Addressing the knowledge management “nightmare” for construction companies

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Paulo Vaz-Serra ◽  
Peter Edwards
Keyword(s):  
Knowledge Management ◽  
Construction Projects ◽  
Information And Communications Technology ◽  
Content Type ◽  
Construction Company ◽  
Construction Companies ◽  
Management Consultants ◽  
Knowledge Requirements ◽  
Internal Procedures ◽  
Aec Industry

Purpose Knowledge management presents a problem for the architecture, engineering and construction (AEC) industry, largely because of the industry’s fragmented structure and project-driven nature. Construction companies may be involved in a variety of projects in different locations, each having its own knowledge requirements. Companies are also expected to be competitive, flexible and innovative, but introducing new knowledge management systems (KMSs) may represent a change that is beyond the organisation’s capacity to undergo successfully, and thus becomes a “nightmare”. The purpose of this paper is to propose and test a KMS solution that can help to facilitate the capture and application of important knowledge without introducing unnecessary changes in internal procedures for the organisation. Design/methodology/approach Following a review of existing systems, and an interview survey of 22 managers in the Portuguese AEC industry (contractors, design consultants and project management consultants) a new IT-based construction KMS called ConstruKnowledge was developed. The KMS was tested, verified and validated in two Portuguese construction projects and assessed by 12 managers in the construction company undertaking those projects. Findings The results of two pilot tests using ConstruKnowledge in two Portuguese construction projects demonstrate that its use can raise the levels of confidence in decision-making, and retaining knowledge; and that it serves to add value to the company. Practical implications The Construknowledge KMS is an innovative contribution to the greater acceptance of KMSs in the construction industry. The system facilitates the effective and efficient development of an organisational KMS using basic Information and Communications Technology (ICT)-based collaboration tools. While undertaken in the context of the Portuguese industry, the KMS has a wider global potential for implementation and further development. Originality/value The originality and value of this research are that it demonstrates how a KMS can be developed and then used in a construction company to capture and share knowledge without introducing additional constraints.

scholarly journals BIM EXECUTION PROCESS OF CONSTRUCTION COMPANIES FOR BUILDING PROJECTS

2017 ◽  
Vol 4 (1) ◽  
Author(s):  
Bilge Gercek ◽  
Onur Behzat Tokdemir ◽  
Mustafa Emre Ilal ◽  
Husnu Murat Gunaydin
Keyword(s):  
Cost Estimation ◽  
Construction Projects ◽  
Information Modeling ◽  
Building Projects ◽  
Construction Company ◽  
Construction Companies ◽  
Building Information ◽  
Minimum Requirements ◽  
Implementation Plans ◽  
Aec Industry

Building Information Modeling (BIM) has been an emerging concept in architecture, engineering and construction (AEC) industry with a vast amount of promising benefits to construction projects. Implementation of BIM, however, requires comprehensive research and strategic planning. Industry-wide and organizational implementation guidelines and standards have been published around the world either to encourage organizations to adopt BIM or to present the minimum requirements to be followed where BIM implementation is a statutory obligation. In contrast, governments or organizations in several countries such as Turkey have not mandated BIM implementation and provide no guidance. Organizations in these countries which plan to adopt BIM processes are forced to develop their own implementation plans. The purpose of this study is to provide guidance in BIM implementation for construction companies in countries where BIM implementation has not been mandated particularly during the construction phase of the building projects. 23 BIM standards and guidelines covering the BIM execution process have been reviewed. Topics that need to be addressed by BIM implementation plans have been identified and categorized under four headings. A case study of BIM implementation at a large construction company that focuses on conducting quantity takeoff and cost estimation is presented, and unique challenges of BIM implementation in Turkish AEC industry are discussed.

Price risk management in BOT railroad construction projects using financial derivatives

2018 ◽  
Vol 23 (3) ◽  
pp. 349-362 ◽  
Author(s):  
Mohammad Vahdatmanesh ◽  
Afshin Firouzi
Keyword(s):  
Risk Management ◽  
Construction Projects ◽  
Financial Derivatives ◽  
Price Risk ◽  
European Options ◽  
Financial Industry ◽  
Content Type ◽  
Construction Company ◽  
Construction Companies ◽  
Valuation Model

Purpose Railroad transit infrastructures are amongst major capital-intensive projects worldwide, which impose significant risks to the contractors of build-operate-transfer projects because of the fluctuations in steel price fluctuation. The purpose of this paper is to introduce a methodology for hedging steel price risk using financial derivatives. Design/methodology/approach Cox–Ross valuation lattice has been used as an option valuation model for determining option’s price for the construction companies involved in fixed-price railroad projects. A sensitivity analysis has been conducted using the financial option Greeks to evaluate the impacts of option’s pricing factors in the total price of option. Findings The result of valuation shows that European options cost to safeguard against the effects of price risk is only a fraction in contrast to the total cost of steel procurement for a typical railroad construction company. This confirms that using this kind of financial derivative is a beneficial yet effective approach for hedging steel price risk for railroad construction companies. Practical implications The applicability of the financial derivatives, both exchange-traded and over-the-counter instruments, is evident in broad financial industry. This paper shows how European options can be readily used for risk management of a typical railroad project, and explains the methodology in a step-by-step procedure. Originality/value Although the financial engineering literature is rife of theory and application of derivatives in various contexts, to the best knowledge of authors there is only few papers on the application of these well-developed financial instruments for risk management in construction industry. This study intends to illustrate how financial derivatives can add value to risky construction projects and shed new light in this important application area.

Analysing the benefits, techniques, tools and challenges of knowledge management practices in the Malaysian construction SMEs

2017 ◽  
Vol 15 (6) ◽  
pp. 803-825 ◽  
Author(s):  
Jeffrey Boon Hui Yap ◽  
Anna Lock
Keyword(s):  
Knowledge Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Management Practices ◽  
Small And Medium Enterprises ◽  
Cultural Issue ◽  
Content Type ◽  
Klang Valley ◽  
Knowledge Management Practices ◽  
Company Identification

Purpose Knowledge management (KM) is the central know how for the construction industry. However, the delivery of construction projects is often plagued by schedule delays and cost overruns due to lack of working knowledge of project personnel. Hence, the need to appraise the practices of knowledge management in the construction industry has become all the more germane. This paper aims to determine the awareness of KM practices in Malaysia-based construction small and medium enterprises, and to investigate the benefits, tools and techniques, and challenges associated with knowledge management implementation so that effective measures can be devised to address them. Design/methodology/approach The research data were gathered using a structured questionnaire survey disseminated in the Klang Valley region in Malaysia. Responses were collected from 107 industry practitioners. The quantitative data are subjected to descriptive statistics, and the ranking with category of significance of the hypothesised variables is determined using the relative importance index (RII) technique. Findings The key benefits of KM practices are predominantly raising efficiency, quality, productivity and decision-making. The most preferred KM techniques are “face-to-face interaction”, “mentoring” and “documents and reports”. The highly significant tools are “groupware” and “telephone”. The major organisational issue hampering the implementation of knowledge management practices is “lack of motivation” while the critical cultural issue is relating to “bureaucracy and hierarchical”, and the vital people issue concerns “lack of trust”. Research limitations/implications The respondents were limited to only small and medium construction enterprises located in the Klang Valley region in Malaysia, which makes generalisation challenging. Practical implications KM provides not only a pragmatic but also a proactive approach to raising the competitive edge and capabilities of a construction company. Identification of the critical attributes of KM provides the basis for project managers in formulating KM strategies to enhance the chances of successful delivery of future projects. Originality/value The study contributes to the debate on the knowledge agenda in the construction industry, particularly from a fast developing economy’s perspective, where an effective KM can further contribute to realising a reasonable level of competitiveness operation.

Exploring the use of financial capacity as a predictor of construction company corporate performance

2015 ◽  
Vol 13 (4) ◽  
pp. 596-611 ◽  
Author(s):  
George Cyril Tucker ◽  
Abimbola Windapo ◽  
Keith Stone Cattell
Keyword(s):  
Financial Performance ◽  
Construction Industry ◽  
South African ◽  
Corporate Performance ◽  
Financial Capital ◽  
Content Type ◽  
Financial Capacity ◽  
Construction Company ◽  
Construction Companies ◽  
Operational Variables

Purpose – The purpose of this paper is to examine the resilient operational variables that impact the corporate performance of construction companies in the South African construction industry and to explore whether financial capacity can be used as a predictor of construction company performance in the context of the South African construction industry. Design/methodology/approach – The operational variables of construction companies that impact their corporate performance were identified through an in-depth review of the extant literature. A combination of convenience and snowball sampling techniques were used in identifying 185 building and civil engineering construction companies based in four provinces of South Africa and registered in Grades 2-6 of the Construction Industry Development Board (CIDB) contractor grading register. The data used in the study were collected from this cohort of respondents through the use of structured questionnaires. At the end of the study period, 62 valid responses representing a response rate of 33.5 per cent were received. Data collected were analyzed using descriptive and inferential statistics. Findings – The findings of this study indicate that there is a significant positive relationship between the financial capital and net assets of construction companies and their corporate performance in terms of turnover. The data collected did not support any significant relationship between other operating financial variables, such as Return on Capital Employed and profitability and financial performance. Research limitations/implications – A predictive model for predicting the financial performance of firms was developed from the data collected. The implication of this is that the more financial capital possessed by a construction company, the more the company’s financial performance in terms of turnover. The CIDB can use financial capacity as a measure when grading contractors, as a good number of contractors are not performing. The predictive model developed could be adopted by the CIDB as an instrument for predicting the corporate financial performance of construction companies that seek to be listed on their contractor grading register. Originality/value – This research will be of significance to researchers and members of the research community in providing new knowledge as well as to contractors in enabling them to understand the importance of having financial capital. It is also of importance to the CIDB in their quest for contractor and construction industry development. Further research to validate the results obtained in this study using a larger sample size across more provinces of South Africa will form the basis of future studies.

Application level of lean construction techniques in reducing accidents in construction projects

2019 ◽  
Vol 24 (3) ◽  
pp. 274-293
Author(s):  
Adnan Enshassi ◽  
Nour Saleh ◽  
Sherif Mohamed
Keyword(s):  
Middle East ◽  
Construction Projects ◽  
Gaza Strip ◽  
Descriptive Analysis ◽  
Lean Construction ◽  
Current Status ◽  
Future Research ◽  
Accident Investigation ◽  
Content Type ◽  
Construction Companies

Purpose This paper aims to investigate the application of lean construction (LC) techniques in reducing accidents in construction projects. Design/methodology/approach A quantitative approach was used to collect the required data using a questionnaire survey and descriptive analysis was used to analyse the collected data. The LC techniques that were investigated in this paper are related to the tools of the last planner system (LPS), increased visualisation (IV), 5S, error-proofing, daily huddle meetings (DHMs), first-run studies (FRS), continuous improvement (Kaizen) and accident investigation (5Whys). Findings The overall results indicated that LC techniques are poorly implemented in construction projects in the Gaza Strip. The top three LC tools used to reduce the causes of accidents in the Gaza construction projects were 5Whys, 5S and LPS, while the highest three LC techniques applied to reduce the causes of accidents that were applicable were cleaning the workplace and removing materials and machines that are not required; conducting accident investigation and root cause analysis programmes; and using safety signs and labels on site. Research limitations/implications There is a lack of information and published studies regarding the links between LC and safety, especially in the Middle East. This paper is limited to the perceptions and geographical boundaries; therefore, it cannot be generalised. However, it could form the basis for useful comparison in the future. Triangulation research method could also be used in future research to minimise the bias and validate the conclusions. Practical implications The findings of this paper will stress professionals and construction companies in Gaza to reconsider their behaviour towards using LC techniques. The findings of this paper will aid them to shift their attention and resources towards including LC techniques in their plans to reduce the causes of accidents on construction sites. Social implications The findings of this paper will encourage professionals and construction companies in Gaza to reconsider their behaviour towards using LC techniques. The findings will also aid them to shift their attention and resources towards including LC techniques in their plans to reduce and/or avoid the causes of accidents on construction. Originality/value Because of the lack of published works that are specific to the Middle East, the authors believe that the originality lies in the paper’s serious attempt to explore the application level of the LC concept to safety in this part of the world. This paper contributes to a better understanding of the applicability of LC techniques in terms of accidents reduction. Findings from this paper provide a clear picture of the current status of using LC techniques to reduce accidents in the Gazan construction projects which drive them to investigate the main barriers and try to overcome them.

Reducing waste to landfill in the UK: identifying impediments and critical solutions

2013 ◽  
Vol 10 (2) ◽  
pp. 131-142 ◽  
Author(s):  
Lukumon O. Oyedele ◽  
Martin Regan ◽  
Jason von Meding ◽  
Ashraf Ahmed ◽  
Obas John Ebohon ◽  
...  
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Methodological Approach ◽  
Cost Savings ◽  
Content Type ◽  
Construction Companies ◽  
Early Communication ◽  
Design Changes ◽  
Critical Solutions ◽  
The Uk

PurposeThe UK construction industry produces up to one third of all waste to landfill. This study aims to identify specific project practices impeding the reduction of waste in construction projects as well as uncovering potential waste solutions throughout the project delivery process. The rationale being that for such a drastic reduction in waste to landfill, holistic and extensive measures would be required.Design/methodology/approachA two‐way methodological approach was used. This comprised qualitative unstructured interviews and a quantitative questionnaire survey of three major stakeholders in the UK construction industry: clients, architects and contractors.FindingsDesign factors remain the major cause of impediments to waste reduction to landfill. Critical impediments include clients making waste prevention a top priority in projects, overly complex designs, waste taking a low priority compared to project time and costs, lack of concerns by designers for buildability, among others. Critical solutions include early supply chain involvement in design process, choosing materials for their durability, early communication of design changes to all parties, longer project programmes and better lead times, among others.Practical implicationsIn all, the target of halving construction waste to landfill based on the 2008 benchmark is achievable but would require construction companies to take it upon themselves to implement the proposed solutions suggested by this study.Originality/valueThe value of this research is to provide UK construction companies with solutions to reduce waste and aid the reaching of the landfill target, as landfill is decreasing as a solution to waste. In addition the cost savings on reducing waste could be crucial for companies in this current economic climate.

A study on how to improve the throughput time of Lean Six Sigma projects in a construction company

2014 ◽  
Vol 5 (2) ◽  
pp. 212-226 ◽  
Author(s):  
Aat van den Bos ◽  
Benjamin Kemper ◽  
Vincent de Waal
Keyword(s):  
Six Sigma ◽  
Selection Process ◽  
Lean Six Sigma ◽  
Throughput Time ◽  
Content Type ◽  
Construction Company ◽  
Construction Companies ◽  
Project Completion ◽  
Depth Analysis ◽  
Improvement Programs

Purpose – The purpose of this paper is to study the use of the Lean Six Sigma (LSS) methodology in a construction company. Design/methodology/approach – In our study we analyze 62 LSS improvement projects carried out within a Dutch company. In our analysis we focus on both speed, in terms of throughput time (THT), and impact, in terms of project completion, of each project. Findings – From the analysis we conclude that the current THT of a project is about a year and we identify important factors that cause large project's THTs These factors are then translated into recommendations for an efficient execution of LSS improvement projects. Research limitations/implications – The analysis is based on a sample from one company of the Dutch construction industry. The scope should be broadened as more companies adopt quality and process improvement programs, such as LSS. Originality/value – The narrowed scope, only one company and focused mostly on the speed of projects, helped to do an in-depth analysis. Therefore, we are able to present concrete and useful recommendations that relate to practical issues in the execution of improvement projects. These recommendations offer a checklist for construction companies in the project selection process, in situations of starting or improving an LSS program

Managing renewal in fragmented business networks

IMP Journal ◽  
2016 ◽  
Vol 10 (1) ◽  
pp. 81-106 ◽  
Author(s):  
Malena Ingemansson Havenvid ◽  
Håkan Håkansson ◽  
Åse Linné
Keyword(s):  
Business Environment ◽  
Business Networks ◽  
Business Relationships ◽  
Core Network ◽  
Content Type ◽  
Internal Resources ◽  
Business Context ◽  
Construction Company ◽  
Construction Companies

Purpose – The authors argue that the construction industry is characterised by a fragmented business context with three main features: the project-based character, the strong focus on price in all parts of the supply chain along with the great importance of suppliers. This fragmentation has been identified as problematic for the industry’s ability to innovate and engage in renewal. The purpose of this paper is to investigate this further by focusing on how construction companies manage renewal in a fragmented business context. Design/methodology/approach – The authors use an in-depth case study of a housing project in Sweden to discuss how firms manage renewal in a fragmented type of business environment. The authors identify the challenge of achieving renewal in an individual construction company as an issue of handling intra- and inter-organisational issues in both intra- and inter-project environments. Findings – The case study indicates that renewal can be partly handled and managed through long-term business relationships and partly through opening up to new business relationships. Moreover, innovations and learning developed in other projects can be used in the focal project, and due to a repetitive task it is possible for the construction company to use a core network of individuals and organisations to enhance overall renewal among actors. Research limitations/implications – The study needs to be supported by further empirical observations. The paper encourages IMP scholars to further investigate projects from an industrial network approach. Practical implications – The study shows that the internal resources of firms can be used systematically to create continuity in a multi-project organisation, and that relationships can be used to bridge learning and innovation among actors across projects. Originality/value – The paper addresses why firms in fragmented (project-based) businesses might struggle with achieving renewal in a novel way by outlining and investigating four organisational challenges they must handle.

scholarly journals Strategic framework for implementing smart devices in the construction industry

2021 ◽  
Vol 21 (2) ◽  
pp. 218-243
Author(s):  
Manuel Alexander Silverio-Fernández ◽  
Suresh Renukappa ◽  
Subashini Suresh
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Success Factors ◽  
High Rate ◽  
Smart Devices ◽  
Structured Interviews ◽  
Content Type ◽  
Strategic Framework ◽  
Construction Companies ◽  
The Uk

Purpose The decentralisation of information and high rate of mobile content access in the construction industry provide an ideal scenario for improvement of processes via the implementation of the paradigm of the Internet of Things (IoT). Smart devices are considered as the objects interconnected in the IoT; therefore, they play a fundamental role in the digital transformation of the construction industry. Currently, there is a lack of guidelines regarding the implementation of smart devices for digitalisation in the construction industry. Consequently, this paper aims to provide a set of guidelines for implementing smart devices in the construction industry. Design/methodology/approach An empirical study was performed in the UK and the Dominican Republic (DR). Following a systematic approach, qualitative data collection and analysis was performed based on semi-structured interviews involving professionals from construction companies in the UK and the DR. Interviews were recorded and subsequently transcribed using Microsoft Word and exported to the software NVivo, where the software was used to find common thematic nodes across all interviews. Findings The findings encompass drivers, challenges and critical success factors (CSFs) for implementing smart devices in construction project. For both countries, the top five CSFs were leadership, staff training, culture, technology awareness and cost of implementation. These findings were used to develop a strategic framework for implementing smart devices in construction companies. The framework establishes the actors, elements and actions to be considered by construction companies when implementing smart devices. Originality/value This paper provides a richer insight into the understanding and awareness of implementing smart devices. A strategic framework for implementing smart devices in the construction industry and providing guidelines for adopting smart devices in construction projects was developed and validated. This study provides a better understanding of the key factors to be considered by construction companies when embedding smart devices into their projects.

The promoters and the barriers for organizational culture change in a Finnish construction company

2019 ◽  
Vol 19 (4) ◽  
pp. 672-688
Author(s):  
Ville Juhani Teräväinen ◽  
Juha-Matti Junnonen
Keyword(s):  
Organizational Culture ◽  
Knowledge Management ◽  
Construction Industry ◽  
Culture Change ◽  
Holistic Approach ◽  
Organizational Level ◽  
Content Type ◽  
Construction Company ◽  
Organizational Culture Change

Purpose The construction industry has struggled with efficiency issues for decades. Organizational culture is identified as one of the biggest hindrances for the enhancement of efficiency in a highly labor-intensive sector such as construction. Based on recent academic studies, Finnish construction industry professionals would embrace clan and adhocracy culture features to achieve a better level of construction efficiency. The purpose of this paper is to investigate the promoters and the barriers for making the desired culture change happen in the case company. Design/methodology/approach The paper presents a semi-structured theme interview case study, including 12 in-depth interviews. The interviews were recorded, and later, transcribed into text, which forms the empirical data of this paper. Findings The Finnish construction industry must adopt a holistic approach to enhance its prevailing level of efficiency through the culture change. Basic learning and knowledge management processes seem to be missing from the industry and organizational levels. Better knowledge management in the case company would be the first step to start fixing this problem. Research limitations/implications Because of the nature of a case study, the research results can be generalized only with caution in the Finnish construction industry. Generalizing the findings in another country would require further studies in a different cultural environment, e.g. in another European country. Practical implications The paper includes implications for the development of the organizational culture on the Finnish construction industry level and on an organizational level. Originality/value The found influencers are discussed through Engeström’s activity model for the first time in the construction culture context.

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