Le Ma, Henry Liu and Michael Sing
This study aims to address the gap by empirically exploring how residential construction-production progress, which includes project commencement, under-construction and project…
Abstract
Purpose
This study aims to address the gap by empirically exploring how residential construction-production progress, which includes project commencement, under-construction and project completion, responds dynamically to fluctuations in house prices.
Design/methodology/approach
A vector autoregressive model and an impulse response function are applied to simulate and analyse the circle of the stage-responsiveness of residential construction to residential property price dynamics in the state of Victoria, Australia. The quarterly numbers of dwelling units commenced, under-construction and completed are used as the proxy for the residential construction activities at three stages over the construction progress.
Findings
The analysis indicates that the dynamics are essentially transmitted throughout the construction process and can substantially impact the pace of production progress. The findings from this study provide an empirical base that should be useful in developing price-elasticity and production theories applicable to the context of residential property construction.
Research limitations/implications
The findings described above have been generated basically by examining the case of Victoria, Australia at a macro level. The generalisation of the research output needs to be verified further by future researchers using data collected from other regions/countries. Nevertheless, the reliability of the conclusions with particular practical implications can be substantially improved by future researchers by analysing more markets and production proxies at the activity level.
Practical implications
Based on new empirical findings, this research argues that building activity (i.e. under construction) played as a gateway between the construction and housing sectors, via which the inter-responsiveness of the housing supply in terms of construction activities and housing prices are transmitted.
Originality/value
This research firstly attempts to explore the inter-responsiveness between the real estate and construction sectors. A simulated circle of the stage-responsiveness of residential construction to residential property price dynamics is proposed, which can serve as a significant foundation for developing the theory of construction production.
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Dan Wang, Xueqing Wang, Mingshuai Liu, Henry Liu and Bingsheng Liu
The performance of public–private partnerships (PPPs) can be determined by a variety of factors, i.e. influencing factors (IFs). This study is undertaken for a purpose of…
Abstract
Purpose
The performance of public–private partnerships (PPPs) can be determined by a variety of factors, i.e. influencing factors (IFs). This study is undertaken for a purpose of identifying how such factors determine the project's performance (i.e. factor transmission patterns), particularly from the key stakeholders' perspectives.
Design/methodology/approach
A hybrid approach, which comprises a Social Network Analysis, ISM (i.e. Interpretive Structural Modeling) and an improved DEMATEL (i.e. Decision-Making Trail and Evaluation Laboratory), was developed to analyze the causal relationships between the identified IFs as well as the transmission patterns of their impacts on PPPs. Data were collected from interviews and questionnaire surveys.
Findings
The transmission patterns of the identified IFs cascade from project environment and features and stakeholders' relationship to the project company capabilities and project process. It is identified that the public authority has a higher level than that of the private entity in PPPs.
Research limitations/implications
It lacks longitudinal studies to investigate the dynamics of PPP stakeholder relationships and social networks. Future research needs to explore the transmission patterns of sub-factors affecting PPP performance and extend the applicability of the developed hybrid approach.
Practical implications
This research provides practitioners with a robust tool that is useful for and insights into enhancing the management of lifecycle performance. It ensures the public authorities and private entities embarking on PPPs will make an informed decision about the monitoring of the life cycle performance.
Originality/value
This study contributes to knowledge of managerial mechanisms that can be adopted to manage factors determining the performance of PPPs. It enables an understanding of stakeholders' roles in driving the life cycle performance of PPPs.
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Dan Wang, Xueqing Wang, Lu Wang, Henry J. Liu and Xiajie Jia
The purpose of this study is for examining the evolution of stakeholder influence and the trans-period effect (TPE) of process performance of public–private partnerships (PPPs)…
Abstract
Purpose
The purpose of this study is for examining the evolution of stakeholder influence and the trans-period effect (TPE) of process performance of public–private partnerships (PPPs). TPE refers to the ripple effect of project performance across different phases of a PPP.
Design/methodology/approach
Social network analysis is used to analyze each stakeholder’s influence on PPP performance. For examining the TPE, partial least squares structural equation modelling is conducted.
Findings
The performance in the five phases (e.g. initiation and planning, procurement, construction, operation and transition) of PPPs exhibits significant TPE. The stakeholder network varies in different phases. The most influential stakeholder is a public authority, followed by a public initiator and a private consortium.
Research limitations/implications
The project type of PPPs is not considered in the stakeholder network analysis. Future work should focus on developing a multidimensional stakeholder network by considering the typology of the project. Moreover, the TPE cannot reflect the relationships between the KPIs in the different phases, and thus, further study is required.
Practical implications
This research provides a useful tool for measuring the life cycle outputs and outcomes of PPPs through enhanced process-oriented performance measurement. The developed PMS enable practitioners to have a better understanding of the process performance of the projects and then ensure informed decision-making about actions to be required and taken to improve future performance.
Originality/value
This study contributes to knowledge of performance management by simultaneously addressing the process and stakeholder management theories within the context of PPPs. The proposed PMS provides an insight into managing stakeholders’ influences to enhance the life cycle performance of PPPs.
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Cong Wang, Henry Liu, Michael C.P. Sing and Jin Wu
Pre-construction of a project comprises stages that are pivotal for the procurement performance. It is defined as the duration from the project's initiation to construction…
Abstract
Purpose
Pre-construction of a project comprises stages that are pivotal for the procurement performance. It is defined as the duration from the project's initiation to construction. However, Private Public Partnerships (PPPs) have been subjected to a long pre-construction, thereby leading to an inefficient development process. Therefore, the purpose of this paper is to pay attention to the influencing factors elongating the pre-construction duration.
Design/methodology/approach
Based on data of 5,677 PPP projects between 2009 and 2021 in China, the authors adopt the Accelerated Failure Time (AFT) model in duration analysis to empirically analyze the following underlying dynamics determining the duration of PPP pre-construction stages: (1) policy uncertainty; (2) corruption; and (3) procurement method selection. To observe the influencing paths more specifically, the authors divided the pre-construction duration into the pre-tendering period and tendering period and regressed them separately.
Findings
The results indicate that the pre-construction duration is significantly prolonged with increased policy uncertainty and corruption degree as well as the use of tendering methods. Meanwhile, the above factors have a greater impact on the pre-tendering period than the tendering period.
Originality/value
The contribution of this study is twofold: (1) theoretically, this paper provides new evidence on the impact of PPP policy uncertainty, corruption and procurement method selection on the pre-construction duration. It complements empirical studies on the factors elongating the time efficiency of PPPs projects. (2) In practice, it provides a specific path for the government to improve the time efficiency of PPPs.
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Jin Wu, Henry J. Liu, Michael C.P. Sing, Richard Humphrey and Jianfeng Zhao
This paper investigates the policy changes made towards infrastructure public–private partnerships (PPPs). The purpose of this study is to empirically identify the policy risks…
Abstract
Purpose
This paper investigates the policy changes made towards infrastructure public–private partnerships (PPPs). The purpose of this study is to empirically identify the policy risks associated with the development of PPPs and to assess their impacts on the projects.
Design/methodology/approach
A case study of the policy changes that have been implemented for PPPs in China over the past seven years has been undertaken and is presented in this study. The causal loop diagrams are applied to assess and illustrate the potential impacts of the risks as a result of such changes on PPPs.
Findings
A sequence of the policy risks, which relate to PPP risk allocation, contract management and implementation, payment and abatement mechanisms and financing, has been identified. It is also found that the identified risks will generate significant but negative impacts on PPPs, leading to an ineffective project delivery, low revenue, poor service quality and even contract breach.
Practical implications
This research provides the private-sector entities that will embark on PPPs with an insight into managing and controlling policy risks over the project's lifecycle.
Originality/value
PPPs have been critical for infrastructure development worldwide. Nevertheless, they have been a controversy, as many of them were subjected to poor outputs. Consequently, a variety of political mechanisms has been implemented to enhance the governance for PPPs. Policy can bring not only benefits but also risks and, however, policy risks of PPPs with a particular assessment for their potential impacts have received limited attention. Therefore, the study presented in this paper will contribute to the identification and assessment of policy risks within the context of PPPs.
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Hang Yin, Dan Wang, Yilin Yin, Henry Liu and Binchao Deng
This study aims to examine the impacts of formal and informal hierarchical governances (HGs) on the performance of mega-projects and the mediating role of contractor behavior…
Abstract
Purpose
This study aims to examine the impacts of formal and informal hierarchical governances (HGs) on the performance of mega-projects and the mediating role of contractor behavior (i.e. perfunctory and consummate behaviors) in these relationships.
Design/methodology/approach
A total of 375 valid data entries from managers representing 375 mega-projects were analyzed through path analysis.
Findings
Both formal and informal HGs exert positive effects on the performance of mega-projects. While formal HG positively affects contractor perfunctory behavior and contractor consummate behavior, informal HG affects contractor perfunctory behavior only. Contractor behavior mediates the relationship between formal HG and project performance.
Research limitations/implications
The impacts of potential moderators (e.g. institutional arrangement and complexity) on the relationship between HG and contractor behavior have not been considered in this study.
Practical implications
This study is useful for owners to enhance formal HG to improve contractor perfunctory and consummate behaviors, which in turn can enhance the performance of mega-projects.
Originality/value
This study expands the knowledge of mega-project performance management from the perspective of HG. It also contributes to the literature of contractor behavior within the context of mega-projects.
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Bingsheng Liu, Juankun Li, Dan Wang, Henry Liu, Guangdong Wu and Jingfeng Yuan
This study aims to develop a collaborative governance framework (CGF) to systematically investigate the impeding factors (IFs) in terms of the operational sustainability of PPPs…
Abstract
Purpose
This study aims to develop a collaborative governance framework (CGF) to systematically investigate the impeding factors (IFs) in terms of the operational sustainability of PPPs. It examines the transmission pattern (i.e. the way in which network members react to each other) of the IFs network.
Design/methodology/approach
Literature review and interview were adopted to identify the IFs. Then, with the data collected from the interview in China, the social network analysis and interpretive structure model were synergised to examine the chain reaction, driving and dependent powers, and hierarchical structure of the identified IFs.
Findings
The results reveal that the cognition, institutional, financial and participation aspects are key barriers confronted by PPP sustainability, and the government plays a leading role in controlling factors causing sustainability-related problems in PPPs. Weak government leadership and institutional environment were identified as the most fundamental reasons triggering a chain of IFs, while project governance and management activities act as bridge nodes that play an intermediary role in the IFs network.
Research limitations/implications
This research contributes to the literature on PPP governance by (1) bridging the literature gap through the development of CGF for explaining the governance of PPP sustainability with a holistic view that considers both macro environment and operational project processes; and (2) identifying the transmission pattern of IFs network which uncovers the underlying dynamics causing the unsustainable operation of PPPs.
Practical implications
This research provides practitioners with a list of key checkpoints for preventing failure escalation, enables decision-makers to prioritise obstacle-mitigation efforts and develop a feasible process to control PPP operation, and offers management countermeasures to remove the key barriers impeding PPP sustainability.
Originality/value
This study is novel for adopting network-oriented techniques to quantify the relative importance of the IFs and examine the transmission pattern of the IFs system. Therefore, it visualises the complex underlying dynamics causing unsustainable PPP operation, identifies root and direct causes of PPP failures, and provides decision-makers with insights into sustaining PPP sustainability from a network-oriented perspective.
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Dan Wang, Xueqing Wang, Lu Wang, Henry Liu, Michael Sing and Bingsheng Liu
This study aims to develop a Stackelberg Game Model for seeking the optimal subsidy plans with varying levels of government financial capability (GFC). Furthermore, the…
Abstract
Purpose
This study aims to develop a Stackelberg Game Model for seeking the optimal subsidy plans with varying levels of government financial capability (GFC). Furthermore, the scenario-based analysis is conducted and will enable governments to identify a comprehensive subsidy plan as follows: improve project performance and optimise social welfare.
Design/methodology/approach
A Stackelberg Game Model is developed to optimise the effectiveness of subsidies on the performance of public-private partnerships (PPPs).
Findings
According to the scenarios that are generated from the model, governments that are confronting with limited public budgets could reduce the intensity of performance incentives and increase the participation-oriented subsidy. Whilst a participation-oriented subsidy can stimulate private organisations’ willingness to participate in infrastructure PPPs, a performance-oriented subsidy is capable of facilitating the projects’ performances. Intuitively, the performance-oriented subsidy enables the private entities of PPPs to improve their efforts on the projects to realise higher profits. However, the participation-oriented subsidy is unable to affect the level of their effort spent on the projects. To satisfy both parties’ expectations in a PPP, the performance-oriented subsidy needs to be prioritised for a purpose of enabling higher quality outputs.
Practical implications
The game model developed in this study contributes to the literature by offering new insight into the underlying mechanism of governments and private entities, in terms of their decision-making for subsidy planning and contributions (i.e. resource allocation and spending) during the life-cycle of PPPs. This research enriches the government subsidy model by revealing the effects of the GFC and clarifies the impacts of two different schemes of subsidy on the performance of PPPs.
Originality/value
The government has been conventionally viewed as being omnipotent to provide PPPs with a wide range of subsidies. However, the subsidies are not unlimited, due to GFC. In addressing this void, this study has modelled the impacts of government subsidy plans with a consideration of GFC-related constraints. The combined effects of the participation- and performance-oriented subsidies on the project performance of PPPs have been examined.
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Michael Sing, Joseph Chan, Henry Liu and Nancy N.H. Ngai
Modular construction is considered a well-established construction method for improving the efficiency of the construction industry worldwide. However, the industry struggles to…
Abstract
Purpose
Modular construction is considered a well-established construction method for improving the efficiency of the construction industry worldwide. However, the industry struggles to achieve higher levels of modularisation in urban areas. Previous studies on decision-making for modularisation have, so far, not focussed much on its application in urban areas. As modular construction could bring lots of advantages such as speed of construction, This study aims to develop a decision-making tool that can assist the project planners in deciding whether the modular construction techniques should be applied in their urban area project.
Design/methodology/approach
Based on the literature review, a total of 35 decision-making factors of modularisation were identified for this study. The decision-making model is then developed to evaluate the significance of each factor using the analytic hierarchy process (AHP) approach. A total number of 72 valid responses were obtained and analysed. The geometric mean of priorities is adopted to obtain the par-wise comparison between the critical factors in which each factor’s weighting in the decision-making model is calculated. Afterwards, the robustness of the decision-making model is demonstrated by the real-life projects in China, Hong Kong and the UK, respectively.
Findings
A total of 35 decision-making factors allocated in five criteria for modular construction selection in urban areas were identified. The criteria include site attributes, project characteristics, labour consideration, environmental and organisation and project risk. Their impact was calculated using the AHP to indicate the relative importance with respect to the adoption of modularisation in urban areas. Afterwards, a two-level decision-making model was developed that can be used as a decision-making tool for the adoption of modular construction.
Practical implications
The outcome of this research will be beneficial to industrial practitioners and academics in understanding the critical attributes that affect the adoption of modular construction in an urban area. It further enables the building professionals to assess the feasibility of using modular construction in their projects, especially at the early stage, so as to facilitate its use.
Originality/value
There is a number of literature on the decision-making model on the adoption of modular construction. However, previous studies did not provide specific concerns related to urban areas, whereas there is an urgent need to have an updated analysis that can be catered to the modular construction in the urban area. In this research study, the 35 decision-making factors were ranked by the experienced project managers and then a pair-wise comparison was conducted. With this information, the robust decision-making model is formulated to offer a kept promised indicator in adopting modularisation in the urban area.
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Michael C.P. Sing, Ivan W.H. Fung, David John Edwards and Henry Liu
This paper develops a platform that can be used to determine how to effectively and efficiently deal with a large number of temporary facilities under a constrained site…
Abstract
Purpose
This paper develops a platform that can be used to determine how to effectively and efficiently deal with a large number of temporary facilities under a constrained site condition(s). The ultimate goal is to reduce the material handling costs between transformation phases of construction works occurring during the project's development period.
Design/methodology/approach
Empirical and deductive research is first adopted to mathematical model dynamic site layout planning using the branch and bond algorithm (B&B). Second, a real-life construction project is examined to illustrate how dynamic site layout planning (using the aforementioned B&B algorithm and a computer software program called LINGO) can reduce the material handling costs. The application of the proposed methodology is then showcased against a case study that utilizes a comparative analysis between the “dynamic” and “statistic” site planning approaches.
Findings
By dividing the construction period into different phases, the developed model is shown to be capable of optimizing the material handling costs between the phases of transformation during construction works. Optimal costs are also considered using the site boundary and unit cost for moving construction materials between two facilities. The comparative analysis results illustrate that the B&B algorithm reduces material handling costs by 33%.
Practical implications
The proposed model offers an effective planning algorithm for the site layout and location of temporary facilities. More specifically, it can make a substantial improvement in reducing the travel time and material handling cost between the temporary facilities in the construction sites.
Originality/value
The primary knowledge contribution of this study to the site layout is successfully deal with the unequal area problem of temporary site facilities and incorporates the concept of dynamics site planning into the algorithm.