LAUSR

While contract management is an important factor determining the profitability of overseas construction projects, it poses considerable difficulties for Korean construction companies. This study aims to assess the contract management capabilities of Korean construction companies, and to derive some key items worthy of close consideration as an important measure for strengthening their competitiveness. First, we defined the contract management process based on an analysis of the literature. Then we derived the capabilities required for each process stage, and carried out questionnaire surveys with 92 overseas project experts. The questionnaire was divided into two parts. The first questionnaire analysis was performed to identify major contract management capabilities that were intuitively perceived as being important by the experts. This was done using the AHP technique. The second questionnaire analysis was performed to identify capability deficits by assessing current performance level and the perceived importance of contract management capabilities. The results were subject to the Borich Needs Assessment Model and the Locus for Focus Model. The results of this study can be used for devising strategies to improve contract management capabilities and thus contribute to enhancing the international competitiveness of Korean construction companies. While the study was principally concerned with major companies looking for international contracts in the building sector, the analysis process and method can be utilized for the self-assessment of individual companies of varying sizes or specialties.