H.K. Gichunge, S.M. Masu and O.A. K'Akumu
The purpose of this paper is to look at the applications of factor cost indices in the building industry in Nairobi, Kenya against the possibilities established through a review…
Abstract
Purpose
The purpose of this paper is to look at the applications of factor cost indices in the building industry in Nairobi, Kenya against the possibilities established through a review of the principles so as to establish the extent of use in practical situations in the industry. There are two organisations involved in compilation of factor cost indices in Kenya – Central Bureau of Statistics and Joint Building Council (JBC). Their practices for compilation of factor cost indices are reported in this paper.
Design/methodology/approach
The paper reviews the principles of factor cost index in order to establish a conceptual framework within which practices are then evaluated. The statistical bureau's compilation of building cost indices and the instructions by the JBC are considered as available evidence of application.
Findings
The paper finds that the application of factor cost index in Kenya is limited, a situation that therefore demands more research by the construction industry in Kenya.
Originality/value
The research's originality lies in its supportive evaluation of the application of the indicator concept in the building industry. More applications would imply greater possibilities for research and development within the case study industry.
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Deogratias Bugandwa Mungu Akonkwa, Eddy Balemba Kanyurhi, Guillaume Bidubula Juwa and Albert Masheka Hongo
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S. Masu, H. Gichunge and O.A. K'Akumu
The aim of this paper is to use the case study of Nairobi in Kenya in order to fill the gap of knowledge on the component ratios of new building costs that has been missing from…
Abstract
Purpose
The aim of this paper is to use the case study of Nairobi in Kenya in order to fill the gap of knowledge on the component ratios of new building costs that has been missing from international literature.
Design/methodology/approach
Using survey methodology that considered firms of contractors registered and operating in Nairobi Kenya, the paper compares its findings rendered in terms of percentage ratios: with theoretical propositions (e.g. Wood), with past studies (e.g. Knowles) and with practice guidelines in Kenya.
Findings
Overall it finds that there is no significant change in percentage component ratios considered from past studies and practice guidelines in Kenya leading to the conclusion that the building industry has not undergone any significant technical change during the periods under study, i.e. 1980‐2006.
Research limitations/implications
The study is limited by the fact that it only manages to capture the contractors' views of the component ratios. Contractors may be inclined to hide their profits which can be a sensitive issue in the Kenyan market, which as a developing economy, may be riddled with corrupt practices such as tax evasion and imperfect business competition. However, the issues raised here can be used as base information for further studies on the topic. Additionally an analysis of variance was performed on the data to ascertain its credibility. Second, the data used to argue the paper's case is partially dated but remains useful. The trend shows that there has been no significant change in the composition of component ratios hence the data remains relevant to date.
Practical implications
The paper's findings would be useful to international readers especially now that international contractors are bidding for work in Kenya. The data would give these contractors a glimpse into the structural composition of building cost components in Nairobi.
Originality/value
The paper's original contribution concerns the component ratios of building costs that has been neglected in the existing literature. In Kenya some work had been done by Knowles, but this was restricted to office block buildings only, while this paper considers all buildings as shown in Table V.
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Chinthaka Niroshan Atapattu, Niluka Domingo and Monty Sutrisna
Cost overrun is one of the critical issues faced in construction projects, as nine out of ten projects will likely go over the budget. In particular, transportation infrastructure…
Abstract
Purpose
Cost overrun is one of the critical issues faced in construction projects, as nine out of ten projects will likely go over the budget. In particular, transportation infrastructure (TI) projects, such as roads and bridges, are vastly affected by cost overruns, which can delay the entire project. This research intends to identify the factors affecting the cost overruns in New Zealand (NZ) TI projects.
Design/methodology/approach
The research was conducted using a questionnaire survey involving ninety-two participants experienced in infrastructure project estimation in NZ. Quantitative methods were used to analyse the data.
Findings
Fifty-three factors were identified through literature under ten categories. Based on the survey, ten significant factors were identified with a high grade of importance. The three most critical factors were “frequent design changes,” “poor planning and scheduling” and “inadequate tender documentation.” It was found that the cost overrun is primarily affected by the pre-contract stage causes.
Research limitations/implications
The data were collected from professionals involved in NZTI projects. Therefore, the implications may be different for other contexts.
Practical implications
The results will improve the current estimation practice by developing a new statistical model considering all the significant variables for NZTI projects.
Originality/value
Although much research is done to identify these factors, they are only considered in a few statistical cost models. These new statistical models mainly focused on technical variable factors similar to the current standard estimation process. However, the results of this research, qualitative and quantitative factors, will be used for the future cost model.
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Raphael Mutisya Kieti and Walter Ogolla
This paper applies the hedonic pricing model (HPM) approach to identify critical determinants of apartment value and employs the technique to develop a valuation model that can…
Abstract
Purpose
This paper applies the hedonic pricing model (HPM) approach to identify critical determinants of apartment value and employs the technique to develop a valuation model that can accurately estimate the value of apartments.
Design/methodology/approach
The research employed a case study design that was limited to transaction sales and attribute data of apartments in Nyali estate, Mombasa County in Kenya. A sample of 120 sales of apartments obtained from registered real estate firms was analyzed using quantitative methods.
Findings
According to the study results, the hedonic valuation model developed comprises four critical determinants of apartment value, namely, number of parking lots, presence of swimming pool, age of apartment and provision of balcony. The hedonic model was tested and found to be accurate and reliable in estimating apartment value.
Research limitations/implications
The model will improve accuracy, reliability and efficiency in valuation. The application of the model in the valuation of apartments is, however, limited to the case study area where the data are obtained. The scope of application of the model may be improved by increasing the sample size to include apartment sales data from other estates in Mombasa County.
Originality/value
Previous studies that have used the HPM technique in analysis of apartment values have focused on the “explanatory” and “contributory” power of attributes on apartment values, rather than the development and use of the model to measure value. The present study is the first to develop a HPM equation for property value estimation in the apartment real estate sector in Kenya.
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Ernest Kissi, Clinton Aigbavboa and Ewald Kuoribo
The momentous contribution of innovative technologies has made a significant impact in several sectors globally. However, the construction industry is undoubtedly lagging when it…
Abstract
Purpose
The momentous contribution of innovative technologies has made a significant impact in several sectors globally. However, the construction industry is undoubtedly lagging when it comes to technology usage. Thus, this study aims to explore the various emerging technologies in the construction industry while noticing stakeholders’ challenges and strategies in its use.
Design/methodology/approach
The study used a pragmatism research philosophy together with a quantitative research strategy in determining emerging technologies in the construction industry while noticing stakeholder challenges and strategies. Data were obtained from a total of 80 construction stakeholders through a structured questionnaire survey. The analysis was done with descriptive statistics using mean score ranking and a one-sample t-test.
Findings
Each emerging technology challenge was analysed and compared to see how pressing the challenges were as well as the aligned strategies. A key indication of this study is that the familiarity of the various emerging technologies was based on how many occasions one had an encounter with the technology.
Practical implications
The discussion’s findings contribute to a better knowledge to construction stakeholders on the challenges and strategies for rising technology adoption and implementation competencies.
Originality/value
The study reckoned stakeholders’ challenges on the emerging technologies in the construction industry context and recommended strategies to balloon the adoption of these emerging technologies in a developing country setting.
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Ernest Kissi, Clinton Aigbavboa and Prosper Babon-Ayeng
The purpose of this study was to identify key areas for benchmarking (BM) towards the improvement of small and medium scale enterprises (SMEs) construction firms in developing…
Abstract
Purpose
The purpose of this study was to identify key areas for benchmarking (BM) towards the improvement of small and medium scale enterprises (SMEs) construction firms in developing countries.
Design/methodology/approach
The study employed the use of the quantitative research method in the collection and analysis of primary data collected from field surveys using a piloted close-ended questionnaire created following a review of available literature on BM. Based on 63 solicited views of professionals with SMEs (quantity surveyors, project managers and architects) data collected were statistically analysed using a one-sample t-test.
Findings
The findings of the study indicate that the key areas for BM towards the improvement of SME construction firms in developing countries in order of relevance are “Financial Performance”, “Competitiveness”, “Customer Satisfaction”, “Technology Advancement”, “Communication Skills”, “Collaboration”, “Employee Satisfaction” and “Product orientation”.
Practical implications
The study has given more insight into the areas that need more attention for SMEs BM to achieve improvement. It can therefore be suggested firms that adapted identified areas will derive the benefits of BM. It is further opined that more BM education should be provided to various SMEs construction firms to facilitate an effective and efficient BM regime aiming at performance enhancement in project delivery.
Originality/value
This forging research attempts to identify the key areas for BM towards the improvement of SMEs construction firms in developing countries. Although there have been several efforts to create BM tools for the construction industry.
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Aizaz Ahmad Malik, Dilnaz Muneeb, Noman Khan, Muhammad Usman and Khawaja Fawad Latif
This study investigated the impact of servant leadership on project success in nongovernment organizations (NGOs) working in a developing country like Pakistan. A moderated…
Abstract
Purpose
This study investigated the impact of servant leadership on project success in nongovernment organizations (NGOs) working in a developing country like Pakistan. A moderated mediation design was employed, and the mediating role of employees' emotional intelligence (EI) and job stress (JS) was tested between servant leadership on project success. Moreover, the study also examined the moderating role of team effectiveness.
Design/methodology/approach
Data were collected from 441 project team members working on different developed projects. Data were analyzed using partial least square-structural equation modeling (PLS-SEM) technique.
Findings
Results revealed that servant leadership exerts a significant positive impact on project success. Also, it is noted that servant leadership significantly increases the employee's emotional intelligence that contributes to project success although it does not reduce JS. However, JS was found to be a significant mediator in the association between servant leadership on project success. The findings also revealed that team effect plays an imperative moderating role in ensuring project success.
Originality/value
The study is one of the very few studies conducted to assess the impact of servant leadership on project success in not-for-profit organizations. The study contributes to the literature and methodology by adopting a holistic approach to investigate the mediation of EI and JS along with the moderation of team effectiveness in the nexus of servant leadership and project success.