International Construction Industry Research Articles

Competitive Landscape Analysis of International Construction Industry Using Natural Language Processing

Competitive Landscape Analysis of International Construction Industry Using Natural Language Processing

Automated Identification of Active Players for International Construction Market Entry Using Natural Language Processing

Studies on the international construction market have been limited to expanding the scope of academics and practices because of data accessibility and timeliness. With the recent advancement of natural language processing (NLP) technologies, it becomes possible to extract on-time information from online news articles automatically. As a point of departure for developing a text-based information extraction model, this study aims to develop a named entity recognition (NER) model that automatically detects active players from news articles in the international construction industry. NER is an essential subtask of information extraction that automatically identifies key elements and classifies them into predefined categories. The proposed model detects owners, contractors, and consultants from news articles. The performance of the experiment was measured by a micro average F1 score of 85.8% with precision and recall values of 84.2% and 87.4%, respectively. This study contributes to investigating international market participants in a timely way with enhanced data accessibility. Therefore, the following studies will enlarge the NER approach to recognize “Who contacts whom,” “Who claims whom,” and “What delays what projects,” which will lead to extracting more valuable information automatically in the future.

INTERNATIONALIZATION OF THE CONSTRUCTION INDUSTRY IN THE GLOBAL VALUE CHAIN

The construction sector plays a significant role in national economic development and accounts for a dominant portion of national economic growth. The international construction industry’s development has been explored from the perspective of the economy. Internationalization improves awareness about participation in international trade activities. This paper aims to quantify the internationalization of the construction industry in the global value chain. The sectoral participation index and interaction index are conducted to evaluate the internationalized degree of the construction industries. In the results, the distribution of the backward participation indices shows nearly all countries’ internationalization processes were still at the stage of benefiting from primary resources. The forward support index is easily influenced by the scale effect. The backward independence index accounts for a small percentage of national imports measured by value added. The main source of value-added supply was the local construction sector. This study proposes a comprehensive indicator to quantify the internationalization of the construction industries in the sight of national and global points. The references have a positive value for policymakers in the management of value-added flows in the international market and adjustment of the foreign trade environment.

DEVELOPMENT OF A NORMATIVELY STANDARDIZED CONTENT STRUCTURE FOR THE HARMONIZATION OF BIM USE CASES

The demand for a formalized content structure to communicate and perform services in the context of Building Information Modeling is becoming increasingly indispensable for the understanding of BIM use cases in the German and international construction industry. Different market participants have already provided their own proposals, but no solution has yet been consistently successful established. To address this demand, the authors of the paper at hand have initiated a research project to develop the needed standardized content structure. Various nationally and internationally engaged experts from research and industry have been involved to develop this universally applicable structure within the framework of the German standardization institutions DIN and VDI, taking into account the perspectives of all involved stakeholder in BIM projects and existing standards. The structure therefore aims not to only describe a BIM use case on a general level but to be an aid for understanding and executing the service described including needed information and possibilities for quality assurance. This paper underlines the fundamental need of such a standard using the example of the (beforehand) current state of industry in the German speaking countries and presents the final results of this efforts to provide a standardized and applicable structure for BIM use cases. An outlook on further currently developed standardization approaches is additionally given

Understanding the Critical Inducers of International Contractors' Corruption

International contractors' corruption severely threatens the transparency and sustainability of the construction industry. This study aims to identify critical inducers of international contractors' corruption and explore their interrelationships. Leveraging the fraud diamond theory, the critical inducers were identified through the semi-systematic review, context analysis, and a two-round Delphi survey with 26 experts. Then, the cause-effect associations among the critical inducers were captured by integrating the decision-making trial and evaluation laboratory (DEMATEL) method and the interpretive structure modeling (ISM) method. Following this hybrid approach, the corruption inducer system incorporating 12 inducers and 32 conditions was proposed. Institutional pressure and inefficient compliance management were the most critical inducers in the system. Additionally, the interrelationships among these inducers were organized into a seven-level hierarchy pattern. Intricate rules and institutional pressure were the root causes of corruption. Inadequate formal sanctions were the key node in the causal chain. Neutralization techniques and execution skills were the immediate causes of corruption. This study develops the corruption inducer system by combining theory with practice in the international construction industry. It contributes to the sparse research on corruption by clarifying the cause-effect relationships among inducers from a holistic perspective. The findings would help industry practitioners, multinational company executives, and international aspirants understand corruption comprehensively and prioritize countermeasures.

Market Structure Analysis of International Construction Revenue: A Country Level Analysis

As project sizes and complexity have increased over the past few decades, the international construction industry has gradually developed into a country-level competition. The international construction industry is heterogeneous and involves different firms from diverse countries; it tends to be dynamic in terms of where firms enter and exit and grow and decay. To maintain the competitiveness of a country, it is essential to understand market structure based on a systematic diagnosis of its recent performance. This study analyzes the revenue structure of top international contractors (TIC's) to investigate country-specific factors in the international construction industry. Using data from the Engineering News-Record's (ENR's) Top 250/225 International Contractors list produced over the last ten-year period (2009–2019), the international revenue performances of TIC's were analyzed for 12 major countries both statically (market concentration) and dynamically (market mobility and instability). The analysis results show that the competition for TIC's has become more intense, particularly due to newly industrialized countries (NIC's), and in most countries, the market position was found to be unstable. This study further classifies 12 countries into four types (high-static, high-dynamic; high-static, low-dynamic; low-static, high-dynamic; and low-static, low-dynamic countries) using both static and dynamic indices. The combination of static and dynamic indices is found to be helpful for understanding the underlying competitive forces and can be utilized as a strategic reference for benchmarking.

The Optimization of Personnel Localization Management on international construction projects: cases study from China enterprises

PurposeThis paper aims to explore the key risk factors affecting the Personnel Localization Management of international construction projects under the major public emergencies represented by the novel coronavirus pneumonia pandemic (hereinafter COVID-19) and how the public emergency affected the Personnel Localization Management from three levels: staff turnover rate, the number of different personnel, the salary and performance of workers. The paper also helps to enhance the construction enterprises' response capacity of major public emergencies and provides a comprehensive framework of optimization strategies for the Personnel Localization Management of international construction projects (hereinafter projects).Design/methodology/approachThe main research method of this paper is the case study, and ten representative international construction projects are selected for case study in China construction enterprises (hereinafter CCE). And this study used the failure mode and effects analysis (FMEA) and comparative analysis to find out all potential risk factors under the COVID-19 and analyze how the epidemic affects the Personnel Localization Management of projects which based on the primary data from 10 projects obtained through in-depth interviews and the secondary data from China First Metallurgical Group and Central South Construction Group's Overseas Enterprise.FindingsThe findings show that the outbreak of the major public emergencies not only greatly increased eight risk factors but also directly led to an increase in staff turnover rate. Meanwhile, the numbers of Chinese and local managers and workers are all affected, and an increase in the number and the salary performance of local workers can be reduced, to a certain extent, to the cost-to-output ratio of the projects. The findings would help construction enterprises better cope with Personnel Localization Management and enhance the response capacity of major public emergencies.Research limitations/implicationsThis study will broaden researchers' horizons regarding “Personnel Localization Management under major public emergencies” and “risk factors of Personnel Localization Management in an international context.” Furthermore, construction enterprises looking for a better mechanism of Personnel Localization Management can benefit from research findings and lessons learned from the authors' case study during or before an outbreak of major public emergency. Lastly, the framework of optimization strategies for Personnel Localization Management can be used both for research purposes and practice issues in international construction projects.Practical implicationsThe findings from the authors' case study offer the direction for international construction enterprises in China and other countries to formulate effective measures, strengthen overseas business and establish a crisis management mechanism for Personnel Localization Management under major public emergencies, and the findings provide emergency plans for projects to improve the public crisis handling capacity and respond to major public emergencies such as the COVID-19.Social implicationsThis study analyzes the impact of the COVID-19 on the Personnel Localization Management of international construction projects from the perspective of personnel. This study provides a theoretical reference for the international construction industry to actively respond to major public emergencies. Besides, the research is conducive to improving the emergency response mechanism in the construction industry, and further promoting the high-quality and globalized development of international construction.Originality/valueThis study provides other researchers with a comprehensive understanding of the risk factors affecting the Personnel Localization Management of projects under the COVID-19 and insight for further research on localization management, risk management, and project management.

Readability and comprehensibility of Malaysian construction contracts

The international construction industry is projected to grow at a compounded annual rate of 4.2% between 2018 and 2023 valued at USD 10.5 trillion. This growth is marred by increasing disputes. In parallel, the use of plain language has been increasing, although construction contracts have been slow to adapt. This affirms the need for this research. It adopted a combined qualitative and quantitative study to establish the potential of adopting the use of plain language in construction contacts. This research investigated readability and comprehensibility of construction contracts by primary users in the rapidly developing construction industry in Malaysia. Four traditionally styled and one plain-language construction contracts were tested using a text-based cognitively inspired readability and complexity tool. Then, 36 primary users of the documents determined the comprehensibility of these contracts through cloze testing. The users’ own evaluation of the contracts was compared against the measured complexity of the contracts. The plain language contract was superior in both text-based and reader-based testing. The combined testing approach provides strong evidence of the potential benefits of adopting plain language to improve both readability and comprehensibility of construction contracts. This could also benefit the industry through potential reduction in disputes.

Characterization, Grading and Flexural Modelling of Rubberwood (Hevea brasiliensis); for the Local and International Construction Industry

Rubberwood, hitherto solely employed as fuel wood has found fairly suitable use in the Nigerian construction industry. This paper investigated the engineering properties of this low cost, alternative, timber material, produced from Rubber trees (Hevea brasiliensis); often employed within two weeks of felling, for the construction of formworks and related wood works. No real attempt has been made to formally grade or coordinate the properties of rubber wood as employed in the Nigerian construction industry. The research was aimed to achieve the determination of the physical and mechanical properties of naturally seasoned rubber wood obtained from the Niger Delta region of Nigeria, and assigned to it a strength/grade class. Specific properties required for grading were determined using suitable standard methods. The structural and mechanical properties of the timber wood were determined using the three point bending test in accordance with standards presented by BS EN 408 and ASTM D193, but with an aspect ratio of 12. Characteristic values for the wood properties (at the tested moisture content “MC”) were determined in accordance with BS EN 384. Adjustments were made to the characteristic values for the mechanical properties, and the density of the timber species at the test MC; to conform with the international reference MC condition of 12% (as specified by BS EN 338), and also 18% MC, to suit standards required for the Nigerian environmental condition (NCP 2). Grading was carried out in accordance with BS EN 338. The characteristic values for the mechanical properties (at 12% and 18% MC) evaluated from test results are as follows; characteristic values for MOR and MOE were 20.191 N/mm2 and 19.283 N/mm2, and 2285.784 N/mm2 and 2195.606 N/mm2 respectively. Mean values for densities (at 12% and 18% MC) were 406.169 Kg/m3 and 431.058 Kg/m3, while the characteristic values for the related densities were 338.474 Kg/m3 and 359.215 Kg/m3. Furthermore, the mean green density and characteristic green density for the rubberwood were 988.148 Kg/m3 and 900.352 Kg/m3 respectively. From the results obtained, rubberwood procured from the Niger Delta region was categorized as a grade D30 and D35 timber material at 18% MC and 12% MC respectively. Rubberwood from the Niger Delta can be conveniently employed as an alternative material to conventional timber, in both the furniture and the construction industry, but with special considerations.

Recent Advances in Technology, Strategy and Application of Sustainable Energy Systems

The global COVID-19 pandemic has had strong impacts on national and international freight, construction and tourism industry, supply chains, and has resulted in a rapid decline in the demand for traditional energy sources. In fact, research has outlined that urban areas depend on global supply chains for their day-to-day basic functions, including energy supplies, food and safe access to potable water. The disruption of global supply chains can leave many urban areas in a very vulnerable position, in which their citizens may struggle to obtain their basic supplies, as the COVID-19 crisis has recently shown. Therefore, solutions aiming to enhance local food, water and energy production systems, even in urban environments, have to be pursued. The COVID-19 crisis has also highlighted in the scientific community the problem of people’s exposure to outdoor and indoor pollution, confirmed as a key element for the increase both in the transmission and severity of the contagion, on top of involving health risks on their own. In this context, most nations are going to adopt new preferential policies to stimulate the development of relevant sustainable energy industries, based on the electrification of the systems supplied by renewable energy sources as confirmed by the International Energy Agency (IEA). Thus, while there is ongoing research focusing on a COVID 19 vaccine, there is also a need for researchers to work cooperatively on novel strategies for world economic recovery incorporating renewable energy policy, technology and management. In this framework, the Sustainable Development of Energy, Water and Environment Systems (SDEWES) conference provides a good platform for researchers and other experts to exchange their academic thoughts, promoting the development and improvements on the renewable energy technologies as well as their role in systems and in the transition towards sustainable energy systems. The 14th SDEWES Conference was held in Dubrovnik, Croatia. It brought together around 570 researchers from 55 countries in the field of sustainable development. The present Special Issue of Energies, specifically dedicated to the 14th SDEWES Conference, focuses on four main fields: energy policy for sustainable development, biomass energy application, building energy saving, and power plant and electric systems.

Construction Safety Success Factors: A Taiwanese Case Study

The international construction industry has long experienced high rates of occupational incidents resulting in serious injury and death. The high rate of fatal construction accidents has clearly highlighted the importance and urgency of safety management improvement for building and construction sites. This paper analyzed 33 nominated success factors of the site safety management (SSM) of building construction projects using Principle Components Analysis (PCA) to extract the success factors (SFs) of SSM in Taiwan. The internal relationships among these SFs were further explored using Structural Equation Modeling (SEM) to examine the underlying relationships. The results of this study indicate that there are moderate correlations present between the selected SFs for SSM. Management behaviors, a safe work environment and safety resources, the safety behaviors of workers, and prevention and remedial actions were found to be the major influencers for SSM performance. Furthermore, the study shows that SSM in Taiwan is still overly focused on safe working conditions, to the detriment of workers’ safety perception and training. Further work is required to ensure that safety programs are agile enough to understand and adapt to the factors which influence SSM outcomes.

Are Dispute Boards the Future of Dispute Resolution in the International Construction Industry?

This paper will seek to determine the future trends of dispute boards in the international construction industry. Its focus shall be on the FIDIC books as the drafting standard for the international construction industry. The discussion will be in two parts. The first part of the article analyses the scope of dispute boards. This is done by examining the different types of dispute boards and trying to identify why a party may select one type over another. The purpose of this analysis is to appreciate the functioning of dispute boards in the international construction industry. The second part proposes a future of the international construction industry with regards to the challenges faced by the implementation of dispute boards. It looks at several practical issues and identifies the most likely future trends of dispute boards in the specified industry. Finally a conclusion shall be made, taking into consideration the discussion and analysis in the first and second part.

Kier Group Plc: Business and Financial Performance Analysis and Evaluation

The subject matter of this paper is the analysis and evaluation of the business and financial performance of the Kier Group Plc over the three year period 2012–2014. The company is analysed against the comparator undertaking Balfour Beatty Plc and the average numbers of the UK and international construction industry. The financial analysis is performed over the range of financial ratios commonly applied in undergraduate and graduate business studies. For the purposes of the business analysis, the SWOT Model and the PESTEL Framework are used. The research reveals that due to diversified divisions and a high market share the Kier Group Plc is able to generate growing revenues, albeit at the high administrative costs and with an extending operating cycle. Further, revenue growth is not accompanied by improved liquidity. The growing social diversification among residential customers, the steady technological change and the increasing demand for sustainable construction place additional challenges to the Group. The results obtained are of interest for the construction industry researchers, financial analysts and financial and business analysis students.

The curvilinear relationship between corporate social performance and corporate financial performance: Evidence from the international construction industry

The intellectual debate concerning the nexus between corporate social performance (CSP) and corporate financial performance (CFP) is incessant. In recent years, the debate has explored more dynamic links, one of which is the curvilinear relationship between the two constructs. It argues that the relationship between CSP and CFP can be better captured by a U-Shape: at a low level of CSP, companies are not able to cultivate social activities to achieve tangible financial benefits but, after passing an inflection point, CSP will gradually turn into financial benefits that can offset the costs involved. This research empirically tests the curvilinear relationship between CSP and CFP in the context of the international construction industry. Using a panel data set of 30 international construction companies and 210 firm-year observations over the sample period from 2007 to 2013, the curvilinear relationship of CSP on return on assets and earnings per share, as specific CFP measures, is strongly supported. This empirical finding demonstrates an opportunity for executives of international construction companies to capitalize on their social responsibility efforts and create a win-win situation between CSP and CFP.

Developing the International Construction Contracting Market: Enterprise Niche Approach

AbstractThe international construction industry has gained a rapid growth during the past decades. The contracting revenue of the top 250 international contractors reached US$1430.8 billion in 2014...

Perception of corporate social responsibility: the case of Chinese international contractors

The poor performance of Chinese international contractors in terms of corporate social responsibility can impair their growth and internationalization in overseas markets. This study aims to probe into these contractors' perception of corporate social responsibility, diagnose perception distortions (if any), and identify approaches to improving this perception. A benchmarking analysis based on the stakeholder theory is conducted against the perception of international prominent contractors (assumed to represent international best practices). A questionnaire survey is administered to evaluate corporate social responsibility perceptions of both Chinese international contractors and international prominent contractors. The results of the gap analysis validate that Chinese international contractors' perception of corporate social responsibility is distorted and incomplete. Significant perception gaps between the two categories of contractors are found, mainly due to poor health and safety management, low compliance and ethical standards, and insufficient consideration of corporate social responsibility-related aspects in business decision making and implementation on the part of the Chinese international contractors. The findings indicate that Chinese international contractors ought to pay more attention to labor protection, environmental protection and anti-corruption issues; they should improve their compliance and ethics levels in their overseas operations to effectively identify and create shared values between the corporation and the society. The findings of this study could also lead other contractors and organizations in the international construction industry to a better understanding of the Chinese construction industry and the associated sociocultural environment, which could reduce business conflicts and disputes, and lead to more effective business activities. By utilizing the stakeholder perspective of corporate social responsibility, this paper can lead practitioners and the academia to a balanced and unbiased view on corporate social responsibility efforts.

An Investigation into Barriers of Technology Transfer in the Construction Industry in Iran and Malaysia

Technology transfer in the international construction industry is an important source as it helps companies move to better stages of design and construction capabilities. Three main barriers of technology transfer in construction have been identified through literature review—language barrier, cultural barrier and procurement options. The importance of these barriers has been identified through survey in the construction industry in Iran and Malaysia. 102 responses were received. Through SPSS analysis, the impacts of these barriers have been identified. The impact percentages are: language barrier 12.1%, cultural barrier 52.8% and procurement options 88.3%. Future researches are required in procurement options particularly in developing countries.

Developing Competitive Advantages in Political Risk Management for International Construction Enterprises

International construction projects invariably involve political risks. This has been a persistent and pernicious problem encountered by international contractors. Various sets of variables have been suggested in the literature focusing on different aspects of political risk management (PRM) for international construction enterprises (ICEs). It is crucial to identify the relative importance and groupings of these variables. This paper aims to identify critical variables associated with PRM in international construction projects, and to analyze their rankings and underlying relationships. A total of 17 variables were identified through a literature review and consolidated by pilot studies with professionals in the international construction industry. Questionnaire instruments containing the 17 variables were sent out to the practitioners and academics, and 138 completed questionnaires were received. The top five ranked variables for PRM were (1) relationship with governments, (2) misconduct of contractors, (3) experiential knowledge of political risks, (4) relations with power groups, and (5) localization. Factor analysis was used as the data reduction tool and these 17 variables were further grouped into four resource dimensions, as follows: (1) relations, experience, acceptance, and localization; (2) recourse, organization, operation, and technology; (3) growth, ownership, leverage, and diversification; and (4) sustainability, opportunity, integration, and long-term. A management framework with both theoretical and practical meanings was finally developed for successful PRM in international construction projects. The findings would help the ICEs to clarify the highly prioritized variables and underlying factors which could be used as an assessment tool to evaluate the performance of PRM. Successful PRM would provide competitive advantages for the ICEs to survive and prosper in the host construction market, especially in those locations characterized by highly political risks.

Proposal for the Dubai World Islamic Finance Arbitration Tribunal (DWIFAC) and Jurisprudence Office (DWIFACJO) as the Dispute Resolution Mechanism and Center for the Islamic Finance Industry

Proposal for the Dubai World Islamic Finance Arbitration Tribunal (DWIFAC) and Jurisprudence Office (DWIFACJO) as the Dispute Resolution Mechanism and Center for the Islamic Finance Industry Camille Paldi Abstract The proposal for the Dubai World Islamic Finance Arbitration Center (DWIFAC) and Jurisprudence Office (DWIFACJO) entails a complete system of unique dispute resolution tailored specifically for the Islamic finance industry modeled on the built-in contractual dispute mechanism found in the FIDIC contract, which is widely used in the international construction industry. This system encourages completion of contract and preserves the relationships of the parties. Only in the event that this built-in mechanism fails can the parties send the dispute to the Dubai World Islamic Finance Arbitration Center, which will be staffed with arbitrators and Islamic finance and Shariah experts who may apply commercial business practice as well as Shariáh to the arbitration process. DWIFAC will have a working relationship with all of the other dispute resolution bodies in Dubai and the UAE. The Center will host a centralized Shariáh Board for the UAE and DIFC as well issue an Islamic Banking law for the UAE and DIFC, which can be replicated by countries all over the world to facilitate Islamic finance transactions in their states. Full Text: PDF DOI: 10.15640/jibf.v2n2a2

The Dynamics of the International Construction Industry since the Late 1970s

The Dynamics of the International Construction Industry since the Late 1970s