Construction Management and Economics

The complex environments of today’s markets makes managing organizations in complexity and turbulence a concern for senior managers, and necessitate developing a dynamic strategic framework to cope with complexity in managing organizations. This paper demonstrates a study that was conducted to value a structured set of management principles and sub-elements by a panel of experts to develop a conceptual framework to manage in complex and very high dynamic environments. The panel consisted of 22 senior level managers of grade “A” companies in the construction industry in Qatar State using a two-round Delphi technique. The study developed two frameworks. The first framework is for managing complexity in the construction sector. The second one is the primary general framework, which forms a basis for a generalized framework for other industries. This study participates in developing valuable management practices in complex environments to tackle uncertainty, unpredictability, disorder, rapid changes and non-linearity, which would be of great help for leaders, senior managers and practitioners who operate in complex environments. Journal: Construction Management and Economics Volume 36, 2018 - Issue 4

With the involvement of an increasing number of contractors in the international construction market, venturing overseas has been fraught with fierce competition and considerable uncertainties. This underscores the importance of examining the extent to which the intensity of competition (IoC) for international construction business is moderate. Concentration is a conventional IoC measure. By synthesising four major concentration methods including concentration ratio, entropy, Gini coefficient and Herfindahl index, a new model for measuring moderate IoC is thus proposed. Using the 28 years ENR-based data of the top 225 international contractors (TIC 225) into the proposed model, the IoC for international construction business is found moderate, if the magnitude of the market shares occupied by the top four international contractors is 0.2735. The finding does revise a popular view that international construction competition has been intensifying only since 2002. It is implied that the proposed model favours a better understanding of competition characteristics in the international construction market and provides new insights into the theories about concentration.

The costs of defects and quality issues in construction can be significant for stakeholders and can include societal consequences. The aim is to address how failures and defects are produced and handled in the social practices of construction projects and specially to scrutinize the unintended consequences of both structured and chaotic problem solving. The argument is based on a longitudinal ethnographic study of a dwelling project, encompassing just over 100 days of fieldwork. Structuration theory was applied to understand the interrelations between project actors and structures in the handling and redressing of quality issues and to elucidate unintended consequences of the practices. The analytical strategy was abductive, allowing theory and empirical material to inform each other. Two cases were selected; the well-structured process of erecting concrete panels and the chaotic processes of building a penthouse. The results show how routine and experience are helpful, but also how they maintain an "acceptable" level of defects, which should change the widespread appreciation of experience as being positive for building quality. The unintended consequences of routinized practices are corroborated by the lack of knowledge sharing beyond the project. Both reactive and proactive problem-solving practices are important, but the reactive tend to dominate.

The briefing process is critical to the successful delivery of construction projects. Although a number of briefing guides have been developed, attempting to address the problems of briefing, they are often criticized as being too general and implicit. This paper describes a structured framework for identifying and representing client requirements (CRs) in the briefing process. It integrates the value management (VM) methodology with function analysis system technique (FAST) and functional performance specification (FPS) to enable the client organization and project team to systematically identify, clarify and clearly represent CRs in the briefing process. It comprises four interrelated phases: preparation, information, analysis and evaluation. This paper starts with a critical review of previous work in briefing and function analysis, followed by an introduction to the research methodology and detailed illustration of the proposed framework. The use of this framework can facilitate and lead to systematic identification and clarification of client requirements and the formation of a more precise and explicit representation of these requirements. The limitations of the approach are also discussed in the paper.

A survey of waged and salaried, project-based construction workers was conducted. The survey measured work-family enrichment, a type of positive interaction between work and family life. A six-item work-family enrichment scale confirmed the bi-directional nature of positive work-family enrichment. Job-related correlates of work-to-family enrichment were identified. Flexibility, perceptions of control, time adequacy and supervisor support were all positively correlated with workto-family enrichment. Regression analyses were performed to examine the extent to which the relationship between these jobrelated resources and work-to-family enrichment were mediated by perceptions of work schedule fit. Work schedule fit fully mediated the relationship between flexibility and control and work-to-family enrichment. The relationship between supervisor support and time adequacy were only partially mediated by work schedule fit, though a significant mediation effect was still observed. The research suggests that jobs may be designed to facilitate work-family enrichment in the construction industry, in particular through the provision of supervisor support, flexibility, time adequacy and control.

Competency-based measures are increasingly being recognised as the most viable option for engendering the continuing professional development (CPD) of construction project managers (CPMs). Presently, an emerging view from the HRM genre is that, a somewhat robust approach for developing a more rigorous understanding of these measures is to distinguish contextual performance behaviours from task performance behaviours. The contention is that, the contextual-task framework allows for a more fine-grained analysis of managerial behaviour, its effects and measurement. Stimulated by the need to develop performance measures for CPMs in the context of a developing country, the framework has recently been replicated in identifying and developing competency profiles for project managers (PMs) in mass house building projects (MHBPs) in Ghana. Drawing from a positivist-based research approach, structured questionnaires were used to elicit the relevant data from property developers (homebuilders) who belong to the Ghana Real Estate Developers Association (GREDA). The findings presented potentially reasonable evidence that the contextual-task model has empirical relevance for application in project-based sectors of the construction industry. Subsequently, here, we proposed that the contextual-task framework could be adopted across geographical and project-based sectors by construction management researchers who are in need of an alternative methodology that can further an in-depth understanding of the competency profile of CPMs.

There has recently been considerable interest in construction research in paradigms developed for the manufacturing sector. Using lean thinking and agile production as examples of innovative organizational and business process design, this paper explores their commonalities and ...

Assessment of BOT project financial risk is generally performed by combining Monte Carlo simulation with discounted cash flow analysis. The outcomes of this risk assessment depend, to a significant extent, upon the total project uncertainty, which aggregates aleatory and epistemic uncertainties of key risk variables. Unlike aleatory uncertainty, modelling epistemic uncertainty is a rather difficult endeavour. In fact, BOT epistemic uncertainty may vary according to the significant information disclosed during the concession period. Two properties generally characterize the stochastic behaviour of the uncertainty of BOT epistemic variables: (1) the learning property and (2) the increasing uncertainty property. A new family of Markovian processes, the Martingale variance model and the general variance model, are proposed as an alternative modelling tool for BOT risk variables. Unlike current stochastic models, the proposed models can be adapted to incorporate a risk analyst's view of properties (1) and (2). A case study, a hypothetical BOT transportation project, illustrates that failing to properly model a project's epistemic uncertainty may lead to a biased estimate of the project's financial risk. The variance models may support, guide and extend the thinking process of risk analysts who face the challenging task of representing subjective assessments of key risk factors.

The accuracy of the Content should not be relied upon and should be independently verified with primary sources of information. Taylor and Francis shall not be liable for any losses, actions, claims, proceedings, demands, costs, expenses, damages, and other liabilities whatsoever or howsoever caused arising directly or indirectly in connection with, in relation to or arising out of the use of the Content. This article may be used for research, teaching, and private study purposes. Any substantial or systematic reproduction, redistribution, reselling, loan, sub-licensing, systematic supply, or distribution in any form to anyone is expressly forbidden.

Scholars usually agree that small and medium-sized enterprises (SMEs) active in construction are not very innovative when compared with large-size construction enterprises. This is particularly evident in the case of adoption and diffusion of innovation associated with information and communication technologies (ICTs). Although ICTs are powerful instruments for the rapid and broader diffusion of technical knowledge, few SMEs are fully able to exploit their benefits. There is little evidence of how SMEs perceive ICTs and of the extent to which these technologies are actually used in the construction industry. There is a relationship between organizational size and the use of ICTs within the SMEs in the building construction sector in Turkey. A set of ICT variables comprising the perception, investment, usage and the software preferences of SMEs were analysed by making use of the data collected in a survey of a randomly selected sample of 227 building construction firms in Turkey. In contrast to the common approaches that consider SMEs as part of a homogeneous set of firms with similar characteristics, this study seeks the differences in ICT-related attitudes between SMEs of different sizes. Rather than using arbitrarily pre-defined intervals to classify firms by size, cluster analysis was used in this study. Although what emerges as a whole is the common under-utilization of ICTs by SMEs in building construction, 'organizational size' appears to explain some of the ICT-related attitude differences within these SMEs. Policy makers can consider using the findings of this study as inputs in their activities, as these findings represent a generic overview of the diffusion of new technologies and can assist in identifying future research directions.

The right selection of implementation system for projects in the construction industry is critical to achieve success. Integrated Project Delivery (IPD), is a comprehensive implementation system which has in recent years been seen to play an effective role in projects improved efficiency. Implementing an IPD system to resolve various problems of traditional systems is very important; however there are several barriers to its implementation. In addition, rooting and classifying the barriers is very significant in being able to resolve them. The aim of this study is the identification of barriers to IPD basically extracted from existing case studies. In this research, the meta-synthesis qualitative method is used for identifying and classifying the IPD barriers. The results are presented in a comprehensive table, and then are illustrated as a pattern by using macro concepts. This pattern is useful for presenting barriers to IPD. Identifying the barriers and resolving them are as important as identifying the benefits of IPD in creating motivation for construction industry owners. They also serve to provide the context for required predictions in implementing this approach in the construction industry.

This paper describes the methodology and results obtained after productivity improvement work conducted on two consecutive building construction jobs.  The first one was used to evaluate production rates and productivity, current construction methods, potentials and lacks of construction equipment, current construction planning methodology, and existing tools to asses productivity.  These are briefly discussed in this paper. The second job was preplanned based on the experience and detailed documentation obtained in the first one. Work was conducted in order to “design” construction methods in detail, develop a detailed production planning based on the construction methods developed, select crew components and select their specific tasks, and design communication and control tools. Although the second job’s schedule and budget were originally calculated using standard methods (i.e. historical production rates), new schedule and budget were calculated based on the preplanning effort. Construction performance was measured against these values.

Currently there are over 11 million women employed in the UK, accounting for 49.5% of the workforce. However, despite increases in the number of women employed in the construction industry over the past decade, they still constitute only 13% of the industry's workforce. This means that construction continues to be the most male dominated of all the major industrial groups.

The construction industry in Singapore is dominated by a competitive business environment that is being driven by a lowest cost mentality. The pressure on contractors' pro t margins has further increased after a prolonged recession in this sector, which has seen construction demand and output shrinking signi cantly. This paper examines the factors that contractors perceive to be important when they are considering the size of their bid mark-up. The research hypothesis is that contractor size would have a signi cant bearing on the factors that would in uence the bid mark-up decision. Forty factors were identi ed and a survey was conducted. The results showed that contractor size has a signi cant impact on their attitude towards bid mark-up decision-making. The analysis also showed that when deciding the size of a bid mark-up large contractors tend to be more concerned with the nature of the construction work while medium-size contractors are more concerned about the state of their own companies nance.

Construction industry has a remarkable contribution to the development of the national economy by achieving some of the basic objectives of development including output and income generation and redistribution. Integration of Cambodia to the Association of South East Asian Nations (ASEAN) Economic Community (AEC) at the end of 2015 is expected to bring challenges, several opportunities, as well as problems into overall economy. Considering the construction industry to be one of the main drivers of Cambodian economy, the influence of the integration is going to be highly pronounced. Therefore, this research seeks: to deconstruct construction sector figures in the economy of Cambodia and examine its role in the economic development through the in-depth literature review; to identify the constraints to the development of the sector; and thus to make future projections for the construction sector with regard to the AEC integration of Cambodia. Through the use of the Strength-Weakness-Opportunity-Threat (SWOT) analysis recommendations to minimize the challenges that are going to be faced by the construction players in Cambodia are provided. In the era of AEC integration, it is believed that the recommendations provided in this study will guide the host government agencies, investors, contractors and establish a research agenda for the construction industry of Cambodia.

Decision-makers in the architecture, engineering, and construction (AEC) industry lack knowledge about the implementation of digitalisation to generate value. We applied a scenario planning method developed by Schoemaker and Mavaddat to provide decision-makers with information for using digital data and technologies to create value for customers. We aim to theoretically understand how the scenario planning process helps AEC decision-makers to make sense of the future. Our findings show that boundary spanners are needed for steering the discussions among industry actors toward shared knowledge about the technological , social, economic and political changes needed at the industry level to opti-mise the benefits of digitalisation. Our findings also show that boundary spanners apply scenario figures as boundary objects to cross knowledge boundaries. Based on our findings, we theoretically conceptualise scenario planning as a boundary-spanning activity that enables AEC decision-makers from different fields to share tacit knowledge and to cross knowledge boundaries. The practical implication is that scenario planning provides a method for AEC decision-makers to make sense of the changes needed to realise the preferred future for the industry.

One of the profound changes to have taken place over the last two decades in the construction industry in Malaysia is the emergence of foreign site operatives as an indispensable component of the labour force. This research shows that they have been exposed to some degree of discrimination at the hands of local employers. Labour segmentation has prevailed as a consequence of variability in country-speci c traits. Schisms between the foreign nationals and local workers and between the various foreign nationals operate to the employers' advantage in that greater control can be exerted. Labour violations have always been an inexorable feature of the Malaysian construction industry, with little prospect of reform. As there seem to be no signs of the dependence on foreign workers attenuating, future waves of migrant workers can expect to be subjected to the same employer treatment, and hence labour segmentation.

Construction activities have made a great breakthrough in the last two decades on the back of an increase in
development activities, and public demand. Still, occupational health and safety issues have become a major concern to
construction organizations. The world society and economy have suffered financial and human losses as a result of poor safety
management in the construction industry. The impact is however more in developing countries. The purpose of this study is to
explore major safety provisions and also a detailed study has been conducted on safety management procedures in construction
sites. Different types of accidents occurring in construction sites and measures taken to control these accidents are also analyzed
in this paper. Data have been collected through various site visits, literature reviews, and various construction safety
standards including BIS and OSHA (Occupational Safety and Health Administration). The paper has been concluded after
putting forward a set of recommendations for construction organizations to improve occupational safety in the construction
sites

ABSTRACT Risk and uncertainty is endemic to life cycle costing, and requires that an effective risk management system be an integral part of life cycle cost analysis. Such a system is developed, with emphasis on sensitivity and probability analysis. Its use is demonstrated by means of a case study of building finishes.

The performance of hospital buildings depends to a large degree on the efficiency of maintenance execution. The research objectives were to examine the efficiency of maintenance under alternative maintenance policies and alternative sources of labour (outsourcing vs. in-house). The research focused on main-tenance of hospital buildings as a model for multi-system buildings operating in dynamic environments. The research used a systematic field survey followed by an in-depth statistical analysis. Four key performance indicators (KPIs) were developed. The first, the building performance indicator (BPI), indicates the physical-functional condition of buildings. The second, the manpower sources diagram (MSD), reflects the efficiency of using in-house labour vs. the outsourcing of labour. The third, the maintenance efficiency indicator (MEI), is based on the annual costs of maintenance, the building age coefficient and the building occupancy coefficient. This indicator reflects the efficiency of usage of the resources (labour, outsourcing, materials and spare parts) in maintenance. The fourth indicator deals with the organizational structure of the maintenance division. The proposed KPIs integrate four aspects of hospital facilities management: performance management, composition of labour, efficiency of main-tenance operations and organizational effectiveness. Efficient execution of maintenance management of hospital buildings may be obtained by the simultaneous implementation of the aforementioned KPIs. The proposed indicators may be adapted to other types of facilities, such as office buildings, industrial plants and infrastructure.

Key economic principles and considerations influencing the bidding price of a construction project are discussed in this chapter. The chapter also covers the way that certain factors influence client and contractor economic behaviour in the bidding process. Also highlighted are some of the theories that have been used by academic researchers in the field of construction economics to explain bidding behaviour in construction.

This paper reports on the impact of organizational change on a government department in Hong Kong. It focuses on the perceptions of professional personnel of the organizational culture developed in the department and its mismatch with their expectations. The commitment of the professionals to their organization was measured, and found to be limited solely to a level of continuance commitment. The results of the study are discussed and explained in part by reference to Hofstede's cultural concepts of power distance and individualism, and by reference to traditional Chinese cultural values.

Significant expenditures of time, money and resources, both human and material, are wasted each year as a result of inefficient or non-existent quality management procedures. In an attempt to improve their market competitiveness, by limiting the extent of non-value-adding activities, some organizations are beginning to monitor the performance of internal and external engineering and construction processes. To achieve these bold aims, these organizations are looking to other industries such as manufacturing to examine the effectiveness of measuring and monitoring tools such as six-sigma. Only in recent years has the six-sigma method been utilized by some of the major players in the construction sector. To familiarize both researchers and practitioners on how to implement the six-sigma method and its potential benefits, the paper describes the outcomes of a six-sigma process improvement project (PIP) conducted for the construction of concrete longitudinal beams on the St Pancras raised railway station in London, UK. The outcome of the six-sigma PIP was the improved productivity of beam construction, enhanced interaction between project teams and reduced project delays. Moreover, interviews with key project participants were conducted to determine the success factors, barriers, suitability and advantages of the six-sigma approach compared with other TQM techniqes. In summary, the six-sigma approach provided the PIP team with a structured process improvement strategy to reduce waste and other non-value adding activities from the construction process.

The problem of delays in the construction sector is a global phenomenon and the construction sector in Zimbabwe is no exception. This research seeks to empirically investigate the factors affecting construction delays in Zimbabwe. A questionnaire survey was used for data collection. The research employed heterogeneous sampling to select target population and one-hundred and twenty (120) questionnaires were completed and analyzed. Using a simple ordinal scale, based on a 5-point Likert Scale, professionals, contractors and consultants expressed their views on the relative importance of forty-six (46) pre-selected factors on construction project delays. Data was analyzed using the Relative Importance Index (RII). The results show that delay in progress payment by owner, difficulties in financing the project and change orders are amongst the twenty-seven (27) most important factors causing delay in construction projects in Zimbabwe. The study recommends attention to be made to the identified delay factors, paying particular attention to the twenty-seven (27) most ranked factors.

Construction activities have made a great breakthrough in the last two decades on the back of an increase in development activities, and public demand. Still, occupational health and safety issues have become a major concern to construction organizations. The world society and economy have suffered financial and human losses as a result of poor safety management in the construction industry. The impact is however more in developing countries. The purpose of this study is to explore major safety provisions and also a detailed study has been conducted on safety management procedures in construction sites. Different types of accidents occurring in construction sites and measures taken to control these accidents are also analyzed in this paper. Data have been collected through various site visits, literature reviews, and from various construction safety standards including BIS and OSHA (Occupational Safety and Health Administration). The paper has been concluded after putting forward a set of recommendations for construction organizations to improve occupational safety in the construction sites.

Construction workers' ability to identify and assess risks is acquired through training and experience and is among the key factors that determine their behaviour and thus their safety. Yet researchers have questioned the effectiveness of conventional safety training. This research tested the hypotheses that safety training in a virtual reality (VR) construction site would be feasible and more effective, in terms of workers' learning and recall in identifying and assessing construction safety risks, than would equivalent training using conventional methods. Sixty-six subjects were provided training in construction safety and their safety knowledge was tested prior to the training, immediately afterward, and one month later. Half of the subjects received traditional classroom training with visual aids; the other half were trained using a 3D immersive VR power-wall. Significant advantage was found for VR training for stone cladding work and for cast-in-situ concrete work, but not for general site safety. VR training was more effective in terms of maintaining trainees' attention and concentration. Training with VR was more effective over time, especially in the context of cast-in-situ concrete works. Given the need for improved training and the advantages of training using VR, incorporation of VR in construction safety training is strongly recommended.

Construction is a labour-intensive activity. In Singapore, labour is in very short supply. Construction workers, both skilled and unskilled, are even rarer. Thus, efforts have been made to limit the construction industry’s requirement for labour by increasing productivity on site. To this end, it is necessary to assess progress made over time in the attempt to raise construction productivity. For this purpose, it is important that a definitive, realistic and practically relevant measure of construction productivity be found.

This paper discusses the concept of productivity and how it is generally measured. It then evaluates various ways by which construction productivity is assessed, and points out that there are few existing methods for estimating project- and industry-level.  An empirical study is conducted to generate a univariate time-series model to forecast Singapore’s industry-level productivity using the Box-Jenkins approach.  The generated model proves to be accurate in its ex-post forecasts based on prediction intervals and point forecasts. The prevailing approach to the measurement of construction productivity in Singapore, and its merits and weaknesses are next considered.  Finally, an alternative yardstick is offered.

Assessing a facility's performance is important for measuring its contribution towards organizational goals. Among many approaches to performance assessment is the holistic key performance indicator (KPI) approach. However, there are numerous KPIs available, and the chosen KPI needs to be relevant to facility goals and must be calculated, analysed and evaluated to allow for the future state of the facility to be acceptable at the lowest cost. The value of several key descriptive analytics in facility performance assessment may be enhanced through the use of simulation. Simulation transforms the descriptive analytics into predictive and prescriptive analytics by allowing for the robust assessment of plans and future outcomes through the creation of multiple scenarios, in this case, for an education facility. The simulation approach quantifies the interrelationship and interdependence of KPIs, and is potentially effective in analysing how maintenance expenditures can be optimized to maintain a desired level of Condition Index as demonstrated by several simulation scenarios.

Careers in architecture are characterized by higher levels of job insecurity and lower levels of remuneration than other equivalent professions. Likewise, the 'traditional' rewards associated with professional employment-professional power, status and recognition-have been eroded. Raising the question of what are the rewards associated with an architectural career, the concepts of informal networks and relationships in particular are examined as compensation for the poor financial rewards. Drawing upon the rewards literature in conjunction with professional identity and career management data from 84 in-depth interviews with UK and France-based architects, adopting a grounded theory method within the interpretive paradigm, findings show these relationships provide a significant amount of intrinsic satisfaction and thus reward which has been hitherto overlooked. The importance of these relationships could not be foreseen nor can they be actively planned but exist as a powerful intrinsic reward.

This paper discusses the content, origin and development of Tendering Theory as a theory of price determination. It demonstrates how tendering theory determines market prices and how it is different from game and decision theories, and that in the tendering process, with non-cooperative, simultaneous, single sealed bids with individual private valuations, extensive public information, a large number of bidders and a long sequence of tendering occasions, there develops a competitive equilibrium.

The construction industry plays a significant role in the economy of developing countries. The sector is, however, also one of the most hazardous with frequent accidents and health related problems. The purpose of this study is to examine the health and safety practices of construction small and medium-sized businesses (SMEs) in Ghana with a view to improving the health and safety performance of the sector. A survey questionnaire was administered to owner/managers of SMEs, with a response rate of 32% of the sampling frame obtained. The findings reveal that few of the SMEs adopted proactive health and safety practices. However, health and safety practices identified as being particularly associated with firm characteristics were: accident investigation procedures; accident reporting procedures; use of health and safety posters; documentation of method statements; and, health and safety inductions. The paper brings to light the diversity of health and safety practices associated with different size categories of SMEs and constraints to improving health and safety. Based on the analysis, recommendations aimed at a positive change in the attitudes of owner/managers which takes into account size-related constraints are suggested for improving the health and safety performance of Ghanaian SMEs.