Gro Holst Volden, Morten Welde, Atle Engebø and Bjørn Sørskot Andersen
In the project initiation phase, an appraisal is needed to clarify the strategic problem and alternative solutions. Full-scale construction projects and simple solutions …
Abstract
Purpose
In the project initiation phase, an appraisal is needed to clarify the strategic problem and alternative solutions. Full-scale construction projects and simple solutions (do-minimum alternatives) should be assessed. The do-nothing alternative is the baseline for the appraisal and an option in itself. The paper explores the role of do-nothing and do-minimum alternatives in public project appraisal, which may significantly impact the attractiveness of a construction project.
Design/methodology/approach
The paper presents an empirical study from Norway, which requires external quality assurance (QA) of early project appraisals. The data include an extensive document review of 112 projects and interviews with 41 experts involved in the appraisal processes.
Findings
Of 112 appraisals, 110 recommended a major construction project, including cases where the benefits and value were low or uncertain. The do-nothing alternative was generally included as a reference but not treated as a viable option. Do-minimum alternatives were often not explored. By contrast, the external QA reports recommended do-nothing or do-minimum in 28 cases. Interestingly, although political decision-makers rarely reject projects, they may put them on hold indefinitely, implying that the actual outcome in many cases is still do-nothing.
Originality/value
The paper addresses a topic that has been understudied in the literature. The findings contribute to the broader literature on project initiation processes, project appraisal and how to reduce the risk of bias and manipulation in appraisals.
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Bjorn Andersen, Knut Samset and Morten Welde
The purpose of this paper is to adopt an in-depth perspective on cost estimation, from the development of the initial idea until the budget is agreed, to obtain new insights into…
Abstract
Purpose
The purpose of this paper is to adopt an in-depth perspective on cost estimation, from the development of the initial idea until the budget is agreed, to obtain new insights into issues of underestimation at the front-end.
Design/methodology/approach
The study uses a small sample of projects with exceptional increases in cost estimates during the front-end phase. The authors analyzed the magnitude of cost increases and possible reasons for them.
Findings
The paper concludes that underestimation in the front-end phase was significant in the sample and poses a serious problem in that suboptimal projects are approved. The causes of underestimation include underestimating risk, overestimating opportunities, inadequate estimation methods and skills, reliance on weak information, and strategic/deliberate scope creep and division of projects.
Research limitations/implications
The study builds on a small sample, and hence further studies should be undertaken to verify whether the findings are generalizable.
Practical implications
The sample shows that the projects with the most unrealistic early estimates have disputable relevance. The paper suggests a number of recommendations that might help to counter the problem of unrealistic early cost estimates, which in turn, might allow suboptimal projects to be funded.
Originality/value
The underestimation of costs at the front-end is grossly neglected in the literature compared with whether costs comply with the budget. While cost overruns are an indication of failure in terms of the project’s tactical performance, the contention is that the up-front underestimation of costs might result in an inferior project being selected and thus affect the strategic performance of the project.
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Farah Shahrin, Zerafinas Abu Hassan and Ross Azura Zahit
This interdisciplinary study re-evaluates the Sungai Melaka flood mitigation project’s impact on community success in Malaysia’s UNESCO World Heritage site, broadening the…
Abstract
Purpose
This interdisciplinary study re-evaluates the Sungai Melaka flood mitigation project’s impact on community success in Malaysia’s UNESCO World Heritage site, broadening the definition of success considering historical and cultural significance. This study aims to revisit success metrics, focusing on the project’s influence on people’s interactions, cultural well-being, social cohesion and heritage preservation.
Design/methodology/approach
This study explored visitors’ reviews of their experience visiting Sungai Melaka in several data collection stages. The first data collection involved a Web survey posted on Facebook to capture diverse perspectives of the population and grasp the core strand of knowledge to focus on the second data collection, the questionnaire. The final stage involved interviews to generate rich qualitative data.
Findings
The findings of this study revealed that the impact exceeded tangible outcomes, as the project impacted people’s interactions and practices. This research assesses cultural benefits, incorporating these indicators into evaluating cultural ecosystem services by capturing local visitors’ and communities’ perceptions, preferences and behaviours. The findings found that other project success attributes include identities, capabilities and experience, further defining learning, health, economics, connection to nature and symbolism.
Originality/value
This research explores the meaning of project success beyond the traditional metrics by capturing success from the users’ perspectives and people’s interaction and their impact on culture and well-being. The cultural ecosystem services framework used in this study is applied to explore the interactions between people and the facility and its effect on the people.
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Amir Naser Ghanbaripour, Roksana Jahan Tumpa, Martin Skitmore and Carol Hon
This study aims to identify strategies and offer empirical recommendations for project managers and policymakers to enhance PDS in public construction projects in the…
Abstract
Purpose
This study aims to identify strategies and offer empirical recommendations for project managers and policymakers to enhance PDS in public construction projects in the post-pandemic era, focusing on KPIs using the 3D integration model.
Design/methodology/approach
This study uses a mixed-method approach to retrospectively evaluate the project management performance of 16 Australian public construction projects. Employing a project delivery success (PDS) model (the 3D integration model), it assesses delivery success across six key performance indicators (KPIs) to identify strategies for improving project outcomes in the post-pandemic era. Data collection involved interviews and document analysis, focusing on projects completed at different times and with various sizes.
Findings
The analysis highlights three critical KPIs – Value (scope/cost), Speed (scope/time) and Impact (scope/risk) – as significant determinants of project success. The study provides evidence that successful projects maximize Value and Speed and minimize Impact. Key strategies include improving remote work arrangements, investing in digital tools, adopting advanced procurement mechanisms and enhancing risk management processes.
Practical implications
For practitioners, the study offers actionable strategies to enhance the performance of public construction projects, focusing on maximizing Value, Speed and minimizing Impact. It suggests adopting advanced project management techniques, digital tools for collaboration and reevaluating procurement and risk management processes to navigate the post-pandemic challenges effectively.
Originality/value
This research contributes to the field by applying the 3D integration model to analyzing public construction projects during the COVID-19 pandemic, a novel approach in this context. It provides a unique empirical basis for recommendations bridging the gap between theoretical project management models and practical application in a post-pandemic world, thus offering significant value to academic research and practical project management in the public sector.