scholarly journals Deterrence of Punitive Measures on Collusive Bidding in the Construction Sector

Complexity ◽  
2021 ◽  
Vol 2021 ◽  
pp. 1-12
Author(s):  
Wenhui Zhu ◽  
Yuhang Zheng ◽  
Kunhui Ye ◽  
Qian Zhang ◽  
Minjie Zhang
Keyword(s):  
Decision Making ◽  
System Dynamics ◽  
Construction Industry ◽  
Competition Policy ◽  
Construction Sector ◽  
Deterrence Theory ◽  
Construction Market ◽  
Long Time ◽  
Severity Of Punishment ◽  
Sd Model

Collusive bidding has been a deep-seated issue in the construction market for a long time. The strategies implemented by bid riggers are deliberate, interactive, and complex, suggesting that antitrust authorities have difficulty preventing collusive behaviors. Based on game payoff matrixes, this study proposes a system dynamics (SD) model to present the deterrence of punitive measures, namely the certainty of punishment (CoP) and the severity of punishment (SoP), on regular bidders’ to-collude decision-making. Data were collected from the Chinese construction industry to test the proposed SD model. While the model was supported, the results indicate that the CoP has a greater impact than the SoP on deterring regular bidders from making to-collude decisions. Furthermore, these two punitive measures cannot be replaced by each other, given the same deterrence effects. Thus, the study demonstrates the usefulness of deterrence theory to inhibit collusive bidding in the construction sector. It also sheds some light on the formulation of competition policy from the perspective of deterrence.

INFORMATION TECHNOLOGY IN THE DEVELOPMENT OF THE POLISH CONSTRUCTION INDUSTRY

2009 ◽  
Vol 15 (3) ◽  
pp. 437-452 ◽  
Author(s):  
Oleg Kapliński
Keyword(s):  
Decision Making ◽  
Information Technology ◽  
Construction Industry ◽  
Construction Management ◽  
Construction Sector ◽  
Significant Discrepancy ◽  
Construction Market ◽  
It Systems ◽  
Planning Methods

The utilization of Construction Management (CM) tools and Information Technology (IT) is the object of the paper. A review of the problems of usefulness of IT solutions on offer in Polish construction sector is presented. Generally, changes in approach to information technology, diversification and variety of its software, prosperity in construction industry and its solutions are the main motif of this paper. A significant discrepancy in the assessment of attractiveness and usefulness of those methods by businessmen and academics has been pointed out. Relationships between prosperity in construction market and usage of new planning methods, decision making, and IT systems are discussed. Results of studies are negative. The reasons for such a state of things have been presented. The research was based on questionnaires and interviews. Regression and correlation were used for the analysis. Besides, an attempt to describe the phenomenon of saturation of Polish construction sector with IT tools has been indicated. The discussion of those problems may be addressed to potential IT suppliers and can be implemented in different construction sectors. Santrauka Straipsnio objektas – statybos valdymo priemonių ir informacinių technologijų (IT) naudojimas. Iškeliamos Lenkijos statybos sektoriui siūlomų informacinių technologijų sprendimų naudingumo problemos. Pagrindinis straipsnio atsiradimo motyvas – kintantis požiūris į informacines technologijas, programinės įrangos įvairovė ir diversifikacija bei statybos pramonės klestėjimas. Verslininkų ir mokslininkų vertinimai minėtų technologijų patrauklumo ir naudingumo požiūriu labai skiriasi. Aptariama, ar suklestėjimas statybos rinkoje priklauso nuo naujų planavimo ir sprendimų priėmimo metodų bei informacinių technologijų naudojimo. Tyrimai pateikia neigiamą atsakymą ir paaiškina to priežastis. Tyrimas paremtas anketavimu ir interviu ėmimu. Tyrimams pritaikytos regresinė ir koreliacinė analizės. Be to, pabandyta atskleisti, kiek statybos sektorius yra prisotintas informacinėmis technologijomis. Šių problemų aptarimas gali būti naudingas informacinių technologijų teikėjams ir pritaikytas įvairiose statybos srityse.

scholarly journals The use of tools and approaches of system dynamics in the analysis of the efficiency of BIM implementation and its impact on the management and planning of investments in the construction sector

2019 ◽  
Vol 279 ◽  
pp. 01011
Author(s):  
Martin Hotový
Keyword(s):  
Decision Making ◽  
System Dynamics ◽  
Dynamic Model ◽  
Investment Decision ◽  
Construction Sector ◽  
Strategic Investment ◽  
Investment Projects ◽  
Investment Decision Making ◽  
Proposed Model ◽  
The Impact

This paper presents the use of tools and approaches of system dynamics in the analysis of the efficiency of BIM tools implementation in relation to the management and planning of investments in the construction sector. The dynamic model based on the approach of system dynamics allows to simulate the impact rate (range) of BIM implementation in strategic investment decision-making in the construction sector. Based on the analysis, the key parameters critically affecting the large construction investment projects are determined. The proposed model is implemented as a submodel in the dynamic model designed for potential refinements in the strategic planning of the extent of investments into projects of civil infrastructure of the Czech Republic. The model allows to test different strategies in the virtual world before their implementation. The prediction of future developments based on the proposed model allows to streamline planning and decision-making processes.

scholarly journals Engaging Stakeholders for Collaborative Decision Making in Humanitarian Logistics Using System Dynamics

2019 ◽  
Vol 17 (1) ◽  
Author(s):  
Xuesong Guo ◽  
Naim Kapucu
Keyword(s):  
Decision Making ◽  
System Dynamics ◽  
Performance Improvement ◽  
Humanitarian Logistics ◽  
System Thinking ◽  
System Dynamics Modeling ◽  
Dynamics Modeling ◽  
Collaborative Decision Making ◽  
Collaborative Decision ◽  
Sd Model

Abstract Participatory System Dynamics modeling is presented as a methodology to engage stakeholders in collaborative decision making in scenarios involving humanitarian logistics. Using the System Dynamics (SD) model, we simulated different scenarios, the results of which yielded factors that influence performance of humanitarian logistics. Once these were identified and discussed, different options on performance improvement were tested. This approach showed that the SD model can facilitate system thinking for stakeholders and form shared mental models critical to reaching consensus-based decisions in humanitarian logistics situations.

THE DEVELOPMENT OF ANATOMY OF CONSTRUCTION DISPUTE

2016 ◽  
Vol 3 (2) ◽  
Author(s):  
Felix Hidayat ◽  
Biemo W. Soemardi
Keyword(s):  
Dispute Resolution ◽  
Construction Industry ◽  
Construction Sector ◽  
Factors Affecting ◽  
Construction Market ◽  
Construction Disputes ◽  
Infrastructure System ◽  
The Government ◽  
Dispute Resolution Mechanism ◽  
The Impact

The advancement of the construction industry in Indonesia is often not accompanied with adequate infrastructure system, especially in terms of regulations and legal system. The enactment of Law no 80–1999 has contributed to the expansion of construction market by allowing the private sector, including those from overseas, to play bigger roles in the industry. Although strongly acknowledged by stakeholders in the industry, the progress made by the government and the practitioner in the industry to response to the needs for more appropriate actions to cope with this ever increasingly complex system has been very slow. The dynamic of the construction industry in the region has changed the formerly rigid government-dominated construction sector to become an intricate one. The impact of such dynamic in the industry has been apparent. In particular, construction disputes have been experiencing changing in the dynamic of the way the disputes were handled; from the traditional litigation approach toward modern alternative dispute resolution mechanism. While litigation remains the dominant construction dispute resolution mechanism, nonlitigation approaches such as arbitration and dispute review board are beginning to gain recognition in industry. This paper presents a study on the development of anatomy of construction dispute in Indonesia, which will serve as a framework for analyzing the dynamic of construction disputes in Indonesia. Such a framework will help to identify factors affecting construction dispute mechanism, from the initiation of disputes to the resolution. The anatomy is developed based on analysis of construction dispute cases that have been recorded in judicial courts as well as from Indonesian Arbitration Board.

Exploring the potentials of behavioral system dynamics: insights from the field

2019 ◽  
Vol 15 (1) ◽  
pp. 339-364 ◽  
Author(s):  
Federico Barnabè ◽  
Pål I Davidsen
Keyword(s):  
Decision Making ◽  
System Dynamics ◽  
Direct Observation ◽  
Role Playing ◽  
Behavioral Factors ◽  
Content Type ◽  
Simulation Gaming ◽  
Behavioral System ◽  
Ex Post ◽  
Sd Model

Purpose This study aims to contribute to the ongoing debate on behavioral operational research (BOR), specifically discussing the potential of system dynamics (SD) models to analyze decision-making heuristics. In more detail, the study suggests using an SD model as an ex-post research tool adopted not only to mimic a role-playing game (RPG) – reproducing the whole physical structure, and the complete set of decision rules specified for a supply chain (SC) management game – but also, and specifically, to replicate and analyze the players’ in-game behavior and decision-making. Design/methodology/approach After presenting a brief literature review devoted to highlighting the key concepts of the emerging streams of research named BOR and behavioral system dynamics (BehSD), the study presents the characteristics and results of an SC management-based RPG and describes the SD model that was developed to mimic the game and provide the base-run. A triangulation of data sources (which included feedback questionnaires and reports drawn up by 86 participants, as well as notes collected through direct observation of one of the authors) was used to infer information about and in-game decisions. Subsequently, four alternative versions of the SD model were calibrated to reproduce, investigate and explain ex-post the players’ in-game behavior and decision-making heuristics; this study specifically refers to one of them. Findings The SD model can be considered as the first output of this research. The model was calibrated to mimic the game and subsequently used to develop a few alternative models, helpful to replicate players’ behavior and analyze decision-making heuristics. The findings reveal not fully rational decisions taken by the players and share common findings with previous literature on the emergence of sub-optimal strategies (e.g. phantom ordering and hoarding strategies). The data collected from questionnaires, reports and direct observation additionally revealed that stress and behavioral factors played a role in affecting in-game decision-making. Practical implications Considering a specific RPG setting, the SD model developed in this study replicated and captured the range of factors affecting decision-making heuristics, allowing an ex-post analysis of in-game decisions. Notably, the research design presented and used in this study can be considered a generic one, which could be applied subsequently in a variety of contexts, also in combination with simulation/gaming tools and techniques different from role-playing, and both for educational and training purposes, and for research validation. Originality/value This study builds on and makes a contribution to the debate related to the emerging stream of research of BOR and more specifically, provides insights and evidence for the yet growing field of BehSD, at the same time advocating and suggesting further research in this area. Overall, the research revealed that behavioral factors may play a relevant role in driving and affecting human decision-making in simulation/gaming contexts.

scholarly journals Un modèle de la détermination des salaires dans l’industrie de la construction au Québec

2009 ◽  
Vol 54 (3) ◽  
pp. 355-362 ◽  
Author(s):  
Abraham Assayag ◽  
Yves Rabeau
Keyword(s):  
Construction Industry ◽  
Supply Side ◽  
Demand Side ◽  
Construction Sector ◽  
Bilateral Monopoly ◽  
Construction Market ◽  
Business Conditions ◽  
Quantity Adjustment ◽  
Severe Recession ◽  
Wage Increases

The provincial decree applying to the construction industry in Quebec has created a situation of bilateral monopoly in that segment of the labor market (unions on the supply side and entrepreneurs on the demand side). If negotiations are undertaken at a time where business conditions are booming, then the unions have a very powerful negotiating power. Since contracts are signed for a three year period, wage increases do not afterwards reflect market conditions. Since wages are fixed by the provincial decree, there is then a quantity adjustment in the construction sector. In this paper, we have specified and estimated a model that allows us to measure the bilateral monopoly impact of wage increases and to compute quantity adjustments in the construction market. It is shown then that the provincial decree adversily affects the competition position of the construction industry in Quebec and that restauring this position involves a severe recession in the construction industry.

scholarly journals Model-Based Dynamic Forecasting for Residential Construction Market Demand: A Systemic Approach

2021 ◽  
Vol 11 (8) ◽  
pp. 3681
Author(s):  
Kyeong-Baek Kim ◽  
Ji-Hoon Cho ◽  
Sang-Bum Kim
Keyword(s):  
System Dynamics ◽  
Construction Industry ◽  
Demand Forecasting ◽  
Forecasting Model ◽  
Residential Construction ◽  
Future Market ◽  
Market Demand ◽  
Construction Market ◽  
Input Variables ◽  
Market Changes

According to the previous research, proper demand forecasting could help construction-related firms in effective planning for future market changes. However, existing market demand forecasting models are somewhat limited, and most of them bear some critical shortcomings. This research aims to develop a forecasting model for the Korean residential construction industry using system dynamics. In developing the market forecasting model, this research uses variables that significantly impact future construction market change. Many of the existing models do not include as many variables as this model, and none of them have considered complex interlocking effects among these variables. This model is also the first model using a system-based approach by looking at the target industry as a ‘one complex system’ rather than focusing on individual variables’ impact on future market changes. By employing system dynamics, it is possible to consider qualitative and quantitative aspects and produce long-term market forecasting results. The developed market forecasting model consists of two main modules, the first being a prediction module for the grassroots construction market and the second for operation and maintenance (O&M) and the demolition market. Sixteen input variables are grouped into four categories: social, economy, regulation, and past market size among over 25 identified variables. The model utilizes a mathematical function system using the designed feedback loops in producing future market forecasts. Based on the validation tests with past market data, it turns out that the model is reliable, with the determination coefficient (R2) being over 0.7 on all tested occasions. According to the model’s forecasting results, the Korean construction market’s size is expected to be 231 billion won in 2015 and 286 billion won in 2030. However, the O&M market’s growth rate is expected to be higher than 180%, which is much bigger than those of the grass-root and demolition markets. Thus, this research model is realistic according to the construction paradigm change. This research is considered one of the pioneering studies in construction market forecasting by employing dynamic inter-relationships among various input variables. Therefore, the market forecasting results can be interpreted as more practical and can provide more insights to the construction industry stakeholders. The model is envisioned to provide the public sector with useful guidelines in preparing future public market supply strategies such as construction budget allocations. It would also be helpful for the private sector to develop more proactive and accurate demand strategies for timely decision-making.

scholarly journals COMPETING MARKET LEADER IN INDONESIA’S CONSTRUCTION INDUSTRY

2021 ◽  
Vol 3 (8) ◽  
pp. 75-85
Author(s):  
Erika Yuono Putri
Keyword(s):  
Decision Making ◽  
Construction Industry ◽  
Group Discussion ◽  
Project Selection ◽  
Decision Makers ◽  
Decision Making Process ◽  
Construction Companies ◽  
Construction Market ◽  
Market Leader ◽  
Selection For

The growth of the construction industry in Indonesia is constantly bearing straight to its economic growth and contributes by more than 10% to the country's gross domestic product in the period 2015-2020. The construction market share in Indonesia is dominated by large contractors who control 85% of the total projects even though they are only 0.96% of the total population, while the smaller contractors only control the remaining 15%. Smaller companies only select a project based on their experience and colleagues’ recommendations. It is getting worse because the decision-makers never consider any method to assist the decision-making process as they do not have sufficient knowledge, then they should face some losses which cost big amounts of money compared to their companies’ size The use of AHP on this research will help the smaller contractors to take better decision making yet minimizing their chance of failure and risk. The objectives of this research are to determine the factors that significantly influence project selection in the construction industry and to provide recommendations of the project selection for the construction industry. This research aims to support the smaller contractors to utilize their chance in project selection in order to compete with the big companies. The research will use focus group discussion between the directors of several construction companies as they have full responsibility in the company's decision-making process and are used to going straight to the field while also doing the bidding.

The Impact of Terrorism on Construction Industry in Iraq

2015 ◽  
Vol 3 (2) ◽  
pp. 69-84
Author(s):  
Wadhah Amer Hatem ◽  
Samiaah M. Hassen Al-Tmeemy
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Historical Data ◽  
Terrorist Attacks ◽  
Construction Sector ◽  
Statistical Procedures ◽  
Qualitative Approaches ◽  
Suicide Attacks ◽  
The Face ◽  
The Impact

     Suicide attacks, bombings, explosions became the part of daily life in Iraq. Consequently, the threat of terrorism put the Iraqi construction sector in the face of unique and unusual challenges that not seen on other countries. These challenges can have extensive impact on construction projects. This paper seeks to examine the impact of the terrorist attacks on construction industry and determine the extent to which the impact of terrorism on construction projects in terms of cost, schedule, and quality. This study adapted quantitative and qualitative approaches to collect data using questionnaire survey and interviews, as well as historical data. The study focused on projects that have been the target of terrorist strikes in Diyala governorate. A variety of statistical procedures were employed in data analysis. The results revealed the extent to which terrorist attacks impact construction projects in terms of cost, time, and quality. The results of this study will enhance the awareness of all construction parties to the impact of the terrorist attacks against construction projects. Eventually, this can develop a risk management assessment and assist contractors to properly protect projects and buildings to minimize injuries and fatalities in the event of terrorism.

scholarly journals Impact of Migrant Workers on Total Factor Productivity in Chinese Construction Industry

2019 ◽  
Vol 11 (3) ◽  
pp. 926 ◽  
Author(s):  
Gui Ye ◽  
Yuhe Wang ◽  
Yuxin Zhang ◽  
Liming Wang ◽  
Houli Xie ◽  
...  
Keyword(s):  
Construction Industry ◽  
Total Factor Productivity ◽  
Migrant Workers ◽  
Annual Report ◽  
Learning By Doing ◽  
Construction Sector ◽  
Factor Productivity ◽  
The Sustainable Development ◽  
Statistical Yearbook ◽  
The Impact

Total factor productivity (TFP) is of critical importance to the sustainable development of construction industry. This paper presents an analysis on the impact of migrant workers on TFP in Chinese construction sector. Interestingly, Solow Residual Approach is applied to conduct the analysis through comparing two scenarios, namely the scenario without considering migrant workers (Scenario A) and the scenario with including migrant workers (Scenario B). The data are collected from the China Statistical Yearbook on Construction and Chinese Annual Report on Migrant Workers for the period of 2008–2015. The results indicate that migrant workers have a significant impact on TFP, during the surveyed period they improved TFP by 10.42% in total and promoted the annual average TFP growth by 0.96%. Hence, it can be seen that the impact of migrant workers on TFP is very significant, whilst the main reason for such impact is believed to be the improvement of migrant workers’ quality obtained mainly throughout learning by doing.

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