Australian Construction Projects Research Articles

Influence of Project Type and Procurement Method on Rework Costs in Building Construction Projects

While it is widely recognized that additional costs due to rework can have an adverse effect on project performance, limited empirical research has been done to investigate the influencing factors. The research presented in this paper aims to determine the influence of different project types and procurement methods on rework costs in construction projects. Using a questionnaire survey, rework costs were obtained from 161 Australian construction projects. The direct and indirect consequences of rework are analyzed and discussed. It is shown that, contrary to expectation, rework costs do not differ relative to project type or procurement method. In addition, it was found rework contributed to 52% of a project's cost growth and that 26% of the variance in cost growth was attributable to changes due to direct rework. To reduce rework costs and therefore improve project performance, it is posited that construction organizations begin to consider and measure them, so that an understanding of their magnitude can be captured, root causes identified, and effective prevention strategies implemented.

Where Project Managers are Kings

Australian construction projects today are usually more successful than information technology (IT) projects. One reason lies in the way construction companies manage project management. Based on in-depth research of four successful construction companies, this paper describes a project management-centered organizational form. It describes the organizational and management arrangements that support project performance and the individual and organizational capabilities that underpin sustained project success. This particular form of organization is shown to be stable and effective because its constituent arrangements are logically consistent and mutually reinforcing. The authors show how many of these arrangements can be adopted by IT service firms and in-house IT organizations to improve their performance on projects.

The predictive ability of Bromilow's timecost model

Bromilow's log-log time-cost (BTC) model is tested and refitted with a new set of data for Australian construction projects completed between 1991 and 1998. It is shown that, as anticipated by earlier research, different parameter estimates are needed for different project types, with smaller industrial projects taking less time to complete than the smaller educational and residential projects. This results in the development of two separate models, one for industrial projects and one for non-industrial projects. No changes in parameter estimates are needed for projects with different client sectors, contractor selection methods and contractual arrangements. Alternatives to the log-log model failed to produce any improved fit. Finally, the results are compared with previous work to indicate the extent of changes in time-cost relationships in Australian construction projects over the last 40 years. This indicates a clear improvement in construction speed over the period. Furthermore, the ‘public’ sector group in particular has exhibited a greater variation (up to 132%) over the years.