Plans of work for construction projects are published by various interest groups with increasing frequency. Each purports to explain how (all) construction projects should be…
Abstract
Plans of work for construction projects are published by various interest groups with increasing frequency. Each purports to explain how (all) construction projects should be organized and it can be very difficult to assess their relative benefits and the circumstances most appropriate for their use. Techniques for analysing organizational structures have been available for some decades, but are rarely applied to construction projects. Such techniques can be criticized for omitting non‐structural aspects of project management, such as leadership and other behavioural traits but they are ideal for analysing the strengths and weaknesses of documents describing formal organizational structures. A model for evaluating plans of work is presented and by way of example, a scheme produced by the Construction Industry Board (CIB, UK) is analysed by comparison with the Royal Institute of British Architects (RIBA) plan of work. The results show that the CIB scheme does not provide proper guidance for the management of projects, neither does it allocate responsibilities to participants. This analysis shows that such techniques are capable of providing useful benchmarks for assessing the differences between plans of work. They enable impartial assessment of the strengths and weaknesses of different schemes.
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Henry A. Odeyinka and Ammar Kaka
Construction cash flow models developed in previous researches demonstrated that cash flow profiles vary for differing procurement methods. However, the issue of whether…
Abstract
Construction cash flow models developed in previous researches demonstrated that cash flow profiles vary for differing procurement methods. However, the issue of whether contractors are satisfied or dissatisfied with payment terms impacting cash flows in differing procurement methods is yet to be investigated. This is the concern of this study. The study identified from literature, payment terms potentially thought to impact construction cash flow. Using a 6‐point Likert‐type scale, a questionnaire survey was administered to UK construction contractors in order to assess their level of satisfaction with identified payment terms influencing construction cash flow. Responses from the survey, which focused on traditional and design and build procurement methods were analysed using mean response analysis and one‐way analysis of variance. Results showed that while contractors were satisfied with most of the contractual factors investigated under both procurement systems, they were dissatisfied with two of the factors, namely, time lag between entitlement to receive and actually receiving cash payment and percentage of contract sum retained. This dissatisfaction calls for action to consider devising alternative means of dealing with retention and delay payments.
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The RIBA Plan of Work describes the way a construction process should be organized. Although not officially approved by the RIBA council, a new plan of work was published in 2000…
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The RIBA Plan of Work describes the way a construction process should be organized. Although not officially approved by the RIBA council, a new plan of work was published in 2000 with the intention of replacing the RIBA Plan of Work, so it is useful to analyse both in terms of the organizational structure they impose upon construction projects. Using analytical principles from organizational theory, both plans are analysed by converting them into organizational matrices and assessing their relative complexities, the load on participants, decentralization of responsibility, number of interfaces and the extent to which they provide for co‐ordination and control. This demonstrates first, that the analysis of organizational structure is an appropriate approach for undertaking comparisons of such documents; and second, that while both plans of work are of roughly equal complexity, the new one is more demanding on the participants; produces a higher number of interfaces between processes, and provides for more co‐ordination than the old one. Neither plan deals with controlling the output of individuals, leaving it as an internal matter for each participating organization.
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Stephen Gruneberg and Will Hughes
Because of the importance and potential usefulness of construction market statistics to firms and government, consistency between different sources of data is examined with a view…
Abstract
Because of the importance and potential usefulness of construction market statistics to firms and government, consistency between different sources of data is examined with a view to building a predictive model of construction output using construction data alone. However, a comparison of Department of Trade and Industry (DTI) and Office for National Statistics (ONS) series shows that the correlation coefcient (used as a measure of consistency) of the DTI output and DTI orders data and the correlation coefficient of the DTI output and ONS output data are low. It is not possible to derive a predictive model of DTI output based on DTI orders data alone. The question arises whether or not an alternative independent source of data may be used to predict DTI output data. Independent data produced by Emap Glenigan (EG), based on planning applications, potentially offers such a source of information. The EG data records the value of planning applications and their planned start and finish dates. However, as this data is ex ante and is not correlated with DTI output it is not possible to use this data to describe the volume of actual construction output. Nor is it possible to use the EG planning data to predict DTI construc‐tion orders data. Further consideration of the issues raised reveal that it is not practically possible to develop a consistent predictive model of construction output using construction statistics gathered at different stages in the development process.
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The context of construction management (CM) reveals that this method of procurement is as much a management philosophy as a contract structure. It is important to consider legal…
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The context of construction management (CM) reveals that this method of procurement is as much a management philosophy as a contract structure. It is important to consider legal and contractual issues in this context. The interplay between management and law is complex and often misunderstood. Before considering specific issues, the use of contractual remedies in business agreements is discussed. In addition, the extent to which standardising a form of contract detracts or contributes to the success of projects is also considered. The dearth of judicial decisions, and the lack of a standard form, render it difficult to be specific about legal issues. Therefore, the main discussion of legal issues is centred around a recently completed research project which involved eliciting the views of a cross‐section of experienced construction management clients, consultants and trade contractors. These interviews are used as the basis for highlighting some of the most important legal points to consider when setting up CM projects. The interviews revealed that the advantage of CM is the proximity of the client to the trade contractors and the disadvantage is that it depends on a high degree of professionalism and experience; qualities which are unfortunately difficult to find in the UK construction industry.
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‘A MAP OF THE WORLD that does not include Utopia is not worth glancing at’ wrote Oscar Wilde. ‘It leaves out the one country at which humanity is always landing. And when it lands…
Abstract
‘A MAP OF THE WORLD that does not include Utopia is not worth glancing at’ wrote Oscar Wilde. ‘It leaves out the one country at which humanity is always landing. And when it lands there it looks out and, seeing a better country, sets sail again. Progress is the realization of Utopias’.
The purpose of this paper is to show the extent to which clients amend standard form contracts in practice, the locus of the amendments, and how contractors respond to the…
Abstract
Purpose
The purpose of this paper is to show the extent to which clients amend standard form contracts in practice, the locus of the amendments, and how contractors respond to the amendments when putting together a bid.
Design/methodology/approach
Four live observational case studies were carried out in two of the top 20 UK construction firms. The whole process used to review the proposed terms and conditions of the contract was shadowed using participant observation, interview and documentary analysis.
Findings
All four cases showed strong evidence of amendments relating mostly to payment and contractual aspects: 83 amendments in Case Study 1 (CS1), 80 in CS2, 15 in CS3 and 29 in CS4. This comprised clauses that were modified (37 per cent), substituted (23 per cent), deleted (7 per cent) and new additions (33 per cent). Risks inherent in the amendments were mostly addressed through contractual rather than price mechanisms, to reflect commercial imperatives. “Qualifications” and “clarifications” were included in the tender submissions for post‐tender negotiations. Thus, the amendments did not necessarily influence price. There was no evidence of a “standard‐form contract“ being used as such, although clients may draw on published “standard‐form contracts” to derive the forms of contract actually used in practice.
Practical implications
Contractors should pay attention to clauses relating to contractual and financial aspects when reviewing tender documents. Clients should draft equitable payment and contractual terms and conditions to reduce risk of dispute. Indeed, it is prudent for clients not to pass on inestimable risks.
Originality/value
A better understanding of the extent and locus of amendments in standard form contracts, and how contractors respond, is provided.
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Among the recommendations of the first International Intervisitation Program held in North America in 1966 was the organization of a second program at a later date. The 1970…
Abstract
Among the recommendations of the first International Intervisitation Program held in North America in 1966 was the organization of a second program at a later date. The 1970 International Intervisitation Program, held in Australia, was jointly sponsored by the University Council for Educational Administration and the University of New England. The themes of the Program were Centralization and Bureaucracy, Planning and Systems Analysis, Accountability and Assessment and Teacher Negotiation and Participation in Policy Making. These themes were the subject of papers at the orientation phase, of observation in a two week visitation phase and of group discussion at a conference held in Armidale. Perhaps the most important outcome of the Program was the decision to establish a Commonwealth Council for Educational Administration, a professional association for those interested in educational administration, which seems likely to hold its first plenary meeting at the third International Intervisitation Program to be held in England in 1974.
Researchers continue to seek understanding of industrialization as a state managed process. How to create and implement new industries based on advanced knowledge is on the policy…
Abstract
Researchers continue to seek understanding of industrialization as a state managed process. How to create and implement new industries based on advanced knowledge is on the policy agenda of many advanced nations. Measures that promote these developments include national capacity building in science and technology, the formation of technology transfer systems, and the establishment of industrial clusters. What these templates often overlook is an analysis of use. This chapter aims to increase the understanding of the processes that embed new solutions in structures from an industrial network perspective. The chapter describes an empirical study of high-technology industrialization in Taiwan that the researcher conducts to this end. The study shows that the Taiwanese industrial model is oversimplified and omits several important factors in the development of new industries. This study bases its findings on the notions that resource combination occurs in different time and space, the new always builds on existing resource structures, and the users are important as active participants in development processes.
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P.D. RWELAMILA, A.A. TALUKHABA and A.B. NGOWI
The lack of ‘ubuntu’ (African group solidarity) between project stakeholders in the Southern Africa Development Community (SADC) public building sector has been surrounded by…
Abstract
The lack of ‘ubuntu’ (African group solidarity) between project stakeholders in the Southern Africa Development Community (SADC) public building sector has been surrounded by controversy and strongly held opinions. The work reported in this paper attempts to indicate some salient issues affecting the relationships between project stakeholders. The Botswana public building sector is used as a main case study and follow‐up studies are carried out involving another eight SADC countries. The paper addresses two propositions. First, that the lack of ‘ubuntu’ between project stakeholders is primarily due to an inappropriate project organizational structure. Second, that a default traditional construction procurement system (TCPS), provides a poor relationship management system. Information is obtained on the research areas through questionnaires to construction firm executives, contract managers, site managers, trade foremen and skilled tradespersons on the dominant procurement system used in Botswana. Furthermore, senior technical officers of Public Works Ministries of another eight SADC countries are interviewed as a follow‐up to the Botswana study. The primary conclusion to be drawn is that the building procurement system purported to be in use in the SADC public building sector differs significantly from that recommended in the theory, resulting in poor relationships between project stakeholders. This is primarily due to the use of inappropriate building procurement systems. In general, the TCPS in the SADC public building sector is used as a ‘default system’. This has led to a situation where project management is a ‘fire fighting’ activity, where group solidarity between project stakeholders is out of reach. Salient steps are proposed with a proviso that the SADC public building sector should establish appropriate methods of selecting building procurement systems as a prerequisite in formulating appropriate project organizational structures which will bring the spirit of real co‐operation between project stakeholders towards project success.