scholarly journals Bayesian Structural Equation Modeling for Examining the Relationship between Multidimensional Factors and Construction Project Cost

2019 ◽  
Author(s):  
Linlin Zhao ◽  
Zhansheng Liu ◽  
Jasper Mbachu
Keyword(s):  
Influencing Factors ◽  
Latent Variables ◽  
Construction Projects ◽  
Construction Project ◽  
Dynamic Environment ◽  
Financial Strain ◽  
Equation Modeling ◽  
Analysis Tool ◽  
Project Cost ◽  
The Relationship

Construction projects are usually operating in a complex and dynamic environment in which the accumulation of many interrelated factors causes high uncertainty. Construction projects are complex and frequently involve substantial uncertainties including process complicatedness, intricate organization structure, dynamic environment, and financial strain. The study aims to categorize the influencing factors into three groups, namely construction project system, economic-market climate, and external environment. It attempts to adopt a novel analysis tool to examine the relationship between the project cost and multiple influencing factors by using Bayesian SEM. While the Bayesian SEM method has been receiving increasing attention in exploring the relationship between latent variables, construction studies still heavily rely on the covariance-based SEM approach. This study introduces several advantages of Bayesian SEM that make it more flexible and powerful than covariance-based SEM and provides the foundation of Bayesian SEM estimation and inference by illustrating this method in a project cost application.

scholarly journals Bayesian Structural Equation Modeling for Examining the Relationship between Multidimensional Factors and Construction Project Cost

2019 ◽  
Author(s):  
Linlin Zhao ◽  
Zhansheng Liu ◽  
Jasper Mbachu
Keyword(s):  
Influencing Factors ◽  
Latent Variables ◽  
Construction Projects ◽  
Construction Project ◽  
Dynamic Environment ◽  
Financial Strain ◽  
Equation Modeling ◽  
Analysis Tool ◽  
Project Cost ◽  
The Relationship

Construction projects are usually operating in a complex and dynamic environment in which the accumulation of many interrelated factors causes high uncertainty. Construction projects are complex and frequently involve substantial uncertainties including process complicatedness, intricate organization structure, dynamic environment, and financial strain. The study aims to categorize the influencing factors into three groups, namely construction project system, economic-market climate, and external environment. It attempts to adopt a novel analysis tool to examine the relationship between the project cost and multiple influencing factors by using Bayesian SEM. While the Bayesian SEM method has been receiving increasing attention in exploring the relationship between latent variables, construction studies still heavily rely on the covariance-based SEM approach. This study introduces several advantages of Bayesian SEM that make it more flexible and powerful than covariance-based SEM and provides the foundation of Bayesian SEM estimation and inference by illustrating this method in a project cost application.

scholarly journals Identifying Significant Cost-Influencing Factors for Sustainable Development in Construction Industry Using Structural Equation Modelling

2020 ◽  
Vol 2020 ◽  
pp. 1-16 ◽  
Author(s):  
Linlin Zhao ◽  
Jasper Mbachu ◽  
Zhansheng Liu
Keyword(s):  
Sustainable Development ◽  
Influencing Factors ◽  
Structural Equation ◽  
Construction Projects ◽  
Dynamic Environment ◽  
Equation Model ◽  
Estimation Methods ◽  
Significant Cost ◽  
Project Cost ◽  
Construction Project Cost

Construction projects are typically conducted in a complex and dynamic environment in which the accumulation of many interrelated factors causes high uncertainty. Many factors may have negative effects on construction projects and thus cause project cost overruns. The aim of this study is to identify significant cost-influencing factors for sustainable development in construction. Considering the effects of economic and environmental factors on project cost is indeed a challenging task due to the shortage of appropriate methodology. This study examines the relationships between cost-influencing factors and construction project cost by using a structural equation model based on the generalized maximum entropy (GME) and Bayesian estimation methods. The advantages of GME and Bayesian methods are discussed, and results obtained from the statistical analysis are provided for illustration. The results can enhance cost performance through the identification and evaluation of the cost-influencing factors. The improved project performance is considered as an important step to transit into a sustainable development in construction. The sustainable development may greatly affect the emission reduction target of the industry.

Assessment of the effect of external risk factors on the success of an oil and gas construction project

2020 ◽  
Vol 27 (9) ◽  
pp. 2767-2793
Author(s):  
Mukhtar A Kassem ◽  
Muhamad Azry Khoiry ◽  
Noraini Hamzah
Keyword(s):  
Risk Factors ◽  
Construction Projects ◽  
Oil And Gas ◽  
Project Success ◽  
Construction Project ◽  
Equation Modeling ◽  
Content Type ◽  
External Risk ◽  
The Relationship ◽  
Oil And Gas Sector

PurposeConstruction projects in the oil and gas sector are greatly affected by external risk factors, especially those related to the economy, politics, security and stability factors. Hence, this research aimed to investigate the fundamental relationship between the external risk factors and their effects on the construction project success using Structural Equation Modeling method and PLS-SEM approach.Design/methodology/approachData collected through a structured survey distributed to projects teams in the oil and gas sectors in Yemeni companies involved in mega construction projects. A hierarchical model for assessing causative external risk factors and their effects on project success was developed and analyzed using Smart PLS 3 software of SEM.FindingsThe findings showed that economic, political, force majeure and security-related risk factors had a strong effect on project success. Besides, the Coefficient of Determination (R-squared value) equals 0.743, represented the proportion of variation in the dependent variable(s), which can be explained by one or more predictor variable. Moreover, the predictive relevance value Q2 is 0.375 above zero, which indicates that the conceptual model can predict the endogenous latent constructs. The calculated Goodness of Fit (GoF) Index of the model was 0.699, which shows that the developed model had substantial explanatory power to represent the relationship between the cause of external risk factors to and the effect on construction project success.Research limitations/implicationsThis research was limited to the oil and gas construction projects in Yemen as case study.Practical implicationsPractically, this study highlights the external risk factors that cause a negative effect on the success of oil and gas construction projects in Yemen. The research model of these factors is the first step in the risk management process to develop strategic responses for risks and explain the relationship between cause and effect on project success.Social implicationsThe model of external risks factors that cause the failure of construction projects helps develop response strategies for these risks, thereby increasing the chances of project success reflected in the oil and gas sector, which is a main tributary of the national economy in developing countries.Originality/valueThere is a need to improve the planning of economic and security performance as well as to mitigate political risk factors effects on project success and other risk factors discussed in this study, which effect on construction project success according to their priorities.

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 An assessment of cost escalation in building construction project

2021 ◽  
Vol 39 (4) ◽  
pp. 1029-1034
Author(s):  
A. Nazif ◽  
A.K. Mustapha ◽  
F. Sani
Keyword(s):  
Construction Projects ◽  
Building Construction ◽  
Project Cost ◽  
Mean Values ◽  
Design Error ◽  
Project Construction ◽  
Effective Cost ◽  
Building Project ◽  
The Impact ◽  
The Relationship

Estimating of cost for building construction projects with minimum error at the conceptual stage of project development is quite  essential for planning. This study seeks to evaluate factors responsible for cost escalation of building construction projects.  Questionnaires were administered to examine and assess these factors. Subsequently, the mean score value of each factor was determined. In addition, Correlation and Linear regression analyses were used to establish the relationship between these factors. Factors responsible for cost escalation in projects were examined as well as the impact of those factors, and occurrence of those factors on project cost. The result of the analysis showed that, the most agreed factors responsible for project cost escalation were; inadequate supervision, irregular payment, and design error, having high mean values of 4.25, 4.20, and 4.15, respectively. Also, correlation analysis result established that the factors responsible for cost escalation and the impact of cost escalation had significant R and R2 of 0.81 and 0.70 respectively. Addressing these factors would go a long way in reducing the escalation of building project cost. Never the less, an effective cost management strategy is absolutely necessary to safeguard and sustain the construction  industry. Keywords: cost escalation, building project, construction, regression analysis

Forecasting the schedule performance resulting from the adoption of social distancing in construction projects

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Hilary Omatule Onubi ◽  
Nor'Aini Yusof ◽  
Ahmad Sanusi Hassan ◽  
Ali Ahmed Salem Bahdad
Keyword(s):  
Construction Projects ◽  
Partial Least Square ◽  
Least Square ◽  
Equation Modeling ◽  
Content Type ◽  
Social Distancing ◽  
Schedule Performance ◽  
The Impact ◽  
The Relationship ◽  
Positive Effect

PurposeThe coronavirus disease 2019 (COVID-19) pandemic has had major impacts on the performance of construction projects that have adopted social distancing measures. This study examines the effect of social distancing measures on project schedule performance through job reorganization on construction project sites.Design/methodology/approachResponses were obtained through a survey of 154 construction projects and analysed using the partial least square structural equation modeling (PLS-SEM) technique.FindingsThe findings established that social distancing has a negative effect on schedule performance, social distancing has a positive effect on job re-organization and job re-organization has a positive effect on schedule performance. Additionally, the results indicate that job re-organization partially mediates the relationship between social distancing and schedule performance, while social distancing moderates the relationship between job re-organization and schedule performance with low social distancing having the stronger positive effect.Originality/valueThis study contributes theoretically to a greater understanding of the impact of adopting COVID-19 safety measures such as social distancing on the schedule performance of construction projects. The study also shows how social distancing could lead to schedule performance through job reorganization.

scholarly journals Impact of Construction Productivity Attributes Over Construction Project Performance in Indian Construction Projects

2019 ◽  
Vol 50 (1) ◽  
pp. 89-96 ◽  
Author(s):  
Saurav Dixit ◽  
Kinshuk Saurabh
Keyword(s):  
Construction Projects ◽  
Positive Impact ◽  
Construction Project ◽  
Project Performance ◽  
Construction Productivity ◽  
Complex Projects ◽  
High Degree ◽  
The Relationship ◽  
Creative Construction ◽  
Similar Kind

Performance of a construction project could be influenced by a number of attributes, especially large and complex projects lay additional focus on the success / failure attributes, because of the intensive amount of money invested, a high degree of uncertainty, the complexity of personnel’s required, a multiplicity of goals and problems in coordination between different stakeholders encountered. In this research paper, the author intended to define and examine the relationship and impact of construction productivity (CP) over construction project performance (CPP). The author tests the proposition that there is a positive relationship/impact between both of them. And to test the effect of factors is affecting CP on CPP and to propose a conceptual model on the basis of the analysis. To validate the mathematical validity of factor analysis, Spearman correlation analysis has been performed on the factors. And to check the reliability of all the factors using reliability analysis, and finally test the hypothesis that construction productivity is having a positive impact on project performance using one sample t-test. The findings of the study concluded that there is a positive impact of construction productivity on project performance in Indian construction projects. This paper attempts to identify the relationship between CP and CPP and recommends the framework for the industry to grow sustainably and deliver projects successfully. This study is conducted using a structured questionnaire survey in India and to validate the results of the study similar kind of study is required to be conducted in the other regions of the country to have more reliable findings."This paper is the revised version of the paper that has been published in the proceedings of the Creative Construction Conference 2018: Dixit, S., Mandal, S. N., Thanikal, J. V, & Saurabh, K. (2018). Construction Productivity and Construction Project Performance in Indian Construction Projects, m(July), 379–386. https://doi.org/10.3311/CCC2018-050".

Factors that trigger bullying amongst subcontractors toward intention to quit in the construction projects

2019 ◽  
Vol 10 (1) ◽  
pp. 140-152
Author(s):  
Alireza Jalali ◽  
Nur Izzati Hidzir ◽  
Mastura Jaafar ◽  
Norziani Dahalan
Keyword(s):  
Construction Projects ◽  
Workplace Bullying ◽  
Construction Project ◽  
Partial Least Square ◽  
Least Square ◽  
Intention To Quit ◽  
Equation Modeling ◽  
Key Factors ◽  
Data Set ◽  
Content Type

Purpose The purpose of this paper is to examine the relationships between three key factors that cause workplace bullying among subcontractor managers toward intention to quit the undertaken project within the context of Malaysia. Design/methodology/approach This study utilized the simple sampling method to select its study sample, while the questionnaire survey approach was implemented amidst 500 G6 and G7 contractor managers across Peninsular Malaysia. A total of 210 completed questionnaires were returned. Partial least square-structural equation modeling was administered to analyze the data via SmartPls 3.0 software. Findings This study discovered three significant factors (main contractor leadership, construction culture, work organization and job design) that displayed positive effect on workplace bullying among subcontractor managers toward intention to quit. The study outcomes can serve as a direction for policy makers to reduce bullying within the construction project environment. Practical implications This study serves as an instruction for main contractors to reinvent their style of management in overcoming bullying in construction projects. This paper guides that collaborative relationship among various parties in construction projects, including the representatives of main contractors and subcontractor managers, may assist in addressing the hostile environment of construction project, in order to create a constructive relationship between them that leads to overall project success. Originality/value Recognition of the three key factors that lead to workplace bullying among subcontractor managers in the construction industry, which are bound to enhance intention to quit based on the data set with strong statistical results, has made the research original.

The moderating role of 360-degree appraisal between engagement and innovative behaviors

2019 ◽  
Vol 69 (2) ◽  
pp. 361-381 ◽  
Author(s):  
Silva Karkoulian ◽  
Jordan Srour ◽  
Leila Canaan Messarra
Keyword(s):  
Resource Use ◽  
Latent Variables ◽  
Structural Equation ◽  
Idea Generation ◽  
Financial Resource ◽  
Work Behavior ◽  
Equation Modeling ◽  
Content Type ◽  
The Relationship ◽  
Innovative Behaviors

Purpose Engaged employees are a critical asset in any business. This is largely because engaged employees tend to proffer innovative solutions to complex problems in the workplace. The purpose of this paper is to examine the relationship between engagement and innovation as moderated by the use of 360-degree evaluation. Design/methodology/approach A survey targeting employees in Lebanon solicited their perceptions of 360-degree evaluation, engagement and innovative behaviors along with a statement as to whether their firm used 360-degree evaluations or not. Structural equation modeling (SEM) was used to test the moderating effect of 360-degree evaluations on the latent variables of engagement and three facets of innovation. Findings SEM results show that 360-degree evaluations serve to enhance engaged employees’ innovative work behavior. However, ideation (creation and implementation) behaviors are more strongly influenced by the presence of 360-degree evaluation as compared to their “tangible” counterpart (technology and financial resource use). Research limitations/implications Respondents selected for this research were randomly sampled employees in Lebanon. A stronger study strategy would be to study paired departments within organizations – one implementing 360-degree evaluation and another not implementing it. Practical implications Managers, seeking to engender and strengthen innovative behaviors in engaged employees, should utilize 360-degree evaluation processes. Furthermore, the 360-degree evaluations should be designed to probe both tangible (technology and financial resource use) and intangible (idea generation and implementation) facets of innovation. Originality/value This study yields a deeper understanding of the relationship between engagement and innovative behaviors in the workplace along with managerial insights into the design and use of 360-degree evaluation.

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