Construction Megaprojects Research Articles

Advancing Circular Economy in Construction Mega-Projects: Awareness, Key Enablers, and Benefits—Case Study of the Kingdom of Saudi Arabia

Advancing Circular Economy in Construction Mega-Projects: Awareness, Key Enablers, and Benefits—Case Study of the Kingdom of Saudi Arabia

Dynamic incentive mechanisms in mega project-risk management considering the participation of the insurance company

PurposeThe construction of megaprojects often involves substantial risks. While insurance plays an important role as a traditional risk transfer means, owners and insurance companies may still suffer huge losses during the risk management process. Therefore, considering the strong motivation of insurance companies to participate in the on-site risk management of megaprojects, this study aims to propose a collaborative incentive mechanism involving insurance companies, to optimize the risk management effect and reduce the risk of accidents in megaprojects.Design/methodology/approachBased on principal-agent theory, the research develops the static and dynamic incentive models for risk management in megaprojects, involving both the owner and insurance company. The study examines the primary factors influencing incentive efficiency. The results are numerically simulated with a validation case. Finally, the impact of parameter changes on the stakeholders' benefits is analyzed.FindingsThe results indicate that the dynamic incentive model is available to the achievement of a flexible mechanism to ensure the benefits of contractors while protecting the benefits of the owner and insurance company. Adjusting the incentive coefficients for owners and insurance companies within a specified range promotes the growth of benefits for all parties involved. The management cost and economic benefit allocation coefficients have a positive effect on the adjustment range of the incentive coefficient, which helps implement a more flexible dynamic incentive mechanism to motivate contractors to carry out risk management to reduce risk losses.Originality/valueThis study makes up for the absence of important stakeholders in risk management. Different from traditional megaproject risk management, this model uses insurance companies as bridges to break the island effect of risk management among multiple megaprojects. This study contributes to the body of knowledge by designing appropriate dynamic incentive mechanisms in megaproject risk management through insurance company participation, and provides practical implications to both owner and insurance company on incentive contract making, thus achieving better risk governance of megaprojects.

To collaborate or not to collaborate: A transaction cost economics approach to construction contracts in public-private partnerships

Public-Private Partnerships (PPPs) are often seen as a cost-effective way of providing public infrastructure. However, mega-construction projects involve many hidden costs that arise during the project life cycle. These costs are known as transaction costs. This article investigates how a construction contract under a PPP can reduce transaction costs. Using Transaction Cost Economics (TCE), the article draws on empirical studies from six countries to identify four factors that affect transaction costs in construction contracts namely: (i) Concessionaire predictability, (ii) Contractor predictability, (iii) Project Management Efficiency, and (iv) Project Environment Uncertainty. Different types of construction contracts were comparatively analysed against the aforementioned four factors. The findings indicate that collaborative contracts are more likely to favourably address these four factors by lowering transaction costs compared to non-colloborative contracts. The article concludes that using collaborative contracts can make infrastructure PPPs more affordable than other public procurement methods.

Urban commercial marketing and economic factors, an evidence from Mashhad (Iran)

The present study attempts to spatial and temporal analysis of the reactions between urban commercial marketing and influencing economic factors in Mashhad City (Iran). For this purpose, statistical and spatial data from 18 selected commercial complexes and trading towers were collected using official documents, fieldwork observations, and surveys of some interviews for time windows of 2010 and 2020. The total annual revenue, as the commercial marketing indicator, was chosen as the dependent variable to indicate the mean productivity and profitability of shop stores in the case studies. Besides, eight factors, including commercial marketing and urban regional characteristics were chosen as independent factors. Results revealed that the mean values of commercial interest rates were recorded equal to 0.71 and 0.64 in 2010 and 2020, revealing the overall decrease in profitability of the commercial complexes within the recent decade. Despite the growing rate of construction of renewal mega projects and trading towers in the central district of Mashhad City, the marketing revenues and commercial interests had no positive relationships with city center profits in the recent decade. The land price market has severely changed the spatial structure and economy of Mashhad, such as commercial projects and marketing. It means that the main motivation for marketing in commercial complexes can be considered as regional land values instead of the traditional function of the religious city center.

Practical approach for analysing and engaging stakeholders in construction megaprojects

Purpose: The construction industry is a complex environment, it is facing massive challenges, especially on megaprojects, due to the huge construction development and stakeholder management (SM). This paper seeks to explore, investigate, and assess the methods for analysing and engaging stakeholders on construction megaprojects to overcome stakeholder management problems and enhance performance. Methodology: The quantitative methodology is adopted in this research; a questionnaire survey is carried out among big construction firms in Qatar, with a 59% response rate. Quantitative data analysis was conducted using the statistical package for social science (SPSS) software. Findings: This paper investigated and assessed the common methods for analysing and engaging stakeholders on construction megaprojects, where they come together more integrative. Hence, this will boost their chances of reaching higher levels of success and project effectiveness. Lastly, the findings are foreseen to aid project managers in adjusting their strategies when considering future implementation plans via a broad picture and understanding of SM and their relationships in CMPs. Practical implications: Investigating and assessing the methods for analysing and engaging stakeholders is expected to assist project managers in improving projects’ performance and completing construction within the predefined time and cost. Besides, it enhances and strengthens the present body of knowledge in SM study domains and provides a starting point for practitioners and academics. Originality: This study contributes significantly by investigating and assessing the methods for analysing and engaging stakeholders in MCPs. Moreover, the findings are important for all concerned project stakeholders and are considered as a roadmap for effective stakeholder management in MCPs.

Value Engineering Adoption’s Barriers and Solutions: The Case of Saudi Arabia’s Construction Industry

Several developing countries around the globe have launched their future visions, which include concrete strategic plans that involve many kinds of mega-construction projects. One common goal across these visions is to increase the efficiency of construction projects’ huge expenditures using recent sustainable, practical engineering tools, such as the value engineering (VE) approach. Although the VE approach has been around for a few years now, some barriers prevent the popularity of its application in different construction projects. This research investigates the barriers to adopting VE through a systematic literature review. This study has categorized the application barriers using thematic analysis under three main categories: barriers related to practitioners’ knowledge and background, barriers associated with the behavior of practitioners towards VE, and barriers related to the implementation of VE. Moreover, this research has investigated solutions to overcome these barriers and improve the application of VE in construction projects. Saudi Arabia’s construction industry is used as a case study. A survey was distributed to Saudi construction industry practitioners using the snowballing technique to evaluate the criticality of the found barriers to adopting VE and the best strategic solutions to overcome these barriers using the importance–performance analysis (IPA) approach. Based on the results of this study we have specifically recommended including a VE course in college engineering programs and an incentive clause in construction contracts to encourage VE application on construction projects at the top of the list of proposed solutions. Finally, defining the criticality of barriers and the effectiveness of solutions will help enhance the application of VE and sustainability practices in the Saudi Arabian construction industry and around the globe.

Developing a Project-Expectancy Inventory for the Construction Industry from the Owner’s Perspective

Although current research recognizes the importance of the Expectancy Theory in the construction industry, a standardized project expectancy (PE, hereafter) inventory is still an area for further exploration, especially from the owner’s perspective. This inventory is essential to identify the owner’s expectancy priorities and help select partners aligned with their long-term and sustainable project goals. Based on the Expectancy Theory, a PE inventory is proposed after conducting a comprehensive literature review. It incorporates dimensions like goal difficulty, perceived control, and self-efficacy. The reliability of the inventory is confirmed by analyzing data from 197 construction-project openers through partial least squares structural equation modeling (PLS-SEM, hereafter). The findings indicate that perceived control is the most crucial dimension in PE, followed by self-efficacy and goal difficulty. A tunneling construction megaproject in Southeast China is presented as a case study. It suggests that when selecting partners for construction projects, the project owner should prioritize those amenable to control, thereby enhancing teamwork and collaboration quality. This strategy emphasizes the importance of the owner’s command over project operation, rather than merely focusing on the partners’ capabilities.

Does owners’ leadership matter to relational behavior in mega construction projects? A role orientation perspective

PurposeAlthough researchers have long recognized the importance of participating organizations’ (POs) relational behavior for mega construction projects (MCPs) performance, relational behavior may not be executed by POs without effective leadership from project owners. However, little is known about the mechanisms linking owners’ leadership styles to POs’ relational behavior. This study draws on full range leadership theory and role theory to examine the relationships between owners’ leadership styles (i.e. transformational and transactional) and relational behavior. POs’ role orientations (i.e. normative and economic) are considered as potential mediators.Design/methodology/approachData were collected from 175 managers deeply involved in MCPs. Hierarchical regression model and bootstrapping methods were performed on the data to examine the direct effects of owners’ leadership on POs’ relational behavior and the mediating effects of POs’ role orientations.FindingsThe results revealed that both owners’ transformational and transactional leadership positively affect POs’ relational behavior, despite the former being higher than the latter, and indirectly influence relational behavior via POs’ normative and economic role orientation, respectively.Practical implicationsThis study provides a clear picture of how owners’ leadership can motivate POs’ relational behavior to achieve high-quality inter-organizational relationships in MCPs. The findings can guide owners’ top manager selection by prioritizing those with transformational leadership, which is beneficial to achieving high-level relational behavior of POs. The results also imply that owners should pay greater attention to cultivating POs’ normative role orientation by encouraging teamwork and open communication to enhance their implementation of relational behavior.Originality/valueUnlike previous research focusing more on intra-organizational leader–follower relationship within one PO, this study is one of the first to empirically confirm owners’ leadership as a critical antecedent of POs’ relational behavior, thus enhancing the theoretical understanding of inter-organizational relationship management in MCPs. Based on role theory, this study considers a novel organizational psychology mechanism, i.e. POs’ role orientations, as the mediator to unravel how owners’ leadership affects POs’ relational behavior, which was rarely invoked in MCP leadership literature.

External drivers of inter-organizational collaboration in megaproject: a perspective based on project governance

PurposeInter-organizational collaboration is the organizational guarantee and key link to achieve the goals of megaproject management. Project governance has always played an important role in the construction of megaprojects, but the relationship between project governance and organizational collaboration is unclear. The purpose of this study is to explore the role paths of different project governance mechanisms in influencing the collaborative behaviors of stakeholders and collaborative performance and to elucidate the mechanism of project governance on inter-organizational collaboration.Design/methodology/approachA conceptual framework was developed based on a comprehensive literature review, termed the structural equation model (SEM). The hypotheses of the model were tested based on data obtained from a questionnaire survey of 235 experts with experience in megaprojects within the construction industry in China.FindingsThe results show that project governance positively contributes to the collaborative behavior of megaproject stakeholders and the collaborative performance of the project team. Collaborative behavior acts as a partial mediator between project governance and the collaborative performance of the megaproject inter-organization alliance. The complexity of the project modulates the relationship between the governance mechanism of the project and the collaborative behavior of the stakeholders, which affects the collaborative performance of the megaproject inter-organization alliance.Originality/valueThe findings provide theoretical and practical implications for promoting positive collaborative behavior among stakeholders in megaproject selection and improving the collaborative performance of megaproject inter-organization alliances.

Technological Innovation Cooperation in Mega Construction Projects: A Conceptual Framework

Due to the dynamic and complex nature of mega construction projects (MCPs), mega construction project risks (MCPRs) have significantly increased in recent years. Technological innovation cooperation (TIC) is accepted as an approach to solve these issues. However, considering the new technological innovation challenges, technological innovation risks (TIRs) have been identified as a limitation of TIC. This study aims to develop a conceptual framework to explain TIC for MCPs. It is based on a review of the literature, engineering practice, and logical reasoning. The conceptual framework describes the interaction between MCPRs and TIC. It points out that MCPRs drive technological innovation, and technological innovation objectives guide the TIC. TIC has a negative effect on solving TIRs, and TIRs positively affect MCPRs. Cooperation performance will mediate the relationship between TIC and MCPRs. The conceptual framework may provide a theoretical basis to guide future empirical studies that validate the relationship between MCPRs and TIC and puts forward reasonable suggestions for MCPs.

Developing a Model to Improve the Efficiency of Maintenance Management for Service Buildings Using BIM and Power BI: A Case Study

Developing a Model to Improve the Efficiency of Maintenance Management for Service Buildings Using BIM and Power BI: A Case Study

Exploring mega-construction project success in China's vaunted Belt and Road Initiative: the role of paternalistic leadership, team members' voice and team resilience

PurposeThe traditional Chinese culture has always emphasized the authority of leaders and their “top-down” influence over subordinates tangled with “bottom-up” management. Paternalistic leadership can both nurture and restrict growth in mega-construction projects, due to the unique consequences (i.e. positive vs negative implications) for project teams. Hence, the present study aimed to explore the impact of paternalistic leadership (PL), team members’ voice (TMV) and team resilience (TR) on the mega-construction project success (MPS) in China's Belt and Road Initiative (BRI).Design/methodology/approachA surveyed-based sample of project professionals (N = 563) directly linked with the BRI was employed for statistical estimations with partial least squares (PLS) structural equation modeling (SEM).FindingsPaternalistic leadership styles, including authoritarian leadership (AL), moral leadership (ML) and benevolent leadership (BL), significantly influence the mega-construction project success in BRI. The findings empirically validated that both BL and ML increase the likelihood of mega-construction project success. However, AL could impose a threat through its underlying negative influence. In addition, leaders with benevolence and morality have a positive influence on TMV and TR, while leaders with authoritarianism signal a negative impact. Furthermore, both TMV and TR significantly and positively mediate the relationships between AL-MPS (Model-1), BL-MPS (Model-2) and ML-MPS (Model-3), respectively.Originality/valueThe present study is a groundbreaking endeavor that fills a crucial research gap by investigating mega-construction project success in the BRI through paternalistic leadership, project team members' voice and team resilience in a multi-mediation model. These novel findings offer valuable strategic insights for managing mega-construction projects in countries with paternalistic solid cultural foundations, enabling project managers to navigate cultural nuances and optimize megaproject outcomes.

Improving the Safety of Megaconstruction Projects

Megaconstruction projects (MCPs) have many beneficial impacts on urban development, such as the creation of infrastructure for other industries, economic development, and employment generation. Global spending on MCPs implies an investment boom in the construction sector. In such a scenario, the safety of workers at worksites becomes a major social responsibility and challenge. The construction industry has the highest accident rate and is considered the most dangerous industry globally. It is thus imperative to prevent such a situation and move toward safer construction. Many studies exist on safety issues in construction projects, some of which have determined critical success factors (CSFs) for safety. However, safety studies specifically on MCPs are limited. In the literature, no study was found to have determined CSFs for the safety performance of MCPs. To fill this gap, this study aimed to determine success attributes for the safety of MCPs, evaluate their underlying structure, and determine CSFs and their relative importance. Based on a literature survey and discussions with experts, attributes were prepared. Data were collected through a questionnaire survey, in which industry experts with experience of handling megaprojects were asked to rate the degree of safety arrangements in a select megaproject with which they were associated. They were also asked to rate the impact of attributes on the safety of the project. Subsequently, exploratory factor analysis was conducted to group the attributes into smaller sets of factors. Using multiple regression analysis, CSFs and their relative importance were determined. This study found five success factors and three CSFs. The CSFs were as follows: management support and commitment, adherence to safety rules and procedures, and a proactive approach of supervisory staff. The findings of this study have theoretical as well as practical application. In theory, this study adds to the body of knowledge, while in practice it provides CSFs for safety for stakeholders to adopt in their projects to enhance their safety performance. Since this study is unique to megaprojects, a need exists for similar studies to be conducted in the future to create a pool of data for comparison and further analysis.

The contagion effect of corporate environmental responsibility in megaprojects: Analyzing underlying processes

The corporate environmental responsibility (CER) performance of contractors is a critical antecedence for the sustainable construction and operation of megaprojects. Studies have confirmed that individual or organizational traits, as well as the external institutional environment, influence contractors' CER decisions and behaviors. However, researchers have neglected the crucial fact that in a megaproject organization, other contractors' environmental responsibility practices also may affect the environmental responsibility decisions of the focal contractor, which refer to as the “contagion effect of CER in megaprojects”. This study examined the authenticity of this contagion effect and develops a conceptual framework to reveal the contagion process. Using 249 survey data from contractor managers with megaproject construction experience, the results confirm the contagion effect of CER in megaprojects. The detailed contagion process is that the focal contractor employees' organizational pride and social capital perception are activated by other contractors' CER practices, thereby choosing to follow other contractors to adopt similar CER strategies. Meanwhile, this process is partially moderated by contractors' megaproject identification. Specifically, contractors with a high level of megaproject identification will have greater organizational pride when observing other contractors' CER practices. However, megaproject identification does not change contractors' social capital perception level. This study provides valuable insights into understanding the contagion process of CER among contractors in megaprojects, and the related findings can help owners effectively incentive contractors' CER intentions to achieve higher megaproject sustainability performance.

A Decentralized and Automated Contracting System Using a Blockchain-Enabled Network of Stakeholders in Construction Megaprojects

With recent advances in information and communication technologies, trust and collaboration have become imperative in the construction industry. The increasing exchange of digital information and assets without much regard to contractual requirements has resulted in various data corruption, privacy, and security issues escalating to claims and disputes. Hence, there is a need to institute reforms in the existing contracting system to achieve a more efficient, collaborative, and transparent system. However, little research has investigated the digitalization of the contracting process, which continues to be traditional. This study is one of the first to develop a digital and automated contract management system leveraging blockchain technology and smart contracts. Design science research methodology was adopted for the research work. The proposed system aims to achieve the following: (1) a decentralized permissioned network of stakeholders with well-defined roles and approval workflow, (2) automated contract execution based on predefined conditions using smart contracts, and (3) transaction history integrity with time stamps via a blockchain-based secured data structure. To exemplify these points, a use case is presented for implementing blockchain-based contract management in a construction megaproject. A conceptual model was developed illustrating the decentralized network of the key project stakeholders based in a Hyperledger Fabric blockchain environment. The roles and access controls of the stakeholders within the network are defined using the responsibility assignment [responsible, accountable, consulted, and informed (RACI) matrix]. A computable and automated smart contract clause is formulated for the price variation clause used in construction contracts. A prototype of the proposed system was developed and demonstrated to industry experts for evaluation and validation. Positive feedback from the experts concerning the system characteristics and user-friendliness of the prototype showed that it possesses the potential to improve trust and transparency in the existing system. Whereas the decentralized stakeholder network would add trust and accountability to the system, the underlying blockchain data structure would enhance security and traceability by providing an immutable and real-time record of the transactions. The study provides a workable solution that serves as a valuable reference for future research in the field of contract management across multiple sectors. Although the system is shown to be applicable and feasible in this study, it may not be economically viable. It could be optimized in the future through cost–benefit analysis for different projects.

Efficiency of risk management for tunnel security of megaprojects construction in China based on system dynamics

ABSTRACT There have been repeated security incidents in megaproject tunnels, construction security issues are particularly serious, and the management of security risks is receiving increasing attention. This study was conducted to improve the efficiency of tunnel security risk management, the security risk management process was adopted as an entry point, based on the Observe-Orient-Decision-Action (OODA) model, the influencing factors index system for the efficiency of security risk management in megaproject tunnels from four dimensions: observe, orient, decision and action. The AHP-EWM method is applied to assign index weights to model the system dynamics of security risk management efficiency. The Vensim software was used to simulate and analyse the effect of different indices on the efficiency of security risk management under different conditions, which provides a reference for improving the efficiency of security risk management. The results of the study show that building a comprehensive and uninterrupted risk information awareness network, real-time adaptation of risk control strategies based on the complexity of risks, and shortening risk management delays can effectively increase the efficiency of dynamic security risk management. This provides a theoretical and practical reference for effectively improving the efficiency of risk management for tunnel security in megaproject construction.

Development of a Performance Index Model for Evaluation of BIM-Based Stakeholder Management Using Fuzzy Synthetic Evaluation

A continuous evaluation of the stakeholder management process can be achieved using definitive key performance indicators (KPIs). An exhaustive literature survey in this direction provided a set of 26 indicators assessed through a questionnaire survey for their possible implications on the stakeholder management process. The survey was conducted among 55 respondents with experience in using building information modeling (BIM) in mega-construction projects. The data were initially analyzed through factor analysis to establish six KPIs. Fuzzy synthetic evaluation (FSE) was used to evaluate the index values of the established KPIs to assess their importance levels. The results presented the KPIs in decreasing order of their index values: asset performance (4.27), open innovation (4.04), project O&M expenses (3.97), design process efficiency (3.95), project execution efficiency (3.90), and stakeholder concerns (3.59). The results generated a stakeholder management process assessment framework and model that provides a clear insight into using an indicator in measuring the specific stakeholder management dimension. The findings of this work can provide definite insight amongst planning managers about the stakeholder management process through the posited indicators. Further, they can adopt measures to improve the stakeholder management process in their respective projects.

Identification and Evaluation of Success Factors for the Sustainability Performance of Megaconstruction Projects

Identification and Evaluation of Success Factors for the Sustainability Performance of Megaconstruction Projects

Learning in MTS of Construction Megaproject: A Conceptual Framework

The construction megaproject team (CMPT) emphasises integration as a megaproject multiteam system (MTS) to facilitate knowledge learning. This paper synthesises the CMPT structure characteristics and team learning processes into a conceptual framework named the CMPT-MTS learning framework to advance future CMPT learning research. The constructs included are identified from published research. A case example is the island and tunnel project of the Hong Kong–Zhuhai–Macao Bridge, which provides practical grounding for framework refinement. The conceptual framework deemed to follow a cyclical pattern identifies the CMPT-MTS structure variables and team learning processes affecting learning outcomes and contextual variables hypothesised to influence the intra- and inter-team interaction. We discuss how the conceptual framework might identify the CMPT learning research gaps for future research. The framework’s contribution to the body of knowledge expands our lens to understand team learning practices in the complex CMPT by considering CMPT as an MTS.

Tripartite Evolutionary Game Analysis of Participants’ Behaviors in Technological Innovation of Mega Construction Projects under Risk Orientation

Technological innovation of mega construction projects (MCPs) plays a crucial role in promoting upgrades to the construction industry. However, MCPs are complex and the transformation ratio of technological innovation achievements is generally low. To achieve the goal of technological innovation of MCPs which requires organizations from multiple fields to participate, it is critical to find the factors that influence cooperation and subsequently reduce the risk of technological innovation. Therefore, taking the risk as the guide of participants’ behaviors, this study constructs an evolutionary game model by tripartite participation: the owners or the representatives of the users who rely on the MCPs with technological innovation (the Users), the construction production enterprises (the CPEs), and the universities and the research institutes (the URIs). We derive the evolutionary stable strategy and apply matlab2020a for simulation analysis. The findings are as follows: (1) The strategy choice of the participant will be influenced by the strategy choices of other participants. (2) Collaborative cooperation for all parties is the evolutionary stable strategy. (3) The sensitivity of the participants to different parameters is different, and they are more sensitive to the perceived loss of technological innovation risk, risk-taking ratio, technological innovation investment, and cost compression coefficient. Based on the research results, the study provides effective suggestions for the Users and the government. The Users can quantify risk loss, refine risk management and establish collaborative cooperation evaluation indexes, and it is necessary for the government to encourage technological innovation of MCPs.