scholarly journals Default Behaviors of Contractors under Surety Bond in Construction Industry Based on Evolutionary Game Model

2020 ◽  
Vol 12 (21) ◽  
pp. 9162
Author(s):  
Jiabao Jing ◽  
Xiaomei Deng ◽  
Rashid Maqbool ◽  
Yahya Rashid ◽  
Saleha Ashfaq
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Evolutionary Game ◽  
Credit System ◽  
Analysis Model ◽  
The Sustainable Development ◽  
Game Analysis ◽  
High Penalty ◽  
The Cost ◽  
Surety Bonds

In construction projects, some contractors will take default actions against the contracts to obtain maximum profits and damage the owners’ benefits as a result. In the construction markets where effective supervision is not performed well, contractors have more opportunities to default. Surety bonds were designed to solve the default problems and promote the sustainable development of the construction markets. This paper was proposed to explore the interactions between owners and contractors and investigate the influence of surety bonds (high penalty and low penalty) on the default behavior of contractors based on a static and dynamic evolutionary game analysis model. The results showed that applying the surety bond strategy is effective at decreasing the probability of the contractors’ default behavior when the credit system based on a surety bond system is well developed in the construction industry and the cost of the surety bond is low enough. Therefore, government strategies such as a better development of the credit system driven by surety bonds and the subsidies on surety bonds to reduce the cost can mitigate the contractors’ default behavior and keep the sustainability of the construction markets.

scholarly journals The New Path to Improve Construction Safety Performance in China: An Evolutionary Game Theoretic Approach

2019 ◽  
Vol 16 (13) ◽  
pp. 2443 ◽  
Author(s):  
Pi ◽  
Gao ◽  
Chen ◽  
Liu
Keyword(s):  
Information System ◽  
Construction Industry ◽  
Construction Projects ◽  
Evolutionary Game ◽  
Safety Information ◽  
Construction Safety ◽  
Safety Performance ◽  
Theoretic Approach ◽  
Economic Activities ◽  
Evolutionarily Stable Strategies

Evidence shows that there are many work-related accidents and injuries happening in construction projects and governments have taken a series of administrative measures to reduce casualties in recent years. However, traditional approaches have reached a bottleneck due to ignoring market forces, and thus new measures should be conducted. This study develops a perspective of safety performance (SP) for construction projects in China and puts forward a conception of the safety information system by using several brainstorming sessions to strengthen the safety supervision of participants in the construction industry. This system provides rating information to the public, and bad performance contractors enter into a blacklist which will influence their economic activities. Considering the limited rationality of government and various contractors, this paper builds a reasonable evolutionary game model to verify the feasibility of the safety information system. The analysis results show that there is not a single set of evolutionarily stable strategies (ESSs), as different situations may lead to different ESSs. The efficiency of applying the safety information system (the blacklist) in the construction industry can be proved by reducing the government’s safety supervision cost and by enhancing construction safety at the same time.

scholarly journals Evolutionary Game Analysis on Knowledge-Sharing Behavior in the Construction Supply Chain

2019 ◽  
Vol 11 (19) ◽  
pp. 5319 ◽  
Author(s):  
Chanchan Hao ◽  
Qiang Du ◽  
Youdan Huang ◽  
Long Shao ◽  
Yunqing Yan
Keyword(s):  
Supply Chain ◽  
Knowledge Sharing ◽  
Evolutionary Game ◽  
The Sustainable Development ◽  
Game Analysis ◽  
Knowledge Sharing Behavior ◽  
Evolution Path ◽  
Evolutionary Trajectories ◽  
New Perspective ◽  
Sharing Behavior

With the increasingly fierce global competition, supply chain members have to collaborate to respond to constant changes. Efficient knowledge sharing is the basis for the collaborative operation of the supply chain. Combined with evolutionary game theory, this paper studies the evolution path and stable strategies of knowledge-sharing behavior between construction supply chain enterprises, analyzing the factors that influence the establishment of a knowledge-sharing alliance. A numerical simulation is conducted to verify theoretical results and the effects of parameter adjustments on behavioral evolution. The results indicate that under different income relationships, knowledge-sharing behavior in construction supply chains presents different evolutionary trajectories. In addition, the probability of accepting the sharing strategy is positively correlated with the penalty coefficient, incentive coefficient, trust level, and synergy coefficient and negatively correlated with cost. This study provides a new perspective and theoretical guidance for establishing stable knowledge collaboration between enterprises and promoting the sustainable development of the construction supply chain.

Integrated cost and schedule control in the Korean construction industry based on a modified work-packaging model

2008 ◽  
Vol 35 (3) ◽  
pp. 225-235 ◽  
Author(s):  
Sangchul Kim ◽  
Chanjeong Park ◽  
Sangyoub Lee ◽  
Jaeho Son
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Quantitative Measure ◽  
Domestic Market ◽  
Control Technique ◽  
Schedule Control ◽  
Cost Information ◽  
Integrated Cost ◽  
Ev Model ◽  
The Cost

As a project control technique concept that provides a quantitative measure of schedule and cost information, the earned value (EV) model can evaluate work progress by identifying the potential delay and the cost overruns in a project, which is useful for controlling projects. The construction industry in Korea does not put this concept into practice, however, because it is poorly understood and because the construction practices in Korea are different from those in other industrialized countries. Most important is the fact that almost all the construction projects in Korea are controlled in accordance with the budget breakdown structure (BBS), which is less detailed than the cost breakdown structure (CBS), while those in the USA are managed through schedule control on the basis of the work breakdown structure (WBS). This is because most of the construction projects in Korea are generally contracted at a fixed price. This being the case, once the contract is awarded, the clients are no longer concerned with the cost of the project. This current construction practice based on the BBS rather than on the WBS has brought forth a limitation in terms of the use of the existing EV model in the domestic market. In this study, the EV model, which is suitable for the domestic market, is demonstrated. An integrated model of the WBS and CBS is then developed based on the modified work-packaging model. Finally, the developed model is integrated into the project management system (PMS) to verify its suitability and efficiency.

scholarly journals Adoptability of Lean Construction Techniques in Pakistan’s Construction Industry

2018 ◽  
Vol 4 (10) ◽  
pp. 2328
Author(s):  
Aftab Hameed Memon ◽  
Muhammad Akram Akhund ◽  
Abdul Nasir Laghari ◽  
Hafiz Usama Imad ◽  
Shadab Noor Bhangwar
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Minimum Cost ◽  
Lean Construction ◽  
Global Trends ◽  
Lean Practices ◽  
Wide Range ◽  
Local Construction ◽  
The Cost ◽  
Tools And Techniques

There is a philosophy in the construction industry to reduce the cost of a project by reducing construction waste and improving productivity. With lower expenses, lean construction emphasizes the cost of the project at a minimum cost. Globally, the philosophy has gained a wide range of popularity in the construction sector. The Lean Construction has helped practitioners with several tools and techniques to implement at different stages of a construction project. Following global trends, this study has investigated lean practices in Pakistan. With the potential advantages experienced by its implementation in Pakistan's construction projects and the level of implementation of various types of tools and techniques has been analyzed. To achieve the goal, the study had tried to capture construction projects in which four shareholders are being represented, which are clients, consultants, contractors and material suppliers. Overall 34 completed questionnaires were collected and then analyzed. The results of the analysis have indicated that pull approach, standard of work, time consuming, visualization tools, the integrated project delivery methods and the quality failure in safe limits are common lean techniques which are being implemented to the local construction industry. While there are major benefits of waste reduction, client satisfaction, better communication, visual control and proper task management to build appropriate work are the key benefits of lean construction.

scholarly journals Application of Value Management in Conception of Construction Projects in Rwanda

2019 ◽  
Vol 6 (3) ◽  
pp. 1-6
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Project Performance ◽  
Survey Method ◽  
Value Management ◽  
Maximum Output ◽  
Value For Money ◽  
Mandatory Requirement ◽  
Professional Practitioners ◽  
The Cost

Value Management (VM) and Value Engineering (VE) are techniques concerned with defining, maximizing and achieving “value for money”. It should be noted that VM is not about reducing the cost but about adding value and where necessary the cost can be added to achieve value. Despite its proven significance in securing maximum output from limited resources, this approach is not a common practice in Rwanda’s construction Industry. This study therefore defines VM and describes all the processes and techniques involved in it. The merits and demerits of VM process in construction projects are discussed in details and relevance of its uses is discussed and recommended in consideration of the scope and complexity of the projects as well as the risks involved. While the benefits of a value management review are often perceived in terms of improved quality and reduced cost, this report discusses the exercise as a functional mechanism to measure value, taking into account monetary and non-monetary benefits and thus demonstrating value for money. While the author has not been able to obtain relevant literature on VM practice in Rwanda, It can be deduced from the review of the related literature that most of the evaluation techniques conducted for construction projects in developing world have mostly relied on evaluation of project performance in terms of cost, quality, delivery and progress. Since project evaluation is carried out after the work has been undertaken, the output of the analysis will just give the client an indication or a good understanding of the project performance. Such evaluations only reveal the competence or incompetence of the project participants instead of providing value for money which is addressed by VM practice which is an ex-ante analysis that takes into consideration of all value parameters. The study used a quantitative survey method of research to obtain responses from professional practitioners in construction industry in Rwanda. The sample size of 115 were selected from members of professional practitioners in the construction industry out of which 106 members were responsive. Finally, it is concluded that VM approach is not used in construction industry in Rwanda and recommended that VM practice be adopted in construction industry in Rwanda as a mandatory requirement for conception of all construction projects with a budget of $20M and above

The sustainable development of university student loans based on the evolutionary game

2020 ◽  
Vol 22 (1) ◽  
pp. 59-76
Author(s):  
Yan Zhang ◽  
Xiaoqiong You ◽  
Wenke Wang ◽  
Ting Lin
Keyword(s):  
Sustainable Development ◽  
Student Loans ◽  
Evolutionarily Stable Strategy ◽  
Evolutionary Game ◽  
Interaction Mechanism ◽  
University Student ◽  
Content Type ◽  
The Sustainable Development ◽  
Game Analysis ◽  
Impacting Factors

Purpose National student loans help solve the problem of tuition fees for students from poor families to a great extent. This paper aims to study the behavior of three main players involved in university student loans, namely, universities, banks and students and explores necessary conditions for promoting the steady development of student loans, as well as the sustainability of cooperation and coordination among players, thus promoting the further development of student loans. Design/methodology/approach First, from the perspectives of the three related players of banks, students and universities and their behavior, this paper establishes a three-player behavioral evolutionary game model, conducts a sustainable game analysis among the different players, and by replicating the dynamic equations with the Jacobian matrix solve the evolutionarily stable strategy. Finally, applying MATLAB tools, a sensitivity analysis of relevant impacting factors is carried out to explore the influencing mechanism of the sustainable development of student loans. Findings To achieve the mechanism of mutual coordination and cooperation between participants, banks need to be guided to actively issue student loans and conduct strict loan review. College students should be encouraged to establish good credit and strengthen penalties should be implemented for violations of regulations. Universities should be encouraged to help banks reduce information asymmetry, promote financial knowledge and student integrity education and promote the sustainable development of national student loans. Originality/value This research will help scholars better understand the interaction mechanism among universities, banks and students, and promote the sustainable development of national student loans.

scholarly journals PROPOSING A NEURAL NETWORK MODEL TO PREDICT TIME AND COST CLAIMS IN CONSTRUCTION PROJECTS

2016 ◽  
Vol 22 (7) ◽  
pp. 967-978 ◽  
Author(s):  
Vahidreza YOUSEFI ◽  
Siamak HAJI YAKHCHALI ◽  
Mostafa KHANZADI ◽  
Ehsan MEHRABANFAR ◽  
Jonas ŠAPARAUSKAS
Keyword(s):  
Neural Network ◽  
Case Studies ◽  
Construction Industry ◽  
Network Model ◽  
Neural Network Model ◽  
Construction Management ◽  
Construction Projects ◽  
New Model ◽  
Proposed Model ◽  
The Cost

Despite broad improvements in construction management, claims still are an inseparable part of many con-struction projects. Due to huge cases of claim in construction industry, this study argues that claim management is a significant factor in construction projects success. In this study, the most possible causes of these emerging claims are identified and statistically ranked by Probability-Impact Matrix. Subsequently, by classifying claims in different cases, the most important ones are ranked in order to achieve a better understanding of claim management in each project. In this regard, a new index is defined, being able to be applied in a variety of projects with different time and cost values, to calculate the amount of possible claims in each project along with related ratios with respect to the cost and time of each claim. This study introduces a new model to predict the frequency of claims in construction projects. By using the proposed model, the rate of possible claims in each project can be obtained. This model is validated by applying it into fitting case studies in Iran construction industry.

scholarly journals REVISITING THE FINANCIAL ISSUES AND THE IMPACT TO CONSTRUCTION PROJECTS IN MALAYSIA

2021 ◽  
Vol 33 (2) ◽  
Author(s):  
Mohd Ashraf Mohd Fateh ◽  
Tan Hee Yee
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Microsoft Excel ◽  
The Sustainable Development ◽  
Competitive Capabilities ◽  
Development Goals ◽  
Questionnaire Surveys ◽  
The Impact ◽  
Financial Issues

Every activity in a construction project is related to time and cost. Delay is considered common and often occurred in a construction project. A slight delay can be very costly. It will impact all of the related stakeholders. This paper seeks to identify the financial issues in the construction industry and the impact of the financial issues towards the projects in Malaysia. Literature reviews and questionnaire surveys were used to carry out the study. The data collected were analysed via Microsoft Excel and SPSS software. The paper reveals that the withholding of payment by the approval parties is the critical financial issues in Malaysia’s construction industry, while the main impact when the financial issues occurs is where the project is delayed/postponed/terminated. The findings of this research will give a good insight to the industry and help to improve the local players’ competitive capabilities as highlighted by the Construction Industry Development Board (CIDB) in the Construction Transformation Programme (CITP) 2016-2020 and in line with the Sustainable Development Goals (SDGs) that was introduced by the United Nations (UN).

scholarly journals Examining the Values and Principles of Agile Construction Management in Iraqi Construction Projects

2018 ◽  
Vol 24 (7) ◽  
pp. 114
Author(s):  
Sawsan Rasheed Mohammed ◽  
Asmaa Jebur Jasim
Keyword(s):  
Project Management ◽  
Construction Industry ◽  
Construction Projects ◽  
Relevant Literature ◽  
Construction Project ◽  
New Methods ◽  
Agile Project Management ◽  
The World ◽  
Management Method ◽  
The Cost

The avoidance of failure in construction projects is not an easy task, which makes the failure of the construction project to achieve its objectives a major problem experienced by all countries in the world, especially Iraq. Where nearly two-thirds of the construction projects in the world have been suffered by significant problems as an increase in the cost of the project, delay in the specified duration for execution, and stopping the project. Therefore it is required to study and apply new methods for managing the construction project to ensure its success and achieve its objectives. The aim of this study is to study the Agile project management method and its impact on the construction project. In addition, to identify the values and principles of Agile project management, which can be applied in the Iraqi construction industry to be adopted it as a new method to manage the construction projects in Iraq. The researcher reviewed the relevant literature to define the method of Agile project management and its methods and impact on the construction project. Then, the researcher conducted a questionnaire survey of a sample of engineers' experts who work in four main parties in the construction project: (beneficiary, supervising, designer, and contractor). The results of this survey showed that it is possible to apply the four values of Agile project management for managing the Iraqi construction projects, and can apply eleven of the twelve principles of Agile project management for managing the Iraqi construction projects.  

scholarly journals Training Program in the Construction projects

2020 ◽  
Vol 9 (5) ◽  
pp. 515-522
Keyword(s):  
Training Program ◽  
Construction Industry ◽  
Construction Projects ◽  
System Dynamic ◽  
Cost Overruns ◽  
Efficient Performance ◽  
Comprehensive Development ◽  
Unskilled Workers ◽  
The Cost ◽  
The Impact

Construction is questionably a main part in relative to comprehensive development . It plays an important part in the role in the economy as and in people’s survives over influencing and preserving the environment of the city-region’s constructed, and it is a rising sector. To provide an efficient performance and more development of the economic, there is emphases on optimizing the employees contribution to the goals and areas of the governments. The training significance as a management central part has long been documented by principal writers.This paper aim to find the impact of training in the construction industry and how the training is been underestimate lead in increase the cost by using the simulation technique system dynamic. The research methodology include designing of questionnaire that consist of three items , the first item include , general Training (Training Program), evaluation of on-the-job training and evaluation of training after establishing work and the second part include building the model using system dynamic to show the effect of training on the cost of construction. the results the authors made the following conclusions .The absence of training program has very strong effect as the absence of such program is caused by the finance absence , this is common problem with Iraqi construction industry. The most environment of the Iraqi industry is the absence of the finance from both owner and contractor as they ignore this part and consider unnecessary expenses and this will lead to unqualified engineering or worker in the wrong job .The absence of management mean that , usually the contractor and his staff are working without the supervise or represented from the owner side , which some time mean unskilled workers may be hired which lead to delay of the work and cost overruns .

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