Showing papers in "Journal of the Construction Division in 1982"
TL;DR: The general model of competitive bidding is not limited by the assumptions on which Friedman's and Gates' models depend and is applicable to competition for which a contractor's cost distribution and opponents' bid distributions can be estimated as mentioned in this paper.
Abstract: The general model of competitive bidding is not limited by the assumptions on which Friedman's and Gates' models depend. It is applicable to competition for which a contractor's cost distribution and opponents' bid distributions can be estimated. Historical data of contractor's cost and competitors' bids on different projects produce a distribution for the ratio between them, the bid/cost ratio. Standardized distributions for contractors' cost and competitors' bids, estimated to have respective means of one and the mean bid/cost ratio and to have equal variance, are inserted into the general model. Results are compared with Friedman's and Gates' models for competition against average competitors. Because markup adjustments are counterbalanced by shifts in probability of winning, contractor expected value is not very sensitive to markup, or its method of selection. However, the models vary considerably in their estimates of expected value. Gates' model is always more accurate than Friedman's model where variance of bids is due to variance of costs.
116 citations
TL;DR: In this paper, a construction scheduling technique is presented which is more advantageous than bar charts and network schedules, particularly for repetitive activities and for scheduling the work in sections of a project (floors, bridge spans, road and sewage sections).
Abstract: A construction scheduling technique is presented which is, in many cases, more advantageous than bar charts and network schedules, particularly for repetitive activities and for scheduling the work in sections of a project (floors, bridge spans, road and sewage sections, etc.). The technique is labeled the time space scheduling technique because it shows clearly the connections of activities, their duration times, and sections (space) where they take place in a given time. The principal organization of the construction process is described. Examples of the application of time space scheduling are given for the pump foundation in a pipeline, construction of an apartment house, a multistoried concrete building, a road section, and a railway bridge. The time space scheduling technique is compared to bar charts and network scheduling techniques. Advantages and limitations are examined.
97 citations
TL;DR: In this paper, a polynomial regression model is used to forecast the cumulative cost flow in housing and public buildings, as a function of total cost and construction period, for estimating the cost increment for any interval even before any schedule is available.
Abstract: Cost-flow models are formulated for forecasting the cumulative cost-flow in housing and public buildings, as a function of total cost and construction period. This permits to estimate the cost increment for any interval even before any schedule is available. Detailed cost-flows are compiled for all individual projects, and brought to a common denominator by relating cost to time in percentage. The prediction curves are obtained by polynomial regression. Considering the dynamic characters of a company’s financial plan, and the need for permanent updating, the deviations obtained by this procedure between the predicted and actual cost of the individual project are insignificant for practical use. These deviations also tend to balance out in compiling the company’s overall picture that management is concerned with. The implementation of such models for all major categories of projects engaged in by a construction company can thus greatly simplify one of tha most time and cost consuming steps in establishing and updating a financial plan.
57 citations
TL;DR: A study of practical means by which owners can reduce construction costs was undertaken as part of a larger investigation of construction cost control as mentioned in this paper, which involved three parts: 1) documenting the costs of accidents, 2) selecting safe contractors and 3) monitoring for construction safety.
Abstract: A study of practical means by which owners can reduce construction costs was undertaken as part of a larger investigation of construction cost control. The study involved three parts: 1) documenting the costs of accidents, 2) selecting safe contractors and 3) monitoring for construction safety. The major costs of accidents are found to be workers' compensation insurance costs and hidden costs, conservatively estimated from the research to total 4% of project costs on industrial construction. The size of construction accident costs combined with the fact that research shows that they can be reduced very substantially by management methods makes selection and monitoring by owners cost effective techniques. Criteria for selection of safe contractors are described in detail: Experience modification ratings, OSHA incidence rates, and management safety accountability. Effective monitoring methods are also listed.
54 citations
TL;DR: The implementation of CYCLONE on a microcomputer provides a cost effective means by which construction decision makers can compare various construction methodologies and conduct sensitivity analysis of a selected methodology to determine the optimal or best resource mix.
Abstract: The availability of small reasonably priced computers—micro-computers—has made computer based techniques and management control accessible for the analysis of construction processes. A microcomputer implementation of the CYCLONE method for the analysis of a contruction operation is presented. The CYCLONE method is an analytical technique for the analysis of construction processes. The system, as discussed, is implemented on the TRS-80 and Apple II plus microcomputers. Two complete examples analyzing a paving process and a precast process are presented and discussed. The implementation of CYCLONE on a microcomputer provides a cost effective means by which construction decision makers can compare various construction methodologies and conduct sensitivity analysis of a selected methodology to determine the optimal or best resource mix.
48 citations
TL;DR: In this paper, a review of previous construction motivational studies and an examination of their dated theoretical basis demonstrate their limited usefulness, and contemporary approaches to motivation are then presented, with the major implications for construction managers included in the findings are: (1) management should play an active and continuous role in managing onsite motivational processes; (2) employees' desired outcomes should be tied to performance; and (3) on large projects, management should focus on eliminating performance obstacles.
Abstract: The paper opens with a review of previous construction motivational studies and an examination of their dated theoretical basis which demonstrate their limited usefulness. The contemporary approaches to motivation are then presented. The massive experience that has accumulated regarding the application of motivational programs in other industries is discriminately used to develop a new approach to motivate construction workers. The proposed guidelines are developed along the three variables that affect motivation: the individual, the job, and the work environment. The major implications for construction managers included in the findings are: (1) Management should play an active and continuous role in managing on-site motivational processes; (2) employees' desired outcomes should be tied to performance; and (3) on large projects, management should focus on eliminating performance obstacles. The paper also examines various managerial approaches to motivate construction workers and concludes that construction management would benefit from a general move toward a more participative decision-making style of leadership.
41 citations
TL;DR: The four-year programs have been followed by three main streams: (1) four year programs in civil engineering; (2) five year programs leading to the M.S. degree; and (3) fouryear programs outside engineering as mentioned in this paper.
Abstract: Higher education for construction managers demands increased attention by the colleges and universities, and the construction industry. The present-day programs have developed only recently because of constraints such as the industry's diversity and divisions, and differences in the backgrounds and traditions of the participants. These programs have followed three main streams: (1) Four-year programs in civil engineering; (2) five-year programs in civil engineering leading to the M.S. degree; and (3) four-year programs outside engineering. University research on construction problems is minimal. Neither of the four-year programs, which produce most of the graduates, cover the subject matter the industry says it wants, but the transition to, or development of, more five-year programs will be slow if present conditions continue. To maintain and improve construction education and launch the universities into research and in-service education will be impossible without industry attention and support far beyond the present low levels. Fortunately, there are strong signs that this attention and support is developing so that the future seems bright.
33 citations
TL;DR: In this article, a quadratic programming model is devised to determine optimal unit prices and an example illustrates features of implementation, which is used to select unit prices which achieve a balance between maximizing the present worth of profit and minimizing potential contractor loss due to quantity misestimates.
Abstract: Unbalancing of Unit Price Proposals is widely used to improve cash flows and the competitiveness of a tender. Such practices can alter a contractor's risk favorably or otherwise. This paper is concerned with selecting unit prices which achieve a balance between maximizing the present worth of profit and minimizing potential contractor loss due to quantity misestimates. A quadratic programming model is devised to determine optimal unit prices and an example illustrates features of implementation.
30 citations
TL;DR: In this paper, a computerized system called PROMAX is presented for integrating project and process level planning and management, which integrates the project management level capabilities of the PROJECT I system with those of the CYCLONE process level modeling system.
Abstract: This paper presents a computerized system, called PROMAX, for integrating project and process level planning and management. The system integrates the project management level capabilities of the PROJECT I system with those of the CYCLONE process level modeling system. Simulation is used at the process or technological level to determine the durations of project level activities. Variations in resource allocation and cost and their impact on schedule and cost at project level can be studied using the system.
30 citations
TL;DR: In this article, the use of survey of construction foremen to make a qualitative and quantitative determination of the job factors resulting in lost time, and subsequent use of this information as a management tool for the reduction of the magnitude of these factors and the improvement of worker morale is investigated.
Abstract: The practice of using surveys of construction foremen to make a qualitative and quantitative determination of the job factors resulting in lost time, and the subsequent use of this information as a management tool for the reduction of the magnitude of these factors and the improvement of worker morale is investigated. The development of this process and the current state-of-the-art are considered. Comparative data from eight construction sites are presented. A comparison of costs with potential benefits is provided. Recommendations are made for the effective use of foreman-delay surveys. Specific instructions for performing foreman-delay surveys are given.
29 citations
TL;DR: In this article, the authors present field interview results substantiating the hypothesis that decision-making is multi-attributed in nature, contrary to the implicit assumption of these other efforts, and introduce a theory which facilitates analysis of complex decisions and selection of consistent courses of action.
Abstract: Numerous mathematical decision models have been formulated in an attempt to analyze construction risk. Most such efforts have failed because of the limited scope of their objective functions. This study presents field interview results substantiating the hypothesis that decision-making is multiattributed in nature, contrary to the implicit assumption of these other efforts. A theory is introduced which facilitates analysis of complex decisions and selection of consistent courses of action. An illustrative decision problem is solved, not only to explain the mechanics of the theory, but to demonstrate that construction risk is a function of competitive economics as well as project-related characteristics.
TL;DR: In this paper, the owner and architect/engineer's roles in the prevention and resolution of construction claims are examined, including scheduling, submission of shop drawings, payment terms, rates for time and material work and notification of delays and extra work.
Abstract: The owner and architect/engineer's roles in the prevention and resolution of construction claims are examined. A carefully written contract is invaluable in the prevention of a claim. Important aspects of construction contracts are presented, including scheduling, submission of shop drawings, payment terms, rates for time and material work and notification of delays and extra work. The owner and architect/engineer must be aware that his or her actions should be avoided whenever possible. Causes of valid construction claims include extra work, project delays and acceleration, lack of management, limited site access and change in work schedule. The importance of record keeping is stressed. Detailed records help to establish facts if a dispute later develops. Records that should be kept include minutes of meetings, correspondence, progress reports, status logs and photographs.
TL;DR: A methodology is described whereby milestone dates can be created at selected node points within the project without the necessity to maintain an entire record of each possible outcome at these nodes.
Abstract: A most effective use of Monte-Carlo schedule generation is to create a control schedule of the planning, design and construction of a major project. The normal Monte-Carlo process will yield a distribution for the time required for project completion, activity criticality and list potential critical paths. A methodology is described whereby milestone dates can be created at selected node points within the project without the necessity to maintain an entire record of each possible outcome at these nodes. The methodology utilizes the first four moments about the mean and the Edgeworth Series Method. Examples are presented to demonstrate the methodology.
TL;DR: In this article, the usefulness of foreman-delay surveys (FDS) for performance measurement and productivity improvement at construction sites is evaluated by comparison with production rates and work sampling observations.
Abstract: The usefulness of foreman-delay surveys (FDS) for performance measurement and productivity improvement at construction sites is evaluated by comparison with production rates and work sampling observations. A comparison of measurements obtained with concurrent work sampling and FDS at a nuclear plant construction site is presented. This comparison is followed by an examination of the changes in key site labor performance factors during the implementation of the work sampling and FDS programs at this site. An examination of relationships between FDS reported values, performance factor, and weld production for the major mechanical contractor of a refinery construction project is also presented. Both projects utilize union labor.
TL;DR: In this paper, a detailed Procurement and Construction Schedule is generated with contractor input, followed by a detailed procurement and construction Schedule with a detailed cost analysis and a detailed schedule evaluation.
Abstract: Network planning and analysis (CPM) is a proven means to outline the many activities to be performed and to investigate the feasibility of a given construction project. Commencing with a Master Project Schedule, developed in a low level of detail, the criteria is set for engineering and document development together with the logistics of construction. Costs, determined by conceptual estimates, added at this time forecast financial requirements. Schedule development continues to expand in detail as engineering information proliferates, and alternative construction methods and procedures are studied. With contractor input, a detailed Procurement and Construction Schedule is generated. Ultimate success of the project depends upon careful implementation and surveillance of the plan and schedule. Regular monitoring and comparing of actual performance with the plan and schedule enables maintenance of effective time and cost control.
TL;DR: In this paper, the authors show that rehabilitation work suffers from wasteful attitudes, social conditions, and regulatory barriers that prevent it from reaching its potential, and that rehabilitation projects are adversely affected by building codes intended for use in new construction.
Abstract: Rehabilitation work suffers from wasteful attitudes, social conditions, and regulatory barriers that prevent it from reaching its potential. There are four primary ways in which rehabilitation projects are adversely affected by codes which are intended for use in new construction. Such codes tend to increase project costs 10-20%, add unnecessary project approval time, discourage feasible rehabilitation projects, and encourage payoffs to building officials. The Federal Government however, has issued draft rehabilitation guidelines designed to alleviate the negative impact building codes have on rehabilitation projects. The study conducted for this presentation shows that the management of rehab work is difficult and that many construction companies tend to shun rehabilitation. The investigation also indicates that producing plans and specifications is more time consuming, and that rehabilitation projects require more inspection and change orders compared with that of new construction. In addition, there may be a productivity decrease in rehabilitation that could possibly affect cost estimates and decrease profitability. Rehabilitation’s positive aspects, however, include conservation of resources, providing contractors with interim work during slack periods, and helping to alleviate the current housing shortage.
TL;DR: In this paper, the authors suggest that construction managers are not recognizing their full responsibilities in establishing a framework for project teamwork in job planning and are not following through with good communication to foremen and tradesmen to promote true team spirit.
Abstract: Construction project planning and scheduling along with communication of the plan have major impact on the productivity of field crews. Though the size of the impact is practically impossible to document, the cause-effect relationship has been revealed in recent productivity studies. It appears that construction managers are not recognizing their full responsibilities in establishing a framework for project teamwork in job planning and are not following through with good communication to foremen and tradesmen to promote true team spirit. Ways of improving these management shortfalls are suggested.
TL;DR: In this paper, the authors propose the proper assignment of economic risks in contracting should reduce costs in the long term, although this would entail considerable change in construction industry operations, as well as change in operations.
Abstract: Inflation has become a chronic problem whose effects permeate the entire construction industry Owners are not only paying for the increased costs of facilities and capital but also for premiums on construction prices because of the uncertainties of inflation and its side effects Contractors are faced with severe uncertainty in bidding and financing work on projects Productivity is affected because contractors cannot accurately forecast long-term returns on their investments and are required to divert necessary capital to meet resource costs Owners and contractors must plan for these effects and attempt to reduce the risks entailed In particular, the proper assignment of economic risks in contracting should reduce costs in the long term, although this would entail considerable change in construction industry operations
TL;DR: A study is presented, which is directed at finding a solution to the problem of compressing networks having overlapping activities by using cost duration charts, network diagrams and linear programming to solve the linear programming model.
Abstract: A study is presented, which is directed at finding a solution to the problem of compressing networks having overlapping activities. The method involves the use of cost duration charts, network diagrams and linear programming. The computer is used to solve the linear programming model. The results give information pertaining to earliest start and finish times of activities, what activities to expedite in order to complete the project within the specified time limit and by how many days, how much money should be allocated to each activity and what additional costs are incurred in expediting the work.
TL;DR: The main problems of production planning and control, cost and quality control in prefabrication, are examined in this article, and the main features of its information system are also discussed.
Abstract: The production process in prefabrication plant for concrete building elements differs in several important aspects from a production process in typical manufacturing plants. The paper describes the more important elements of the production system in a prefabrication plant. The main problems of production planning and control, cost and quality control in prefabrication, are examined. The main features of its information system are also discussed.
TL;DR: In this article, the authors examined the impact of culture on the development of interpersonal relations between two people in an employment context and found that managerial style, motivation, and communication were three factors subject to cultural influences that greatly determine the interpersonal relationship between two persons.
Abstract: The success of supervisors on construction projects is, to a large extent dependent upon their ability to develop effective interpersonal relationships with their subordinates. The task of developing such relationships on international construction projects is more difficult because of the multicultural work environment. The impact of culture on the development of interpersonal relations is examined. Three factors subject to cultural influences that greatly determine the interpersonal relationship between two people in an employment context were examined: managerial style, motivation, and communication. Very few firms provide training for their prospective overseas supervisors. A case for training is made and supported by the results of a reported study.
TL;DR: Guidelines and principles are presented for planning and implementing a work sampling program and the role of the project director in establishing and maintaining acceptable levels of performance by the observers is presented.
Abstract: Guidelines and principles are presented for planning and implementing a work sampling program. Principles to be followed include careful planning to fulfill objectives, the need to be responsive to changing needs and conditions, the requirement for strong program leadership, and the need to implement changes. It is suggested that work sampling should be used as a means of communicating information much in the same way as cost account data are used. Planning and implementation as a joint venture between owner, construction manager, contractor, and labor is suggested. The role of the project director in establishing and maintaining acceptable levels of performance by the observers is also presented. Sources of errors in the data are discussed along with the problems of superficial data analysis. Several difficulties with continuous sampling programs are also noted.
TL;DR: The CQC (Contractor Quality Control) is a system mandated by certain government agencies to place the entire responsibility for quality control on a project upon the contractor as mentioned in this paper, which can result in inferior quality, early failures and major repair expense.
Abstract: CQC (Contractor Quality Control) is a system mandated by certain government agencies to place the entire responsibility for quality control on a project upon the contractor. The contractor is required to submit a quality control plan, the extent of which depends on complexity of the project. Extensive experience has shown serious deficiencies in the system which can result in inferior quality, early failures and major repair expense. CQC encourages contractors to select inspectors based on lowest prices rather than professional qualifications. Quality control is too important to be left to low price bid shopping! It is argued that the system invites abuses due to lack of oversight, and many specified tests are never accomplished and often failing test results are screened out of the submittals. Quality control should be the responsibility of the design professional.
TL;DR: In this paper, a management of the employee by an international construction company operating in the Middle East involves many interrelated factors that can lead to conflict, such as language differences and advanced technology.
Abstract: Management of the employee by an international construction company operating in the Middle East involves many interrelated factors that can lead to conflict. Management must recognize the motivations and personalities of individual workers, use straight forward communication practices, have good company organization, and do quality planning if conflict is to be avoided. Conflicts arising from cultural differences stem from the pervasive Islamic religion that determines the values, attitudes, and social traditions of the worker. Language differences and advanced technology are additional sources of conflict. Management must adapt to the culture if conflict is to be minimized.
TL;DR: In this article, a method for the calculation of bid markup to be used by contractors is developed which relates to the capacity of a firm during a given time period and to its particular financial goals.
Abstract: A method for the calculation of bid markup to be used by contractors is developed which relates to the capacity of a firm during a given time period and to its particular financial goals. Capacity is measured for these purposes by normally available crew-time in a calendar period rather than in dollars, thus acknowledging the variation in dollar production achievable by one crew doing various types of work. It is demonstrated that setting markup by straight percent methods can fail to produce desired financial goals.
TL;DR: Turnkey construction has been in practice in the United States since the early 1900s, and has been used most successfully in private capital projects, particularly those involving proprietary process systems as mentioned in this paper.
Abstract: Turnkey construction has been in practice in the United States since the early 1900s, and has been used most successfully in private capital projects, particularly those involving proprietary process systems. In Europe, South America, and developing nations (where the legal/institutional climate differs significantly from that of the U.S.) turnkey is more universal in public works projects. U.S. government agencies have made limited attempts at implementing turnkey projects in public works. Generally the major impediments to the use of turnkey construction contracts in public works projects are current competitive bidding laws, the diffuse decision-making process in government, restrictions on contract negotiations, traditional owner-engineer-contractor relationships, lack of shared risk between owner and contractor, and substantial likelihood of downstream regulatory roadblocks, all of which serve to make the potential risks to the contractor (and cost to the owner) too great in comparison to the potential gains.
TL;DR: In this paper, the authors proposed an analysis procedure that enables construction contractors to correctly account for the costs associated with machine price increases caused by inflation, and presented methods for acquiring the necessary input data for the procedure.
Abstract: The proposed analysis procedure enables construction contractors to correctly account for the costs associated with machine price increases caused by inflation. Methods for acquiring the necessary input data for the procedure are presented. An example set of calculations based on actual contractor cost files is worked out and the results discussed. The dynamic nature of equipment economics is also stressed.
TL;DR: The unique design and construction features of slipforming the heavily reinforced concrete cylindrical shield walls at the Satsop nuclear plant site are presented in this paper, where a 25 ft (7.6 m) high, three-deck moving platform was designed to permit easy installation of the reinforcing steel, embedments and blockouts, and to facilitate concrete placement and finishing.
Abstract: The unique design and construction features of slipforming the heavily reinforced concrete cylindrical shield walls at the Satsop nuclear plant site are presented. It proved that, with proper planning, design, and coordination, the slipform construction technique can be successfully applied to large and heavily reinforced concrete structures. The shield walls were designed in compliance with seismic requirements which resulted in the need for reinforcing steel averaging 550 pounds per cubic yard (326 kg/m³). A 25 ft (7.6 m) high, three-deck moving platform was designed to permit easy installation of the reinforcing steel, embedments, and blockouts, and to facilitate concrete placement and finishing. Two circular box trusses, one on each side of the shield wall, were used in combination with a spider truss to meet both the tolerance and strength requirements for the slipform assembly. Use of preassembled, lifted-in-place sleeve tower racks that combined diagonal and vertical bars for the openings with two vertically aligned pipe sleeves greatly eased the installation. Specific recommendations for future slipforming are also presented.
TL;DR: In this paper, the problems of managerial decision making under inflation are discussed, and some solutions are offered, and the risk of estimating under inflation is explained, and a method to improve the prevailing compensation procedure is presented.
Abstract: The problems of managerial decision making under inflation are discussed, and some solutions are offered. The risk of estimating under inflation is explained, and a method to improve the prevailing compensation procedure is presenteed. Later, the influence of erosion of the depreciation allowance on the economy of investment in equipment is examined. Then the inadequacy of the conventional cost control methods under conditions of inflation is shown. Finally, the limitations of financial reporting based on historic values are described.
TL;DR: In this paper, the influence of inflation on profit from construction ventures and on contractors price determination is examined under two types of contracts: a fixed price contract and a contract with a compensation clause.
Abstract: The paper deals with the influence of inflation on profit from construction ventures, and on contractors price determination. First the effect of price escalation on profit is examined under two types of contracts: a fixed price contract and a contract with a compensation clause. Then, the influence of inflation risk on construction price of contractors with different attitudes towards risk taking is explored. The risk is represented by a range of possible inflation rates with different statistical distributions. Finally, the influence of inflation on return from long range investment in equipment and facilities is examined.