Rotimi Joseph, David Proverbs, Jessica Lamond and Peter Wassell
There has been a significant increase in flooding in the UK over the past ten years. During this time, Government policy has moved from investment in flood defences towards…
Abstract
Purpose
There has been a significant increase in flooding in the UK over the past ten years. During this time, Government policy has moved from investment in flood defences towards encouraging property owners to take responsibility for reducing the impact of flooding. One of the ways in which this can be achieved is for homeowners to adapt their properties to flood risk by implementing property level flood risk adaptation (PLFRA) measures. While there has been some attempt to develop an understanding of the benefits of such measures, these previous studies have their limitations in that the intangible benefits have not been fully considered. As such, there remains a need for further development of these studies towards developing a more comprehensive understanding of PLFRA measures. It is against this background the purpose of this paper is to present a conceptual cost benefit analysis (CBA) framework for PLFRA measure. This framework brings together the key parameters of the costs and benefits of adapting properties to flood risk including the intangible benefits, which have so far been overlooked in previous studies.
Design/methodology/approach
A critical review of the standard methods and existing CBA models of PLFRA measures was undertaken. A synthesis of this literature and the literature on the nature of flooding and measures to reduce and eliminate their impacts provides the basis for the development of a conceptual framework of the costs and benefits of PLFRA measures. Within the developed framework, particular emphasis is placed on the intangible impacts, as these have largely been excluded from previous studies in the domain of PLFRA measures.
Findings
The framework provides a systematic way of assessing the costs and benefits of PLFRA measures. A unique feature of the framework is the inclusion of intangible impacts, such as anxiety and ill health, which are known to be difficult to measure. The study proposes to implement one of the stated preference methods (SPM) of valuation to measure these impacts, known as the willingness to pay method, as part of a survey of homeowners. The inclusion of these intangible impacts provides the potential to develop a more comprehensive understanding of the benefit cost ratio (BCR) for different stakeholders. The newly developed CBA conceptual framework includes four principal components: the tangible benefits to insurers; the tangible benefits to the government; the tangible benefits to homeowners; and the intangible benefits to homeowners.
Originality/value
This tool offers the potential to support government policy concerned with increasing the uptake of PLFRA measures through increasing the information available to homeowners and thereby supporting the decision-making process.
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Rotimi Joseph, David Proverbs, Jessica Lamond and Peter Wassell
Recently, the focus of UK and European flood risk management policy has been towards promoting the uptake of property level flood adaptation measures. Despite this focus, the…
Abstract
Purpose
Recently, the focus of UK and European flood risk management policy has been towards promoting the uptake of property level flood adaptation measures. Despite this focus, the take‐up of property level flood adaptation measures (both resilient and resistant) remains very low. One of the apparent barriers to uptake is the cost of installing such measures. This study aims to investigate the cost of adopting resilient reinstatement measures by considering a small number of actual properties that were flooded in Cockermouth during 2009.
Design/methodology/approach
Secondary data obtained from a loss adjusting company provides the basis for analysis. The data take into consideration the cost benefit of resilient repair, assuming the same properties were flooded again. The traditional reinstatement costs were established as the actual cost of putting the properties back in a like‐for‐like manner while resilient reinstatement costs were established by creating new resilient repair schedules based on recommended good practice.
Findings
The results of the study show that the percentage extra cost for resilient reinstatement over traditional repair cost ranged from 23 to 58 per cent with a mean of 34 per cent depending on the house type. However, while resilient repairs were found to be more expensive than traditional (i.e. like‐for‐like) methods, they were found to significantly reduce the repair costs assuming a subsequent flood were to take place. Resilient flood mitigation measures seem most promising and, given repeat flooding, will help in limiting the cost of repairs up to as much as 73 per cent for properties with a 20 per cent annual chance of flooding, which indicates that the up‐front investment would be recovered following a single subsequent flood event.
Originality/value
The uptake of resilient reinstatement among the floodplain property owners in the UK is very low and one of the reasons for the low uptake is lack of understanding of the cost and benefit of adopting such measures. While there have been previous studies towards investigating the costs of resilient reinstatement, it is believed that this is the first to use real claims data and information to analyse the tangible costs/benefits of resilient reinstatement.
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Namrata Bhattacharya Mis, Rotimi Joseph, David Proverbs and Jessica Lamond
This study aims to investigate the level of preparedness among property owners who had experienced flood damage to their properties in two cities in England following the summer…
Abstract
Purpose
This study aims to investigate the level of preparedness among property owners who had experienced flood damage to their properties in two cities in England following the summer floods of 2007. Flooding can have a variety of impacts on residential properties and businesses that may be unprepared and therefore vulnerable to both direct and indirect effects. Research suggests that the focus in analysis of damage to flood plain population (residential and commercial) tends to be on the direct tangible impacts, limiting their ability to recognize the true costs of flooding, thereby leading to unpreparedness to future flooding. Greater understanding of the level of preparedness against different types of flood impacts is likely to contribute towards increased knowledge of the likely resilience of residential and commercial property occupiers.
Design/methodology/approach
Primary data obtained through self-administered postal questionnaire survey of floodplain residential and commercial residents provide the basis for the research analysis and findings. The rationale behind choosing the locations for the research was based on the need to investigate areas where a sizeable number of residential and commercial properties were affected during the 2007 event, in this case, Sheffield and Wakefield in the northern part of England were chosen. The data collected were subjected to descriptive statistical analysis.
Findings
The result of the analysis revealed that non-structural measures have been implemented by more people when compared to other measures, which can be linked to the fact that non-structural measures, in most, cases do not have financial implication to the property owners. The uptake of the other measures (resistance and resilience) is very low. It can be concluded from the findings that the level of implementation of measures to reduce damage from potential future flooding among the flood plain residents is relatively low and mainly focussed towards reducing the direct effects of flooding.
Practical implications
The study argues that increased resilience can be sustainable only by developing integrated attitude towards risk reduction not only by enhancing coping strategy by reducing direct impacts of flooding but also equally focussing on indirect effects.
Originality/value
There have been previous studies towards investigating the impacts of flooding on residential and commercial property owners as a separate entity. It is believed that this is the first time in which both residential and commercial properties will be investigated together as one body of research.
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Mathew Ekundayo Rotimi, Ojo Joseph IseOlorunkanmi, Gift Grace Rotimi and Mishelle Doorasamy
The purpose of this study is to empirically examine how corruption impacts economic output growth in Nigeria. This is because of the recent trend in the level of corruption.
Abstract
Purpose
The purpose of this study is to empirically examine how corruption impacts economic output growth in Nigeria. This is because of the recent trend in the level of corruption.
Design/methodology/approach
Using time series data ranging from 1995 to 2019, this study used the Johansen cointegration estimating approach and vector error correction mechanism to show an equilibrium relationship between output growth and other variables (oil revenue and corruption). To conduct the integration test, this study in the preliminary, used unit root test.
Findings
This study finds unidirectional and bidirectional causal relationships among variables. Contrary to a few studies, this study shows an equilibrium relationship between output growth and other variables (oil revenue and corruption). Thus, an increase in corruption at equilibrium would weaken output growth. Nonetheless, this study finds a gradual return of the deviation from the long-run stability over an arrangement of imperfect short-run adjustments. Based on the findings, to enhance economic growth, this study recommends zero tolerance for corruption. It also recommends that governments should further strengthen anti-corruption institutions and incorporate anti-corruption movements into decision-making processes.
Originality/value
This study adds to the literature by re-examining for the first time the relationship between corruption and economic growth in Nigeria. This study also deals with some econometrics issues which are found to be appropriate estimation to determine the equilibrium and stability in this study.
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Asha Dulanjalie Palihakkara and B.A.K.S. Perera
Guaranteed maximum price (GMP) contracts are becoming an increasingly popular contract solution; however, many projects experience higher levels of risk and exceed predetermined…
Abstract
Purpose
Guaranteed maximum price (GMP) contracts are becoming an increasingly popular contract solution; however, many projects experience higher levels of risk and exceed predetermined GMPs, failing to accomplish the main motive behind the concept. Thus, the study identified a risk management process for GMP projects.
Design/methodology/approach
The study adopted a quantitative approach consisting of three Delphi rounds. The collected data were analysed using statistical data analysis tools.
Findings
The study identified 17 highly significant risk factors in GMP projects and determined their levels of severity. Subsequently, risk allocation amongst the client, contractor and consultant and strategies to handle the most significant risk factors were determined. The study identified poorly defined scope and design changes as the most critical risks in GMP projects. Moreover, strategies such as clearly defining the project scope, preparing precise documentation, early involvement of the contractor and using a partnering approach can be deployed to reduce the risk in GMP projects. Each risk has to be assigned to the party who can best manage it, depending on its nature.
Originality/value
The study addresses the literature gap pertaining to risk management of GMP contracts by identifying its overall process, including the identification of significant risks based on the severity levels; risk allocation amongst the client, contractor and consultant; and identification of risk handling techniques suitable for each significant risk factor. The study contributes to the industry by identifying a systematic risk management process to implement GMP projects successfully within the stipulated time, cost and quality.
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Joseph David, Awadh Ahmed Mohammed Gamal, Mohd Asri Mohd Noor and Zainizam Zakariya
Despite the huge financial resources associated with oil, Nigeria has consistently recorded poor growth performance. Therefore, this study aims to examine how corruption and oil…
Abstract
Purpose
Despite the huge financial resources associated with oil, Nigeria has consistently recorded poor growth performance. Therefore, this study aims to examine how corruption and oil rent influence Nigeria’s economic performance during the 1996–2021 period.
Design/methodology/approach
Various estimation techniques were used. These include the bootstrap autoregressive distributed lag (ARDL) bounds-testing, dynamic ordinary least squares (DOLS), the fully modified OLS (FMOLS) and the canonical cointegration regression (CCR) estimators and the Toda–Yamamoto causality.
Findings
The bounds testing results provide evidence of a cointegrating relationship between the variables. In addition, the results of the ARDL, DOLS, CCR and FMOLS estimators demonstrate that oil rent and corruption have a significant positive impact on growth. Further, the results indicate that human capital and financial development enhance economic growth, whereas domestic investment and unemployment rates slow down long-term growth. Additionally, the causality test results illustrate the presence of a one-way causality from oil rent to economic growth and a bi-directional causal relationship between corruption and economic growth.
Originality/value
Existing studies focused on the effects of either oil rent or corruption on growth in Nigeria. Little attention has been paid to the exploration of how the rent from oil and the pervasiveness of corruption contribute to the performance of the Nigerian economy. Based on the outcome of this study, strategies and policies geared towards reducing oil dependence and the pervasiveness of corruption, enhancing human capital and financial development and reducing unemployment are recommended.
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Taofeeq Durojaye Moshood, James O.B. Rotimi and Wajiha Shahzad
Formulating strategic decisions poses a significant challenge for construction organizations, profoundly impacting their overarching strategic management. The success of an…
Abstract
Purpose
Formulating strategic decisions poses a significant challenge for construction organizations, profoundly impacting their overarching strategic management. The success of an organization’s strategy relies on how information is managed and decisions are executed. However, the literature has a limited understanding of the connection between information quality and strategic decision-making, particularly in construction business performance. This study aims to bridge this gap by exploring how information quality mediates the relationship between strategic decision-making and the performance of construction businesses in New Zealand.
Design/methodology/approach
This quantitative study aims to fill this gap by assessing how information quality shapes strategic decision-making practices, impacting construction organizations’ performance. Analysing 102 viable responses through partial least squares structural equation modeling structural equation modelling offers partial support to the research framework.
Findings
The study used statistical analysis to gauge the impact of adopting strategic management practices on construction business performance, considering the mediation of the quality of information within New Zealand’s context. It affirmed a positive correlation between strategic decision-making management and construction business performance, underpinned by the mediation of quality of information.
Practical implications
This study underscores the critical role of information quality in evaluating strategic decisions for bolstering construction business performance. In essence, it affirms that enhancing the performance of construction organizations via strategic decision-making is intrinsically linked to the quality of information.
Originality/value
This study makes a noteworthy contribution by establishing connections between decision importance, process effectiveness, information quality, intuition in decision-making and model development, providing valuable insights to the field.
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Achini Shanika Weerasinghe, Thanuja Ramachandra and James O. B. Rotimi
Rising energy costs and increasing environmental concerns are catalysts for introducing sustainable design features in buildings. Incorporating sustainable design features in…
Abstract
Purpose
Rising energy costs and increasing environmental concerns are catalysts for introducing sustainable design features in buildings. Incorporating sustainable design features in commercial buildings cannot be overstated because it could confer benefits to the investor (owners) and occupants. This study aims to develop a model that could aid in the prediction of operation and maintenance (O&M) costs from the knowledge of building-design variables. There is little evidence that design variables influence the O&M costs of buildings. Therefore, this study investigates the relationship between design variables and O&M costs in commercial buildings with the intent of developing a cost model for estimating O&M costs at the early design phase.
Design/methodology/approach
The study was approached quantitatively using a survey strategy. Data for the study were obtained from 30 randomly selected commercial buildings in the CBD in Colombo, Sri Lanka. Pareto's 80/20 rule, correlation and regression analysis were performed on the data to prove the statistical relationships between the buildings' O&M costs and their design variables.
Findings
The study found that 12 significant O&M costs elements contribute to about 82% of total O&M costs. Repairs and decoration had a strong correlation with building shape. Furthermore, the regression analysis found that O&M costs values were primarily dependent on the building size (the gross floor area and height of the buildings). The gross floor area and height handled over 73% of the variance in the O&M costs of commercial buildings in Sri Lanka.
Originality/value
These findings are a useful insight into the principles for design economies that could contribute to more sustainable commercial buildings.