Construction Management Literature Research Articles

Forecasting the Number and Distribution of New Bidders for an Upcoming Construction Auction

Estimating the number of new bidders in construction auctions is relevant for both private companies and contracting authorities. For private companies, it allows the total number of competing bidders to be estimated, which may lead to better adjustments of future bids. For contracting authorities, it allows the population size of all potential bidders to be estimated and thus to implement better awarding criteria. Mathematical models for forecasting the number of new bidders and the population size of all potential bidders are, however, very scarce in the construction management literature. In this paper, we propose an exponential model for predicting the average number of new bidders based on an urn analogy. The model allows the number of new bidders to be estimated as a function of new versus total participating bidders observed in previous auctions. The parameter estimates obtained from the model also allow the statistical distribution of the number of potential new bidders to be modeled using a sum of binomial distributions. We validate the exponential model on three published construction auction data sets, showing that the proposed model significantly outperforms the multinomial model - the most advanced model for performing similar tasks found in the literature.

A Grading System-based Model for Detecting Unbalanced Bids during the Tendering Process

Unbalanced bidding is a common practice used in both unit price and lump sum contracts. Contractors may unbalance their bids in different forms for various reasons. The studies in the literature either focus on developing optimization models that assist contractors in winning contracts and maximizing profits of their bids through unbalancing or developing models that assist owners in detecting and/or preventing unbalanced bids during the bid evaluation stage. Unbalanced bidding is one of the most controversial subjects in the construction management literature and practice. Although there is no consensus on whether it is unethical or not, this practice is not usually for the benefit of owners. Therefore, owners have the right to reject the unbalanced bids and create a fair competition environment if they have a mechanism to detect it during the bid evaluation process. The main objective of this study is to propose a model, which consists of five different grading systems and helps owners in detecting unbalanced bids during the tendering process. In the proposed model, owners may either calculate the individual grades of each bidder or calculate the final score of each bidder by assigning different weights to these grading systems according to the project characteristics or their own needs. The final scores and bid prices of the contractors can be simultaneously evaluated. In order to demonstrate the applicability of the proposed model, an illustrative example is presented. It can be concluded that the proposed model can be effectively and easily used by owners for detecting unbalanced bids. This paper is the revised version of the paper that has been published in the proceedings of the Creative Construction Conference 2018 (Polat et al., 2018).

Expansive learning in contemporary construction organisations

Purpose The evolving roles of BIM and smart building technologies in the design and management of construction projects often present unexpected events and variabilities, which tend to erode professionals’ prior knowledge authority. The purpose of this paper is to explore how construction organisations can deploy knowledge and adapt to the requisite skills in order to make fitting responses to the ever-evolving technological and organisational transformations to address the prevailing construction challenges. Design/methodology/approach The paper opted for an abductive research approach that ensures back-and-forth iterative dialogue between the empirical data and an amalgam of the theoretical proposition towards new understanding of the phenomenon under investigation. A multiple case study method was adopted to collate the empirical data from three separate construction organisations as they transitioned into BIM compliant work processes. Findings The study has described new processes that not only mediate existing practices but focus on consistently resolving known tensions and contradictions between prior knowledge and the requirement of the changing work situation. The study also illustrates the cognitive synchronisation of the learning approaches within contemporary work organisations that align well with the merits and utilities entrenched within their niche technological choices. Research limitations/implications Due to the chosen research methodology, it is acknowledged that future comparative studies using a much larger quantitative data sample to further elucidate the findings of this paper would be an interesting further step. Originality/value The study contributes to construction management literature by providing new insights into expansive learning environments capable of addressing cognitive contradictions and ambiguities inherent in the changing contemporary work patterns in the construction context as a consequence of BIM deployment.

“Shared sense of purposefulness”: a new concept to understand the practice of coordinating design in construction

Construction management literature sees the collective task of coordinating design as being about the “‘integration’” of “fragmented” discipline-specific design tasks/outputs, thus overlooking the important role of social interactions. This is not only conceptually problematic but also presents a practical management problem. As a response, a practice-based approach, which relies on a “becoming” ontology, is adopted for a practical explanation of design coordination for more effective design management. The adopted methodology suggests that design develops as a result of unfolding (path-dependent) individual actions and interdisciplinary interactions. Based on this, the concept of a “shared sense of purposefulness” is proposed to refer to the temporary and precarious organizational state of a design team in which each of the interacting team members has achieved a state of purposefulness to resume individual action. Hence, design coordination in construction is redefined as continuously re-establishing and maintaining “a shared sense of purposefulness”. The concept’s usefulness for understanding the practice of design coordination is demonstrated using data collected from a project in the UK. The discussion enables fresh insights into the everyday operation of design coordination. It is concluded that the proposed conception paves a way forward both for the research and practice in construction design management.

Creating social value within the delivery of construction projects: the role of lean approach

PurposeThe purpose of this paper is to present the current knowledge surrounding social value (SV) and show how lean approach supports SV realisation in the delivery of construction projects.Design/methodology/approachA critical literature review was adopted, to gather the current knowledge surrounding SV from mainstream management sciences, construction management and lean literature. A total of 70 studies were critically reviewed.FindingsThe study establishes that the current level of awareness on SV is still low and there is a dearth of scholarly publications on SV especially in the construction management literature. The investigation reveals the potentials of lean approach in supporting the delivery of SV on construction projects.Social implicationsThis study conceptualises the community and the physical environment around where the construction project is executed as customers using lean production approach. It shows that the transformation, flow and value view supports smooth workflow, which enhances the achievement of SV objectives. This creates a new insight into how SV can be realised in construction project delivery.Originality/valueThis study extends the on-going debate around the need for SV in construction project delivery and contributes to construction management and lean construction literature on SV. Future studies could build on this to obtain empirical data and develop an approach/method that would support the evidencing of SV delivery on construction projects.

Study on the influence factors of urban subway project delay in the initial construction stage

The factors that lead to the delay of construction project of urban subway construction are complicated. In this paper, the influence factors of urban subway project delay in the initial construction stage was studied and the urban subway project delay evaluation system consisting of 37 key indicators was established by combining with the first-hand data obtained from the subway construction management and related literature. The weight of each indicator in the evaluation system was calculated by using the structural equation model to analyze the data of the questionnaire. The core influencing factors are analyzed and the corresponding suggestions were put forward to minimize the occurrence of delays in subway construction.

The Moderating Effect of Guanxi on the Dynamic Capacity and Competitive Advantage of Chinese International Contractors

With the active support of the national policy “One Belt and One Road” Initiative, Chinese contractors seized this historic opportunity to accelerate strategic globalization, and they gradually stood out in international construction projects owing to their low-cost advantage. However, despite China having large-scale contractors and wide-range business, compared to developed countries, a considerably large gap still exists. China is confronted with complex and changeable international projects filled with increasing competition. Thus, it is both a focus issue and a major task for Chinese international contractors, and many scholars, to consider how Chinese contractors can obtain and maintain long-term competitive advantages to improve their capabilities in response to dynamic environmental changes. Therefore, the objectives of this study are (1) to study the influence of the dynamic capability of Chinese contractors on competitive advantage in a project and (2) to explore the moderating effect of Chinese guanxi on the dynamic capability and competitive advantage of Chinese international contractors. This study primarily aimed at researching the impact of dynamic capacity of Chinese contractors on competitive advantage and the moderating effects of Chinese guanxi. The findings suggest that the environmental perception capability and the integration and coordination capability of the dynamic capability have a significant positive effect on the project competitive advantage; business guanxi positively moderates the relationship between the environmental perception capability and the competitive advantage. Business guanxi also negatively moderates the relationship between learning ability and competitive advantage, while political guanxi negatively moderates the relationship between the environmental perception capability and competitive advantage. This paper contributes to the construction management literature not only by providing empirical evidence on the dynamic capability and competitive advantage of Chinese contractors but also by expanding guanxi research. The results may also help Chinese contractors by providing strategic reform guidance and sustainable development in international construction projects.

ON MODELING ACTIVITY CRASHING AND OVERLAPPING: A FIRST ALGORITHM

Accelerating construction projects is a commonly used method for meeting the project deadlines and/or compensating for current delays. There are several approaches to speed-up a project, such as activity crashing and overlapping. Activity crashing means reducing activity durations through adding more resources. Activity overlapping means executing certain activities in parallel when they were supposed to be sequential in the original plan. Construction management literature is mostly focused on studying each acceleration mode separately, while the focal point of this paper is to develop a joint model and a first algorithmic implementation that involves both acceleration methods. Particularly, on reviewing the project management and scheduling literature, a mathematical model combining activity crashing and overlapping is reformulated. Also, a Genetic Algorithm is implemented on a fictitious case study. Preliminary findings of the model and algorithmic implementations identify that activity crashing alone and a mixed approach are preferred when significant compression is required, whereas activity overlapping is recommended for minimizing compression costs when only a small compression is required.

Conceptual Client Value Index for Post Disaster Reconstruction Contracting Services

To improve client value within contracting services, it is important to understand what clients value and what their priorities are. Following a disaster event, construction service providers are called by clients upon to assist with reconstruction programs. Having knowledge of client values within contracting services in the post disaster situation, service providers are able to provide better service in the disaster rebuild environment. The construction management literature is focused on business-as-usual construction and its relative values, rather than post disaster reconstruction. The objective of this paper is to explore the most important client values within contractor’s services in post disaster reconstruction situations from public and private sector clients’ perspectives. The study includes a literature review and questionnaire survey. Key client values within contracting services under the nine Project Management Institute knowledge management categories were identified. These values can be used as a basis for developing good practice for reconstruction following a disaster. As part of a aim to develop an assessment tool towards improving client value, by providing better contracting services, a client value index is proposed.

Rethinking the challenges to the pricing of projects in the Ghanaian construction industry

PurposeThe aim of the paper is to examine the challenges to the pricing of construction projects in the Ghanaian industry. This remains a persistent problem among construction stakeholders because price is the basis for which offers are made. Project stakeholders are always faced with challenges relating to effective and efficient pricing system making it difficult to achieve value for money.Design/methodology/approachResearch data were collected through a questionnaire survey involving quantity surveyors in the Ghanaian construction industry. Data collected were analyzed using exploratory factor analysis which helped to reduce the factors into six components. Confirmatory factor analysis (CFA) was further carried out to explore whether these six observed variables would form a latent variable called challenges to pricing of construction projects.FindingsThe paper highlighted six underlying challenges which were cost-related, managerial-related, quality-related, variation of works, poor understanding of the terms of contract and time-related. Strong and significant relationships were found between all six of the observed variables. A CFA confirmed that they formed a latent variable the authors called challenges to pricing of construction projects.Research limitations/implicationsThe findings clearly can serve as a reference for both developed and developing countries in the quest for finding an antidote to pricing challenges. In addition, use of CFA improves measurement of the constructs and thus enhances understanding of the underlying components of a construct and their individual relationship with pricing. The paper is particularly useful for policy making and industry regulation because it identifies some of the factors that need attention.Originality/valueThis paper presents an exceptional contribution to the construction management literature by concentrating on the factors that challenge effective and efficient pricing system in the construction industry.

The professionals’ perspective on the causes of project delay in the construction industry

PurposeConstruction project delays are described as a universal problem, which has led to many empirical studies. However, most of these studies were based on the rankings by respondents, and they were rarely verified. Therefore, the purpose of this paper is to explore professional perspectives on the causes of delay in the construction industry, where there has been little explicit consideration on this subject in recent decades.Design/methodology/approachA critical literature review and a qualitative approach was considered for a deeper and fresh understanding of the causes of delays, rather than recycling the existing themes and the risk of a statistically biased approach. A total of 41 interviews were undertaken which included the London Olympic 2012 project team.FindingsIn all, 32 themes were identified, which were categorised into 15 categories of causes of delay in the construction projects. Almost two-thirds of the main themes are not ranked top 15 causes of delay. These include knowledge and competence shortage, poor commercial decisions, unnecessary health and safety restrictions, poor risk management and poor space and logistics management.Research limitations/implicationsDue to the qualitative nature of the study, the findings might not be considered as representative.Practical implicationsThe findings provide consideration of the causes of delay in the construction industry as seen by practitioners, which should provide guidance to enhance performance.Originality/valueThe study contributes to the better understanding of the causes of delays by using qualitative research strategy which is limited in the construction management literature. This study is an empirical investigation into the causes of delay in the twenty-first century and it represents an important edition to the body of knowledge within the subject area.

Managing collaborative space in multi-partner projects

Collaboration across company borders in multi-partner construction projects has proven to be challenging. An increasing number of projects aim to strengthen such collaboration by collocating project members from different companies in the same physical space. Yet we know little about the management practices required for taking advantage of such a collaborative space. To begin to remedy this shortcoming, we present an in-depth case study of a hospital construction project that applied a collaborative space and focus on the management practices influencing this space. With the help of affordance theory, we identified two types of management practices and show how they transform across project phases. These management practices included designing the physical elements of the collaborative space, and creating shared collaboration practices for the space. We contribute to the construction management literature by taking the first step in conceptualizing the connections between space, management and collaboration practices in the context of multi-partner projects. We suggest managers to consider carefully what kind of collaboration practices the space is expected to enhance and plan the physical and social space to support it.

IMPROVING PRODUCTIVITY, WORKFLOW MANAGEMENT, AND RESOURCE UTILIZATION IN PRECAST CONSTRUCTION

Construction industry has long dealt with problems such as low productivity, unstable workflow in projects and low utilization rate of resources. Off-site construction, which is a hybrid of mass manufacturing and construction, has significant potential to address aforementioned problems. In order to realize this potential, off-site construction needs to avoid replicating the traditional subcontracting approach and therefore fragmented practice in the construction industry. The current research focuses on restructuring the interaction of resources by using cross-training. Findings show that cross-training resources results in transferring excess capacity from underutilized to over utilized resources in direct or indirect pathways. Such initiatives can significantly improve productivity, workflow management and resource utilization in precast construction that highly specialized resources are not required. The study contributes to the construction management literature by providing insight into dynamics of using multiskilled resources in off-site construction.

Reinforcing cycles involving inter- and intraorganizational paradoxical tensions when managing large construction projects

In recent years, scholars have shown a growing interest in combining control and flexibility when organizing and managing large construction projects, in contrast with the traditional focus on control. Prior research recognizes that there is a paradoxical tension between control and flexibility, meaning that, while both approaches make sense individually, they appear impossible to combine. Large construction projects are interorganizational, which means that tensions between interorganizational control/flexibility coexist with tensions between intraorganizational direction/empowerment, but the interplay and possible reinforcing cycles involving the two tensions have rarely been investigated in prior research. A multiple case study of four large construction projects with three rounds of interviews show how intraorganizational direction/empowerment can influence interorganizational control/flexibility and vice versa, and demonstrate both vicious and virtuous reinforcing cycles that involve the two types of tensions. Therefore, contributing to the project management and construction management literature, it is argued that employing a systemic approach when studying interorganizational projects is essential. A systemic paradox perspective can reveal interdependencies between tensions at different organizational interfaces, improve the understanding of how individuals in all managerial positions interplay, and explain how reinforcing cycles emerge and develop; this is important to recognize when organizing, staffing and managing large construction projects.

Overrun causations under advance payment regimes

PurposeEvidence suggests project owners could use advance payments to prevent cost escalations. The purpose of this paper is to elicit the relationships between causations of overruns when advance payments are issued to contractors.Design/methodology/approachIn total, 97 responses from a questionnaire survey were analysed. Additional data on 51 projects, completed between 2000 and 2014 under different advance payments regimes, were also obtained and analysed.FindingsProject owners issue advance payments to contractors so as to avoid delays. However, statistical correlation between advance payments and overrun causations are not significant. Although cost overruns were higher in large projects than in small projects, schedule overruns were more in small projects than in large projects. Schedule overruns were caused most significantly by contractors’ site management approaches. Design and documentation issues were identified as the most prevalent cause of cost overruns. Regression models are proposed to elicit overruns when advance payments are issued.Practical implicationsExtant debates on project overruns in construction and project management literature are robust. Nonetheless, the study elicits considerable knowledge gaps regarding the roles of advance payments in fostering project performance.Originality/valueThis pioneering work indexes the relationship between advance payment and project overruns in Nigeria. It is also the first attempt to document the probability distribution of overruns in Nigeria, particularly under specific advance payment regimes.

Procurement strategies for enhancing exploration and exploitation in construction projects

PurposeThe purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.Design/methodology/approachThis paper is based on a literature review of organizational research and construction management literature together with a brief interview study of Swedish clients and contractors.FindingsThe theoretical and empirical findings propose that small and simple projects with low uncertainty and scarce resources may focus on exploitation to enhance short-term efficiency through traditional procurement strategies including delivery systems that separate the actors and their activities (i.e. pure design-build- or design-bid-build-contracts), fixed price payment and price focus in bid evaluation. Large complex projects with high uncertainty and customization benefit from combining exploration and exploitation to enhance sustainable performance. This requires collaborative procurement strategies including joint specification through early contractor involvement, cost reimbursement coupled with incentive-based payment, bid evaluation based on multiple criteria and collaborative tools and activities in partnering arrangements.Research limitations/implicationsThis paper contributes to organizational learning literature by pinpointing the need for integrating procurement strategies that enhance combination of exploration and exploitation. The main contribution to the construction management literature involves the investigation of how procurement strategies may affect exploration and exploitation, as identified and articulated in the propositions developed in this paper.Practical implicationsFrom a practical perspective, the findings highlight the importance of tailoring procurement strategies to project characteristics to enhance a suitable balance between exploration and exploitation in construction projects.Originality/valueThe explicit focus on the operational project-level is uncommon but relevant in organizational learning literature.

Expert knowledge in the making: using a processual lens to examine expertise in construction

Expertise in construction has typically been associated with the esoteric, where experts occupy privileged positions through their possession of specialist skills and knowledge. In this conceptual piece, an attempt is made to broaden this view of expertise found in the construction management literature by drawing on a reading of the process philosophical writings of Henri Bergson and others. Re-reading expertise from a processual standpoint, it is argued that our conceptualization of expertise in construction management should move beyond its treatment as a thing to bring to the fore expertise as an open-ended, ongoing, ever-evolving process of becoming. At the heart of this ontological shift of expertise in construction lies the emphasis on the tacit and recognition that expertise is, at the same time, interactional, intuitive and incidental. These ideas are illustrated in a vignette of environmental expertise in an airport context.

Practitioners deconstructing and reconstructing practices when responding to the implementation of BIM

When managers are implementing change, practitioners are sometimes seen as the receivers of the change. However, practitioners often need to actively create the changes to daily practices because managers might not be familiar with the practices. Building information modelling (BIM), an important driver of organizational change, requires change not only by bringing new technology into use but also to the practices of collaboration between different professions. In their daily work, practitioners can create new practices through reflective learning. We have a limited understanding of how practitioners are actively involved in a change through reflective learning when implementing BIM. To address this limitation, we conducted a qualitative case study. Our primary data consist of interviews, which were analysed with insights from philosophy. We identified two methods of reflective learning from the data: deconstruction and reconstruction. Deconstruction occurs when the new requirements for the practices are based on different ideas of work, which asks practitioners to change their old ideas before creating new practices. Reconstruction does not necessarily require changes to the basic ideas of work but changes are seen more as improvements. Our research contributes to construction management literature by linking the reflective learning of practitioners to the change caused by BIM.

Paradoxical Organizational Tensions between Control and Flexibility When Managing Large Infrastructure Projects

AbstractRecent socioeconomic changes have created and intensified paradoxical organizational tensions that companies in numerous industries, including the construction sector, need to address when organizing and managing their activities. The nature of these tensions has not been sufficiently explored in the existing construction management literature. Thus, this study analyzes tensions between control and flexibility at different organizational interfaces, as perceived by the managers of three large infrastructure projects that were parts of two different megaprojects in Sweden. The empirical findings highlight several tensions within three types of interfaces, that is, external, intraorganizational, and interorganizational tensions, that are important for both project managers and project owners to understand. This paper contributes to the project and construction management literature by illustrating the importance of a systemic paradox perspective, which is obtained by combining the paradox literature...

Collaborative learning model of infrastructure construction: a capability perspective

Purpose – The purpose of this paper is to propose a new model to show how continuous joint learning of participant organisations improves project performance. Performance heterogeneity between collaborative infrastructure projects is typically examined by considering procurement systems and their governance mechanisms at static points in time. The literature neglects to consider the impact of dynamic learning capability, which is thought to reconfigure governance mechanisms over time in response to evolving market conditions. Design/methodology/approach – There are two stages of conceptual development. In the first stage, the management literature is analysed to explain the standard model of dynamic learning capability that emphasises three learning phases for organisations. This standard model is extended to derive a novel circular model of dynamic learning capability that shows a new feedback loop between performance and learning. In the second stage, the construction management literature is consulted, adding project lifecycle, stakeholder diversity and three organisational levels to the analysis to arrive at the collaborative model of dynamic learning capability. Findings – The collaborative model should enable construction organisations to successfully adapt and perform under changing market conditions. The complexity of learning cycles result in capabilities that are imperfectly imitable between organisations, explaining performance heterogeneity on projects. Originality/value – The collaborative model provides a theoretically substantiated description of project performance, driven by the evolution of procurement systems and governance mechanisms. The model’s empirical value will be tested in future research.