scholarly journals The Source of Degradation of the Construction Industry Performance

Author(s):  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Jake Smithwick ◽  
Isaac Kashiwagi ◽  
Abraham Kashiwagi

The construction industry performance has been analyzed for the past 20 years. There has been no simple answer to the source of the construction industry problems. In 1991, the Construction Industry Structure (CIS) was formulated, and identified that the price based environment was more inefficient than the best value environment. Over the past 18 years, the analysis of the CIS has led to the hypothesis that the price based sector is inefficient because the buyer controls it. The hypothesis has been tested through case studies, and test results show that the owner is the biggest source of project risk and deviations. The dominant information was formed through repeated testing by moving the control to the vendor, and documenting all sources of project deviation. The studies have shown that the use of decision making, management, direction and control of the contractor by the owner increases the project risk. Two longitudinal studies are used to confirm the potential accuracy of the deductive logic. Key words: contractor control, owner releases control, contractor defined scope.

2013 ◽  
Vol 405-408 ◽  
pp. 3372-3375
Author(s):  
Hai Xie

Project management is the overall planning, coordination, and control of a project from beginning to completion. Project management is aimed at meeting a clients requirement in order to produce a functionally and financially viable project. Project management is project management that applies to the construction sector. The construction industry is composed of five sectors: residential, commercial, civil, industrial, and environmental. A construction manager holds the same responsibilities and completes the same processes in each sector. All that separates a construction manager in one sector from one in another is the knowledge of the construction site. This may include different types of equipment, materials, subcontractors, and possibly locations. A contractor is assigned to a construction project once the design has been completed by the architect or is still in progress. This is done by going through a bidding process with different contractors. The contractor is selected by using one of the three selection methods: low-bid selection, best-value selection, or qualifications-based selection. A construction manager should have the ability to handle public safety, time management, decision making, mathematics, and human resources.


Author(s):  
Gumgaro Simon-Peter Buba ◽  
Razali Adul Hamid ◽  
Zuhaili Mohamad Ramly ◽  
Tchad Sharon Jatau ◽  
James David Jatau

The construction industry is vital to the economic development of any country. It has a major role in providing built infrastructures in an innovative and cost-effective way using an effective procurement approach. In contrast, the most widely used procurement method in Nigeria is the traditional procurement approach which is known for plaguing the industry with the poor working condition and poor performances thus, reducing the sustainability and quality of products and services. For this reason, there is a need for a procurement approach which utilises expertise to minimise the risk of non-performance and create a win-win environment for both client and contractors, while increasing transparency and add value to the project such like, the Best Value Procurement. Against the background, this paper aims to establish the perception of the Nigerian construction professionals on the unique factors of the Best Value Procurement. The paper outlines the following objectives: To identify the unique factors of the Best Value Procurement and, to establish the perception of the Nigerian construction professionals on the Best Value Procurement unique factors. Using a questionnaire survey, data was collected form 314 construction professionals involving Quantity Surveyors, Architects, Builders and Civil Engineers. Kruskal Wallis Test and mean score ranking was used for data analysis. The findings show that the professionals generally agree that the Best Value Procurement unique factors can bring about transparency, accountability, increase project performance and the contractor is the best to control risk and adds value to the project. This paper derives its significance from the need to stabilise the procurement system in Nigeria by transferring the risk and control to contractors who must act in the best interest of the client. 


Author(s):  
Syed Nihas ◽  
Kristen Barlish ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi

The Indian construction industry has had poor performance delivering on time, with quality and within cost. Project cost and time deviations have been documented at 25%. The paper introduces the utilization of the Construction Industry Structure model to identify the problem, the solution, and how the paradigm of the Indian industry must be changed. Instead of using peer review to determine the validity of the explanation, the authors will use observable deductive logic to validate their proposal. The success of the explanation is not peer review, but Indian academic/research unit adopting the explanation and running research tests with the construction industry participants. The CIS proposal to the industry is to replace the management, direction  and control of personnel and vendors with a transparent system of metrics and utilizing the expertise of the experts in the beginning of the project.


Author(s):  
Nguyen Le

This paper provides a literature review assessing the performance and issues of delivering construction services in the Vietnam Construction Industry (VCI). The research also explores a potential solution that could improve the performance of the VCI. The results show multiple non-performance issues that the VCI has experienced in the past 15 years, and presents a comparison between these issues and issues from other countries. The results reveal that the top 5 non-performance issues in the VCI include poor design services, frequent design changes, lack of skilled contractors, a lack of experienced project managers, and financial difficulties of owners. The comparison identifies that 87% of VCI issues were also experienced in other countries. Since the VCI has similar issues as other countries, the author propose that the VCI can improve construction performance by implementing successful methodologies from other countries. This paper investigates the Best Value Performance Information Procurement System (BV PIPS) as a potential solution because of two key aspects: (1) sufficient documentation of on time, on budget, and high customer satisfaction from this model, and (2) sufficient testing from other regions and countries to show similar improvement in construction performance.


2011 ◽  
Vol 243-249 ◽  
pp. 6257-6260
Author(s):  
Qiang Du ◽  
Lei Zhao ◽  
Rui Yang

In China, the construction industry has been developing rapidly over the past decades, at the same time, generating a huge amount of construction and demolition waste (CDW). The stream of CDW must be dealt with special attention, at least because of the shortage of landfill space for disposal and the need of sustainable development. This paper presents solutions to manage and control major type of building CDW in a technically feasible and economically efficient manner, with an example of Xi’an City. Recommendations are made in order to promote sustainable CDW management in practice.


Author(s):  
David Gastelum

Construction industry performance (schedule, budget, and customer satisfaction) has not improved over the last 20 years. This investigation proposes that academic/industry research using actual project data may have more impact on improving industry performance than traditional survey-based research. The authors utilize the CIB and CIB W117 platforms to proliferate the concept of academic/industry test results to increase the impact on the construction industry. The authors propose to use the existing journal and then share the journal papers on an online platform (ResearchGate.net) ensuring a faster proliferation of the key academic/industry test results into the academic research community. The mechanism of the academic/industry test results will have more of an impact on industry practices than the traditional publication systems, which concentrate on literature reviews and surveys to collect industry opinions and analyze the information to change industry practices. The proliferation of industry research results will create transparency in the construction industry and the academic research community.


Author(s):  
Alfredo Rivera ◽  
Dean Kashiwagi

Traditional project management (PM) results have been poor. The practices of direction and control have been identified by deductive logic as problematic. Deductive logic identifies that, if a manager directs and controls, their risk goes up and performance will go down. A new approach to PM is the replacement of technical expertise with the identification and utilization of expertise. New components of this approach are the minimization of the need to think and make decisions, the use of the language of metrics, a new definition of risk, and the use of preplanning that includes the utilization of expertise and focusing on the mitigation of risk that the expert does not control. This approach has been tested by the International Council for Research and Innovation in Building and Construction Working Commission (CIB W117, formerly known as the Performance Based Studies Research Group at Arizona State University) for the past 25 years increasing customer satisfaction to 98% and minimizing cost by 5 to 30%. These practices are a part of the “PM of the Future.”


Author(s):  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Abraham Kashiwagi ◽  
Kenneth Sullivan

The Dutch construction industry is making a change from an owner controlled to a contractor-controlled environment. It is a movement from a top down culture (management, direction and control) to a bottom up culture (alignment and use of expertise). Owner decision making, management, direction and control are being replaced with a leadership model, which aligns and utilizes the expertise of the contractors. The changes in the Dutch construction industry validate a non-traditional research model, which used deductive logic and case studies involving dominant information and visionary industry participants, non-traditional concepts of Information Measurement Theory (IMT), the Construction Industry Structure (CIS) model and the best value Performance Information Procurement System (PIPS).


Author(s):  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Abraham Kashiwagi ◽  
Kenneth Sullivan

For the last two years, researchers have been working with parties in Malaysia to implement best value practices. After two years of research work, the effort has many lessons learned. Lessons learned include a combination of factors that make the best value approach difficult in a developing country such as Malaysia. The different strata of economic levels give the upper levels (owners) a greater perceived ability to control the supply chain even though they may lack the expertise. This causes owners to attempt to deliver construction by controlling the vendors, both professionals and contractors. This increases the difficulty moving from a price based or owner directed system to a best value environment, which releases control to experts. The authors use deductive logic models which show decision making, direction, and control negatively impact accountability, proactive behavior, and the use of expertise. The two-year research program results in addressing the issue of how a buyer in a developing country can utilize the expertise of experts, and how the expert can change their function to get a controlling owner to use their expertise. The paradigm shift needs to take place among the elite and the visionary, before the overall environment can make the change. The product of this research project is to meet the requirements of a visionary group of quantity surveyors in Malaysia.


1986 ◽  
Vol 113 (4_Suppl) ◽  
pp. S118-S122 ◽  
Author(s):  
O. BUTENANDT ◽  
M. EMMLINGER ◽  
H. DOERR

Abstract 38 patients with proven growth hormone deficiency (GHD) and 19 children with familial short stature received an iv GRF-bolus injection of 1 ug/kg body weight. Whereas in all control children plasma growth hormone rose significantly (mean of maximal values 36 ng/ml), only 7 out of 38 patients with GHD reached peak values of 8 ng/ml or more. GRF-priming by 1 ug GRF/kg BW given once daily s.c. for 5 days in 19 patients improved the response of the pituitary gland in 11. Thus, following the first GRF test, only 21 % of patients demonstrated function of the pituitary gland whereas 45 % did so when all test results are combined. To evaluate the pituitary function in patients with GHD correctly, GRF tests following a GRF priming period seems to be necessary to reactivate atrophic somatotropic cells of the pituitary gland.


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