Abderisak Adam, Per-Erik Bertil Josephson and Göran Lindahl
The purpose of this paper is to explore the impact that cost overruns and time delays exert on large public construction projects to clarify how past and current research regard…
Abstract
Purpose
The purpose of this paper is to explore the impact that cost overruns and time delays exert on large public construction projects to clarify how past and current research regard factors causing cost overruns and time delays in large public construction projects.
Design/methodology/approach
This paper, which is based on an analysis of a literature selection consisting of 40 journal articles, investigates and ranks the occurrence of and the explanations for cost overruns and time delays in large public construction projects. The study makes use of a kiviat diagram/radar chart in order to visualize multivariate data.
Findings
Aggregated rankings of important causes of cost overruns and time delays are reported. These show a strong emphasis on the management aspect as a primary cause of cost overruns and delays. Additionally, there seems to be a trend toward deemphasizing the role of financial considerations in explaining cost overruns and delays. It is argued that there needs to be a more rigorous assessment of the impact that each factor has on cost increases and delays based on factual observed data as opposed to retrospective accounts from questionnaire respondents.
Research limitations/implications
Only public construction projects have been considered. The results will not be directly applicable to privately funded construction projects and/or projects of a smaller size.
Originality/value
The use of trend data, as illustrated in a kiviat diagram, showing how different ranking factors causing cost overruns and time delays has changed in importance over time.
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Per-Erik Josephson and Lasse Björkman
The purpose of this paper is to identify reasons for doing work sampling studies in processes performed by temporary organisations. Specific questions consider if the technique…
Abstract
Purpose
The purpose of this paper is to identify reasons for doing work sampling studies in processes performed by temporary organisations. Specific questions consider if the technique can be used for measuring productivity and if it can be used to compare performances over time.
Design/methodology/approach
A work sampling study of plumbing work in eight construction projects is compared with a similar study performed 20 years earlier. Interviews are made in order to find out how the work conditions have developed over time.
Findings
Work sampling studies are of little value for measuring productivity as well as for comparing performances over time. One reason is that the conditions vary to a high extent from one situation to another. Another reason is that working conditions undergo significant development over time. On the other hand, the authors experience that data from work sampling studies are of high relevance for discussions on improvement opportunities among workers as well as among corporate managers.
Originality/value
The paper builds on detailed direct observations of plumbing work.
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Johnny Lindström and Per‐Erik Josephson
The Swedish construction sector has been criticized in media for being corrupted, unproductive and conservative. Several incidents, e.g. cartels, work on the side without paying…
Abstract
The Swedish construction sector has been criticized in media for being corrupted, unproductive and conservative. Several incidents, e.g. cartels, work on the side without paying tax and moisture problems, have had a great deal of attention. Of that reason has the government initiated a number of investigations in order to identify the major problems in the construction industry. Further, they have initiated a development of a tool aimed for (a) to identify risks, (b) to avoid poor quality costs, and (c) to direct towards increased quality and effectiveness in building and civil engineering projects, from a client perspective. The UK Constructing Excellence has often been held up as a model during the devate. However, the Swedish general culture differs from the British, as well as the Swedish system differs from the British. The purpose of this paper is to describe the program for developing the systems, including the purposes with the system, identified starting points and demands and the approach/method for the development.
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Samuel Lindén and Per‐Erik Josephson
The purpose of this paper is to discover whether on‐site materials handling should be performed in‐house or out‐sourced. This is done by studying visible and hidden costs related…
Abstract
Purpose
The purpose of this paper is to discover whether on‐site materials handling should be performed in‐house or out‐sourced. This is done by studying visible and hidden costs related to materials handling and of the managers' awareness of these costs.
Design/methodology/approach
The data have been gathered through 15 interviews, a number of short discussions on construction sites, and direct observations on six occasions in four housing projects in Scandinavia.
Findings
Indirect and waste costs for materials handling on construction sites are unknown and are often underestimated during budgeting, planning, scheduling and organizing construction projects.
Practical implications
The short case‐studies indicate that the benefits of out‐sourcing on‐site materials handling outweigh the costs.
Originality/value
The solution for materials handling in practice studied in the paper is undergoing rapid development in Scandinavia.
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Mikael Frödell, Per‐Erik Josephson and Göran Lindahl
The aim of this paper is to increase the understanding of clients' attitudes to project success and to measuring performance. Four questions are discussed: what are the success…
Abstract
Purpose
The aim of this paper is to increase the understanding of clients' attitudes to project success and to measuring performance. Four questions are discussed: what are the success factors, what are the success criteria, how to achieve success and what are the characteristics of systems for measuring project performance? The findings will support the development of systems for measuring performance in construction projects.
Design/methodology/approach
The paper focuses on professional clients and their organizations within the field of Swedish construction. It is based on semi‐structured interviews with 23 experienced individuals within professional client organisations.
Findings
The most important success factors have been identified as the user's participation, commitment to the project, high standard of quality consideration among the construction workforce and team working. The most important characteristics for systems for measuring performance are simplicity and credible results.
Practical implications
Construction clients are often viewed in the literature as having similar views on project success. However, their views differ depending on their businesses, i.e. if they build to accommodate its own organisation, build to own and let or build to sell for maximised profit. This must be considered when developing systems for measuring performance.
Originality/value
The paper presents Swedish professional clients' views on project success. The findings are useful when designing and developing systems for measuring performance in construction projects.
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Anders Vennström and Per Erik Eriksson
The purpose of this paper is to identify client‐perceived barriers to a change towards increased client influence on the end result of the construction process. Additionally, the…
Abstract
Purpose
The purpose of this paper is to identify client‐perceived barriers to a change towards increased client influence on the end result of the construction process. Additionally, the variables of size of clients' markets and the extent of external project management are investigated in order to see how they influence the perceptions concerning important barriers to change.
Design/methodology/approach
Empirical data were collected through a survey responded to by 87 Swedish construction clients.
Findings
Identified barriers are divided into three types: attitudinal, industrial and institutional. Attitudinal barriers (adversarial attitudes, lack of ethics and morality, focus on projects instead of processes and a short‐term focus) and industrial barriers (traditional organization of the construction process, conservative industry culture, industry structure and traditional production processes) are perceived to be important, whereas institutional barriers (standard contracts, laws and traditional procurement procedures) are not perceived to be critical. Each different type of barrier is tested against the use of internal or external project management and the sphere of activity of the client. Attitudinal barriers are perceived as being more critical by clients using external project management. “Nearness” in terms of the sphere of activity (e.g. how large is the client's market?) also has an effect on how clients perceive the barriers. Locally, active clients do not consider attitudinal barriers to be as influential on the end result of the construction process as nationally active clients.
Research limitations/implications
Since the empirical results are based on data collected only from Swedish clients, international generalizations should be made with caution.
Practical implications
Clients wishing to act as change agents need to be aware that their use of internal versus external project management affects their chances to influence the other construction actors and implement change and innovation. Large national and international client organizations, which due to their size have significant opportunities to influence the industry, rely heavily on external project management, which may hamper their change agent role. Hence, such clients should make careful and purposeful selections of project management companies. Another more influential alternative is to strengthen their organisation and rely less on external project management.
Originality/value
This paper presents a unique investigation of the connections between the use of internal/external project management and perceived barriers to change.
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The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.
Abstract
Purpose
The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.
Design/methodology/approach
This paper is based on a literature review of organizational research and construction management literature together with a brief interview study of Swedish clients and contractors.
Findings
The theoretical and empirical findings propose that small and simple projects with low uncertainty and scarce resources may focus on exploitation to enhance short-term efficiency through traditional procurement strategies including delivery systems that separate the actors and their activities (i.e. pure design-build- or design-bid-build-contracts), fixed price payment and price focus in bid evaluation. Large complex projects with high uncertainty and customization benefit from combining exploration and exploitation to enhance sustainable performance. This requires collaborative procurement strategies including joint specification through early contractor involvement, cost reimbursement coupled with incentive-based payment, bid evaluation based on multiple criteria and collaborative tools and activities in partnering arrangements.
Research limitations/implications
This paper contributes to organizational learning literature by pinpointing the need for integrating procurement strategies that enhance combination of exploration and exploitation. The main contribution to the construction management literature involves the investigation of how procurement strategies may affect exploration and exploitation, as identified and articulated in the propositions developed in this paper.
Practical implications
From a practical perspective, the findings highlight the importance of tailoring procurement strategies to project characteristics to enhance a suitable balance between exploration and exploitation in construction projects.
Originality/value
The explicit focus on the operational project-level is uncommon but relevant in organizational learning literature.
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Improving construction supply chain collaboration and performance is central for achieving short‐term business objectives as well as long‐term competitive advantage. Lean thinking…
Abstract
Purpose
Improving construction supply chain collaboration and performance is central for achieving short‐term business objectives as well as long‐term competitive advantage. Lean thinking is an approach that has been adopted in many different industrial settings as a means for improving supply chain performance. In the project‐based construction industry, lean thinking has, however, not yet been widely adopted. The purpose of this paper is to increase the understanding of how various aspects of lean thinking can be implemented in a construction project and how they affect supply chain actors and their performance.
Design/methodology/approach
Action research was performed in a case study of a lean construction pilot project. Empirical data were collected through three surveys and follow‐up workshops, document studies, and interviews of 12 project participants.
Findings
The findings show that many of the lean‐related aspects identified in the literature review were utilized in the pilot project. These aspects have mostly focused on increasing the cooperation among supply chain actors, for which reason the pilot project is very similar to a partnering project. Hence, much work remains in order to obtain full‐fledged lean construction, but the pilot project may serve as a starting point for continuous improvements and development of lean construction in future projects.
Research limitations/implications
The research results are based on one empirical case study for which reasonable generalisations could be made, albeit cautiously.
Practical implications
The frame of reference can serve as an illustration of important aspects and core elements of lean construction and the case study findings show how various lean related aspects can be implemented and how they affect supply chain actors and their performance in a construction project context.
Originality/value
The action research approach based on both qualitative and quantitative data collection in a lean construction pilot project provides a valuable opportunity to study both the process of implementing lean construction and its outcomes.