Showing papers in "Construction Management and Economics in 2004"

Risk management framework for construction projects in developing countries

Abstract: It is important to manage the multifaceted risks associated with international construction projects, in particular in developing countries, not only to secure work but also to make profit. This research seeks to identify and evaluate these risks and their effective mitigation measures and to develop a risk management framework which the international investors/developers/contractors can adopt when contracting construction work in developing countries. A survey was conducted and twenty‐eight critical risks were identified, categorized into three (country, market and project) hierarchical levels and their criticality evaluated and ranked. For each of the identified risks, practical mitigation measures have also been proposed and evaluated. Almost all mitigation measures have been perceived by the survey respondents as effective. A risk model, named Alien Eyes' Risk Model, which shows the hierarchical levels of the risks and the influence relationship among the risks, is also proposed. Based on the findings...

Reducing building waste at construction sites in Hong Kong

Abstract: The building industry is using a considerable amount of resources, but if the life cycle of the material on site is closely examined, it is generally known that there is a relatively large portion of the materials being wasted because of poor material control on building sites. The problem of material wastage is not an isolated issue on construction sites. It is also an environmental concern. Hong Kong is running out of both reclamation sites and landfill space for the disposal of construction & demolition (C&D) waste. Many resources can be conserved and the amount of C&D waste required to be disposed of should be greatly reduced if better management of materials is practiced on building sites. This paper reports on a recent study conducted in Hong Kong relating to material control on construction sites with high‐rise multi‐storey buildings. In the paper, the causes of building waste are identified and the wastage levels of various trades for public housing and private residential projects in Hong Kong ar...

Analysing construction project coalitions: exploring the application of social network analysis

Abstract: The construction industry is currently in transition as a result of innovations in procurement and project management approaches, in particular, the utilization of supply chain management, and technology or work clusters in the context of partnering relationships between project coalition actors and the client organization These new strategies require an analytical method that deals with actor interdependence and provides an appropriate level of detail and quantitative data in relation to the non‐linear, complex, iterative and interactive process that construction projects comprise The construction project is conceptualized as a number information exchange networks, classified according to the principal project functions and supported by performance incentive and contractual relationship networks The point centrality of the project actors within these various networks provides quantitative data and graphical representation of the governance of construction projects and the changes brought about by inno

Trends of 4D CAD applications for construction planning

Abstract: Since the early 1990s, there has been a growing interest in four‐dimensional computer aided design (4D CAD) for construction project planning. Commercial 4D CAD applications are becoming more accessible and the use of this technology allows the construction planner to produce more rigorous schedules. A review of the technical competencies of these packages highlights that most of the commercially available packages concentrate on the use of 4D CAD simulations for aesthetic visualization purposes. Very few packages offer the ability to carry out analytical tasks on the developed simulation and this is often left to the interpretation of the user. A thorough appraisal of emerging research developments in 4D planning highlights that this technology is employed for various applications; however, the amount of detail required in a 4D simulation is still ambiguous. A model is proposed to determine the attributes required for use with each of the various applications of 4D CAD simulations. Finally, various lines...

Client‐led strategies for construction supply chain improvement

Abstract: Recent research into the UK construction industry has identified various drivers for change and prominent among these is the need for better client leadership. The aim of this research was to examine the role of the client in securing a greater degree of supply chain integration. It used three diverse case studies to examine the association between clients, the environmental factors that affect their businesses, the procurement decisions made and the level of supply chain integration that can be achieved. The results of this research provide independent empirical support for some of the recommendations of the recently released Accelerating Change report and some practical amplification. Clients are shown to be key drivers of performance improvement and innovation and are the most significant factor in achieving integration in the supply chain.

Contractor selection using the analytic network process

Abstract: Contractor selection is one of the main activities of clients. Without a proper and accurate method for selecting the most appropriate contractor, the performance of the project will be affected. The multi‐criteria decision‐making (MCDM) is suggested to be a viable method for contractor selection. The analytic hierarchy process (AHP) has been used as a tool for MCDM. However, AHP can only be employed in hierarchical decision models. For complicated decision problems, the analytic network process (ANP) is highly recommended since ANP allows interdependent influences specified in the model. An example is demonstrated to illustrate how this method is conducted, including the formation of supermatrix and the limit matrix.

Management of construction waste in public housing projects in HongKong

Abstract: Waste management in the building industry in Hong Kong has become a major environmental issue in recent years. Of particular concern is the increasing amount of construction and demolition (C&D) waste being dumped at landfill sites. Greater consideration must be given to waste generation and management at the planning stage of a building development to reduce wastage levels. The causes and quantities of building construction waste generated on public housing building sites in Hong Kong have been analysed. Five public housing construction sites were selected for the study by regular site visits. Timber boards used in formwork were the most significant waste type requiring disposal followed by waste derived from wet trades. Waste generation could be significantly reduced by the use of precasting and system formworks. The major causes of wastes were improper preparation and handling, misuse, and incorrect processing. In general, little on-site waste sorting was carried out. Appropriate planning including the...

Public–private partnerships and contract negotiations: an empirical study

Abstract: Despite the increasing popularity in the use of the public–private partnership concept as a procurement strategy, there have been reported cases of problems associated with the initial stages of the process in terms of unduly high bidding costs and pre‐contract time overruns due mainly to the protracted nature of the negotiations. Empirical research conducted in the UK has focused on the extent of these pre‐contract time and cost overruns. The key attributes of both the private sector consortia and the public sector organizations that have significant bearing on the efficiency of the pre‐contract processes are: the nature and strength of the consortium, the quality of the technical proposals they produce for the bid, and the quality of their financial proposals. For the public sector organizations they are the organizational capabilities and technical capabilities. The financial capabilities of the public sector are ranked lowest in influencing the procurement process. Whilst there was broad agreement on ...

The work‐life experiences of office and site‐based employees in the Australian construction industry

Abstract: A survey was conducted among employees of a large Australian construction firm. Comparisons were made between employees who differed by gender and work location. Male employees in site‐based roles reported significantly higher levels of work to family conflict and emotional exhaustion than male employees who worked in the regional or head office. Site‐based male employees were also less satisfied with their pay than male respondents who worked in the regional of head office. Few significant differences were found between women who worked in different locations. Neither were significant differences between men and women who worked in the same location reported. The results are explained in terms of women's tendency to work in administrative, secretarial or support services roles, which typically demand fewer hours. The paper concludes that the experiences of site‐based construction employees, particularly men, warrant further attention to explore the sources of work‐life imbalance and burnout.

Valuation techniques for infrastructure investment decisions

Abstract: Public infrastructure owners are increasingly soliciting BOT arrangements to deliver needed infrastructure facilities. Such arrangements potentially preserve a public owner's capital capacity for allocation to projects that cannot support themselves by essentially ‘pulling’ projects from the private sector. Before soliciting these arrangements, however, owners should independently evaluate a project's economic viability to fully appraise the issues and variables involved. Unfortunately, project analysts often apply evaluation methods without regard for their assumptions and limitations. A case study of a toll road project in the USA provides the basis for examining the assumptions behind both traditional and option valuation models. The case demonstrates the use of an option pricing model to augment traditional project evaluation by capturing strategic considerations, in this case the value of project deferment. The presentation illustrates that the selection of a valuation model depends critically upon t...

Psychological adjustment and coping among construction project managers

Abstract: Construction project managers work under conditions of uncertainty and high risk, and this can contribute to an excessive level of work‐related stress being experienced. To date, there has been limited research that has examined how project managers cope with work‐related stress. This paper investigates whether coping and affect (both negative and positive) influence adjustment (anxiety, depression and stress) among project managers. A sample of 100 male project managers from Australian contracting organizations completed a questionnaire that measured coping strategies, affect state and potential stressors. Hierarchical regression analyses demonstrated that specific work‐related characteristics such as work experience, project size, age and level of education influenced the psychological adjustment of the project managers sampled. Further, those who engaged in a more problem‐focused style of coping, such as active coping were found to be better adjusted than those who engaged in more emotion‐focused style...

A competency‐based performance model for construction project managers

Abstract: The role of competency‐based performance management is growing in significance in many industries and sectors. Unlike functional competences, which measure performance against predetermined minimum occupational standards, competency‐based systems are founded on the key behavioural competencies that underlie superior levels of performance. In order to identify the key behaviours leading to performance excellence amongst construction project managers, in‐depth behavioural event interviews were used in which managers were asked to recount critical management incidents, decisions and actions from which their behavioural competencies could be identified. By delineating the sample according to their performance against a range of role‐based criteria, the competencies defining superior management performance were determined. Statistical techniques were then used to develop a model that can be used to predict likely employee performance, which was subsequently validated on a second criterion sample. The research ...

Planning For Claims: An Ethnography of Industry Culture

Abstract: Claims by contractors for additional payments have been identified by commentators as a major source of difficulty in the industry. Ethnographic research with industry members reveals some key features of planning practices that underlie such events. Claims are sometimes planned at tender stage and sometimes during the course of a project. One practice at tender stage is a pricing technique that minimizes the tender price while maximizing the out‐turn cost of a contract by exploiting mistakes in the bill of quantities. Another is the programming of work to maximize its vulnerability to delay. More reactive techniques may be employed during the course of the project, often to make up for an unanticipated increase in costs. These and other similar practices may be reported as features of an integrated culture, defined in such a way as to encompass activity and reject Cartesian dualism. The unique adequacy requirements of methods are suitable criteria for the evaluation of such reports. The claims culture ar...

Farsighted project contract management: incomplete in its entirety

Abstract: The purpose of project organization is to create a cooperative environment. Contracts are the method by which the owner creates a project organization to employ resources to achieve their development objectives. Contracts should aim to produce a cooperative organization, aligning the contractors' objectives with the owners. A three‐dimensional vector (reward, risk, safeguard), adapted from the Transaction Cost Economics literature, is used to analyse the efficacy of contract types to do this. Contracts are also unavoidably incomplete. They need to respond to unforeseen circumstance. A four‐dimensional vector (incentive intensity, adaptiveness, reliance on monitoring and control, reliance on the courts), also from the Transaction Costs Economics literature, is used to analyse the governance efficacy of contract types. The results are used to develop a contract selection strategy, depending on whether the uncertainty is controlled by the client or the contractor, the project is simple or complex, and the un...

Managing knowledge: lessons from the oil and gas sector

Abstract: Knowledge management (KM) is of increasing interest to a number of leading UK construction organizations. Companies are keen to find out what other organizations are doing both within the construction and other industry sectors. There are important lessons to be learned from Canadian oil and gas organizations on how they manage their knowledge. A case study is used to explore the KM activities of eight leading organizations and investigate the opportunities for construction organizations to adopt some of their ideas. Three areas are covered: KM strategy and implementation, people aspects of KM and metrics for KM performance. There are several potential lessons for UK organizations: the need for KM to be driven by senior management if it is to have any notable success; the use of people‐centred techniques for sharing tacit knowledge and IT tools for sharing explicit knowledge; the importance of selling solutions to project teams to obtain employee support for KM; peer recognition has a more sustainable imp...

Measuring construction project participant satisfaction

Abstract: Construction projects involve numerous stakeholders, and their satisfaction could directly influence the performance of subsequent projects Driven by a desire to improve project success, the critical satisfaction factors pertinent to the construction management process should be identified In this paper, an overall study regarding the behavioural management mechanisms amongst project participants is presented Eleven behavioural management mechanisms are identified and 15 hypotheses are established for this study The concepts of satisfaction, project goals, various management mechanisms and their interrelationships are discussed and investigated in relation to construction projects The results indicate that management mechanisms rather than particular project goal could directly affect the participant satisfaction Cooperation/participation, task/team conflict and goal commitment are the critical factors influencing the final outcome (satisfaction) in the complicated management process Moreover, conf

Safety and production: an integrated planning and control model

Abstract: A safety planning and control model (SPC) has been integrated into the production planning and control process. The model integrates safety into three hierarchical levels of production control. Safety long‐term planning starts with the preliminary hazard analysis (PHA) of construction processes. These plans are detailed and updated at both medium‐ and short‐term planning levels. The main performance measure adopted for safety evaluation at the short‐term level is the Percentage of Safe Work Packages (PSW). It monitors the degree in which work packages are safely carried out. The model also proposes a participatory mechanism that allows workers to point out existing risks as well as to evaluate risk controls. This paper discusses two empirical studies in which the model was implemented in industrial construction projects.

Leadership styles: some evidence from the Turkish construction industry

Abstract: The construction industry provides an interesting research alternative to other sectors because of its unique characteristics. For this reason, this paper aims to explore and compare the leadership styles of managerial personnel in the construction industry. The study focuses on the empirical evaluations of the similarities and differences in leadership styles of construction professionals. A managerial‐style questionnaire is developed based on the review of relevant literature. Questionnaire data obtained from 43 respondents show that the authoritative style is more frequently performed than all other styles. Results also indicate differences in terms of gender and managerial hierarchy. Implications of the results are discussed.

Career, family and work environment determinants of organizational commitment among women in the Australian construction industry

Abstract: A survey of women in the Australian construction industry was undertaken to examine the relationship between career, family and work environment variables on women's organizational commitment. Questionnaires were distributed to three hundred women in construction occupations and 109 completed and usable questionnaires were returned. Career choice commitment, satisfaction with career progression, job involvement, supervisory support and perception of the organizational diversity climate were significantly correlated with respondents' organizational commitment. No demographic or family variables were correlated with organizational commitment. Neither did organizational commitment differ significantly between women with dependent children and childless women or women with non‐dependent children. It is concluded that construction firms aiming to improve organizational commitment among female employees should ensure women have access to career development opportunities and ensure just processes are used in all...

Service life prediction of exterior cladding components under standard conditions

Abstract: The reliability of service life prediction of building components strongly affects the effectiveness of maintenance policy setting. Despite continuous research and development efforts, existing methods still suffer lack of robustness. Typical failure mechanisms in exterior cladding systems, deterioration patterns, and service life limiting coefficients (modifying factors) are identified for a range of failure mechanisms. The method is based on monitoring the physical and visual performance of building components under similar service conditions, at different periods in the building service life. Three types of exterior cladding are studied: cementitious mortar, synthetic rendering, and ceramic mosaic. Failure mechanisms identified include: lack of design details (such as drip‐edge and expansion joints), faulty design under marine environment, exposure to air pollution, and poor workmanship. Three typical deterioration patterns under failure conditions were determined statistically, namely, linear, exponen...

Learning capabilities in organizational networks: case studies of six construction projects

Abstract: Organizational learning is a key mechanism for adapting to changes in the organization's environment, sharing know‐how and experiences, and for providing innovative solutions. Practices of organization learning are examined in six Swedish construction projects. In the Swedish construction industry, organization learning practices are in many cases underdeveloped and therefore mechanisms for sharing know‐how, information, and experiences remain an organizational capability not fully exploited. Findings suggest that construction projects are primarily relying on informal and personal contacts rather than more formal reporting and computer‐based management control systems. The implications for management in the industry are that new arenas wherein various professional groups can share knowledge and information would be beneficial for construction projects in terms of enabling for joint learning and a better use of the intellectual resources employed the project.

A logistic regression approach to modelling the contractor's decision to bid

Abstract: Significant factors in the decision to bid process are identified and a pro‐forma to elicit a numerical assessment of these factors is developed and validated using the bid/no‐bid decision‐makers from a UK construction company. Using the pro‐forma, data were collected from the collaborating company for historical bid opportunities. Statistical techniques are used to gain a better understanding of the data characteristics and to model the process. Eight variables have a significant relationship with the decision to bid outcome and for which the decision‐makers are able to discriminate. Factor analysis is used to identify the underlying dimensions of the pro‐forma and to validate functional decomposition of the factors. Finally, two logistic regression models of the decision to bid process are developed. While one model is ultimately rejected, the selected model is capable of classifying the total sample with an overall predictive accuracy rate of 94.8%. The results, therefore, demonstrate that the model fu...

A framework for identification and representation of client requirements in the briefing process

Abstract: The briefing process is critical to the successful delivery of construction projects. Although a number of briefing guides have been developed, attempting to address the problems of briefing, they are often criticized as being too general and implicit. This paper describes a structured framework for identifying and representing client requirements (CRs) in the briefing process. It integrates the value management (VM) methodology with function analysis system technique (FAST) and functional performance specification (FPS) to enable the client organization and project team to systematically identify, clarify and clearly represent CRs in the briefing process. It comprises four interrelated phases: preparation, information, analysis and evaluation. This paper starts with a critical review of previous work in briefing and function analysis, followed by an introduction to the research methodology and detailed illustration of the proposed framework. The use of this framework can facilitate and lead to systematic...

Demystifying stakeholders' commitment and its impacts on construction projects

Abstract: Construction projects are typified by the involvement of a number of participants. Each project team member has his/own expertise, and would contribute towards the success of the project. However, since their inputs are often interdependent, conflicts may arise in some circumstances. This is particularly evidenced when they are working within limited resources in terms of time and budget. One cannot expect a project team to attain the necessary synergy when common goals are not being visualized or observed. To improve the implementation performance of construction projects, it is necessary to investigate the goal commitment amongst temporary project team members. This research study aims to investigate the impacts of commitment amongst major project stakeholders. The results indicate that high affective commitment induces high performance and satisfaction, while the continuous commitment provokes intention to quit.

An integrated regression analysis and time series model for construction tender price index forecasting

Abstract: Clients need to be informed in advance of their likely future financial commitments and cost implications as the design evolves. This requires the estimation of building cost based on historic cost data that is updated by a forecasted Tender Price Index (TPI), with the reliability of the estimates depending significantly on accurate projections being obtained of the TPI for the forthcoming quarters. In practice, the prediction of construction tender price index movement entails a judgemental projection of future market conditions, including inflation. Statistical techniques such as Regression Analysis (RA) and Time Series (TS) modelling provide a powerful means of improving predictive accuracy when used individually. An integrated RA‐TS model is developed and its predictive power compared with the individual RA or TS models. The accuracy of the RA‐TS model is shown to outperform the individual RA and TS models in both one and two‐period forecasts, with the integrated RA‐TS model accurately predicting (95%...

Minimizing demolition wastes in Hong Kong public housing projects

Abstract: Being one of the major housing developers in Hong Kong, the Hong Kong Housing Authority (HA) carries out a large number of construction and demolition projects. As a result, a large amount of construction and demolition waste is produced. As for demolition projects, demolition wastes usually contain a large amount of reusable materials. If sorted out properly, these materials could be better reused or recycled. Two case studies have been carried out on public housing projects to quantify the recovery rates of various types of demolition wastes in demolition projects and to assess the implementation of on‐site sorting requirements. The current practices of demolition contractors in Hong Kong mainly focus on the working procedures and waste generation during the main demolition stage and sorting of waste is difficult due to cross contamination although on‐site sorting has been stated as a requirement in the contract. The demolition method statement should include working details of both the salvaging and th...

Developing a business case for knowledge management: the IMPaKT approach

Abstract: There is a wealth of literature on the role of knowledge management (KM) in business improvement. Those with responsibility for implementing KM in organizations are often required to demonstrate its benefits. The need to convince senior management and other stakeholders about the business benefits is increasingly recognized as crucial in justifying a KM strategy and the resources to support its implementation. A three-stage approach (the IMPaKT framework) - underpinned by an industry survey and case study findings - is presented for developing a business case for KM. The framework facilitates: (1) an understanding of the strategic context of business problems and their knowledge management implications; (2) the planning and alignment of KM strategy to address business problems or objectives; and (3) an evaluation of the impact of KM on business performance in terms of effectiveness and efficiency. Key findings based on industrial application and further development of the framework are discussed. Evaluati...

A comparative study of top British and Chinese international contractors in the global market

Abstract: While British contractors have one of the longest history and experience in the international construction market, Chinese contractors are relative newcomers where the global market is concerned. This study compares the performance of top British and Chinese contractors based on the OLI+S model, which incorporates the ownership (O), locational(L), internalization (I) and specialty (S) factors. The study suggests that the international involvement of top British contractors has declined from a peak in 1996, while that of the top Chinese contractors has grown steadily since the 1980s. All the OLI+S advantages of top British construction firms were higher than those of their Chinese counterparts even though the number of Chinese construction firms ranked in the top 225 international contractors by the US-based Engineering News Record was higher than that of the British firms. This study further recommends that the internalization and specialty advantages of top British firms and some of the ownership advanta...

A longitudinal analysis on the relationship between construction output and GDP in Hong Kong

Abstract: The relationship between construction output and economic growth has been well discussed by construction economists. Most of the previous studies found a positive correlation between gross domestic product (GDP) per capita and various measures of construction output. However, cross‐sectional analysis was commonly adopted but longitudinal analysis has been called upon. Furthermore, recent research argued that non‐linear relationship between GDP and construction output exists because of different stages of economic development in different countries. They explained the phenomenon by means of the change of the growth rates of construction output at different stages of economic development, but the argument has not yet been rigorously tested. With the availability of long time‐series of data of Hong Kong construction industry, this paper attempts to test longitudinally the relationship between the real growth rate of construction output and the real growth rate of GDP. It was found that the growth rate of GDP...

The impact of non‐financial incentives on bricklayers' productivity in Nigeria

Abstract: High productivity is regarded as a goal that ensures long‐term survival of firms. In Nigeria's labour‐intensive construction industry, firms are currently applying various non‐financial incentive schemes aimed at improving operatives' productivity. A questionnaire survey involving the management and operatives of construction firms was conducted to determine the impact of these scheme on the productivity of bricklayers. The survey was complemented with on‐site observation and measurement of bricklayers' output on 40 construction projects in order to determine the impact of non‐financial incentive schemes on productivity. Comparative analysis of sites with and without incentives showed that non‐financial incentive schemes significantly improved bricklayers' productive time and these schemes accounted for 6% to 26% of the variations in output between the two sets of sites on block laying and concreting activities measured.