<abstract xmlns="http://www.w3.org/1999/xhtml"><p>Construction bond administration involves management of bond issues from inception of obtaining bond from guarantor to the point of release of contractor by the client. This process has posted a lot of challenges to construction stakeholders; it is therefore, necessary to examine the relationship between bond administration and project success. Archival data of completed bonded building projects were gathered through a pro forma developed for this purpose. Using Pearson product moment of correlation, it was revealed that the cost of securing a construction bond has a positive and significant effect on the initial and final costs of the project, while the number of days needed to secure a construction bond has no significant effect on the initial and final durations of the construction project. In order to establish the relationship between project delivery indices of cost and time and the construction bond administration variables, iteration of linear regression was adopted to arrive at the best-fit equation. Factors affecting the cost of securing construction bonds from guarantors should be identified and given adequate attention by construction stakeholders in order to minimize the effect of construction bond administration on project delivery.</p></abstract>

Construction bond administration involves management of bond issues from inception of obtaining bond from guarantor to the point of release of contractor by the client. This process has posted a lot of challenges to construction stakeholders; it is therefore, necessary to examine the relationship between bond administration and project success. Archival data of completed bonded building projects were gathered through a pro forma developed for this purpose. Using Pearson product moment of correlation, it was revealed that the cost of securing a construction bond has a positive and significant effect on the initial and final costs of the project, while the number of days needed to secure a construction bond has no significant effect on the initial and final durations of the construction project. In order to establish the relationship between project delivery indices of cost and time and the construction bond administration variables, iteration of linear regression was adopted to arrive at the best-fit equation. Factors affecting the cost of securing construction bonds from guarantors should be identified and given adequate attention by construction stakeholders in order to minimize the effect of construction bond administration on project delivery.

Effect of bond administration on construction project delivery

Organization, Technology and Management in Construction: an International Journal

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

{"article-title":"Effect of bond administration on construction project delivery"}

Construction bond administration involves management of bond issues from inception of obtaining bond from guarantor to the point of release of contractor by...

Effect of bond administration on construction project delivery

Article Category: Research Article

Published Online: Mar 14, 2017

Page range: 1390 - 1396

Received: Nov 24, 2015

Accepted: Jun 10, 2016

DOI: https://doi.org/10.1515/otmcj-2016-0001

Keywords
bond, construction bond administration, guarantee, project cost, project duration, project success, risk management

© 2016 Ayodeji Emmanuel Oke, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Effect of bond administration on construction project delivery

Article Category: Research Article

Published Online: Mar 14, 2017

Page range: 1390 - 1396

Received: Nov 24, 2015

Accepted: Jun 10, 2016

DOI: https://doi.org/10.1515/otmcj-2016-0001

Keywordsbond, construction bond administration, guarantee, project cost, project duration, project success, risk management

© 2016 Ayodeji Emmanuel Oke, published by De Gruyter Open

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 4.0 License.

Keywords
bond, construction bond administration, guarantee, project cost, project duration, project success, risk management