Contract termination in the construction industry: A systematic literature review
Contract termination poses a significant threat to the successful completion of construction projects, with worst-case scenarios leading to project delays or abandonment. Wrongful terminations, particularly in cases where defaults are considered excusable such as the acts of God, can have costly leg...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Penerbit UMP
2025
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| Subjects: | |
| Online Access: | https://umpir.ump.edu.my/id/eprint/45708/ |
| _version_ | 1848827490882027520 |
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| author | Coleman, C. E. Mwanaumo, E. M. Mwanaumo, M. Muya Rahimi, A. Rahman |
| author_facet | Coleman, C. E. Mwanaumo, E. M. Mwanaumo, M. Muya Rahimi, A. Rahman |
| author_sort | Coleman, C. E. |
| building | UMP Institutional Repository |
| collection | Online Access |
| description | Contract termination poses a significant threat to the successful completion of construction projects, with worst-case scenarios leading to project delays or abandonment. Wrongful terminations, particularly in cases where defaults are considered excusable such as the acts of God, can have costly legal consequences. There are several dominant causes of contract termination, and it is essential to recognize potential contractual risks at the earliest opportunity. This study provides a systematic review of contract termination causes in the construction industry across various countries, analysing articles that identified 42 key causes, categorized into financial difficulties, client defaults, contractor shortcomings, economic and marketing factors, and administrative problems, with sub-attributes such as procurement system breaches and regulatory non-compliance. The findings emphasized that contract terminations are often driven by financial mismanagement, unrealistic client expectations, poor contractor performance, and administrative failures. To mitigate these risks, the study recommends enhancing training in contract management practices, improving administrative processes, and fostering stakeholder collaboration to ensure transparency and accountability. The research highlights the need for further investigation into the role of administrative factors in contract termination and provides practical recommendations to enhance contract delivery and project success. These recommendations include suggesting providing comprehensive training in contract management practices to reduce unlawful terminations; implementing robust contract management protocols for clear communications; and developing financial planning strategies to mitigate budget deficits. The implications for both industry and academia include a call for more robust management frameworks to prevent project failures and reduce the frequency of contract terminations. |
| first_indexed | 2025-11-15T04:01:33Z |
| format | Article |
| id | ump-45708 |
| institution | Universiti Malaysia Pahang |
| institution_category | Local University |
| language | English |
| last_indexed | 2025-11-15T04:01:33Z |
| publishDate | 2025 |
| publisher | Penerbit UMP |
| recordtype | eprints |
| repository_type | Digital Repository |
| spelling | ump-457082025-09-23T07:06:21Z https://umpir.ump.edu.my/id/eprint/45708/ Contract termination in the construction industry: A systematic literature review Coleman, C. E. Mwanaumo, E. M. Mwanaumo, M. Muya Rahimi, A. Rahman HD Industries. Land use. Labor TA Engineering (General). Civil engineering (General) TH Building construction Contract termination poses a significant threat to the successful completion of construction projects, with worst-case scenarios leading to project delays or abandonment. Wrongful terminations, particularly in cases where defaults are considered excusable such as the acts of God, can have costly legal consequences. There are several dominant causes of contract termination, and it is essential to recognize potential contractual risks at the earliest opportunity. This study provides a systematic review of contract termination causes in the construction industry across various countries, analysing articles that identified 42 key causes, categorized into financial difficulties, client defaults, contractor shortcomings, economic and marketing factors, and administrative problems, with sub-attributes such as procurement system breaches and regulatory non-compliance. The findings emphasized that contract terminations are often driven by financial mismanagement, unrealistic client expectations, poor contractor performance, and administrative failures. To mitigate these risks, the study recommends enhancing training in contract management practices, improving administrative processes, and fostering stakeholder collaboration to ensure transparency and accountability. The research highlights the need for further investigation into the role of administrative factors in contract termination and provides practical recommendations to enhance contract delivery and project success. These recommendations include suggesting providing comprehensive training in contract management practices to reduce unlawful terminations; implementing robust contract management protocols for clear communications; and developing financial planning strategies to mitigate budget deficits. The implications for both industry and academia include a call for more robust management frameworks to prevent project failures and reduce the frequency of contract terminations. Penerbit UMP 2025-05-02 Article PeerReviewed pdf en cc_by_nc_4 https://umpir.ump.edu.my/id/eprint/45708/1/Contract%20termination%20in%20the%20construction%20industry.pdf Coleman, C. E. and Mwanaumo, E. M. and Mwanaumo, M. Muya and Rahimi, A. Rahman (2025) Contract termination in the construction industry: A systematic literature review. Construction, 5 (1). pp. 27-38. ISSN 2785-8731. (Published) https://doi.org/10.15282/construction.v5i1.11746 https://doi.org/10.15282/construction.v5i1.11746 https://doi.org/10.15282/construction.v5i1.11746 |
| spellingShingle | HD Industries. Land use. Labor TA Engineering (General). Civil engineering (General) TH Building construction Coleman, C. E. Mwanaumo, E. M. Mwanaumo, M. Muya Rahimi, A. Rahman Contract termination in the construction industry: A systematic literature review |
| title | Contract termination in the construction industry: A systematic literature review |
| title_full | Contract termination in the construction industry: A systematic literature review |
| title_fullStr | Contract termination in the construction industry: A systematic literature review |
| title_full_unstemmed | Contract termination in the construction industry: A systematic literature review |
| title_short | Contract termination in the construction industry: A systematic literature review |
| title_sort | contract termination in the construction industry: a systematic literature review |
| topic | HD Industries. Land use. Labor TA Engineering (General). Civil engineering (General) TH Building construction |
| url | https://umpir.ump.edu.my/id/eprint/45708/ https://umpir.ump.edu.my/id/eprint/45708/ https://umpir.ump.edu.my/id/eprint/45708/ |