A COMPARATIVE STUDY BETWEEN CHINA AND USA ON THE INFLUENCING PATH OF TRANSACTION COSTS IN CONSTRUCTION PROJECTS

2016 ◽  
Vol 3 (1) ◽  
Author(s):  
Huimin Li ◽  
Chengyi Zhang
Keyword(s):  
Project Management ◽  
Transaction Costs ◽  
Structural Equation ◽  
Construction Projects ◽  
Construction Project ◽  
Production Costs ◽  
Equation Modeling ◽  
The Core ◽  
Management Efficiency ◽  
Core Construct

The actual cost of a construction project is composed of not only production costs, but also transaction costs. The presented model includes the uncertainty of the owner’s behavior, the uncertainty of the contractor’s behavior, the uncertainty in the transaction environment and mechanism, and project management efficiency, to illustrate the influence path of the transaction costs borne by the owner. The model is tested by the structural equation modeling (SEM) using the data collected from construction project owners. The finding indicate that uncertainty in the transaction environment and mechanism appears to be the core construct of the model due to its strong linkages with transaction costs and the owner’s behavior, the contractor’s behavior, and project management efficiency. The uncertainty of the contractor’s behavior is also found to affect project management efficiency positively. A certainty behavior on the part of the owner reduces the uncertainty in the transaction environment and mechanism, increases the efficiency of project management, and reduces the transaction costs of construction project.

scholarly journals Research for Risk Management of Construction Projects in Taiwan

2021 ◽  
Vol 13 (4) ◽  
pp. 2034
Author(s):  
Chien-Liang Lin ◽  
Bey-Kun Chen
Keyword(s):  
Risk Management ◽  
Risk Analysis ◽  
Structural Equation ◽  
Construction Projects ◽  
Construction Project ◽  
Equation Modeling ◽  
Analysis Model ◽  
Sustainable Operation ◽  
Management Procedure ◽  
Risk Managers

Risks inevitably exist in all stages of a project. In a construction project, which is highly dynamic and complex, risk factors affect the expected achievement rates of the three main performance goals, namely schedule, cost, and quality. A comprehensive risk management procedure requires three crucial steps: risk confirmation, analysis, and treatment. Risk analysis is the core of risk management. Through structural equation modeling, this study developed a risk analysis model that takes a different perspective and considered the occurrence probability of risk events and the extent to which these events affect a project. The contractor dimension was discovered to exert the strongest influence on an overall project, followed by the subcontractor and design dimensions. This paper proposes a novel construction project risk analysis model, which considers the entire project. The proposed model can be used as a reference for risk managers to make decisions about project risks, so as to achieve the ultimate goal of saving resources and the sustainable operation of the construction project.

Contractual Complexity in Construction Projects

2018 ◽  
Vol 49 (3) ◽  
pp. 46-61 ◽  
Author(s):  
Wenqian Wang ◽  
Yongqiang Chen ◽  
Shuibo Zhang ◽  
Yu Wang
Keyword(s):  
Structural Equation Modeling ◽  
Scale Development ◽  
Structural Equation ◽  
Construction Projects ◽  
Construction Project ◽  
Three Dimensional ◽  
Modeling Technique ◽  
Equation Modeling ◽  
Empirical Testing ◽  
Item Scale

Building on the multifunctional perspective from current contract theory, we conceptualize contractual complexity as a three-dimensional construct to depict the explicitness and elaborateness of control, coordination, and adaptation provisions in a construction project contract. A 13-item scale with construction project features is developed for measuring the different aspects of contractual complexity following rigorous scale development procedures. Using the structural equation modeling technique, empirical testing results demonstrate that all of the three components contribute significantly to contractual complexity. Further analysis indicated that treating contractual complexity in the three-functional way outperforms the unidimensional one regarding power to explain satisfaction and strong-form opportunism.

scholarly journals Integration of Cost and Work Breakdown Structures in the Management of Construction Projects

2020 ◽  
Vol 10 (4) ◽  
pp. 1386 ◽  
Author(s):  
Alberto Cerezo-Narváez ◽  
Andrés Pastor-Fernández ◽  
Manuel Otero-Mateo ◽  
Pablo Ballesteros-Pérez
Keyword(s):  
Project Management ◽  
Structural Equation ◽  
Construction Projects ◽  
Project Managers ◽  
Classification Systems ◽  
Information Modeling ◽  
Equation Modeling ◽  
Response Analysis ◽  
Scope Management ◽  
Project Objectives

Scope management allows project managers to react when a project underperforms regarding schedule, budget, and/or quality at the execution stage. Scope management can also minimize project changes and budget omissions, as well as improve the accuracy of project cost estimates and risk responses. For scope management to be effective, though, it needs to rely on a robust work breakdown structure (WBS). A robust WBS hierarchically and faithfully reflects all project tasks and work packages so that projects are easier to manage. If done properly, the WBS also allows meeting the project objectives while delivering the project on time, on budget, and with the required quality. This paper analyzes whether the integration of a cost breakdown structure (CBS) can lead to the generation of more robust WBSs in construction projects. Over the last years, some international organizations have standardized and harmonized different cost classification systems (e.g., ISO 12006-2, ISO 81346-12, OmniClass, CoClass, UniClass). These cost databases have also been introduced into building information modeling (BIM) frameworks. We hypothesize that in BIM environments, if these CBSs are used to generate the project WBS, several advantages are gained such as sharper project definition. This enhanced project definition reduces project contradictions at both planning and execution stages, anticipates potential schedule and budget deviations, improves resource allocation, and overall it allows a better response to potential project risks. The hypothesis that the use of CBSs can generate more robust WBSs is tested by the response analysis of a questionnaire survey distributed among construction practitioners and project managers. By means of structural equation modeling (SEM), the correlation (agreement) and perception differences between two 250-respondent subsamples (technical project staff vs. project management staff) are also discussed. Results of this research support the use of CBSs by construction professionals as a basis to generate WBSs for enhanced project management (PM).

A MEASUREMENT INSTRUMENT FOR THE TECHNOLOGY EXTENT AND PROCESS EFFICIENCY IN BIM ENABLED CONSTRUCTION PROJECTS

2019 ◽  
Vol 6 (1) ◽  
Author(s):  
Gozde Basak Ozturk
Keyword(s):  
Technology Use ◽  
Structural Equation ◽  
Construction Projects ◽  
Construction Project ◽  
Measurement Instrument ◽  
Information Modeling ◽  
Process Efficiency ◽  
Equation Modeling ◽  
Related Data ◽  
Building Information

Technology use in all fields can play an important role as the booster in creating lean and efficient processes. Technology use may result in reduced duplications and delays in workflows while helping to speed up task realization. Building Information Modeling (BIM) enhances knowledge share, use and reuse for better collaboration, communication, coordination, and monitoring as a knowledge base platform. BIM enhanced construction projects may positively affect the process efficiency. The aim of this paper is to define a measurement instrument of BIM usage as technology enhancer tool and of process efficiency of construction projects. Research leans on the prominent literature to concrete the measurement instrument. A survey is established to construction project professionals to understand the technology efficiency and process efficiency in BIM enabled construction projects. The research based on the related data collected from 92 professionals experienced both in traditional project delivery methods and BIM enabled construction projects. The respondents are the construction industry experts comprised of construction project managers, BIM managers, and BIM implementation experts (architects, civil engineers, mechanical engineers, electrical engineers etc.). Data is analyzed and tested with structural equation modeling software to verify the proposed measurement instrument. The technology efficiency and process efficiency factors for BIM enabled construction projects are tested and refined. Research findings present the measurement instrument for both technology and process efficiency in BIM enabled construction projects.

Ways to improve the project management efficiency in a centralized public procurement system

2019 ◽  
Vol 27 (1) ◽  
pp. 168-185
Author(s):  
Yang Wang ◽  
Jing Liu ◽  
Jian Zuo ◽  
Raufdeen Rameezdeen
Keyword(s):  
Project Management ◽  
Structural Equation ◽  
Public Procurement ◽  
Critical Factor ◽  
Positive Influence ◽  
Organizational Level ◽  
Equation Modeling ◽  
Content Type ◽  
Management Efficiency ◽  
Procurement System

Purpose The purpose of this paper is to investigate driving factors that improve the project management efficiency (PME) in centralized public procurement systems. Design/methodology/approach Employees in four public-sector organizations in China were surveyed. The structural equation modeling was employed to examine the relationship amongst those variables. Findings Organizational culture (OC) is an effective method to improve PME, and employee quality is the most critical factor of OC in this system. Job satisfaction (JS) is another significant contributor to PME and satisfaction with fairness of salary in this system being the key factor of JS. Job analysis (JA) has indirect influence on PME through JS and OC, whereas the job structure in this system is the most critical factor for JA. Practical implications An operational way to improve PME is to implement it from the perspectives of employee, organization and technique. At the organizational level, it is imperative to strengthen the OC by a well-structured recruitment system and to improve PME via well-design training. At the person level, both financial (i.e. income and welfare) and career incentives (i.e. promotion opportunities and a sense of belonging) are proposed to achieve employees’ JS to improve PME. At the technique level, JA approach (i.e. job rotation) is recommended to enlarge the positive influence of OC and JS on PME. These can not only ensure the management professionalism in a centralized public procurement system but can also motivate employees and maximize PME. Originality/value PME in a centralized public procurement system will be improved by addressing these key factors and their interrelationships. This provides detailed pathways for the centralized public procurement system to achieve better PME via optimal OC and JS and reasonable JA in China. In addition, the institutional and administrative traditions may vary significantly across cities, regions and countries. Therefore, such contextual differences should be taken into consideration for the improvement of PME in a centralized public procurement system.

scholarly journals Critical Success Factors in Developing Collaborative Design-Build Project Team to Improve Project Performance

2018 ◽  
Vol 159 ◽  
pp. 01025 ◽  
Author(s):  
Afrizal Nursin ◽  
Yusuf Latief ◽  
Ibrahim
Keyword(s):  
Collaborative Design ◽  
Structural Equation ◽  
Construction Projects ◽  
Critical Success Factors ◽  
Success Factors ◽  
Construction Project ◽  
Project Performance ◽  
Project Team ◽  
Equation Modeling ◽  
Critical Success

To complete a construction project, it takes the cooperation and collaboration of stakeholder involved in construction projects to obtain optimum project performance. Problems that frequently occur in construction projects is the lack of cooperation, lack of trust, ineffective communication, lack of visualization of the planned buildings and different relationships between stakeholders that project performance is not optimal. To overcome these problems need to develop a model of collaboration between stakeholders in a construction project. The purpose of this research is to identify the critical success factors of the collaboration of design and build construction project team so that can understand the influence of collaboration model to collaboration performance with the geographic, professional, stakeholder, and ethnic cultural boundary spanners in design and build construction project in Indonesia. This research uses factor analysis and variable relation with Structural Equation Modeling (SEM) method. The results found that geographical and ethical boundaries are influencing collaborative performance significantly.

scholarly journals DETERMINANTS OF TRANSACTION COSTS IN CONSTRUCTION PROJECTS

2015 ◽  
Vol 21 (5) ◽  
pp. 548-558 ◽  
Author(s):  
Huimin Li ◽  
David Arditi ◽  
Zhuofu Wang
Keyword(s):  
Project Management ◽  
Transaction Costs ◽  
Construction Projects ◽  
Construction Project ◽  
Construction Project Management ◽  
Risk Environment ◽  
Change Orders ◽  
Planning And Design ◽  
Definition Of ◽  
Made In

Transaction costs occur when a good or service is transferred across a technologically separable interface, and include the costs of drafting, negotiating and enforcing an agreement, and also the costs of governance and bonding to secure commitments. In the complex and high risk environment of a construction project, questionable decisions can be made in the planning and design phase, and disagreements, conflicts, disputes, change orders, and claims can occur in the construction phase. These problems contribute to an increase in transaction costs. Transaction costs at the pre-contract phase of a project are different from the transaction costs at the post-contract phase. However, there is no consensus on a standard definition of transaction costs in construction projects. In this study, a detailed literature review focusing on transaction costs in construction project management is presented. The factors that affect transaction costs are identified and categorized under the headings of the owner’s and contractor’s roles in the transaction, project management efficiency, and the characteristics of the transaction environment.

scholarly journals Project Management Performance and Its Influence on Malaysian Building Projects

2019 ◽  
Author(s):  
A.Q. Adeleke ◽  
J.A. Bamgbade ◽  
Maruf Gbadebo Salimon ◽  
Chia Kuang Lee
Keyword(s):  
Project Management ◽  
Structural Equation ◽  
Construction Projects ◽  
Working Environment ◽  
Three Dimensions ◽  
Equation Modeling ◽  
Primary Concern ◽  
Management Performance ◽  
Building Projects ◽  
And Performance

Working environment and safety behavior are the primary concern in construction projects which in the long run are part of the yardstick in measuring project management performance. Construction safety and performance should be thoroughly investigated empirically by illustrating the current state of accident and performance in construction industries. Entrenched in the Malaysian construction industry experience, three dimensions of the project management performance (resolve cost, schedule, and quality) can buffer the contractor’s and project manager’s performance in building projects. Following organizational control theory, this research investigated the effects project management performance (resolve cost, schedule, and quality) on construction projects among G-7 contractors operating in Kuantan Malaysia construction industries through a personally administered questionnaire. Structural equation modeling (SEM) opined that schedule and quality have positive and significant influence, while resolve cost has a significant negative influence on Malaysia construction projects.

scholarly journals Sustainability in Construction Projects: A Systematic Literature Review

2021 ◽  
Vol 13 (4) ◽  
pp. 1932 ◽  
Author(s):  
Reza Kiani Mavi ◽  
Denise Gengatharen ◽  
Neda Kiani Mavi ◽  
Richard Hughes ◽  
Alistair Campbell ◽  
...  
Keyword(s):  
Project Management ◽  
Structural Equation ◽  
Construction Projects ◽  
Feasibility Studies ◽  
Integrated Approach ◽  
Sustainable Construction ◽  
Fuzzy Decision Making ◽  
Eigenvector Centrality ◽  
Mathematical Techniques ◽  
New Research

This paper aims to identify the major research concepts studied in the literature of sustainability in construction projects. Two bibliometric analysis tools—(a) BibExcel and (b) Gephi, were used to analyze the bibliometrics indices of papers and visualize their interrelations as a network, respectively. Therefore, a research focus parallelship network (RFPN) analysis and keyword co-occurrence network (KCON) analysis were performed to uncover the primary research themes. The RFPN analysis clustered the studies into three major categories of evaluating sustainability, project management for sustainability, and drivers of sustainable construction. The KCON analysis revealed that while each paper had a different focus, the underlying concept of all clusters was sustainability, construction, and project management. We found that while ‘sustainability’ was the leading keyword in the first cluster, i.e., evaluating sustainability, it was the second top keyword with the eigenvector centrality of over 0.94 in the other two clusters. We also found that the concept of sustainability should be included in construction projects from the early stages of design and feasibility studies and must be monitored throughout the project life. This review showed that previous researchers used a variety of statistical and mathematical techniques such as structural equation modelling and fuzzy decision-making methods to study sustainability in construction projects. Using an integrated approach to identifying the research gaps in this area, this paper provides researchers with insights on how to frame new research to study sustainability in construction projects.

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