Abstract:
The government procurement confront with certain obstacles due to numerous unforeseen
factors. Such factors can result in abandoning contractual work by a contractor. The objective of
this research is to investigate actual causes of work abandonment and their frequency.
This research is conducted by collecting data and information from minutes of the office of
Abandonment Scrutiny Sub-Commission meetings between January 2005 and December 2006.
It is found that 94 government projects were abandoned during this period. Sixty-seven of them
presented their notification of abandoning reasons. The researcher has conducted in-depth
interviews in person with 24 contractors in order to compare consistency of information from
both parites and found that the information is in conformance. In conclusion, the top three reasons
of works abandonment are lacks of liquidity, increases in material, equipment, and gas prices and
insufficient working capital due to working on several projects at the same time. This study also
presents recommendation and guidelines for better contracts administration processes on future
projects.