Effect of bond administration on construction project delivery

Factors	Cost	Time	Quality	Cost saving	Time saving	Client's satisfaction
Aibinu and Jagboro (2002)	√	√	√	–	–	–
Ajibade and Odeyinka (2006)	√	√	√	–	–	–
Augustine and Mangvwat (2001)	√	√	√	–	–	–
Doloi et al. (2010)	√	√	√	√	–	–
Elinwa and Joshua (2001)	√	√	√	–	–	–
Koushki et al. (2005)	√	√	–	–	–	–
Love et al. (1998)	√	√	√	–	–	√
Seeley and Murray (2001)	√	–	–	–	–	–
Ogunsemi and Jagboro (2006)	√	√	√	–	–	–
Oyewobi (2010)	√	√	√	–	–	–
Ramus et al. 2006	√	√	√	–	–	–
Wardani et al. (2006)	√	√	√	–	–	–

Relationship between bond indices and project delivery indices_

Bond type	Bond indices	Test statistics	Contract/initial cost of project (ICP)	Final cost of project (FCP)	Project cost overrun (PCO)	Initial duration of project (IDP)	Final duration of project (FDP)	Project time overrun (PDO)
Bid bond	Cost/amount of bond (CABb)	Pearson correlation	0.915^**	0.914^**	0.914^**	0.258	0.418^**	0.422^**
	Cost/amount of bond (CABb)	Sig. (two-tailed)	0.000	0.000	0.000	0.108	0.007	0.007
	Cost of securing bond (CSBb)	Pearson correlation	0.915^**	0.914^**	0.914^**	0.258	0.418^**	0.422^**
	Cost of securing bond (CSBb)	Sig. (two-tailed)	0.000	0.000	0.000	0.108	0.007	0.007
	No. of days to secure bond (NDb)	Pearson correlation	−0.382^*	−0.402^*	−0.113	−0.055	−0.090	−0.091
	No. of days to secure bond (NDb)	Sig. (two-tailed)	0.015	0.010	0.741	0.735	0.579	0.575
Performance bond	Cost/amount of bond (CABp)	Pearson correlation	1.000^**	0.998^**	−0.350	0.382^*	0.607^**	0.608^**
	Cost/amount of bond (CABp)	Sig. (two-tailed)	0.000	0.000	0.291	0.015	0.000	0.000
	Cost of securing bond (CSBp)	Pearson correlation	0.973^**	0.969^**	−0.491	0.422^**	0.693^**	0.702^**
	Cost of securing bond (CSBp)	Sig. (two-tailed)	0.000	0.000	0.125	0.007	0.000	0.000
	No. of days to secure bond (NDp)	Pearson correlation	−0.345^*	−0.367^*	−0.400	−0.156	−0.113	−0.059
	No. of days to secure bond (NDp)	Sig. (two-tailed)	0.029	0.020	0.223	0.338	0.487	0.718
Advance payment bond	Cost/amount of bond (CABa)	Pearson correlation	0.922^**	0.919^**	−0.363	0.323^*	0.551^**	0.582^**
	Cost/amount of bond (CABa)	Sig. (two-tailed)	0.000	0.000	0.273	0.048	0.000	0.000
	Cost of securing bond (CSBa)	Pearson correlation	0.879^**	0.880^**	−0.069	0.286	0.522^**	0.569^**
	Cost of securing bond (CSBa)	Sig. (two-tailed)	0.000	0.000	0.839	0.082	0.001	0.000
	No. of days to secure bond (NDa)	Pearson correlation	−0.246	−0.271	−0.085	0.035	0.092	0.113
	No. of days to secure bond (NDa)	Sig. (two-tailed)	0.137	0.100	0.804	0.833	0.583	0.499
Retention bond	Cost/amount of bond (CABr)	Pearson correlation	0.916^**	0.915^**	0.560	0.377^*	0.729^**	0.782^**
	Cost/amount of bond (CABr)	Sig. (two-tailed)	0.000	0.000	0.073	0.017	0.000	0.000
	Cost of securing bond (CSBr)	Pearson correlation	0.692^**	0.690^**	0.560	0.269	0.489^**	0.514^**
	Cost of securing bond (CSBr)	Sig. (two-tailed)	0.000	0.000	0.073	0.094	0.001	0.001
	No. of days to secure bond (NDr)	Pearson correlation	−0.376^*	−0.396^*	−0.085	−0.140	−0.122	−0.081
	No. of days to secure bond (NDr)	Sig. (two-tailed)	0.017	0.011	0.804	0.387	0.453	0.619
Average (all bonds)	Cost/amount of bond (CABav)	Pearson correlation	0.921^**	0.920^**	−0.317	0.356^*	0.546^**	0.538^**
	Cost/amount of bond (CABav)	Sig. (two-tailed)	0.000	0.000	0.342	0.024	0.000	0.000
	Cost of securing bond (CSBav)	Pearson correlation	0.782^**	0.783^**	−0.058	0.277	0.415^**	0.406^**
	Cost of securing bond (CSBav)	Sig. (two-tailed)	0.000	0.000	0.865	0.083	0.008	0.009
	No. of days to secure bond (NDav)	Pearson correlation	−0.372^*	−0.392^*	−0.199	−0.125	−0.113	−0.079
	No. of days to secure bond (NDav)	Sig. (two-tailed)	0.018	0.012	0.558	0.443	0.486	0.628

Language:: English

Publication timeframe:: 1 times per year
Journal Subjects:: Engineering, Introductions and Overviews, Engineering, other

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Effect of bond administration on construction project delivery

Ayodeji Emmanuel Oke

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.

Project delivery indices and their sources

Relationship between bond indices and project delivery indices_

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