Impact of contractors’ opportunism on construction project transaction costs

2020 ◽  
Vol 25 (1) ◽  
pp. 125-141
Author(s):  
Matthew Ikuabe ◽  
Ayodeji Emmanuel Oke ◽  
Clinton Aigbavboa
Keyword(s):  
Transaction Costs ◽  
Construction Projects ◽  
Construction Project ◽  
Rank Correlation ◽  
Item Score ◽  
Potent Effect ◽  
Content Type ◽  
Highly Correlated ◽  
Project Objectives ◽  
Post Hoc

Purpose There is a growing concern of the non-balance of the final output of construction works in comparison the financial resources invested with during the course of construction projects. One propelling factor to this is the opportunistic disposition often sought out by construction contractors. This study aims to investigate the relationship between construction contractors’ opportunism and construction project transaction costs from the viewpoint of construction professionals. Design/methodology/approach Questionnaire survey was deployed in eliciting responses from construction professionals. A total of 337 questionnaires were distributed and 264 were retrieved and deemed fit for analysis. Methods of data analysis used for the study are Mean Item Score, Kruskal–Wallis H-test, Student Newman Kauls Post Hoc Test, Factor Analysis, Spearman Rank Correlation and Regression Analysis. Findings The study showed that the most-ranked factor influencing contractors’ opportunism that affects transaction cost is “Unclear scope of work”. Revealed from the study is the differing view of construction professionals of the effect of contractors’ opportunism on transaction costs. Equally revealed through Spearman correlation analysis is the potent effect that contractors’ opportunism has on transaction costs. Likewise, the study established that there is a discovered difference among construction professionals’ perceived effect of contractors’ opportunism on construction transaction costs. Originality/value The study establishes the nexus between construction contractors’ opportunistic disposition and construction transaction costs, which are shown to be highly correlated. The study went further to recommend that efforts should be made to ensure that issues like contract documentation should be well and appropriately carried out; roles and responsibilities of stakeholders should be well defined so as to fully keep all parties to a contract abreast with the expectations of their duties in relation to the project objectives.

Contractors’ opportunism: construction professionals’ awareness of influencing factors

2019 ◽  
Vol 17 (1) ◽  
pp. 102-114
Author(s):  
Matthew Osivue Ikuabe ◽  
Ayodeji Emmanuel Oke
Keyword(s):  
Construction Industry ◽  
Influencing Factors ◽  
Construction Projects ◽  
Design Methodology ◽  
Negative Impact ◽  
Item Score ◽  
Content Type ◽  
Significant Difference ◽  
Post Hoc ◽  
Very High

Purpose Construction contractors serve as economic partners to owners of construction projects, but often times, they could depict opportunistic tendencies which are to the detriment of the client. This study aims to focus on the awareness of construction professionals with respect to influencing factors of construction contractors’ opportunism. Design/methodology/approach A questionnaire survey was adopted in eliciting responses from construction professionals, namely, architects, quantity surveyors, builders and engineers. In total, 337 questionnaires were distributed, of which 264 were retrieved and deemed fit for analysis. Methods of data analysis used are mean item score, factor analysis, analysis of variance, Kruskal–Wallis and Student Newman Kaul post hoc test. Findings The study revealed that the level of construction professionals’ awareness of contractors’ susceptibility of opportunism is very high. Equally, the most ranked factor is “No sanction for not reporting inconsistency of drawings.” The postulated hypothesis was subjected to a test, and the result showed that there is a significant difference in professionals’ perceived level of awareness of factors responsible for contractors’ opportunistic behaviors. Originality/value The study brings to the fore professionals’ knowledge of the awareness of influencing factors to contractors’ opportunism. The established level of its awareness portends a dangerous trend and has a large negative impact on the construction industry as this opens a vista to discouraging prospective investors, developers and owners, taking into cognizance the effect this would have on the economy.

Nature of construction project cultures in the public sector: case studies in Sri Lanka

2018 ◽  
Vol 8 (5) ◽  
pp. 557-568 ◽  
Author(s):  
Aparna Samaraweera ◽  
Sepani Senaratne ◽  
Y.G. Sandanayake
Keyword(s):  
Public Sector ◽  
Case Studies ◽  
Construction Projects ◽  
Construction Project ◽  
Content Type ◽  
The Public ◽  
Research Findings ◽  
Project Participants ◽  
Project Culture ◽  
Project Objectives

Purpose Cultural differences cause conflicts amongst construction project participants, deterring the success of projects. Understanding such different cultural manifestations could help the removal of the misunderstandings amongst sub-cultural groups and removal of formal irrationalities deterring the progress of construction projects. The purpose of this paper is to explore the nature of project cultures in the public sector construction projects. Design/methodology/approach An exploratory case study was selected as the research strategy to achieve the research aim. Three public sector building construction projects were used as case studies. Nine semi-structured interviews and observation of two progress review meetings per case were used for data collection. Findings As per the research findings, contractors believed that construction project culture emerged and transferred through continuous interactions and socialisations with time. Consultants believed that culture was emerged focusing on clearly defined project objectives. In addition, all members assumed that project members at high authority levels were contributing more for the emergence and transfer of cultural aspects. Levels of culture and power existed within the public sector project culture as clients with the highest power, consultants the next and contractors with the least power. Public sector project culture was not leader centred. Shared behavioural norms were not much popular in project culture. Highly differentiated behavioural norms, demonstrating clear professional sub-cultures for the client, contractor and consultant, were available. Originality/value The research findings are helpful to construction project managers to enhance the level of motivation, productivity, commitment, continuous interactions and socialisations of project participants and to avoid any negative outcomes in behaviours.

Time–cost–quality trade-off analysis for planning construction projects

2019 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Tianqi Wang ◽  
Moatassem Abdallah ◽  
Caroline Clevenger ◽  
Shahryar Monghasemi
Keyword(s):  
Optimization Model ◽  
Construction Projects ◽  
Present Model ◽  
Construction Project ◽  
Time Cost ◽  
Trade Off ◽  
Content Type ◽  
Project Duration ◽  
Trade Offs ◽  
Project Objectives

Purpose Achieving project objectives in constructionprojects such as time, cost and quality is a challenging task. Minimizing project cost often results in additional project duration and might jeopardize quality, and minimizing project duration often results in additional cost and might jeopardize quality. Also, increasing construction quality often results in additional cost and time. The purpose of this paper is to identify and analyze trade-offs among the project objectives of time, cost and quality. Design/methodology/approach The optimization model adopted a quantitative research method and is developed in two main steps formulation step that focuses on identifying model decision variables and formulating objective functions, and implementation step that executes the model computations using multi-objective optimization of Non-Dominated Sorting Genetic Algorithms to identify the aforementioned trade-offs, and codes the model using python. The model performance is verified and tested using a case study of construction project consisting of 20 activities. Findings The model was able to show practical and needed value for construction managers by identifying various trade-off solutions between the project objectives of time, cost and quality. For example, the model was able to identify the shortest project duration at 84 days while keeping cost under $440,000 and quality higher than 85 percent. However, with an additional budget of $20,000 (4.5 percent increase), the quality can be increased to 0.935 (8.5 percent improvement). Research limitations/implications The present research work is limited to project objectives of time, cost and quality. Future expansion of the model will focus on additional project objectives such as safety and sustainability. Furthermore, new optimization models can be developed for construction projects with repetitive nature such as roads, tunnels and high rise buildings. Practical implications The present model advances existing research in planning construction projects efficiently and achieving important project objectives. On the practical side, the optimization model will support the construction industry by allowing construction managers to identify the highest quality to deliver a construction project within specified budget and duration, lowest cost for specified duration and quality or shortest duration for specified budget and quality. Originality/value The present model introduces new and innovative method of increasing working hours per day and number of working days per shift while analyzing labor working efficiency and overtime rate to identify optimal trade-offs among important project objectives of time, cost and quality.

Assessment of performance of teamwork in construction projects delivery in South-Southern Nigeria

2019 ◽  
Vol 18 (1) ◽  
pp. 230-250 ◽  
Author(s):  
Emmanuel Tayo Adu ◽  
Akintayo Opawole
Keyword(s):  
Construction Projects ◽  
Team Building ◽  
Construction Project ◽  
Project Performance ◽  
Rank Test ◽  
Management Support ◽  
Item Score ◽  
Content Type ◽  
Team Members ◽  
Implementation Stages

Purpose Effort towards improving project performance has necessitated the need for effective teamwork among the stakeholders in the construction industry. The purpose of this paper is to identify the major attributes of effective teamwork and the challenges encountered by the team during construction with a view to improving performance of projects. Design/methodology/approach Data for the study were obtained through 420 structured questionnaires, which were administered to a sample of project participants including clients’, contractors’ and consultants’ organizations’ representatives in South-Southern region of Nigeria. Data collected were analyzed using percentage, mean item score and Kruskal–Wallis rank test. Findings The findings revealed leadership skills, top management support and interpersonal dynamics of the team among the critical attributes for effective teamwork. The prevailing challenges of effective teamwork were identified as essentially; poor leadership, poor rapport among team members and lack of effective communication. Practical implications The study ultimately provides implication for effective team building among clients’, consultants’ and contractors’ organizations towards efficient delivery of construction projects. Moreover, the stakeholders in the industry would find the results of this research useful in managing human and non-human components of construction projects through the understanding of the attributes and challenges of teamwork with ultimate aim of achieving effective project performance. Originality/value The findings reveal that all the key stakeholders’ organizations; clients, consultants and contractors’ organizations exhibit similar perceptions of the attributes and challenges confronting teamwork in construction project delivery. The empirical evidence provided on the attributes and challenges would therefore offer robust information in building effective project team by stakeholders during the planning and implementation stages, which is a right step towards enhancing construction project performance.

The evolution of stakeholder management practices in Australian mega construction projects

2018 ◽  
Vol 25 (6) ◽  
pp. 690-706 ◽  
Author(s):  
Rebecca Jing Yang ◽  
Sajani Jayasuriya ◽  
Chathuri Gunarathna ◽  
Mehrdad Arashpour ◽  
Xiaolong Xue ◽  
...  
Keyword(s):  
Stakeholder Engagement ◽  
Construction Projects ◽  
Management Practices ◽  
Stakeholder Management ◽  
Empirical Studies ◽  
Stakeholder Analysis ◽  
Secondary Data ◽  
Project Teams ◽  
Content Type ◽  
Project Objectives

Purpose The complicated nature of megaprojects requires appropriate analysis of multiple stakeholders to achieve project objectives and to accommodate stakeholder interests. During the last two decades, many stakeholder theories and empirical studies have sprouted. Although previous studies have contributed to the development of stakeholder theory, it seems that these theoretical advances have not been fully adopted and acknowledged in practices, especially in megaprojects. The purpose of this paper is to explore the evolution of stakeholder analysis and engagement practices adopted in the Australian megaprojects over the last two decades. Design/methodology/approach Four mega construction projects are described and analysed in this study. Secondary data were first assembled in order to get general knowledge of each case. Interviews were conducted with the project directors. Project documents were collected from the project teams and reviewed. Wherever the project information was unclear, e-mails were sent to the directors and the team members to confirm the details. Findings Project teams have started to apply snowball rolling and stakeholder attribute assessment methods to analyse stakeholders. However, there is still a way to adopt the “network” analysis perspective because the project teams are reluctant to use complicated tools which need specialists’ assistance. The stakeholder engagement practices have evolved to an extent where the project teams monitor the dynamics of stakeholders’ requirements. Projects teams have identified the importance of continuity to manage stakeholders in these massive projects. However, a structured method selection mechanism for stakeholder engagement has not been developed. Originality/value This study will help academics to understand the adoption progress and status of stakeholder management methods.

Quantitative analysis of the impact of craft worker availability on construction project safety performance

2016 ◽  
Vol 16 (3) ◽  
pp. 307-322 ◽  
Author(s):  
Hossein Karimi ◽  
Timothy R.B. Taylor ◽  
Paul M. Goodrum ◽  
Cidambi Srinivasan
Keyword(s):  
Regression Analysis ◽  
Poisson Regression ◽  
Construction Projects ◽  
Construction Project ◽  
Safety Performance ◽  
Content Type ◽  
Poisson Regression Analysis ◽  
Incident Cases ◽  
The Impact ◽  
Craft Worker

Purpose This paper aims to quantify the impact of craft worker shortage on construction project safety performance. Design/methodology/approach A database of 50 North American construction projects completed between 2001 and 2014 was compiled by taking information from a research project survey and the Construction Industry Institute Benchmarking and Metrics Database. The t-test and Mann-Whitney test were used to determine whether there was a significant difference in construction project safety performance on projects with craft worker recruiting difficulty. Poisson regression analysis was then used to examine the relationship between craft worker recruiting difficulty and Occupational Safety and Health Administration Total Number of Recordable Incident Cases per 200,000 Actual Direct Work Hours (TRIR) on construction projects. Findings The result showed that the TRIR distribution of a group of projects that reported craft worker recruiting difficulty tended to be higher than the TRIR distribution of a group of projects with no craft worker recruiting difficulty (p-value = 0.004). Moreover, the average TRIR of the projects that reported craft worker recruiting difficulty was more than two times the average TRIR of projects that experienced no craft recruiting difficulty (p-value = 0.035). Furthermore, the Poisson regression analysis demonstrated that there was a positive exponential relationship between craft worker recruiting difficulty and TRIR in construction projects (p-value = 0.004). Research limitations/implications The projects used to construct the database are heavily weighted towards industrial construction. Practical implications There have been significant long-term gains in construction safety within the USA. However, if recent craft shortages continue, the quantitative analyses presented herein indicate a strong possibility that more safety incidents will occur unless the shortages are reversed. Innovative construction means and methods should be developed and adopted to work in a safe manner with a less qualified workforce. Originality/value The Poisson regression model is the first model that quantifiably links project craft worker availability to construction project safety performance.

The role of site manager transformational leadership in the construction project success

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Masoud Zavari ◽  
Mohammad Reza Afshar
Keyword(s):  
Construction Projects ◽  
Project Success ◽  
Construction Project ◽  
Content Type ◽  
Team Innovation ◽  
Mediating Role ◽  
A Site ◽  
Site Manager ◽  
Site Managers

PurposeIn the construction industry, site managers are responsible for the day-to-day on-site running of a project. Site managers are required not only to ensure that work is done safely, on time, within budget and to the right quality standards, but also to manage any delays or problems encountered on-site during a construction project. Thus, a site manager has a significant position in the success of a construction project. However, there is a lack of studies considering the role of the leadership style of a site manager in construction project success. In this study, not only the effect of the transformational leadership (TL) style of site managers on the success of construction projects is assessed, but also the mediating role of team-building (TB) and team innovation between TL and project success is studied.Design/methodology/approachThe proposed hypotheses are tested by comparing the performance criteria of construction projects with the TL style of site managers. The success criteria of the projects are examined using project documents and client opinions, and the TL of site managers, TB aspects and team innovation in projects are assessed by asking from their subordinates. The Pearson correlation coefficient is employed to investigate the relation between every two variables.FindingsThe results illustrate that the TL of a site manager is directly related to project success; thus, the findings would confirm the importance of selecting appropriate site managers for construction projects. Moreover, while there is a mediating role of TB between TL and construction project success, team innovation does not have a mediating impact in design-bid-build (DBB) construction projects.Originality/valueAs there is a lack of studies assessing the TL effects on the success of construction projects and the significant role of site managers, this study is one of the first researches that tested these impacts and evaluated the mediating role of TB and team innovation between TL and project performance.

Risk analysis of construction of administration projects using Bayesian networks

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Mohammad Osama ◽  
Aly Sherif ◽  
Mohamed Badawy
Keyword(s):  
Risk Factors ◽  
Life Cycle ◽  
Risk Analysis ◽  
Construction Industry ◽  
Construction Projects ◽  
Causal Relationships ◽  
Content Type ◽  
Project Life Cycle ◽  
Project Objectives ◽  
Project Life

Purpose This paper aims to enlighten the importance of the risk management process which is considered as a major procedure to effectively handle the potential inherent risks in the construction industry. However, most traditional risk analysis techniques are based on theories that deal with each risk factor as an independent, which does not take into consideration the causal relationships between risk factors. Design/methodology/approach This study aspires to identify the overall risk of the administrative construction projects in Egypt and to recognize the most influencing risk factors through the project life cycle by using Bayesian belief networks (BBN). Through a review of the literature, 27 risk factors were identified and categorized as the most common risk factors in the construction industry. A structured questionnaire was performed to estimate the probability and severity of these risks. Through site visits and interviews with experts in the construction field, 200 valid questionnaires were collected. A risk analysis model was developed using BBNs, then the applicability of this model was verified using a case study in Egypt. Findings However, the outcome showed that critical risks that manipulate administrative construction projects in Egypt were corruption and bribery, contractor financial difficulties, force majeure, damage to the structure and defective material installation. Practical implications The proposed study presents the possibilities available to the project parties to obtain a better forecast of the project objectives, including the project duration, total project cost and the target quality by examining the causal relationships between project risks and project objectives. Originality/value This study aspires to identify the overall risk of the administrative construction projects in Egypt and to recognize the most influencing risk factors through the project life cycle by using BBNs.

Drivers of e-bidding implementation in the Saudi Arabian construction industry

2019 ◽  
Vol 10 (1) ◽  
pp. 16-27
Author(s):  
Ahmed M.Z. Sayed ◽  
Sadi Assaf ◽  
Adel S. Aldosary ◽  
Mohammad A. Hassanain ◽  
Abdullatif Abdallah
Keyword(s):  
Saudi Arabia ◽  
Construction Projects ◽  
Rank Correlation ◽  
Construction Costs ◽  
Content Type ◽  
Significance Level ◽  
Spearman’S Rank Correlation ◽  
Spearman’S Rank Correlation Coefficient ◽  
Key Drivers ◽  
Public Construction

Purpose The purpose of this paper is to identify the key drivers for adopting electronic bidding (e-bidding) systems in public construction projects located in Saudi Arabia. Design/methodology/approach Literature review was undertaken to identify the drivers of e-bidding practices. Nine drivers, classified under four categories, were identified. A questionnaire survey was developed to assess the significance of the identified drivers. Responses were obtained from 20 large contractors, classified as Grade I and II contractors in Saudi Arabia, and 12 governmental authorities, representing owners of construction projects. The drivers were ranked according to their respective significance index (SI) values. Finally, a Spearman’s rank correlation coefficient was employed to ascertain the extent to which the two parties agreed on the significance level of the drivers. Findings Analysis of the identified drivers revealed that the most significant driver was “reduction in the physical storage requirements of bidding paperwork.” Further, a consensus was observed with regards to the significance of the drivers. The findings of the present study highlight the strong potential of widespread e-bidding adoption in Saudi Arabia. It demonstrates the key drivers for the implementation of e-bidding through the perspective of professionals within the context of Saudi Arabia. Originality/value Prior to this study, no previous research has endeavored to assess the drivers of e-bidding adoption in Saudi Arabia. The adoption of e-bidding will benefit organizations through improved efficiencies, which could potentially lower construction costs, thereby contributing to economic growth and benefitting the society at large.

Determining Contingencies in the Management of Construction Projects

2019 ◽  
Vol 50 (2) ◽  
pp. 226-242 ◽  
Author(s):  
José I. Ortiz ◽  
Eugenio Pellicer ◽  
Keith R. Molenaar
Keyword(s):  
Project Management ◽  
External Validity ◽  
Construction Projects ◽  
Construction Project ◽  
Construction Project Management ◽  
Depth Analysis ◽  
Different Types ◽  
General Contractors ◽  
Project Objectives

This research describes the managerial approaches that contractors follow to determine different types of contingencies in construction project management. Two large Spanish general contractors were selected for an in-depth analysis. Interviews and surveys were conducted with six additional companies to explore the external validity of the findings. Managers constrain time and cost buffers through project objectives, applying heuristics to determine inventory buffers. The management of capacity buffers is entrusted to subcontractors. The contractors take advantage of scope and quality buffers to meet project objectives but rarely share these buffers with the owner, unless the owner is an internal client.

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