This paper reports on a survey of 17 value management exercises recently carried out within the UK construction industry. Twelve leading value management practitioners were asked…
Abstract
This paper reports on a survey of 17 value management exercises recently carried out within the UK construction industry. Twelve leading value management practitioners were asked to describe an example of a value management study which ‘worked well’ and one which ‘did not work well’. They were further asked to explain the underlying factors which they considered had influenced the eventual outcome of the value management study. The subsequent analysis of the interview transcripts reveals six recurring themes which were held to have had a significant influence: expectations, implementation, participation, power, time constraint and uncertainty. Whilst caution is necessary in extracting the themes from their individual contexts, they do provide a valuable insight into the factors which influence the outcome of value management studies.
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RICHARD FELLOWS and ANITA M.M. LIU
This paper supplements and extends consideration of quantitative models with application to building (costs and) prices by examining human elements inherent in modelling. In…
Abstract
This paper supplements and extends consideration of quantitative models with application to building (costs and) prices by examining human elements inherent in modelling. In considering the concepts of modelling, attention is focused on the recently developed sociology of science, which questions the traditional perspective of total separation of a reality from the observer—the ‘objective’ basis of scientific positivism. It is argued that human activities are fundamental in, and inseparable from, reality and so, they are integral in modelling. The aim of modelling should be to enhance understanding and knowledge rather than to secure inert objectivity. Application to modelling of prices of building projects investigates how prices are formulated, which prices are commonly modelled and the impact of the decision‐makers involved. It is concluded that new models are required, perhaps developed through methodological pluralism, which identify people‐oriented variables and assumptions explicitly. Further, the models should be stochastic and with sound bases in theories of economics and human behaviour to ensure that users are aware of the major variabilities in the processes modelled and so, by realistically informing, promote better decision making.
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The literature on construction and project risk management published during the period from 1960 to 1997 is reviewed and analysed to identify trends and foci in research and…
Abstract
The literature on construction and project risk management published during the period from 1960 to 1997 is reviewed and analysed to identify trends and foci in research and practice. This analysis is used to identify gaps and inconsistencies in the knowledge and treatment of construction and project risk. The findings suggested that political, economic, financial and cultural categories of construction risk deserve greater research attention, as do those associated with quality assurance, and occupational health and safety. Temporal aspects of risk, and risk communication, are also important fields for investigation.
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ENG HWEE LIM and FLORENCE YEAN YNG LING
Clients' financial status, characteristics, management competency and construction experience can have significant effects upon the attainment of project success. A survey was…
Abstract
Clients' financial status, characteristics, management competency and construction experience can have significant effects upon the attainment of project success. A survey was conducted to gauge whether consultants and contractors felt that 20 client related attributes uncovered from the literature have influence on the project outcome. Data were collected via a mailed questionnaire. Results show that all the 20 client related attributes are important and contribute to project success. A multiple linear regression model was constructed to predict a client's contribution to project success. Five predictive attributes were identified: ‘client sets down project objectives clearly’, ‘client is credit worthy’, ‘client does not contribute to project complexity’, ‘client is not litigious’, and ‘client trusts project team members’. This model provides consultants and contractors with a tool to evaluate their clients. It is recommended that clients focus on the more important attributes identified in this study, to ensure project success.
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Rouzbeh Shabani, Tobias Onshuus Malvik, Agnar Johansen and Olav Torp
Uncertainty management (UM) in projects has been a point of attention for researchers for many years. Research on UM has mainly been aimed at uncertainty analyses in the front-end…
Abstract
Purpose
Uncertainty management (UM) in projects has been a point of attention for researchers for many years. Research on UM has mainly been aimed at uncertainty analyses in the front-end and managing uncertainty in the construction phase. In contrast, UM components in the design phase have received less attention. This research aims to improve knowledge about the key components of UM in the design phase of large road projects.
Design/methodology/approach
This study adopted a literature review and case study. The literature review was used to identify relevant criteria for UM. These criteria helped to design the interview guide. Multiple case study research was conducted, and data were collected through document study and interviews with project stakeholders in two road projects. Each case's owners, contractors and consultants were interviewed individually.
Findings
The data analysis obtained helpful information on the involved parties, process and exploit tools and techniques during the design phase. Johansen's (2015) framework [(a) human and organisation, (b) process and (c) tools and techniques)] was completed and developed by identifying relevant criteria (such as risk averse or risk-taker, culture and documentation level) for each component. These criteria help to measure UM performance. The authors found that owners and contractors are major formal UM actors, not consultants. Empirical data showed the effectiveness of Web-based tools in UM.
Research limitations/implications
The studied cases were Norwegian, and this study focussed on uncertainties in the project's design phase. Relevant criteria did not cover all the criteria for evaluating the performance of UM. Qualitative evaluation of criteria allows further quantitative analysis in the future.
Practical implications
This paper gave project owners and managers a better understanding of relevant criteria for measuring UM in the owners and managers' projects. The paper provides policy-makers with a deeper understanding of creating rigorous project criteria for UM during the design phase. This paper also provides a guideline for UM in road projects.
Originality/value
This research gives a holistic evaluation of UM by noticing relevant criteria and criteria's interconnection in the design phase.
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Andreas Økland, Agnar Johansen and Nils O.E. Olsson
Standardizing the development, planning and construction of public building projects can contribute to timely and efficient project delivery. This is especially relevant when…
Abstract
Purpose
Standardizing the development, planning and construction of public building projects can contribute to timely and efficient project delivery. This is especially relevant when there are urgent needs for capacity. The purpose of this paper is to share the experiences from the development of standardized concepts for school extensions and prison building in Norway.
Design/methodology/approach
The research questions posed in this paper are on the interaction between public entities project delivery models and standardizing building types and the construction method. To investigate the research questions, the paper presents the findings from two case studies: school and prison development and construction projects. It is based on a literature review, semi-structured interviews, document studies and quantitative data on time and cost for the planning and construction phases.
Findings
Standardization and use of modularized building systems can contribute to shortened delivery time by reducing the duration of both the planning and construction phase. The most significant time reduction resulted from less time spent on quality assurance of cost estimates prior to the funding of the projects. Project costs increased in the school case, but were reduced in the prison case. An important challenge faced in both cases is a shallow pool of capable suppliers; the actors have approached the challenge with different strategies, yet neither actor has been successful in their attempts.
Originality/value
The paper provides empirical data to add to the collective knowledge on the project management aspects of using standardized project delivery models and standardized (modular) building. However, by emphasizing the interaction between project delivery models and standardization of the planning and execution of the projects, additional insight into the benefits and challenges are highlighted.
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Huimin Li, David Arditi and Zhuofu Wang
Transaction costs arise from economic exchange rather than production activities. However, the term “transaction cost” is not consistently defined in the construction industry…
Abstract
Purpose
Transaction costs arise from economic exchange rather than production activities. However, the term “transaction cost” is not consistently defined in the construction industry because the concept of transaction cost is not universally accepted by all stakeholders in construction projects. As a result, empirical studies are few and conflicting because accessing data on transaction costs is problematic, and the interpretation of the data is difficult. The purpose of this paper is to analyze the transaction costs borne by the owner in a construction project from the perspective of transaction cost economics and construction project characteristics.
Design/methodology/approach
A questionnaire survey was administered to construction owners. The factors that impact transaction costs were analyzed in the context of human-related issues (the owner's and the contractor's positions in the transaction), and environment-related issues (the transaction environment, and project management efficiency). Statistical analyses were conducted to compare the transaction costs incurred in the pre- vs post-contract phases of a project relative to the private vs public sector, different project delivery systems, different procurement methods, and different types of contracts.
Findings
The owners surveyed believe that transaction costs may be reduced if the owner and the contractor follow some basic guidelines (e.g. experience in similar projects, prompt payment, good relationship with project participants, no irregularities in bidding, and only few material substitutions and claims), if the project is well-run (e.g. technical competency, strong leadership, prompt decision-making, effective communication, and fair/speedy conflict management), and if the transaction environment is favorable (e.g. fair risk allocation, early contractor involvement, and complete design documents). The findings of the survey also indicate that post-contract transaction costs are much higher than pre-contract transaction costs expressed as percent of project value and that transaction costs are affected by the owner (public vs private), the procurement method, the project delivery system, and the type of contract.
Originality/value
The primary contribution that this research makes to the body of knowledge is a better understanding of transaction costs incurred by construction owners in the USA. The highest transaction costs are to be expected in the post-contract phase of public projects awarded on a unit price basis, but can be reduced, hence reducing overall project cost.
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Ozan Okudan, Gökhan Demirdöğen and Zeynep Işık
The purpose of this study is to develop a decision-support framework that can be used by decision-makers to suspend public infrastructure projects. Additionally, the study also…
Abstract
Purpose
The purpose of this study is to develop a decision-support framework that can be used by decision-makers to suspend public infrastructure projects. Additionally, the study also investigates how to select the most convenient infrastructure project for suspension.
Design/methodology/approach
The proposed framework includes an extensive set of factors and a novel comparison mechanism that can reveal the most convenient infrastructure project to be suspended. A comprehensible literature review and focus group discussion (FGD) sessions were conducted to identify factors that should be considered for suspension. Then, the neutrosophic analytic hierarchy process (N-AHP) method was used to determine the relative importance of the factors. Finally, the proposed comparison mechanism was demonstrated through a hypothetical case study and Technique for order of preference by similarity to ideal solution (TOPSIS) analysis.
Findings
Results showed that suspension decisions cannot be made merely based on “financial” factors. Instead, the other aspects, namely “Technical and managerial” and “Social and Environmental”, should also be taken into consideration. Second, factors related to the initial investment, cost of refinancing, cash flow, permits and approvals, insufficiency of bidders, degradation of the components, reputation, impact on stakeholders and criticality of the infrastructure were particularly elaborated as the most significant, needing the utmost attention of the decision-makers. Lastly, the results demonstrated that the proposed comparison mechanism has considerable potential to identify the most convenient infrastructure project for suspension.
Originality/value
Public infrastructure projects are often under pressure due to the inflationary state and economic stagnation of countries after major crises. The suspension decision for infrastructure projects necessitates comprehensible assessments to consider all consequences. Studies have widely investigated the contractual and legal aspects of project suspension in light of existing literature. However, little effort has been devoted to identifying the factors that decision-makers should consider before suspending a particular infrastructure project. Furthermore, existing literature does not investigate how to select the most convenient infrastructure project for suspension either. Thus, by developing a specific suspension framework for infrastructure projects by considering various factors, this study is the earliest attempt to examine the contract suspension mechanism of public infrastructure projects. In this respect, the study significantly contributes to the theory of contract management domain and has important managerial implications.
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Xueqing Gan, Jianyao Jia, Yun Le, Tingting Liu and Yutong Xue
Relationship conflict between the owners and contractors is inevitable, which could induce negative consequences. Yet, the existing literature mostly focused on its direct effects…
Abstract
Purpose
Relationship conflict between the owners and contractors is inevitable, which could induce negative consequences. Yet, the existing literature mostly focused on its direct effects on project performance and ignored the process by which relationship conflict gradually deteriorates cooperation as well as corresponding managerial approaches. Given the fact that relationship conflict originates from interdependent tasks, the proposed theoretical model is intended to measure relational behavior as an instant outcome of relationship conflict, and explore the buffering role of contract enforcement approach.
Design/methodology/approach
This paper develops the conceptual model based on the literature review. Then the questionnaire survey was conducted. The dyadic data obtained from 168 Chinese construction project professionals were analyzed by the Partial Least squares Structural Equation Modeling (PLS-SEM) technique.
Findings
The results show that relational behavior partially mediates the link between relationship conflict and project performance. Besides, three types of contract enforcement approaches are found to differentially change the negative link between relationship conflict and relational behavior. Rigid contract enforcement can worsen the adverse effects of relationship conflict on relational behavior, whereas flexible contract enforcement can alleviate these negative effects. The level of mitigation hinges on whether compromising behaviors or obliging behaviors are chosen.
Originality/value
The study extends the knowledge of conflict theory and contract theory in the construction field. Based on the proposed conceptual model and PLS-SEM results, this study contributes to the understanding of relationship conflict’s consequences between the owners and contractors and enriches conflict management approaches in the construction field.
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Katalin Pádár, Béla Pataki and Zoltán Sebestyén
Change management (CM) and project management (PM) literatures examine the key roles (change agent, project manager, project or change sponsor) played during projects or changes…
Abstract
Purpose
Change management (CM) and project management (PM) literatures examine the key roles (change agent, project manager, project or change sponsor) played during projects or changes only from their respective points of view. They do so even in cases where projects and changes occur at the same time – or are so-called change projects. In such cases, effective management should utilize both scientific fields’ bodies of knowledge (BoK). The purpose of this paper is to unfold how and in which domain(s) typical roles of the two disciplines correspond to each other.
Design/methodology/approach
This paper is a systematic, bi-disciplinary meta-review that simultaneously studies relevant literature on roles performed during projects and changes. The common domain of CM and PM was identified; the systematic review and comparison of role definitions followed.
Findings
This paper examines and illustrates the correspondence of 7 CM and 14 PM roles; e.g., “sponsor” refers to the same role and “change agent” and “project manager” are corresponding ones, referring to the same role up to a certain degree.
Research limitations/implications
This paper does not provide an exhaustive overview of various instances of different role (and stakeholder) interpretations.
Practical implications
Findings should facilitate the better management of changes that require CM-type and PM-type capabilities and actions.
Originality/value
As a result of the meta-review, two CM roles were re(de)fined. Linking PM and CM roles provides common ground on which practitioners of both fields can rely. A step-by-step tool for the identification of such cases in practice, when both types of roles should be played and both BoK can be utilized complementarily, was developed.