, though often with a variety of financial risks and professional liability. Contract termination should be executed with caution and careful consideration over responsibilities and conditions. Inability to proceeding due to insolvency or bankruptcy may lead to project failure and can result arbitration and litigation [Nor 2024]. Disputing parties should strive towards alternate solutions and winning resolutions before embarking on long and costly court proceeding.

The general public and local communities are becoming advocates of corporate social responsibility (CSR), impacting the way organizations and institutions operate with an emphasis on credibility and reputation. CSR is changing the workplace by embracing environmental sustainability, business ethics, public relations, social marketing, stakeholder analysis, and governance [Barthorpe 2009]. Construction and property organizations play a crucial role in economic development and must introduce, incorporate and implement CSR while simultaneously addressing continuous performance inefficiencies.

References

Adibfar, Alireza; Costin, Aaron & Issa, Raja. (2020). Design Copyright in Architecture, Engineering, and Construction Industry: Review of History, Pitfalls, and Lessons Learned. Journal of Legal Affairs and Dispute Resolution in Engineering and Construction. 12(3). 10.1061/(ASCE)LA.1943-4170.0000421.

Arici, Ayse & Elbir, Umut. (2023). Innovative Solutions in Labor Law and Construction Sector: Future Perspective. International Scientific Journal. 2(2): 7-15. 10.55843/SG2322007a.

Barthorpe, Stephan. (2009). Implementing Corporate Social Responsibility in the UK Construction Industry. Property Management. 28(1): 4-17. 10.1108/02637471011017145.

Bin Ibrahim, A; Roy, Matthew; Ahmed, Z & Imtiaz, G. (2010). Analyzing the Dynamics of the Global Construction Industry: Past, Present and Future. Benchmarking: An International Journal. 17(2): 232-252. 10.1108/14635771011036320.

Ngowi, A; Pienaar, E; Talukhaba, A & Mbachu, J. (2005). The Globalization of the Construction Industry—A Review. Building and Environment. 40: 135-141. doi: 10.1016/j.buildenv.2004.05.008.

Nor, Norhenani & Misnan, Mohd. (2024). Issues in Termination of Construction Contract: Based on Law Cases. International Journal of Research and Innovation in Social Science. 8(1). 10.47772/IJRISS.