scholarly journals Empirical Study on the Obstacles to the Success of Joint Ventures in Construction Projects

2020 ◽  
Vol 2020 ◽  
pp. 1-12
Author(s):  
Chen Lu ◽  
Zhiwei Yu ◽  
Xuetong Wang ◽  
Yuming Hong
Keyword(s):  
Construction Industry ◽  
Joint Ventures ◽  
Construction Projects ◽  
Large Scale ◽  
Joint Venture ◽  
Management Style ◽  
Management Styles ◽  
Construction Joint ◽  
Semistructured Interviews ◽  
Research Findings

As an effective way of completing technically complex buildings or large-scale infrastructure projects, a joint venture contracting approach has recently been widely used in the construction industry. However, numerous unfavorable results can occur in practice when undertaking construction joint ventures (CJVs). The contribution of this paper is its exploration of the potential obstacles to CJV practices and identification of the root causes of failure. First, through a literature review, semistructured interviews, and a questionnaire survey, seventeen variables were identified; the top three obstacle variables were (1) inconsistent management styles, (2) incompatible organizational cultures, and (3) organizational policy differences. Second, four grouped factors were extracted: (1) unfair and noneffective management; (2) lack of communication, understanding, and mutual trust; (3) policy, management style, and organizational cultural differences; and (4) potential conflicts beyond the CJV partnership. Finally, several strategies were proposed. The research findings could not only contribute to knowledge of CJVs but also provide valuable insights into promoting broader, better applications of CJV projects and contributing to their success.

Demystifying performance difference between local and foreign contractors through organisational culture

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chipozya Kosta Tembo ◽  
Franco Muleya ◽  
Emmanuellie Phiri
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Design Methodology ◽  
Large Scale ◽  
Overall Response Rate ◽  
Organisational Culture ◽  
Management Style ◽  
Content Type ◽  
Public Projects ◽  
Grade One

PurposeThis research aimed to investigate the extent to which organisational culture is practised in local and foreign contractors in grade one and two categories and how it affects their performance.Design/methodology/approachThe approach for this research was positivist in nature adopting a mono-method of data collection through a survey using self-administered questionnaires. A total of 138 questionnaires were distributed among public clients and large-scale contractors registered in the stated grades, and 112 questionnaires were returned for analysis representing an overall response rate of 81% for contractors and clients.FindingsFindings revealed that in organisational culture, significant differences were found for management style and dominant characteristics of the organisation between local and foreign contractors. Differences were not found for leadership styles, measures of success and organisational glue. Results suggest that for local contractors to perform better, significant changes are needed to their management style and dominant characteristics of their organisations.Originality/valueForeign contractors in the Zambian construction industry are reportedly outperforming local contractors making them preferred contractors on larger public projects accounting for 85% of construction projects by value of works. This study presents the differences in organisational culture between foreign and local firms. It further demonstrates that organisational culture plays a key role in determining performance of a contracting firm. The study presents areas that local contractors can improve in organisational culture in order to remain competitive.

scholarly journals Corporate culture: The perceptions of personnel managers in South Africa

1987 ◽  
Vol 18 (4) ◽  
pp. 235-242
Author(s):  
J. Viljoen
Keyword(s):  
South African ◽  
Corporate Culture ◽  
Large Scale ◽  
Strong Association ◽  
Management Style ◽  
Labour Relations ◽  
Perceived Performance ◽  
Culture Strength ◽  
Research Findings ◽  
Managerial Employees

In this paper some core dimensions along which corporate culture can be analysed are identified. It is argued that, for large scale studies of corporate culture, personnel managers are the most appropriate sampling base. Using a mailed questionnaire a sample of 199 South African companies was surveyed in order to isolate their cultural attributes as perceived by the personnel manager. The research findings revealed: (i) a strong association between strategic management style and perceived culture strength; (ii) greater perceived performance potential and better labour relations amongst strong culture companies, and (iii) significant differences in perceived culture strength between managerial and non-managerial employees. The implications of these findings are discussed.

A Study on Variations in Sewerage Construction Projects

2012 ◽  
Author(s):  
Mohd Azraai Kassim ◽  
Jen Loong Lee
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Site Conditions ◽  
Project Costs ◽  
Research Findings ◽  
Project Characteristics ◽  
Major Factors ◽  
A Company ◽  
Total Project ◽  
Sewerage Network

Perubahan dalam pembinaan telah lama menjadi isu pertikaian antara pelbagai pihak yang terlibat dalam projek pembinaan. Namun, hanya sejumlah kecil kajian yang rasmi telah dijalankan untuk menganalisis sebab-sebab dan kesan-kesannya. Kajian ini tertumpu kepada analisis kekerapan dan keterukan berbagai-bagai faktor yang mengakibatkan perubahan dalam projek pembinaan rangkaian pembetungan. Adalah penting bagi sesebuah syrikat bukan sahaja mengetahui kos perubahan, tetapi juga mengenal pasti perkara-perkara yang perlu diberi perhatian untuk mengurangkan kos-kos sedemikian dalam projek akan datang. Kesemua data dan maklumat yang diperlukan diperolehi dari fail-fail arkib bagi tiga belas projek yang disahkan melalui temubual. Data-data dikategori untuk menganalisis kekerapan dan keterukan faktor-faktor. Jadual dan carta digunakan untuk menunjukkan hasil-hasil kajian. Daripada hasil analisis, keadaan tapak yang berbeza merupakan faktor utama yang mengakibatkan perubahan. Faktor-faktor ini menyumbangkan 49.3% daripada jumlah bilangan perubahan, 56.2% daripada jumlah kos perubahan dan 3.8% daripada jumlah kos projek. Dua ciri projek, iaitu nilai anugerah kontrak dan gred pendaftaran kontraktor dengan Lembaga Pembangunan Industri Pembinaan (mewakili pengkhususan, kedudukan kewangan dan sumber-sumber lain kontraktor) menunjukkan penyebab yang tertentu dengan perubahan. Kata kunci: perubahan; kekerapan; keterukan; pembetungan; rangkaian; pengkhususan Variations in construction have long been a debatable issue among the different participants involved in construction projects. However, only a few formal studies have been carried out to analyse its couses and effects. This study is focused on the frequency and severity of various factors causing variations in sewerage networks construction projects. It is important for a company not only to know the variation costs, but also to identify the most likely areas on which to focus in order to reduce these costs for the future projects. All the necessary data and information are obtained from archival files of thirteen projects and verified through interviews. These data are categorised to analyse the frequency and severity of factors. Tables and charts are presented to show the research findings. From the analysis, differing site conditions appear to be the major factors contributing to variations. They average 49.3% of the total number of variations, 56.2% of the total variation costs and 3.8% of the total project costs. Two project characteristics i.e. contract award value and the contractor´s registration grade with the Construction Industry Development Board (which represents the contractor´s specialisation, financial and other resources standing) show certain causal relationships with variations. Key words: variation; frequency; severity; sewerage; network; specialisation

scholarly journals Profit Sharing Mechanism of Large EPC Project considering the Behavior of Fairness Concern

2020 ◽  
Vol 2020 ◽  
pp. 1-9
Author(s):  
Huimin Li ◽  
Lelin Lv ◽  
Xiaowei An ◽  
Guanghua Dong
Keyword(s):  
Large Scale ◽  
Joint Venture ◽  
Simulation Analysis ◽  
Profit Sharing ◽  
Construction Engineering ◽  
Construction Enterprises ◽  
Cost Coefficient ◽  
Research Findings ◽  
Fairness Concern ◽  
Project Optimization

A large-scale engineering procurement and construction (EPC) project is often conducted by a joint venture. Many factors affect the success of cooperation among participating enterprises, such as trust and the degree of effort of both parties. The most important one is a rational profit sharing mechanism. Reasonable profit sharing mechanism concerns whether the advantages of the EPC model can be fully utilized. In this study, the proposed EPC project is undertaken by a joint venture integrating design and construction enterprises. Moreover, the profit sharing problem arises from the project optimization implemented by both parties. The fairness concern behavior of both parties is considered, and the profit sharing model for the EPC project is established on the basis of game theory. The effect of the fairness concern behavior of both parties on the EPC project optimization and its profit sharing is further analyzed by simulation analysis. The research findings show that the project optimization profit and its sharing are related to not only the efforts and cost coefficient but also the fairness concern behavior of both parties. The research results are conducive to the application of the EPC model in the field of construction engineering.

scholarly journals Assessing of Modern Machinaries used by Large Scale Construction Firms for High Cost Construction Projects

2019 ◽  
Vol 9 (2S4) ◽  
pp. 1-6
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Large Scale ◽  
Time Frame ◽  
New Venture ◽  
After Effects ◽  
Construction Firms ◽  
Potential Risks ◽  
Growing Economy ◽  
The One

India is one of fastest growing economy in the world which attracts many foreign investors to our country. With the economy being liberalized, foreign players have a vital stake over our countries growth and it’s after effects. The Construction area has consistently been progressively to this financial development which all in all is an exceptionally divided industry. It needs to impart on a huge scale other related help business lines prone to be materials, types of gear, merchants, providers, subcontractors, customers and furthermore the undertaking plan and funds. All these elements which this sector deals with are subjected to potential risks involved which have to be predicted, monitored and managed. Construction industry has been following method for managing these risks and issues to be arising from a project. They have been managing these risks by foreseeing them with the experience and knowledge that the company has gained over the period of time. But this will be a question for a firm if they diversify or when they enter into any new venture of business domain. The conventional model is the one using the manual techniques for assessing risks involved from the experience, knowledge and competency gained in the business domain. Using Primavera (P6) the risk is been managed by creating several models generated which explains the process of additions of risks, identification of type of risk, calculation of exposure values, calculation of risk impact, assigning the person responsible to the risk, time frame of risk, preparation of control plans if the risk occurs. Finally the results thus obtained from both the methods are been compared and the results

scholarly journals Risk Attributes, Influencing the Time and Cost Overrun in Joint Venture Construction Projects of Pakistan

2018 ◽  
Vol 8 (4) ◽  
pp. 3260-3264 ◽  
Author(s):  
M. A. Akhund ◽  
A. R. Khoso ◽  
A. A. Pathan ◽  
H. U. Imad ◽  
F. Siddiqui
Keyword(s):  
Construction Projects ◽  
Joint Venture ◽  
Descriptive Analysis ◽  
Cost Overrun ◽  
Public And Private ◽  
Construction Firms ◽  
Construction Joint ◽  
New Construction ◽  
The Government ◽  
Global And Local

Business collaborations formed by construction contractors to enhance their abilities and effectiveness in large construction projects are known as construction joint ventures (CJVs). It is widely used as a way of merging assets, capitals, funds, resources and expertise of different organizations. It helps business to grow faster, increase efficiency and generate greater profits without borrowing money. Though it is useful and beneficent for the vendors, it may contain several types of risk. It is both beneficial and stimulating due to differing technical skills, economic and political atmospheres, and cultural and legal backgrounds. Recent development and modernization in Pakistan have led it towards a new construction phase, which involves national and multinational joint venture projects. Global and local CJVs have become gradually prevalent to produce mega construction projects. Current research aims to investigate and to identify the communal, ecological, political, legal, economic and other external risks associated with CJV projects in Pakistan. The study was carried out by literature review and a few national and international guidelines. Interviews were conducted with relevant professionals, experts, and owners of the organizations working on CJV projects. Data was collected in the form of a questionnaire from relevant professionals. The descriptive analysis was performed through SPSS using average index (A.I) technique. This study is helpful for the Government of Pakistan, public and private construction firms working under JV to reduce the emerging risks of construction projects.

International construction joint ventures between Singapore and developing countries

2017 ◽  
Vol 24 (2) ◽  
pp. 209-228 ◽  
Author(s):  
Bon-Gang Hwang ◽  
Xianbo Zhao ◽  
Eileen Wei Yan Chin
Keyword(s):  
Developing Countries ◽  
Joint Ventures ◽  
Questionnaire Survey ◽  
Joint Venture ◽  
Clear Understanding ◽  
Risk Allocation ◽  
Content Type ◽  
Construction Joint ◽  
International Construction ◽  
Allocation Preferences

Purpose The purposes of this paper is twofold: first, to assess the risks associated with the international construction joint ventures (ICJVs) between Singapore and developing countries and second, to investigate the risk allocation preferences in these ICJVs. Design/methodology/approach A questionnaire survey was conducted and responses were received from 38 firms that had participated in ICJVs with developing countries. A risk criticality (RC) index was adopted to evaluate the criticality of each risk. Findings The survey results reported “political instability” as the most critical risk and market-level risks were less critical than country and project-level risks. Additionally, the results showed agreement on the risk ranking between building and infrastructure ICJVs, despite significant differences in the criticalities of five risks. Furthermore, five risks were preferably allocated to host and foreign partners, respectively, while 13 risks could be shared among partners. Research limitations/implications First, due to the sample size, one should be cautious when interpreting and generalizing the results. Second, the RC index proposed in this study was subjective as it was influenced by the individual experience and risk attitude of the respondents. Also, the RC values were calculated without considering the weights of the respondents. Lastly, the questionnaire survey, which has been widely used in identifying risk allocation preferences, may not identify the insights of practitioners into the risk allocation practices. Practical implications This study provides a clear understanding of the risks associated with forming ICJVs with developing countries and the preferred risk allocation. Although, this study is focused on the risks faced by the Singapore-developing country ICJVs, the identification of the potential risks allows companies from other countries to customize their risk profile and assess the risks before they form ICJVs with developing countries. Originality/value As few studies have explored the risk allocation preferences in ICJVs, this study expands the literature and provides practitioners with important information for preparing joint venture contracts or agreements. Thus, this study can contribute to the literature relating to ICJVs.

scholarly journals Causes of delays in the construction phase of Chinese building projects

2018 ◽  
Vol 25 (11) ◽  
pp. 1534-1551 ◽  
Author(s):  
Ting-Kwei Wang ◽  
David N. Ford ◽  
Heap-Yih Chong ◽  
Wei Zhang
Keyword(s):  
Construction Industry ◽  
Questionnaire Survey ◽  
Construction Projects ◽  
Poor Performance ◽  
Building Construction ◽  
Building Projects ◽  
Content Type ◽  
Research Findings ◽  
Causes Of Delays ◽  
Survey Approach

PurposeDelays during construction are one of the common scenarios in the construction industry. The purpose of this paper is to identify the primary causes of delays in the construction phase of building construction projects in China.Design/methodology/approachQuestionnaire survey approach was adopted across the four typical cities in China, namely, Beijing, Shanghai, Chongqing and Shenzhen. In total, 115 sets of valid responded questionnaires were collected and analyzed.FindingsThe results show that the causes of variations, delays in progress payments, exceptionally low bids and subcontractors’ poor performance and communication issues were the most important causes of delays in China.Originality/valueThis research is the first questionnaire survey on the causes of delays in the construction phase of building construction projects in China. The comparative analysis shows two unique causes of delays in the Chinese construction industry, such as “difficulty in claiming indemnity” and “unreasonable upfront capital demanded by client.” It also reveals different ranked causes of delays as per distinguished political and economic situations in China. The research findings can be referred by construction projects in other countries that are funded or partnered with China.

scholarly journals A Review of 3D Printing in Construction and its Impact on the Labor Market

2020 ◽  
Vol 12 (20) ◽  
pp. 8492
Author(s):  
Md. Aslam Hossain ◽  
Altynay Zhumabekova ◽  
Suvash Chandra Paul ◽  
Jong Ryeol Kim
Keyword(s):  
Labor Market ◽  
3D Printing ◽  
Construction Industry ◽  
Construction Projects ◽  
Large Scale ◽  
New Technology ◽  
Immigrant Workers ◽  
Technological Innovations ◽  
Construction Time ◽  
Laborious Work

Construction industry is very labor-intensive and one of the major sources of employment in the world. The industry is experiencing low productivity with minimum technological innovations for decades. In recent times, various automation technologies including 3D printing have received increasing interests in construction. 3D printing in construction is found to be very promising to automate the construction processes and have the potential of saving laborious work, material waste, construction time, risky operation for humans, etc. There has been a comprehensive body of research conducted to understand the recent advances, future prospects and challenges of large-scale adoption of 3D printing in construction projects. Being one the labor-intensive industries, this study also investigates the possible impact on the labor market with increasing adoption of 3D printing in construction. It is found that 3D printing can reduce significant number of labors which can solve the labor shortage problem, especially for the countries where construction is heavily dependent on immigrant workers. In contrast, 3D printing might not be favorable for the countries where construction is one of the main workforces and labor is less expensive. Moreover, 3D construction printing will also require people with special skills related to this new technology.

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