Contractor's Perspective Research Articles

Determining success factors in Abu Dhabi health care construction projects: customer and contractor perspectives

ABSTRACTThe importance of project management and its success has been growing along with increasing investment in the construction field. This study aims to identify, categorize and prioritize the critical success factors for health care construction projects in the Emirate of Abu Dhabi. An extensive literature review was carried out to identify the success factors for health care construction projects. The analytical hierarchical process was then applied to prioritize the main criteria and sub-criteria of health care construction project success factors. This study consists of 10 main criteria and 36 sub-criteria relevant to health care construction projects. The respondents of this study consist of two main groups: customers and contractors. The customers were selected from one of the leading governmental hospitals in the Emirate of Abu Dhabi and the contractors are from a major contracting company operating within the health care industry. From each respondent group, leadership positions were selected from relevant departments, including finance, operations, marketing, engineering and supply chain management. The findings of the study show that the leading critical success factor groups are financial capability and management. Moreover, top management support, adequate funding, availability of resources and effective strategic planning were found to be top factors affecting project success. Differences in priorities were observed between customer and contractor perspectives based on the different roles of each stakeholder. To highlight, customers ranked management and financial capability as the two most important factors, respectively. However, contractor respondents indicated financial capability as most important, followed by management and strategy factors, which scored as equally important. As results shown in this study are obtained from only customers and contractors, future studies could include consultants and regulatory authorities, along with considering more success factors.

Key risks in construction projects in Italy: contractors’ perspective

PurposeRisks play an important role in the success of construction projects. Failure in identification and assessment of risks can lead to inadequacy in the process of managing risks, which in turn can critically affect the projects’ resources. A formal risk management is rarely practised in construction projects due to the lack of contractors’ awareness of key risks. The purpose of this paper is to focus on the investigation of risk factors in construction projects in Italy from contractors’ perspective.Design/methodology/approachSemi-structured interviews were conducted to collect data, based on which a total of ten key risks were ascertained. The identified risks were compared with the findings of the surveys conducted in the Australian and Chinese construction industry to address the unique risks associated with construction projects in Italy.FindingsThe key risks included delays in payments, client variations, design variations, inaccurate cost estimates, and tight project schedules. The comparison between those three countries specified the delays in payments and project funding problems as the most critical factors that are related to cultural influences and behaviour of clients. The findings assist contractors in the risk identification process, and can be applied to the development of a risk management framework for construction projects.Research limitations/implicationsThe findings of this study cannot be generalised statistically for the whole of Italy as it was constrained geographically, with respondents drawn only from a self-selection sample of construction projects in the Veneto region of Northern Italy. The findings represent a snapshot of the key potential internal and external risks from the perspective of contractors.Originality/valueThe results of the study specified the key risks of construction projects from the perspective of contractors which can contribute to risk management for construction projects.

Effect of change orders on rework in highway projects in Palestine

PurposeThis study aims at identifying the main causes of change orders in highway construction projects, determining the factors that affect rework in highway construction projects, examining the relationship between change orders and rework and at developing a predictive model that will determine the impact of change orders on rework in highway construction projects in Palestine.Design/methodology/approachA questionnaire survey was used to identify the main change order causes and rework causes from the perspectives of contractors and consultants. The questionnaire contained 16 causes of change orders and 19 causes of rework which had been identified from the literature reviewed. The study also identifies the impact of change orders on rework based on data comprising 22 highway construction projects implemented in Palestine. Both descriptive and inferential statistics were used in analyzing the data.FindingsThe study concluded that the five most common causes of change orders can be identified as: change of project scope by owner (additional – enhancement), lack of coordination between construction parties; owner’s financial difficulties, change in materials, and errors and omissions in design. The study has also established that among the various factors that causes rework, non-conformance with specification requirements, scope changes, late design changes, lack of labor experience, lack of labor skills and improper subcontractor selection top the list. Using regression analysis, the results reveal a significant relationship between change orders and rework cost in highway construction projects in Palestine.Practical implicationsBy ranking the various change orders causes and rework causes from the perspectives of consultants and contractors, the study provides a fresh perspective on an old chronic problem in the construction sector. This study has provided evidence on the most significant change orders causes and rework causes in the Palestinian highway construction, as well as the impact of change orders or rework on constructions sites. Finally, although this study is specific to the country of Palestine, its results can be applicable to other developing countries facing similar problems in their public construction sectors.Originality/valueThe results address the common causes of change orders and reworks in highway construction projects in Palestine. The results also address the relation between change orders and rework cost based on data collected from highway construction projects implemented in the West Bank in Palestine. This study is the first study conducted in the West Bank in Palestine to identify the change orders and reworks causes in highway construction projects.

A contractor's perspective on diversity

As a contractor, it is difficult to become an employer of choice. A reputation for and history of attracting and retaining the best of breed people is much harder to forge in an environment where additional layers of cost make the difference between winning and losing business. Yet, it is through a variety of perspectives, gender, and culture that stimulation, productivity, creativity and, innovation happens. All of which are essential to building advantages necessary in today’s market. It is one thing to have stated policies to employ people irrespective of gender, nationality, background, age, physical ability, or sexual orientation. It is quite another to have the necessary business practices and cultural norms that accommodate a diverse range of people. These support networks add additional layers of cost onto any business, and as a contractor, they filter through into contracts. A competitive environment where total costs is the first and foremost consideration takes away the ability to forge shared value for our industry and communities at large. To embrace Diversity in our industry, it is necessary for supply chains to work together with the common goal of improving the participation of a diverse group of people and industry participants having the ability to provide the support networks enabling them to do their best.

Delivering CSO solutions using GC/CM – Owner, Engineer and Contractor Perspectives to Reducing Risk While Being a Good Neighbor

Delivering CSO solutions using GC/CM – Owner, Engineer and Contractor Perspectives to Reducing Risk While Being a Good Neighbor

Multivariate discriminant analysis for assessing residential development projects from a contractor's perspective

The Korean construction market is constantly observing residential development projects performed together by developers and contractors. Although the development cost of the overall project is high, there are no standard methods to help contractors make decisions as to whether to participate in these residential development projects or not. This study proposes a simple and efficient model to assist contractors to determine successful projects with a more standardized and objective decision process. To achieve this goal, 31 project assessment items were selected and their weights were updated by AHP method with more sample sizes. Several independent samples t-tests were also carried out to identify the significant factors that affect the contractor's decision for residential development projects. Using multivariate discriminant analysis (MDA), a prediction model was developed with 109 residential development projects. The results indicated that 82% of the original grouped cases had been classified correctly. Cross validation showed that 81.5% of cross-validated grouped cases had been classified correctly. The simple and efficient model suggested in this study will help contractors make better decisions regarding whether to participate in the residential development projects or not.

Delivering a water treatment plant project using a collaborative project procurement approach

Purpose The purpose of this paper is to explore an interesting complex infrastructure construction case study project in which the initiation/design and delivery phases were managed differently, with diverse assumptions and workplace culture. It uses a recently developed collaboration and relationship-based procurement taxonomy to analyse the decision to commence a project and to deliver the project. The taxonomy tool reveals underlying assumptions and helps explain actions taken. The paper provides a window into the decision-making process. It also illustrates levels of innovation applied at the design and delivery phases. Design/methodology/approach A case study was undertaken, primarily using recorded and transcribed interviews, with five key senior participants in the project. This gathered a client, designer and contractor perspective that was subsequently analysed using a sense-making approach. Findings It is possible to start a project adopting a highly collaborative approach that maximises innovation, understanding complexity and developing a design that can then be delivered using a more traditional approach. The taxonomy used demonstrates that it is a useful visualisation tool for this purpose. Research limitations/implications The research was limited to the perspectives of only five individuals even though they were key decision-makers and had a robust overview of the project as a whole. The delivery phase was chosen as a matter of policy without the ability to break loose from that policy. The implications for beginning the initiation and design process in a highly collaborative hands-on mode influenced the understanding of all parties involved in the project in a positive direction. The case study was based in Australia, which has extensive experience of collaborative project delivery approaches. Practical implications The taxonomy and its ability to provide visualisation of the experienced collaboration presents a powerful tool in helping us understand how it may be useful and what limitations to collaboration exists. Social implications The paper illustrates the value of social interactions as alliance forms tend to consider triple bottom line issues and stakeholder engagement more highly than traditional, transnational approaches to project design and delivery. Originality/value The case study was unusual in its technical complexity; however, the main value of the paper is the application of the taxonomy and visualisation tool as a way to better understand how a project is being managed from a collaboration perspective.

IDENTIFYING THE CRITICAL CAUSES OF CONFLICT IN CONSTRUCTION PROJECTS IN NIGERIA

Completing construction projects entails inputs from various professional disciplines; this makes projects prone to conflicts. It has been acknowledged that management of conflict is crucial to improving project performance. Thus, understanding the causes of conflicts in construction project will ease the process of conflict management. This study sets out to gain an in depth understanding of the causes of conflicts in Nigeria using mixed method research approach. Both questionnaire survey and interview were used to capture the perspective of consultants and contractors on causes of conflicts. Based on the responses, it was evident that poor financial projection on the client’s side is the most significant cause of conflicts. Furthermore, it was found that there are no differences in the perception of both groups of respondents. This finding was also evident from interviews. Thus, there is a need for clients to develop procedures of engaging competent and experienced consultants so as to reduce the likelihood of conflicts. http://dx.doi.org/10.4314/njt.v35i2.8

Benchmark Performance Metrics for Integrated Project Delivery

The construction industry is fraught with waste and inefficiencies resulting in projects often failing to meet owners’ expectations. Integrated project delivery (IPD) is the newest project delivery system (PDS) and changes the traditional roles and relationships of key project stakeholders. Through increased early collaboration, IPD attempts to eliminate waste and deliver the highest-value projects to owners. It is seen as a potential solution to many of the challenges impeding successful project performance. However, a transformational move toward IPD has yet to reach a tipping point, and its use is not prevalent throughout the construction industry. Little research has been done to quantitatively analyze IPD compared with the more commonly used delivery methods. Through substantial collection of quantitative project performance data and univariate statistical analysis, this study fills the gap in PDS research by evaluating the effects of IPD on building construction projects across a wide range of performance metrics from the perspective of general contractors and construction managers. This research demonstrates that IPD/near-IPD outperformed non-IPD projects with respect to performance in communication, change management, and business performance areas. Communication was found superior in terms of the number of requests for information (RFIs) per million dollars; change management in terms of change-order processing time; and business performance in terms of a project’s impact on company image and the potential for return business. A new term called project quarterback rating (PQR), which combines key performance metrics, was used to quantitatively evaluate overall performance. Statistically significant evidence of the overall superior performance of IPD/near-IPD compared with non-IPD projects was found. These results should encourage owners to consider the use of IPD, or IPD principles in conjunction with other delivery methods, in future capital facilities endeavors.

The Current Trends in Conventional Power Plant Technology on Two Continents From the Perspective of Engineering, Procurement, and Construction Contractor and Original Equipment Manufacturer

In terms of CO2 emissions, the year 2030 has been addressed as a very crucial deadline for both European Union (EU) and the U.S. Whereas the U.S. Clean Power Plan proposes the reduction of national CO2 emissions from the existing power stations by 30% with respect to 2005, the EU aims at cutback by 40% from their levels in 1990. Due to the restricted emission goals dictated by the European and U.S. energy policies, both energy markets witness currently drastic changes. Whereas the U.S. wants to shift away from coal, the EU shifts away from gas due to high natural gas prices in Europe while drastically increasing the feed-ins from renewable energy sources (RES). In some of the European countries constantly growing installation of renewable energy plants is superseding natural gas-fired power plants and thus causing the electrical grid stabilization to be overtaken by coal fired power stations. On the contrary, the U.S. market due to increasing extraction of shale gas and low natural gas prices puts the gas power plants in favor and poses increasing pressure on closing some coal fired plants. A solution that uses the potential of the existing site and reduces overall emissions is converting from coal into gas-fired power plants, so-called fuel switch. Whereas for the U.S. market the later solution is relevant, in the vast majority of EU Member States the focus is on increasing the flexibility of coal fired power plants. The challenges and technical solutions developed and applied according to the demands of the market in both EU and U.S. are addressed in this paper. Both currently applied technologies and technologies under development are shortly presented.

Contract Management from the Perspectives of Bureaucrats and Contractors: A Case Study of Hong Kong

ABSTRACTNew Public Management (NPM) encourages private sector participation in the provision and delivery of public services through outsourcing. Bureaucrats and contractors assess the values, processes, and outcomes of contract management differently. This study adopts transaction cost economics (TCE), the resource-based view (RBV), and the principal–agent theory to analyze Hong Kong bureaucrats’ and contractors’ views on contract management. It finds that both groups are critical of the existing contract management system in Hong Kong. The study shows that the government’s neglect of the risks is causing transaction costs because it lacks a proper monitoring mechanism, two-way communication channels, and appropriate training, and because of contract complications and issues of accountability. There is insufficient proof to assert that the government purposefully conceals these risks, but they are not properly addressed.

Application of Reference Class Forecasting in Turkish Public Construction Projects: Contractor Perspective

AbstractCost overrun in construction projects is an important problem that can have serious financial consequences. It also reduces the effectiveness of planning and decision making not only for the contractor but for all parties involved. The problem keeps occurring despite many attempts made over the years to improve cost estimation and forecasting methods. This paper focuses on analyzing cost overruns in Turkey and comparing the cost estimates produced using the traditional estimating method against cost forecasts produced using the reference class forecasting (RCF) method. RCF is used to predict the final cost of a project predicated on actual cost outcomes of accomplished similar projects in the same reference class. RCF has been so far used to address estimation bias in early project development before design is completed and before all risks are accounted for to help a client to produce a more realistic forecast of the final project cost. In this paper, however, it is used to produce a forecast of ...

Research on Power Grid Engineering Risks Assessment Based on AHP under EPC Mode

This paper analyses and summarizes papers about engineering projects in the domestic and foreign EPC mode, and researches the risk management of power grid project based on AHP under EPC mode. Firstly, the paper describes the application and research of EPC mode in China's electric power engineering, and analyses the existing risk management under EPC mode. Secondly, this paper expounds the basic theory of risk management, and puts forward the principle and standard of risk assessment, and defines the basic process and method of risk management. Thirdly, it introduces the analytic hierarchy process in this paper. At last, according to the process and characteristics of power grid construction in EPC mode and the use of risk identification and assessment theory, the paper empirically tests the application of risk management under EPC mode in Leshan substation engineering through the AHP. In the international general contracting market, EPC general contracting model is favored for its ability to transfer engineering construction risk, save investment and give full play to the leading role of design. It is gradually applied to large scale projects in various industries. The implementation of EPC in power grid project increases the controllable initiative of the general contractor, achieves the design, procurement, construction of internal coordination, mitigates the contradiction between the parties, and reduces the cost of coordination of the EPC general contractor, which is conducive to the overall progress of the general contractor's risk management. Therefore, EPC will become the mainstream mode of power grid project contracting. However, at present, the research on risk evaluation of power network based on EPC mode is less. Because of the successful application of EPC mode in all kinds of projects in China, experts and scholars realized that it will be used in the trend of power grid project, and strengthening the research on risk assessment of power grid project with EPC mode will give a technological favor to risk analysis. Some scholars pointed out that EPC can well solve some problems arise from China's power shortage and the limitation of power investment funds, elaborated problems should be noticed with the use of EPC model in wind farm projects from the owner's point of view, and on the basis built a set of risk assessment models. This paper stands at the owner's point of view, and the results will be very different from the perspective of the general contractor. There were also scholars who used evaluation method combined entropy method and sequencing method to analyze the risk factors that the domestic associated total contractors based on EPC mode may face, but the method cannot be completely copied in the power grid project. Some scholars have put forward the measures to reduce the risks of the general contractor based on EPC mode's connotation and advantages, and summarized the risks of the project. But the proposed solution is relatively simple and there is no scientific risk evaluation method as a support. On this basis, this paper adopts the AHP method, analyses and evaluates the risk of power grid project based on EPC mode, and provides methods and ideas on how to evaluate the risk of EPC project.

Development of Social Responsibility Evaluation Framework of Construction Projects: A Multi-stakeholders Perspective

When performing social responsibility (SR), international contractors can be embraced by project stakeholders, and thus, a sustainable development of construction projects can be attained. However, construction projects involve multiple stakeholders; thus, balancing the interests of all stakeholders is difficult for construction firms. Therefore, an effective rule for decisions related to SR behaviors is important for strategic management of stakeholders. Scholars perform SR studies from various perspectives, emphasizing on corporate management and developing different evaluation systems accordingly. Nonetheless, most of these studies obtain feedbacks from the perspective of general contractors without incorporating the expectations of various stakeholders, and thus, the interpretation can potentially lead to social desirability bias. This study proposes a development framework considering the expectations of various stakeholders for evaluating SR performance. First, global SR metrics were solicited from standards, codes, and legislations. Second, stakeholders were classified, and the metrics were assigned accordingly. A survey questionnaire was distributed to various stakeholders, and responses regarding construction projects were also provided. Third, metrics were selected using the rough set theory and compared with pre-selected metrics with inputs from general contractors. Fourth, an SR evaluation framework consisting of 37 issues was proposed for construction companies to provide guidance for construction corporations to effectively perform SR at the project level. Lastly, a case study was also performed to validate the effectiveness of this framework.

The acceleration dilemma: can English law accommodate constructive acceleration?

Purpose – The aim of this paper is to explore the hypothesis that a contractor is entitled to payment for “constructive” acceleration implemented to avoid liquidated damages when denied a warranted time extension request by the employer or certifier under an English law construction contract. This claim is recognised in the US legal system, but not elsewhere. Design/methodology/approach – This paper adopts a “black letter” approach to reviewing the claim of constructive acceleration within the context of English and Commonwealth case law, from the perspective of a claimant contractor. Findings – The research presented in this paper concludes that whilst claims for constructive acceleration are unlikely to succeed in an English court on the basis of US law, a claim might be supportable on more orthodox common law grounds. These include implied instructions under the contract, breach of the contract based on the employer or certifier’s failure to operate the contract, mitigation of damages, unjust enrichment and tortious intimidation. Research limitations/implications – The focus of this paper is placed on English, Unites States, Canadian and Australasian case law. Practical implications – The range of potential legal grounds for constructive acceleration examined in this paper provides a toolkit for practitioners preparing to make or defend constructive acceleration claims. This paper also bring more clarity to a potential legal problem faced by practitioners in circumstances of significant tension and limited time. Originality/value – This paper provides a useful information source for practitioners faced with the prospect of advancing or defending constructive acceleration claims, and it provides a foundation for future related studies examining a wider scope of jurisdictions.

A Case Study on Micro Social Network Structure of Building Industrialization: Based on Structural Hole Theory

The industrial chain of building industrialization (BI) has been forming in China during the latest three decades development, which gradually presents a trend of networking. However, the enterprises’ implementations of building industrialization are far from satisfactory. Both practitioners and managers hold the same confusions: Who is controlling effective information resources by occupying critical path in BI network? Who decides the flow direction of materials resources in the network? To solve these doubts, this paper makes an analysis of building industrialization micro social network based on the structural hole theory. A typical industrialized construction project in Shenzhen (China) was selected for the empirical study. Firstly, a questionnaire survey is conducted to collect authentic data and Ucinet is used to delve structural holes by four indicators named effective size, efficiency, constraint and hierarchy. Secondly, the roles and function of stakeholders would be re-explained by the theory of brokerage roles. The outcomes of social network analysis indicate that developer is the information hinge of this BI project due to its largest value of effective size as well as lowest constraint. From the perspective of resource control, contractor and component supplier also occupy critical structural holes and play important roles in building industrialization network. But to some extent, the network of BI in China is not optimized. Thus, enterprises should try to adopt some reasonable accretive measures according to the market condition and self-position.

Balanced sustainable implementation in the construction industry: The perspective of Korean contractors

Successful sustainability cannot be realized considering only environmental issues. Along with these, economic and social issues must also be considered in a balanced approach toward ensuring sustainability. In this study, the importance and performance value of factors related to these three issues as well as the gap between their importance and practical performance are investigated. In addition, correlations among these three issues are also examined by means of a survey of Korean contractors. According to data analysis results, there are large gaps between the importance and performance value of soft skill and long-term benefit factors. Moreover, it is found that balanced application with economic and social issues is more essential for sustainable development, even if environmental factors are revealed as quite effective. Environmental factors generally are closely correlated with economic factors, except for several social factors that have the strongest correlation with environmental issues. Hence, from the perspective of Korean contractors, a balanced application between important and tangibly performed factors as well as between environmental, economic, and social issues is essential for successful sustainability and not just the application of an isolated dominant factor.

Embedded contexts of innovation

Purpose – The purpose of this paper is to study the radical innovation process behind the adoption and implementation of building information modelling (BIM) for a specialty contracting small or medium enterprise (SME). This paper offers two distinct perspectives on BIM adoption and implementation, which are underrepresented in the current literature: the SME perspective and the specialty contractor perspective. It also attempts to bridge the gap between the growing literature on BIM adoption and implementation and the established literature on innovation by developing the notion of embedded contexts in the innovation process. Design/methodology/approach – A mixed-method, longitudinal case study approach was used in this research project to study the evolution of the innovation process and its impact on the Organisation over time. The objectives of this research were to investigate and document the different factors mediating the BIM adoption and implementation process for the Organisation across various contexts, the mechanisms put in place to facilitate this process and the perceived impact within the Organisation. Findings – The initial transition to BIM represented a radical innovation for the Organisation. Subsequently, a series of incremental innovations took place to further advance the Organisation’s BIM capabilities. This innovation process is influenced by different layers of embedded contextual factors, which can be mitigated by, among others, a clear strategic approach towards the innovation process. Furthermore, despite a limited sphere of influence, specialty contractors can leverage BIM within their own supply chain to reap significant benefits. Originality/value – This paper offers an in-depth study of radical innovation within a specialty contracting SME. This study discusses the influence of four embedded contexts on innovation for a specialty contracting SME: the industry context, the institutional context, the organisational context and the project context. It also offers insight into the factors, mechanisms and their impact on the innovation process.

Setting up for success for mobilisation to major hazard facilities—a contractor's perspective

The challenges for a contractor to mobilise to a major hazard facility come from differences in expectations between stakeholders, gaps and inconsistencies between health, safety and environment (HSE) management systems, and the logistical challenges of initial training and competency verification. Differences in expectations can arise between the corporate office and site or also between various functional silos. HSE management system challenges manifest in the detailed procedures when the safety case is in operation. Training and competency assessment is an ongoing requirement, but the initial demand at first mobilisation creates a one-off logistical burden. The steps to lessen the impact of these challenges and to enable a successful outcome include: alignment workshops with customers and other stakeholders to create a shared safety culture and expectations of management systems; joint HSE management system gap analysis and risk workshops; early interface meetings with stakeholders; and, requirements having a comprehensive definition and pre-planning to deliver best practice. A successful mobilisation is characterised by the alignment of systems, improvements made during the alignment process by delivering best practice, meeting all HSE obligations for employees (including seconded personnel and sub-contractors), bridging the gap with sub-contractor management when implementing the safety case, and having all personnel trained before mobilisation. This extended abstract draws on lessons from recent real-world experience and offers a framework to overcome challenges a contractor can encounter, and sets up successful mobilisation for a major hazard facility.

토목분야 BIM 적용 사례 분석을 통한 발주자 관점에서의 BIM 발전 전략

Owing to the increase in large and complex construction projects, the design paradigm of architecture and civil engineering projects has changed from 2D CAD to 3D CAD. For this reason, to meet the strong requirements of project contractors, various efforts have been made to adopt a Building Information Modeling (BIM) technology for effective construction management. On the other hand, compared to architectural projects, only a few civil engineering project cases have been conducted in the perspective of public contractors. This is because the characteristics of civil project contractors and the negative pursuit of adopting BIM technology due to the lack of a current BIM system and technologies. Recently, positive changes in adopting BIM technology for public projects were anticipated by public owners, such as the Public Procurement Service and the Ministry of Land, Infrastructure and Transport. In this regard, this study analyzed the current BIM technology status of public owners in Korea to adopt the BIM policies and guidelines of the Korean government. Strategies for adopting BIM technologies for Korean public owners are also discussed based on an analysis of civil engineering BIM project cases.