The purpose of this paper is to investigate how benefits management is applied to office fit‐out projects, in terms of benefits identification, benefits planning, benefits control…
Abstract
Purpose
The purpose of this paper is to investigate how benefits management is applied to office fit‐out projects, in terms of benefits identification, benefits planning, benefits control and benefits realisation.
Design/methodology/approach
Three case studies, based in Perth (Western Australia) are investigated based on structured interviews with the project sponsor; and analysis of secondary documentation, such as business cases, briefs, and post‐occupancy evaluations.
Findings
There is no coherent, holistic application of benefits management models in office fit‐out projects. There are fragments of benefits management evident from the research, such as benefits identification and planning within business cases and briefs, and benefits realisation through post‐occupancy evaluations.
Research limitations/implications
The research is based on three case studies, so it is not possible to draw any strong generalisations. Future studies are needed to corroborate or contradict the findings in this research.
Practical implications
The results highlight some aspects of benefits management in office fit‐out projects that could be improved, particularly the setting of key performance indicators for benefits, and more formal benefits control and realisation processes.
Originality/value
This research is the first to take the construct of benefits management, which is primarily applied to information systems projects, and investigate its application in building projects.
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Oluwole Alfred Olatunji, Adenike Omolabake Orundami and Oluwatomi Ogundare
A section of project management literature attributes overruns to estimators’ deceit and delusion. An example of this is Flyvbjerg’s theorisation of strategic misrepresentation…
Abstract
Purpose
A section of project management literature attributes overruns to estimators’ deceit and delusion. An example of this is Flyvbjerg’s theorisation of strategic misrepresentation and optimism bias. To show that such a notion is not true entirely, the study elicits evidence relating to how costs of projects often fluctuate erratically as prices of construction materials change throughout contract cycle times. The purpose of this paper is to examine the causal relationships between persistent changes in prices of construction materials and project’s outturn costs.
Design/methodology/approach
The authors obtained and analysed price data of construction materials published in a Nigerian national daily in the 16 years between 2000 and 2015. Additional data were obtained from a quantity surveying firm to validate the archival data on material prices, and to compare the firm’s robust database of project estimates and the corresponding outturn costs of specific building elements (detailed in the study). The goal of the analysis is to explore spontaneity and causal impact in the relationship between changes in prices of construction materials and project costs. Kolmogorov-Smirnov and Anderson-Darling tests were used to obtain the probability distributions of the causal relationships.
Findings
Findings show disproportionate positive correlations between changes in material prices and outturn costs in Nigeria. An important dimension to this, however, is that although fluctuations in material costs often trigger variations to project costs, outturn price only accounts for about one-third of actual cost variability. Recovery of costs, not least profit making, under these conditions is a complex process.
Originality/value
This paper concludes that dynamism in cost attributes is neither a deceit nor a delusion; understanding and tolerating them is not a systemic weakness, rather an essential key to project success and stakeholder satisfaction. Findings from the study also bring measured certainties to the transformation of variable costs into fixed price outcomes, an important consideration that will help contract estimators and project managers to understand the likelihood of fluctuation in material costs and how these might trigger variability in project costs.
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Peter E.D. Love, Damien O’Donoghue, Peter R. Davis and Jim Smith
The purpose of this research is to determine the perceptions of a public sector agency’s representatives who are involved in the selection of procurement methods about the…
Abstract
Purpose
The purpose of this research is to determine the perceptions of a public sector agency’s representatives who are involved in the selection of procurement methods about the benefits and barriers of implementing early contractor involvement (ECI). There have been widespread calls for the public sector to use of non-traditional delivery methods so as to obtain better “value for money”. ECI is one form of delivery approach that has begun to attract the attention of many Australian State Governments, as it allows a contractor to proactively participate in design development, risk management and the construction programming processes. Design and construction processes can also be integrated which, therefore, overcome the impediments and barriers that have conventionally existed between designers and contractor. Within Western Australia, the use of ECI has been limited and therefore perceptions about its potential application are obtained.
Design/methodology/approach
Using questionnaire surveys and follow-up semi-structured interviews, the research sought to determine the perceptions of a public sector agency’s representatives who are involved in the selection of procurement methods about the benefits and barriers of implementing ECI.
Findings
It is revealed that a significant proportion of contractors did not have the capability and experience to be involved within an ECI approach. Their preference was the use of a traditional lump-sum method. Where there was limited scope for using competitive tendering, particularly on large complex projects, then ECI could be a preferred option for future projects.
Originality/value
To date, there has been limited empirical research that examined the public sectors views on the use of ECI despite the calls for the greater use of integrated procurement methods of this nature. The research indicates that there is a need to develop strategies to better educate public sector clients, designers and contractors about how ECI can contribute to the development of innovative solutions and better value for money.
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The main objectives of this study are to (1) develop and test a cost contingency learning model that can generalize initially estimated contingency amounts by analyzing back the…
Abstract
Purpose
The main objectives of this study are to (1) develop and test a cost contingency learning model that can generalize initially estimated contingency amounts by analyzing back the multiple project changes experienced and (2) uncover the hidden link of the learning networks using a curve-fitting technique for the post-construction evaluation of cost contingency amounts to cover cost risk for future projects.
Design/methodology/approach
Based on a total of 1,434 datapoints collected from DBB and DB transportation projects, a post-construction cost contingency learning model was developed using feedforward neural networks (FNNs). The developed model generalizes cost contingencies under two different project delivery methods (i.e. DBB and DB). The learning outputs of generalized contingency amounts were curve-fitted with the post-construction schedule and cost information, specifically aiming at uncovering the hidden link of the FNNs. Two different bridge projects completed under DBB and DB were employed as illustrative examples to demonstrate how the proposed modeling framework could be implemented.
Findings
With zero or negative values of change growth experienced, it was concluded that cost contingencies were overallocated at the contract stage. On the other hand, with positive values of change growth experienced, it was evaluated that set cost contingencies were insufficient from the post-construction standpoint. Taken together, this study proposed a tangible post-construction evaluation technique that can produce not only the plausible ranges of cost contingencies but also the exact amounts of contingency under DBB and DB contracts.
Originality/value
As the first of its kind, the proposed modeling framework provides agency engineers and decision-makers with tangible assessments of cost contingency coupled with experienced risks at the post-construction stage. Use of the proposed model will help them evaluate the allocation of appropriate contingency amounts. If an agency allocates a cost contingency benchmarked from similar projects on aspects of the base estimate and experienced risks, a set contingency can be defended more reliably. The main findings of this study contribute to post-construction cost contingency verification, enabling agency engineers and decision-makers to systematically evaluate set cost contingencies during the post-construction assessment stage and achieving further any enhanced level of confidence for future cost contingency plans.
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The purpose of this paper is to examine the performance of the traditional procurement approach (TPA) under Ghana's procurement reform and explore if other possible procurement…
Abstract
Purpose
The purpose of this paper is to examine the performance of the traditional procurement approach (TPA) under Ghana's procurement reform and explore if other possible procurement strategies could help to improve value for money in the Ghanaian public sectors. The fundamental questions to be addressed are: “Is the procurement reform addressing the deficiencies in the public sector procurement?”; “Are clients and professionals satisfied with the present procurement system?”; “What are the possible alternatives?”; and “What procurement selection criteria should be adopted?”.
Design/methodology/approach
To answer the above questions, an extensive literature review was conducted which provides the background to public procurement reform and reveals the status of the TPA in the public sector. Based on the outcomes of the literature review, three rounds of questionnaire surveys and face‐to‐face discussions were undertaken. The targeted population was carefully selected from different sectors of the industry and regions of the country.
Findings
The results of the study reveal the deficiencies in contractors’ performance arising from the use of TPA with a focus on time, budget, buildability and relationships among participants. It also ranks the criteria for procurement selection and suggests the D & B method as the most favourable alternative procurement strategy. Suggestions were made in the area of tendering processes, collaborative working, contractors’ competence, government's work efficiency, and whole‐life performance criteria.
Practical implications
This study evaluates the TPA performance after Ghana's procurement reform in 2003 and provides guidelines to the industry and government for further procurement reform aimed at improving value for money.
Originality/value
This research provides a systematic study on the public procurement reform and the TPA adopted in Ghana's public sector. The essential problems associated with the TPA in the industry are identified and analyzed, the procurement selection criteria are examined and an alternative procurement approach is postulated.
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Titus Ebenezer Kwofie, Clinton Ohis Aigbavboa and Seja Olgah Machethe
Non-traditional procurement is thought to offer enhanced benefits over traditional contracts. However, several factors significantly impacting the optimization of the benefits…
Abstract
Purpose
Non-traditional procurement is thought to offer enhanced benefits over traditional contracts. However, several factors significantly impacting the optimization of the benefits have been suggested. Even though effective communication is ranked high among these factors, not enough empirical insights have been given to the nature of communication performance in non-traditional procurements in construction project delivery. The purpose of this paper is to focus on understanding the taxonomy of communication performance in non-traditional procurements in the South African Construction Industry, given the centrality of communication to team effectiveness, performance, project success and managerial efficiency.
Design/methodology/approach
Adopting a deductive research approach, an empirical questionnaire survey was conducted drawing on the practical communication experience of project teams engaged in projects using non-traditional procurement systems.
Findings
Using aggregated mean scores and inter-rater agreement index and Mann‒Whitney tests, the results revealed inaccuracies, barriers and procedural challenges as frequently occurring in the interpersonal and organizational communication in the adopted non-traditional procurement systems. Additionally, untimeliness and distorted information were noted to be occurring occasionally, whereas incomplete communication, misunderstood information and gatekeeping rarely occurred. Lastly, protocol-related communication challenges were deemed to have never occurred in their interpersonal and organizational communication in their project delivery. In the assessment of communication performance, the less frequently occurring assessment indicator is a testament to good communication performance, whereas the frequently occurring indicator represents a poor performance in the communication.
Originality/value
This systematic approach toward understanding the taxonomy of the interpersonal and organizational communication performance in non-traditional procurement is very significant toward communication performance improvement in the industry. The insight given by the findings may help construction project practitioners to focus their attention on the necessary aspects of communication in non-traditional procurements to optimize their benefits over traditional procurement models.
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Marcela Souto Castro, Bouchaib Bahli, Andre Barcaui and Ronnie Figueiredo
The purpose of this research is to identify and accumulate knowledge on the existing developments on project success measures. The authors aim to contribute to this debate by…
Abstract
Purpose
The purpose of this research is to identify and accumulate knowledge on the existing developments on project success measures. The authors aim to contribute to this debate by providing both researchers and project management professionals with reliable contemporary project success criteria that permit generalization for a proper assessment regardless of the type and context of the project.
Design/methodology/approach
Data were collected from 264 Brazilian project managers from a range of industries, sectors of activities and business areas with different levels of experience. Data analysis was performed using the R software package.
Findings
In this research, the authors propose a general performance measure of project success where different projects can grade differently using the same scale. The data analysis validated five constructs of the developed model in the Brazilian setting.
Originality/value
Most of the actual project success measures used in project management literature have been tested in a specific industry or sector. Combinations of the type of project, industry, sector, project nature, stakeholders and other variables make each project unique. Thus, any effort to find a context-specific tool of measure will be an endless endeavor. To fill this gap, more general project success criteria need to be explored to offer a common point of comparison between projects. This is the motivation of the present study.
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Matthias Albert, Patrick Balve and Konrad Spang
Barnes’ Iron Triangle was one of the first attempts to evaluate project success based on time, cost and performance, which were portrayed as interdependent dimensions. Over time…
Abstract
Purpose
Barnes’ Iron Triangle was one of the first attempts to evaluate project success based on time, cost and performance, which were portrayed as interdependent dimensions. Over time, these criteria were expanded and especially criteria taking the satisfaction of stakeholder groups into account are becoming more and more popular. The purpose of this paper is to find out whether specific patterns for the selection of project success criteria across various fields of applications emerged which has not been regarded in literature before. Furthermore, the authors seek to identify of additional key factors influencing project success assessment next to the choice of project success criteria.
Design/methodology/approach
The paper uses a review of recent literature published in academic journals, in standard references and in widespread project management frameworks (Organisational Competence Baseline, PRINCE2 and PMBoK Guide).
Findings
The findings show that Barnes’ ideas are an integral part of all approaches investigated in the study. Additionally, the relevance of the so-called “soft criteria” related to the satisfaction of stakeholder groups, could be substantiated. However, the authors found no indications that patterns for the selection of project success criteria have emerged across various fields of applications. Factors influencing project success assessment are not taken into account in the examined articles in a systematic manner. This motivates for further research in this field.
Research limitations/implications
Access limitations, papers not yet digitally available or the interpretations have an impact on the results.
Practical implications
For appropriate project assessment the sound and well-rounded selection of hard and soft criteria and the consideration that not the field of application, but influencing factors yet to be analysed influence the selection of project success criteria are crucial. Project management professionals should choose the criteria suitable for their projects individually on a project-by-project basis.
Originality/value
This paper reveals that no patterns have so far been developed to assess project success in various fields of application. Furthermore, factors influencing project success assessment are not considered in a systematic manner.
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Terence Y.M. Lam and Njavwa Siwingwa
Most organisations do not have established guidelines for the estimation and management of contingency funds. The purpose of this paper is to identify the risk factors at the…
Abstract
Purpose
Most organisations do not have established guidelines for the estimation and management of contingency funds. The purpose of this paper is to identify the risk factors at the construction phase causing project cost overruns, and a reliable method for the estimation of contingency sum is established.
Design/methodology/approach
Combined qualitative–quantitative exploratory methods were used. Qualitative interviews were conducted with five expert practitioners working in a Public Works Department in Zambia to determine how contingency sum is estimated and to explore what risk factors should be considered. Quantitative regression used cost and risk data collected from 30 recently completed building and refurbishment projects.
Findings
The qualitative study indicated that the project budget overruns constitute a major issue. This finding is in line with the paired-samples t-test results which show that the difference between the total variations and the initial contingency sum tends to be significant. The regression analysis proved that the contingency sum was positively correlated to the estimated contract sum. The qualitative interview results and Pearson correlation analysis also showed that contingency sum and project complexity tend to have a significant correlation. The research also demonstrates that the type of works is not a direct significant factor.
Research limitations/implications
Because the projects used for the study were relatively short, duration of the project and economic factor of tax rate, exchange rate and inflation rate were not examined in the multiple regression analysis. Further studies should be conducted on longer projects to test out whether these risk factors are significant in influencing the project contingency.
Practical implications
The results demonstrate that the multiple regression method can be applied as a reliable tool to predict contingency sums. Accurate contingency sums and project budget estimates benefit construction clients and their project managers. Individual project conditions should be carefully examined when assessing the contingency.
Originality/value
This research establishes a reliable regression method for the assessment of the contingency for the pre-tender estimate which has significant impact on the project feasibility and cost control, using related risk factors involved in construction contingency and client’s contingency.
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Farshid Rahmani, Tayyab Maqsood and Malik Khalfan
The purpose of this paper is to review the use of various construction procurement systems in the past and present, specifically within the Australian construction industry and to…
Abstract
Purpose
The purpose of this paper is to review the use of various construction procurement systems in the past and present, specifically within the Australian construction industry and to overview the historical development of procurement both globally and in the Australian context through the existing literature.
Design/methodology/approach
The paper is an in-depth literature review of various construction procurement systems used in the past and present, both in general and within the context of Australian construction industry.
Findings
The findings suggest that even though relationship-based procurement (RBP) systems offer significant benefits to all project participants, they are unproved by many decision makers because of lack of robust theoretical concept and inability in demonstrating value for money (VfM) for public projects, which would be one of the factors causing move away from RBP in the future.
Originality/value
This review is one of its kind. There is no such review done before within the context of Australian construction industry in such a detail. This review is a part of a recently completed PhD study.