Trust and productivity in Australian construction projects: a subcontractor perspective

2016 ◽  
Vol 23 (2) ◽  
pp. 192-210 ◽  
Author(s):  
Mathew Chalker ◽  
Martin Loosemore
Keyword(s):  
Supply Chain ◽  
Construction Industry ◽  
Construction Projects ◽  
New Technologies ◽  
Business Environment ◽  
Content Type ◽  
Factors Affecting ◽  
Good Communication ◽  
Construction Productivity ◽  
Economic Boom

Purpose – The purpose of this paper is to explore the association between trust and productivity from a subcontractor perspective. More specifically it investigates: the perceived level of trust that currently exists between subcontractors and main contractors; the factors affecting trust at the project level; the relationship between trust and productivity. Design/methodology/approach – An on-line survey was undertaken with of 112 senior construction managers working for tier-1 and tier-2 subcontractors in the Australian construction industry. The survey was based on a combination of validated questions from Lau and Rowlinson’s (2009) interpersonal trust and inter-firm trust in construction projects framework and Cheung et al.’s (2011) framework for a trust inventory in construction contracting. Findings – In contrast to the large number of research projects which have highlighted a lack of trust in the construction industry, the findings show that level of trust that Australian subcontractors have in main contractors is generally high. However, bid shopping is a continuing problem in the Australian construction industry which acts to undermine trust. The findings also provide strong evidence that high levels of trust influence productivity on site by enabling greater collaboration, better communication and greater flexibility, agility and informality in project relationships. Research limitations/implications – This research was undertaken in the Sydney metropolitan area in Australia and within an economic boom. It is quite possible that outside this regional context which tends to dominated by larger construction firms and in an alternative economic context that the results of this research could be quite different. This possibility needs to be investigated further. Practical implications – The results indicate that this relatively healthy level of trust is down to good communication and empathy on the part of main contractors to the subcontractor’s welfare. While the results showed that bid shopping is clearly a continuing problem in the Australian construction industry, subcontractors also felt that their contracts were clearly defined and that they were given sufficient time to innovate on their projects. This suggest that new communications technologies can be used to build trust through the supply chain. Given that much of the construction supply chain is made up of small- to medium-sized businesses, the challenge of diffusing these new technologies into this business environment should be a priority. Social implications – Trust in basis of effective collaboration which has been shown to produce numerous social benefits such as greater equity and justice in business relationships and higher levels of productivity and safety. Originality/value – The originality of this research is in using theories of trust to give subcontractors a greater “voice” in the construction productivity debate.

A review of enabling factors in construction industry productivity in an Australian environment

2014 ◽  
Vol 14 (2) ◽  
pp. 210-228 ◽  
Author(s):  
Rami Hughes ◽  
David Thorpe
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
The State ◽  
Background Information ◽  
Original Research ◽  
Relative Importance ◽  
Enabling Factors ◽  
Content Type ◽  
Factors Affecting ◽  
Construction Productivity

Purpose – The purpose of the research discussed in this paper is to ascertain the perception, from the project manager's viewpoint, of factors affecting construction productivity in the State of Queensland, Australia. Design/methodology/approach – The research was conducted by a structured questionnaire that was sent to 89 randomly selected construction project managers in Queensland, Australia. This questionnaire requested background information about the respondents and then sought a score, using a 0-4 Likert scale, from each of them with respect to the importance of 47 factors identified from the literature that were considered likely to affect construction productivity. The factors were stratified into primary factors and secondary factors contributing to three of the primary factors. There were 36 responses. These factors were rated by the respondents and then ranked using a relative importance index approach. Findings – The research evaluated the relative importance of the primary factors with respect to their effect on construction productivity. The 15 highest ranking factors are discussed. Three factors – rework, poor supervisor competency, and incomplete drawings – were ranked as having a strong effect on construction productivity. There was also an analysis of the secondary factors in relation to three of the primary factors. Research limitations/implications – The research focused on the State of Queensland in Australia. It had a response rate of 40 per cent. It provides insight into the factors affecting productivity on construction projects in Australia. Further research to investigate the identified factors in depth, using targeted interviews of expert project management professionals, is currently being undertaken. Practical implications – The construction industry can use the findings in this paper as a basis for improving the productivity of construction projects. Originality/value – This research is original research, which has highlighted a number of key areas of which construction productivity can be improved.

Exploring influential factors leading to the poor performance of public construction project in Ethiopia using structural equation modelling

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Benti Gadisa ◽  
Hong Zhou
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Poor Performance ◽  
Project Performance ◽  
Influential Factors ◽  
Project Design ◽  
Content Type ◽  
Factors Affecting ◽  
Public Construction

PurposeIt is well recognized that the construction industry is characterised by inefficient and ineffective service delivery due to various causative factors. Thus this study aims to examine the influential factors affecting public construction project performance in Ethiopia to improve the industry's service delivery.Design/methodology/approachFrom the extensive literature reviewed, 58 potential factors affecting construction project performance have been compiled. Based on the evidence accumulated, the conceptual model of this paper has been developed. By using survey questionnaires, valuable data were collected from the construction industry professionals in Ethiopia; analysed and interpreted with the use of both SPSS and AMOS software.FindingsIt is concluded that failure factors related to the “performance” of the contractor, the “capability” of the owner, the “project design-procurement process,” and project contract management can significantly contribute to the poor performance of public construction projects in Ethiopia. Ten key factors include inadequate contractor capacity, weak project site management and supervision, weak project management skills and capabilities of the owner, additional work orders, delayed payment, lack of comprehensive project plans between parties and incomplete project design, rising material prices, ineffective project schedules, and cost management, rising market prices and devaluation of the currency.Research limitations/implicationsThe scope of this study confined to public projects in Ethiopia. It suggests that further research needs to consider public and private construction from a comprehensive perspective in the developing countries.Practical implicationsIt provides practitioners with information and guidance on the factors that affect the performance of construction projects.Originality/valueIt provides inclusive evidence related to many factors that affect the performance of public construction projects.

Factors affecting tender price in the Ghanaian construction industry

2017 ◽  
Vol 22 (3) ◽  
pp. 252-268 ◽  
Author(s):  
Ernest Kissi ◽  
Theophilus Adjei-Kumi ◽  
Edward Badu ◽  
Emmanuel Bannor Boateng
Keyword(s):  
Construction Industry ◽  
Structural Equation ◽  
Construction Projects ◽  
Negative Influence ◽  
Positive Influence ◽  
The Body ◽  
Content Type ◽  
Factors Affecting ◽  
Practical Implications ◽  
Structured Questionnaire

Purpose Tender price remains an imperative parameter for clients in deciding whether to invest in a construction project, and it serves as a basis for tender price index (TPI) manipulations. This paper aims to examine the factors affecting tender price in the construction industry. Design/methodology/approach Based on the literature review, nine independent constructs and one dependent construct relating to tender pricing were identified. A structured questionnaire survey was conducted among quantity surveyors in Ghana. Partial least squares structural equation modelling (PLS-SEM) examined the influences of various constructs on tender price development (TPD) and the relationships among TPD and TPI. Findings Results showed that cultural attributes, client attributes, contractor attributes; contract procedures and procurement methods; consultant and design team; external factors and market conditions; project attributes; sustainable and technological attributes; and TPI have a positive influence on tender price, whereas fraudulent attributes exert a negative influence. Practical implications The findings offer construction professionals broader understanding of factors that affect tender pricing. The results may be used in professional decision-making in the pricing of construction projects, as they offer clearer causal relations between how each construct will influence pricing. Originality/value This study adds to the body of construction pricing knowledge by establishing the relationships and degree of influences of various factors on tender price. These findings provide a valuable reference for practitioners.

scholarly journals An Investigation on Factors affecting Construction Productivity

2021 ◽  
Vol 9 (VI) ◽  
pp. 2116-2118
Author(s):  
Ajit Ambekar
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Significant Part ◽  
Work Schedule ◽  
Internal Factors ◽  
Factors Affecting ◽  
Total Cost ◽  
Construction Productivity ◽  
Constant Change ◽  
Cost Of Construction

Productivity is important in construction. Construction productivity is a significant part of production for construction projects. In the construction industry, many external and internal factors are never constant and difficult to predict. This factor leads to a constant change in productivity. It is necessary to make sure that the reduction of construction productivity does not affect the plan and work schedule and does not cause delays. The consequences of these delays can lead to serious loss of money. In addition, significant costs can be saved if productivity is improved, as the same work can be done with less labor, thereby reducing the total cost of construction.

Factors leading to design changes in Jordanian construction projects

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lina Ghazi Gharaibeh ◽  
Sandra T. Matarneh ◽  
Mazen Arafeh ◽  
Ghaleb Sweis
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Control Measures ◽  
Value Engineering ◽  
Public And Private ◽  
Content Type ◽  
Factors Affecting ◽  
Construction Market ◽  
Design Changes ◽  
Major Factors

PurposeThe problem of design changes in the construction industry is common worldwide, and the Jordanian market is no exception. The purpose of this paper is to identify the factors causing design changes in construction projects in Jordan in both the public and private sectors. Furthermore, this research will examine the effect of these factors on project's performance during the construction phase.Design/methodology/approachThis research commences by identifying the factors causing design changes in construction projects worldwide through an intensive literature review. The identified factors were then filtered to those applicable to the Jordanian construction market based on the results obtained from a questionnaire survey and real case construction projects. In total, 252 professionals from the Jordanian construction industry and 10 completed and/or ongoing construction projects in different parts of Jordan were compared.FindingsThe results find that the top major factors affecting design changes are owner's requirements; design errors and omissions and value engineering. The research also studies and documents the impacts of design changes on project cost, schedule and quality.Originality/valueThe results obtained from this research will assist the construction professionals representing owners, consultants and contractors in applying control measures to minimize the occurrence of the identified factors causing design changes and to mitigate their sever impacts on projects in terms of cost, schedule and quality.

Significant causes of claims and disputes in construction projects in Saudi Arabia

2019 ◽  
Vol 9 (5) ◽  
pp. 597-615 ◽  
Author(s):  
Sadi Assaf ◽  
Mohammad A. Hassanain ◽  
Abdullatif Abdallah ◽  
Ahmed M.Z. Sayed ◽  
Abdulrahman Alshahrani
Keyword(s):  
Saudi Arabia ◽  
Construction Industry ◽  
Construction Projects ◽  
Design Methodology ◽  
Business Environment ◽  
Relative Significance ◽  
Content Type ◽  
Key Stakeholders ◽  
Strong Performance ◽  
The Individual

Purpose Projects in the construction industry have been confronted with an unprecedented volume of claims, which negatively impact the construction business environment. The purpose of this paper is to identify and assess the major causes of claims and disputes, from the perspectives of three key stakeholders. Design/methodology/approach An online and paper-based questionnaire was distributed to a random sample of 250 professionals. Responses from 86 construction professionals were obtained. The significance index was employed to rank the factors and hence assess their relative significance. Results were analyzed from both the individual stakeholder, and collective perspectives. Test of agreement was also conducted. Findings The research found the following causes to be the most significant contributors to claims and disputes in Saudi Arabia: “change or variation orders due to new requirements from client” (78 percent), “variations in quantities due to new requirements from client” (74 percent), “delay caused by contractor” (74 percent), “design errors or omissions” (72 percent) and “inconsistencies in the drawings and specifications” (70 percent). Originality/value The research provides an in-depth assessment of the causes of claims and disputes, in the setting of a fast growing industry, in which strong performance is essential to continued success. Unlike several of the reviewed studies which reported “delay caused by the owner” or “delayed in payment” as a major cause of claims and/or disputes, the findings of the current study indicated that this cause was not the most significant. Instead, it was determined that the top causes of claims and disputes were attributed to all parties, including consultants, contractors and clients.

The effect of the client–contractor relationship on project performance

2019 ◽  
Vol 69 (3) ◽  
pp. 541-558 ◽  
Author(s):  
Milind Jagtap ◽  
Sachin Kamble
Keyword(s):  
Supply Chain ◽  
Construction Industry ◽  
Structural Equation ◽  
Construction Projects ◽  
Project Performance ◽  
Relationship Commitment ◽  
Equation Modeling ◽  
Content Type ◽  
Construction Firms ◽  
Practical Implications

Purpose The purpose of this paper is first to examine the effect of client-led and contractor-led supply chain initiatives on project performance in the Indian construction industry and second to assess how the client-led supply chain initiatives complement the contractor-led supply chain initiatives. Design/methodology/approach In this study, the effects of the client-led supply chain initiatives (reward power and competence trust of the construction clients) and the contractor-led supply chain initiatives (contractor integration and calculative commitment of the contractor) on project performance in construction projects are examined. The data were collected from 346 construction professionals working in Indian construction projects using purposive sampling. The proposed hypotheses were tested using structural equation modeling. Findings The contractor-led supply chain initiatives, in the form of contractor integration and the calculative relationship commitment of a contractor, were found to be strong mediators, indirectly affecting the project performance. On the other hand, the client-led supply chain initiatives, in the form of the reward power of the client and the competence trust of the client, directly influence the project performance. Research limitations/implications This study reports the inevitable bias on the part of participants, who responded to the survey either in the capacity of client or contractor, although they might have executed projects in both capacities. Future studies could benefit from the use of objective data instead of behavioral data. Practical implications This study helps construction firms understand how to demarcate the client and contractor roles in the construction supply chain to improve the project performance. Originality/value The originality of this study lies in its investigation of the influence of client-led supply chain initiatives and contractor-led supply chain initiatives on project performance.

scholarly journals An exploratory study on the impact of mobile ICT on productivity in construction projects

2018 ◽  
Vol 8 (3) ◽  
pp. 320-332 ◽  
Author(s):  
Abid Hasan ◽  
Abbas Elmualim ◽  
Raufdeen Rameezdeen ◽  
Bassam Baroudi ◽  
Andrew Marshall
Keyword(s):  
Construction Industry ◽  
Information And Communication Technologies ◽  
Construction Projects ◽  
The South ◽  
Content Type ◽  
Construction Productivity ◽  
Information And Communication ◽  
Major Bottleneck ◽  
The Impact ◽  
Mobile Ict

Purpose The issue of low productivity has remained a very stern and chronic problem in construction projects. Previous studies have found poor communication as one of the leading causes of low-construction productivity. Recent advances in the field of information and communication technologies (ICT) have the potential to enhance communication and access to information in construction projects. However, the implications of the use of mobile ICT on construction productivity have not been investigated in sufficient depth, especially from the perspectives of its users, i.e. construction management (CM) professionals. The paper aims to discuss these issues. Design/methodology/approach A focus group session involving ten experienced CM professionals from different organisations of the South Australian construction industry was moderated by a group of four researchers to gather data on mobile ICT usage and its implications for construction productivity. Findings Lack of training and guidelines on effective applications of these technologies to construction projects is a major bottleneck. Results indicate that despite noticeable advances in mobile ICT, differences in usage style and user attitude have limited their overall impact on productivity. Research limitations/implications This paper is based on data gathered from CM professionals working in the South Australian construction industry. Practical implications The study highlights the importance of strategising the use of mobile ICT to achieve the desired productivity rates through policy, training, work-life balance, and deeper and wider understanding of these technologies. Originality/value The study examines the perceptions of CM professionals on the usefulness of mobile ICT in construction projects and its implications for construction productivity.

Factors affecting construction productivity: a 30 year systematic review

2018 ◽  
Vol 25 (7) ◽  
pp. 916-937 ◽  
Author(s):  
Abid Hasan ◽  
Bassam Baroudi ◽  
Abbas Elmualim ◽  
Raufdeen Rameezdeen
Keyword(s):  
Systematic Review ◽  
Construction Projects ◽  
Research Work ◽  
Developed Countries ◽  
Activity Level ◽  
Future Research ◽  
Content Type ◽  
Factors Affecting ◽  
Construction Productivity ◽  
Wide Range

Purpose A significant amount of work has been performed in the area of identification of factors affecting construction productivity. Previous studies have tried to determine the most important factors affecting construction productivity in different countries for a long time. As a result of continuous effort in this direction, researchers have identified a wide range of factors. While the subject area has matured, no general agreement could be made on the factors affecting construction productivity. To fill this gap, the purpose of this paper is to undertake a comprehensive systematic review of mainstream studies on factors affecting construction productivity published in the last 30 years (1986–2016). Design/methodology/approach A total of 46 articles from different sources such as journals, conference proceedings, dissertation and PhD theses were identified and thoroughly reviewed. Findings Gaps in research and practices are discussed and directions for future research have been proposed. The literature review indicates that despite noticeable differences in the socio-economic conditions across both developed countries and developing countries, an overall reasonable consensus exists on few significant factors impeding productivity. These are, namely, non-availability of materials, inadequate supervision, skill shortage, lack of proper tools and equipment and incomplete drawing and specifications. Nevertheless, implications of technology, site amenities, process studies, project culture, and impacts of physiological and psychological factors were not adequately covered in existing literature. The study also found that traditional construction projects have remained the main focus of these studies while green construction projects have been generally overlooked. Research limitations/implications The review does not include studies that report productivity at the organisational or industry level as well as total factor productivity. The scope of the review is limited to work on identification of factors affecting productivity at the activity level in construction projects. Practical implications The outcomes of this study would help researchers and practitioners by providing the findings of previous studies in a concise manner. It is also expected that presenting a deeper and wider perspective of the research work performed until now will direct a more focussed approach on productivity improvement efforts in the construction industry. Originality/value This review paper undertakes a comprehensive systematic review of studies on identification of factors affecting construction productivity published during the last three decades.

The implications of the construction industry to national wealth

2019 ◽  
Vol 26 (5) ◽  
pp. 779-793 ◽  
Author(s):  
Richard Glenn Fulford
Keyword(s):  
Construction Industry ◽  
Economic Performance ◽  
Construction Projects ◽  
Labour Productivity ◽  
Economic Value ◽  
Future Research ◽  
Productivity Improvement ◽  
Strong Argument ◽  
Content Type ◽  
Construction Productivity

Purpose The purpose of this paper is to explore how construction projects should be conceived and how the productivity of the construction industry impacts upon a nation’s wealth. Design/methodology/approach The approach has been to marshal the extant literature about the construction industry, construction industry productivity and the economic value of the built environment. Whilst there are many lenses that are used to understand the industry, different ways to measure productivity performance and differing practices between nations, it has been determined that construction industry productivity improvement significantly lags behind other industries. Findings There is a strong argument that construction productivity improvement correlates to advances in a nation’s economy. Nonetheless, it is the decisions about the nature of infrastructure, the standardisation of infrastructure and the effect upon labour productivity that will have the greatest implications for a nation’s economic future. These economic improvements will be inhibited by legacy infrastructure, particularly in densely populated areas. If substantial innovation occurs, the nations currently holding the highest stock of infrastructure might be economically constrained. Research limitations/implications The construction industry is highly fragmented and has the uncertainties of a cyclic industry. It is, therefore, necessary for governments to identify standards and facilitate innovation. The implications for short- and long-term economic performance require that the industry is a fundamental at the highest level of government. Originality/value Scholars can use the propositions to further analyse construction productivity improvement and the provision of different types of infrastructure with regard to a nation’s economic performance. Hypotheses are offered to support future research.

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