Legal and contracting issues in electronic project administration in the construction industry

Abstract

Purpose

The purpose of this research project is to identify the legal and security issues, risks and barriers to the uptake of communication and document management technologies by the construction industry. Previous research suggests that the construction industry, especially in Australia, has been reluctant to adopt technology on a broad scale due to a range of legal uncertainties. The purpose of this paper is to explain the relevant legal issues and risks and to suggest possible solutions for legally compliant electronic project administration in the construction industry.

Design/methodology/approach

This paper is based on research undertaken for the Australian Cooperative Research Centre for Construction Innovation (CRCCI) Research Project 2005‐025‐A, “Electronic Contract Administration – Legal and Security Issues”. The outcomes from the research to date include a literature review and several case studies. The research project will ultimately produce a set of recommendations for secure and legally compliant electronic project administration.

Findings

It is apparent that, if the uncertainties associated with electronic project administration remain unresolved, then the practical consequences for parties using electronic project administration tools may be serious. On a more general level, these uncertainties will contribute to a reduced willingness by the construction industry to take advantage of modern communication technologies.

Originality/value

This research contributes to the need for greater clarity and knowledge of the legal issues and risks of electronic project administration in the construction industry.

Citation

Christensen, S., McNamara, J. and O'Shea, K. (2007), "Legal and contracting issues in electronic project administration in the construction industry", Structural Survey, Vol. 25 No. 3/4, pp. 191-203. https://doi.org/10.1108/02630800710772791