Payment mechanisms for contractors for better environmental hazard controlling in road construction projects

2017 ◽  
Vol 7 (4) ◽  
pp. 426-440
Author(s):  
Piumi Chethana Walimuni ◽  
Aparna Samaraweera ◽  
Lalith De Silva

Purpose There is a growing concern that contractors can be motivated for environmental protection through effective fund allocation and proper payment mechanisms. However, an in-depth analysis of environmental hazard-controlling methods and related payments to the contractor in road construction in Sri Lanka is not much popular among the extant literature. Thus, the purpose of this paper is to explore different payment mechanisms that are being used with environmental hazard-controlling methods, to achieve better control in such hazards in Sri Lankan road construction projects. Design/methodology/approach This research was approached through a mixed research method. Initially, hazard-controlling methods and relative payment mechanisms for the contractor were identified through three exploratory case studies using interviews, observations and document survey. Next, the relative effectiveness of payment mechanisms for contractors for better environmental hazard controlling was identified through a questionnaire survey with a sample of 45 professionals involved in 15 road construction projects. Findings Based on the findings, a comprehensive list of environmental hazard-controlling methods was derived. Furthermore, four types of payment mechanisms were identified: (A)-payments, where a unit price was assigned; (B)-payments, where a provisional sum was established in the contract; (C)-payments, where fixed amounts (lump sums) were assigned in the contract and (D)-payments made along with some main work item in the contract. Relative effectiveness of these four mechanisms for better control of environmental hazards was varied for each hazard-controlling method being practiced in a road construction project. Originality/value These findings would be more beneficial for consultants, project managers, bidders and estimators in the pre-contract stage. This is by identifying cost items for environmental hazard controlling and selecting relatively more effective payment mechanisms to motivate contractors for better control of environmental hazards during project execution.

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Qian Chen ◽  
Daniel Mark Hall ◽  
Bryan Tyrone Adey ◽  
Carl Thomas Haas

PurposeManaging stakeholders' reciprocal interdependencies is always a challenging issue. Stakeholders need to find out different ways to communicate information and coordinate material flows during the supply chain processes. Many recent studies have advanced construction supply chain coordination from multiple perspectives. However, the field still lacks a comprehensive analysis to summarize existing research, to explicitly identify all the possible enablers for coordination and to investigate how the enablers can be carried out at the supply chain interfaces. To fill the gap, this study aims to conduct a systematic review in order to examine the relevant literature.Design/methodology/approachA systematic literature review process was conducted to identify and synthesize relevant publications (published in the past 20 years) concerning the coordination of construction supply chain functions. These publications were coded to link main research findings with specific enabler categories. In addition, how these enablers can be used at the interfaces across supply chain processes was reviewed with an in-depth analysis of reciprocal communications between stakeholders at design-to-production, production-to-logistics and production-to-site-assembly phases.FindingsThe coordination enablers were classified into three categories: (1) contractual enablers (including subtopics on relational contracts and incentive models), (2) procedural enablers (including subtopics on multiagent knowledge sharing systems and the last planner system) and (3) technological enablers (including subtopics on linked databases for design coordination, design for manufacturing software platforms and automated monitoring technologies). It was found that interfacing different functions requires a certain level of integration of stakeholders for quick response and feedback processes. The integration of novel contractual forms with digital technologies, such as smart contracts, however, was not adequately addressed in the state of the art.Research limitations/implicationsThe scope of the systematic review is limited to the static analysis of selected publications. Longitudinal studies should be further included to sharpen the inductions of enablers considering organizational changes and process dynamics in construction projects.Practical implicationsDifferent enablers for coordination were summarized in a concise manner, which provides researchers and project stakeholders with a reinforced understanding of various ways to manage reciprocal interdependencies at different supply chain interfaces.Originality/valueThis study constitutes an important input for research on the construction supply chain by illuminating the thematic topic of coordination from inductively developed review processes, which included a holistic framing of the emerging coordination enablers and their use across supply chain functions. Consequently, it closes some identified knowledge gaps and offers additional insights to improve the supply chain performance of construction projects.


2017 ◽  
Vol 15 (03) ◽  
pp. 395-416 ◽  
Author(s):  
Ehsan Mousakhani ◽  
Mohammadreza Yavarkhani ◽  
Soheyla Sohrabi

Purpose Road construction projects are one of the strategic industries in each country and their construction and development requires spending huge funds. Regarding the increased demand and resource constraints; a technique which reduces costs by maintaining and improving the functioning is of great importance for the authorities of each country. Value engineering is a comprehensive and coherent means based on innovation and team work which, in addition to maintaining the quality and improving the project function, reduces its cost and is not limited to the design and construction phase; however, it includes exploitation and maintenance as well. This study aims to present a practical model for the implementation and application of value engineering process in a construction project located in a special region (in terms of tourism, positioning in an economic growth path, and the East-West strategic axis of the region). In this regard, after reviewing the advisor's design, considering the interests of the project stakeholders, reviewing design criteria and assessment methods and with the use of value engineering techniques, a new option was presented which led to a significant reduction in costs and time and an increase of quality, safety, and environmental factors. Finally, including initial costs, repair, maintenance, income and expenses, the relative value index of this option, compared to the advisor's option, increased from 0.9 to 3.5. Based on the increased need for development of roads in the country, exploiting this model in similar projects can significantly improve the project value and the effectiveness of investments. Design/methodology/approach This research project was selected with regard to the extremely high credit of the project and its potential in terms of Value Engineering implementation. In this study, technical and financial information were first collected after forming a value engineering team including a value engineering expert who was responsible for coordinating the work, some representatives of the employer, designer, executor, and budget estimator. In functional analysis phase with the use of FAST graph, advantageous, costly, and risky functions were identified. In the creativity phase, ideas related to selected functions were created and investigated and developed in the evaluation phase. Finally, calculating the value index, two variants with higher value index than the baseline plan, were proposed and implemented. Findings Since the determining criteria of designing and implementation of road construction projects including increased safety, reduced travel time, user satisfaction, ease of implementation, cost of construction and maintenance and so on are almost similar in most projects, using this study results and implementing its practical framework in other construction projects can be beneficial. These parameters lead to an increase in quality, value, and safety of the project. With regard to done steps and resulted incomes, this essay can be known as a practical and theoretical model to promote the value of crucial projects especially in developing countries. Research limitations/implications Sanandaj-Hamedan road with the length 176km connects central provinces of Iran. This study is regarding the first part of this route. Based on the specific topography of the region and the existing road limitations, selecting a good variance with all the features of an ideal road from geometric, economic, and safety aspects is a difficult task. Originality/value Employers and project sponsors are always looking for products with greater value and lower cost; therefore, present a practical model for the implementation and application of value engineering process in a construction project and providing a similar work experience can encourage the use of value engineering techniques and significantly improve the project value and the effectiveness of investments.


2020 ◽  
Vol 20 (3) ◽  
pp. 209-233 ◽  
Author(s):  
Noah Mwelu ◽  
Peter R. Davis ◽  
Yongjian Ke ◽  
Susan Watundu

Purpose The propose of this study is to focus on the mediating role of compliance with procurement regulatory frameworks in implementing public road construction projects. Design/methodology/approach A cross-sectional research design was adopted. Structured questionnaires were developed in a three-step process including generating items, purifying measurement items and validating measurement items. Variables were anchored on a five-point Likert scale because it is an efficient unidimensional scale that ensures all items measure the same thing and widely applicable in construction research. Findings The findings show that compliance with a public procurement regulatory framework significantly mediates the relationship between familiarity with a public procurement regulatory framework, monitoring activities, sanction on staff and contractors’ resistance to non-compliance and public road construction project success. However, compliance with a public procurement regulatory framework does not mediate the relationship between the professionalism of staff and perceived inefficiency with public road construction projects’ success. Research limitations/implications Limited mediation studies and examples in the public road construction subsector affected this study to comprehensively investigate and compare study findings. Furthermore, the study adopted a cross-sectional research design that limits responses to one point in time. Finally, the study missed out other participants in different organizations and departments that could have had relevant information. Social implications The study contributes to public procurement and construction management research fields by uncovering this strong mediating role of compliance with a public procurement regulatory framework that collectively would help the government to implement public road construction projects successfully. Because no single factor can reliably attain objectives, blending these factors through a hybrid governance system would enable the government to achieve value for money, increase the quality and quantity of paved roads and save funds that can be channeled to other priority sectors for economic development. Originality/value Despite scholarly efforts to establish project success factors, studies have been limited to factors directly impacting the project success without considering a mediating effect among the factors that affect the success of these projects.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Amin Alvanchi ◽  
Farshid Baniassadi ◽  
Mahdi Shahsavari ◽  
Hamed Kashani

PurposeMotivated by the high cost of material movements in road construction projects, past studies have used analytical methods to optimize materials logistics plans. A key shortcoming of these methods is their inability to capture the uncertain, dynamic and complex characteristics of the road construction material logistics. Failure to incorporate these characteristics can lead to sub-optimal results. The purpose of this study is to propose the use of discrete event simulation (DES) to address the existing shortfall.Design/methodology/approachDespite the powerful capabilities of DES models in capturing the operational complexities of construction projects, they have not been previously utilized to optimize the material logistics of road construction projects. The proposed DES-based method in this research captures the operational details of material logistics and uses a heuristic approach to overcome the combinatorial problem of numerous choices. The method was applied to a 63.5 km real-world road construction project case to demonstrate its capabilities.FindingsSix different material types from 28 material sources were used in the case. Approximately 1.5% of the material logistics costs were saved by following the proposed method and choosing appropriate material sources.Originality/valueThis research contributes to the body of knowledge by leveraging the capabilities of DES and presenting a novel method for improving the materials logistics plan of road construction projects. The proposed method provides practitioners with the basis for capturing the key operational details that were overlooked in the past. The proposed method can be adopted in road construction projects to reduce the overall material procurement cost.


2020 ◽  
Vol 27 (9) ◽  
pp. 2501-2522 ◽  
Author(s):  
Pei-Yuan Hsu ◽  
Marco Aurisicchio ◽  
Panagiotis Angeloudis ◽  
Jennifer Whyte

PurposeDelays in construction projects are both disruptive and expensive. Thus, potential causes of schedule deviation need to be identified and mitigated. In previous research, delay factors were predominantly identified through surveys administered to stakeholders in construction projects. Such delay factors are typically considered individually and presented at the same level without explicitly examining their sequence of occurrence and inter-relationships. In reality, owing to the complex structure of construction projects and long execution time, non-conformance to schedule occurs by a chain of cascading events. An understanding of these linkages is important not only for minimising the delays but also for revealing the liability of stakeholders. To explicitly illustrate the cause–effect and logical relationship between delay factors and further identify the primary factors which possess the highest significance toward the overall project schedule delay, the fault tree analysis (FTA) method, a widely implemented approach to root cause problems in safety-critical systems, has been systematically and rigorously executed.Design/methodology/approachUsing a case study, the in-depth analysis for identifying the most fundamental delay factors has been fulfilled through FTA's tree structure. The logical deduction for mapping and visualising the chronological and cause–effect relationships between various delay factors has been conducted through the logical gate functions of FTA based on the data collected from the site event log, pre-fabricated structural component manufacturing log and face-to-face interview with project stakeholders.FindingsThe analysis identified multiple delay factors and showed how they are linked logically and chronologically from the primary causes to the ultimate undesired event in a rigorous manner. A comparison was performed between the proposed FTA model and the conventional investigation method for revealing the responsibility employed in the construction industry, consisting of event logs and problem reports. The results indicate that the FTA model provides richer information and a clearer picture of the network of delay factors. Importantly, the ability of FTA in revealing the causal connection between the events leading to the undesired delays and in comprehending their prominence in the real-world construction project has been clearly displayed.Originality/ valueThis study demonstrates a new application of FTA in the construction sector allowing the delay factors to be understood and visualised from a new perspective. The new approach has practical use in finding and removing root causes of the delay, as well as clarifying the attribution of responsibility that causes the delay.


2017 ◽  
Vol 51 (5/6) ◽  
pp. 1049-1074 ◽  
Author(s):  
Salome Drechsler ◽  
Peter S.H. Leeflang ◽  
Tammo H.A. Bijmolt ◽  
Martin Natter

Purpose The purpose of this paper is to compare the impact of different multi-unit promotions (MUPs) and a single-unit promotion (SUP) on store-level sales and consumer-level purchase probability and quantity decision. Design/methodology/approach The paper combines two empirical studies. Study 1 applies a hierarchical multiplicative model to store-level sales data for four product categories provided by a large Dutch retail chain. Study 2 presents a laboratory experiment in which the quantity requirements of the two focal MUP frames are manipulated to assess their impact on consumer purchase decisions. Findings The paper provides empirical evidence for the superiority of the “X for $Y” above “X + N free”, which confirms the hypotheses based on prospect theory, mental accounting and theory about gift-giving. Quantity requirements of four to five units show the largest effects. In addition, the superiority of the “X for $Y” frame holds for functional product categories, but not for the hedonic categories. Practical implications The paper provides managerial insights into the relative effectiveness of alternative MUPs and an SUP and how this promotional effectiveness depends on the type of product category and quantity requirements. Originality/value This paper combines actual sales data and experimental data. This “mixed approach” extends existing knowledge by comprehensively evaluating two MUP frames, namely, “X + N free” and “X for $Y” promotions, and an SUP.


Author(s):  
Viktoriia O. Khrutba ◽  
Julia S. Nikitchenko ◽  
Lesya І. Кriukovska ◽  
Vitalina V. Lukianova ◽  
Oksana V. Spasichenko

The purpose of this work is a quantitative assessment of the level of reduction of environmental risks of slag heaps of metallurgical enterprises with the use of metallurgical slag as an alternative road construction material.Methods. Quantitative analysis of the emergence of the risk of environmental hazard is carried out in accordance with the "Methodology for determining the risks and their adopted levels for the declaration of safety of objects of high danger", which determines the procedure for conducting a hazard analysis and risk assessment of high-risk objects, which is carried out through the definition of the probability of undesirable consequences of accidents on based scripts for their emergence and development. For the risk assessment, a logical-probabilistic hazard response scheme in the form of a "failure tree" is constructed and analyzed, which is a form of an ordered graphical representation of the logical-probabilistic connection of random events that results in an undesirable result. The calculation of road surface design with alternative road-building materials is carried out in accordance with the VBN V.2.3-218-186-2004 "Construction of vehicles. Non-rigid type of road clothes" taking into account the requirements of the GBN V.2.3-218-007: 2012 "Environmental requirements for highways Designing".Results. To determine the main causes of environmental hazards in the dumps of metallurgical combines and the nature of their impact on the environment, a tree of problems has been constructed that allows us to determine the main causes of a high level of environmental hazard and the emergence of hazardous situations, namely, the large volumes of metallurgical waste stored on the territory of dumps. For the dumps around the steel mills in Mariupol a "tree of failure" was built and the probability of occurrence of an ecologically dangerous situation or an accident which is connected with places of storage of metallurgical deposits of PJSC "Azovstal Iron and Steel Works" and PJSC "Mariupol Iron and Steel Works named after Ilyich" is calculated. The risk of the risk of storing slags in the dumps of metallurgical combines of the occurrence of the main event is 0.636. The main environmental hazards are the amount of slag and slag dust in the dump area. Design of road clothing with the use of metallurgical slags. The content of metallurgical slag in the proposed designs of the DO reaches 25 ... 32%. The use of metallurgical slags, which are low-toxic waste, that is, waste of Class IV hazard, in road construction will reduce the level of existing environmental risk, provided the metallurgical slags of consumer properties.Scientific novelty. As a result of the performed research, an effective approach to reduce the environmental risks of slag heats of steel mills was identified through the use of large volumes of slag as an alternative road construction material. The design of road clothing for the construction of roads of different categories and the level of reduction of the ecological risk of the dump impact on the environment and health of the population of the region are determined.Practical significance. The practical application of the proposed approach was made for slag heaps of the metallurgical combines of Mariupol (Ukraine). The level of ecological safety of the region by reducing the amount of metallurgical slags can be increased by 27-30%, which will allow the company to obtain a total ecological and economic effect in the amount of 1.22 million UAH.


2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Muhammad Sami Ur Rehman ◽  
Muhammad Tariq Shafiq ◽  
Muneeb Afzal

Purpose The coronavirus disease 2019 (COVID-19) pandemic has affected the global economy and, thus, the global construction industry. This paper aims to study the impact of COVID-19 on construction project performance in the United Arab Emirates (UAE). Design/methodology/approach This study adopted a qualitative and exploratory approach to investigate the impact of COVID-19 and its policies on project performance in the UAE construction industry in critical areas of the project management body of knowledge (e.g. schedule, cost, resources and contracts). Semi-structured interview questions were asked from ten construction professional to obtain valuable insights into the pandemic’s effects on the UAE construction industry and the effectiveness of policies implemented to rectify the damage and identify the industry’s new normal. Findings The findings indicate that the construction industry faced several challenges such as schedule delays, disrupted cashflows, delayed permits, approvals and inspections, travel restrictions, serious health and safety concerns, material and equipment shortages, among others which hindered the timely delivery of construction projects. It also indicates that efforts made by the government institutions and the construction industry of the UAE such as economic support programs, digitization of processes, fee and fine waivers, health facilities, among other statutory relaxations proved effective in supporting the construction industry against the adverse effects of the pandemic. Research limitations/implications The research findings are limited to the literature review and ten semi-structured interviews seeking an expert’s opinion from industry professionals working in the UAE construction industry. The research team did not get access to project documents, contracts and project progress reports which may be required to validate the interview findings, and to perform an in-depth analysis quantifying the impact of COVID 19 on construction projects performance, which is a limitation of this research. Practical implications The implication is that, owing to the imposed lockdowns and strict precautionary measures to curb the rapid spread of the pandemic, smooth execution of the construction project across the country was affected. The government institutions and stakeholders of the construction projects introduced and implemented various techniques and solutions which effectively handled the implications of the COVID-19 pandemic on the construction industry of the UAE. Originality/value This study has identified the challenges faced by the construction industry of the UAE in the context of the management of project schedule, project cost, construction contracts, health and safety of construction employees and other related aspects of the construction projects. This study also identified the techniques and solutions adopted by various public and private institutions of the country and their implications on construction projects. Therefore, this study provides guidelines for policymakers and future research studies alike.


Author(s):  
Parviz Ghoddousi ◽  
Omid Poorafshar ◽  
Nicholas Chileshe ◽  
M. Reza Hosseini

Purpose – The purpose of this paper is twofold. First, it aims to highlight the main factors and items affecting the productivity of construction projects, based on the perceptions of CEOs in construction companies in Iran. Second, the study compares the elicited CEOs’ perceptions against the findings of studies based on the views of such as project managers, middle managers and employees in other levels. Design/methodology/approach – The study drew upon literature on construction work to develop a conceptual model. Further, a total of 60 CEOs from road construction companies were surveyed using a five-point Likert scale questionnaire to generate the data. The collated data were categorised and ranked according to the CEOs perceived level of importance using the relative importance index. Findings – The findings highlight the main factors and items affecting labour productivity in construction projects in Iran as perceived by CEOs, which are mainly of human resources management nature and could be attributed to motivation and managerial policy aspects. The study also recognises that factors associated with the working environment particularly safety and health are perceived as insignificant by Iranian CEOs which could be a concern for the Iranian construction industry. The discussions shed some light on the discrepancies between the perceptions of CEOs and previous studies in regards to major determinants of productivity in the construction context. Originality/value – This study is the first study aiming at discussing the perceptions of CEOs of construction companies active in construction projects in Iran. As such, the study highlights the standpoint of the main decision makers in construction companies in regards to labour productivity in the construction sector. Thus, the key contribution of the present study is providing insight into the perceptions of CEOs, who play the most vital role in strategic development of construction companies whereas previous studies have mostly focused on project or middle managers having a lower influence in determining the strategic plans of companies.


2019 ◽  
Vol 36 (7) ◽  
pp. 1137-1158 ◽  
Author(s):  
Richard Stuart Dilawo ◽  
Zahra Salimi

Purpose The purpose of this paper is to identify the factors that affect TQM implementation in construction companies and it suggests solutions for TQM implementation in a difficult environment. Design/methodology/approach Studies were carried out at six large construction companies who ply their trade in Southern Africa and in-depth investigations were conducted to assess TQM implementation practices and associated TQM barriers. Interviews were conducted on directors and key personnel that play important roles in TQM implementation in their respective organisations. The empirical study also utilised a number of organisational documents which added rigour to the findings. Findings This study identified three core categories and ten main barriers affecting TQM implementation in Southern Africa construction companies. The core categories are motivation, infrastructure and penchants and tendencies while the factors are lack of quality support, poor TQM knowledge and TQM awareness, poor information sharing, temporary workers, overdependence on contract document, poor data collection measurement, undefined TQM roles and responsibilities, award to lowest bidder tendency, poor business environment and corruption. Research limitations/implications The study was conducted based on companies plying their trade in Southern Africa and mostly around Malawi, Zambia and Mozambique. It does not study companies in Namibia, Zimbabwe, Angola, South Africa and Botswana. Practical implications TQM cannot be exported wholly from another region to a new setting without taking into consideration the local factors associated with that setting. For successful TQM implementation in construction in Southern Africa, characteristics of this region have to be known. This study illuminates a number of TQM implementation barriers associated with construction especially applied to this difficult environment. Application of this knowledge would enhance TQM and heighten competitive advantage initiatives. The proportions highlighted in this study therefore help build up the TQM implementation awareness. Social implications At society level, the findings of this study indicate societal problems such as corruption and business environment which require wide level approaches to deal with these barriers. In addition, if TQM applied in road construction projects, the quality of the roads will be improved, this in turn will have direct impact on quality of life in the society, better roads means easier access to hospitals, schools and public places, better transport and movements of goods and services, etc. It can also save money for the country in long run and economic benefits to the society. Originality/value The factors identified in this study are based on current TQM implementation practices at established construction companies in Southern Africa. They provide a practical basis for guiding TQM in construction companies operating in difficult environments.


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