scholarly journals Vietnam Construction Industry Performance Issues and Potential Solutions

2020 ◽  
Vol 9 (2) ◽  
pp. 7-20 ◽  
Author(s):  
Nguyen Le
Keyword(s):  
Construction Industry ◽  
Project Managers ◽  
Potential Solution ◽  
Financial Difficulties ◽  
Design Changes ◽  
Best Value ◽  
Industry Performance ◽  
Performance Issues ◽  
Key Aspects ◽  
Procurement System

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.

scholarly journals Introduction of the Best Value Approach in India

2013 ◽  
Vol 5 (2) ◽  
pp. 137
Author(s):  
Syed Nihas ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi
Keyword(s):  
Construction Industry ◽  
Research Group ◽  
Measurement Theory ◽  
Industry Structure ◽  
Performance Information ◽  
Information Measurement ◽  
Best Value ◽  
Procurement System

In September of 2013 the Performance Based Studies Research Group (PBSRG) made its first entry into India to introduce the Best Value approach. The purpose of the entry was to identify if the Best Value (BV) approach and technology could optimize the performance of the Indian Construction industry. This paper documents the results of the exploratory effort. In 2014, industry visionaries in coordination with the SJCE university group, will commence testing of the implementation of the licensed Best Value technology in India. The technology includes the Information Measurement Theory (IMT), the Performance Information Procurement System (PIPS) and the Construction Industry Structure (CIS).

scholarly journals Unique Factors of Best Value Procurement from the Perspective of Nigerian Construction Professionals

2020 ◽  
Vol 7 (2) ◽  
pp. 1-14
Author(s):  
Gumgaro Simon-Peter Buba ◽  
Razali Adul Hamid ◽  
Zuhaili Mohamad Ramly ◽  
Tchad Sharon Jatau ◽  
James David Jatau
Keyword(s):  
Construction Industry ◽  
Cost Effective ◽  
Best Interest ◽  
Best Value ◽  
Quality Of Products ◽  
Procurement System ◽  
Procurement Method ◽  
And Control ◽  
Poor Working Condition

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. 

scholarly journals The Source of Degradation of the Construction Industry Performance

2012 ◽  
Vol 4 (2) ◽  
pp. 206 ◽  
Author(s):  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Jake Smithwick ◽  
Isaac Kashiwagi ◽  
Abraham Kashiwagi
Keyword(s):  
Construction Industry ◽  
Test Results ◽  
Repeated Testing ◽  
Project Risk ◽  
Potential Accuracy ◽  
The Past ◽  
Deductive Logic ◽  
Best Value ◽  
Industry Performance ◽  
And Control

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.

scholarly journals Price Based Environment of Design and Engineering Services

2014 ◽  
Vol 6 (1) ◽  
pp. 40
Author(s):  
Dean Kashiwagi ◽  
Geoffrey Child ◽  
Jacob Kashiwagi ◽  
Kenneth Sullivan
Keyword(s):  
Risk Management ◽  
Selection Process ◽  
Management Plan ◽  
Project Managers ◽  
Performance Information ◽  
New Model ◽  
Management Capability ◽  
Best Value ◽  
Procurement System ◽  
The Impact

Design Services have not met the value and expectations of the clients and their project managers. A previous research project studied the impact of the price based award environment on construction practices, and this research proposes that designers’ current practices and expectations are also price based and not performance based asperceived by many due to the qualifications based system [QBS] approach. The authors also propose that the qualification-based system [QBS] is a price based system and should be replaced by a best value approach, which includes a best value selection process such as the Performance Information Procurement System (PIPS.) The proposed design model will give control and risk management capability back to designers by having the designers utilize expertise, create transparency utilizing a weekly risk report (WRR) and a risk management plan (RMP.) The new model utilizes the expert’s expertise to create transparency, giving the advantage to the higher performing professionals. The researchers interviewed over 400 professionals to validate the concepts of the best value approach for the design community.

scholarly journals The top 10 universal delay factors in construction projects

2018 ◽  
Vol 11 (3) ◽  
pp. 650-672 ◽  
Author(s):  
Youcef J.-T. Zidane ◽  
Bjorn Andersen
Keyword(s):  
Literature Review ◽  
Human Resources ◽  
Construction Projects ◽  
Large Population ◽  
Project Managers ◽  
Planning And Scheduling ◽  
Change Orders ◽  
Content Type ◽  
Financial Difficulties ◽  
Design Changes

Purpose Projects often face delays and unnecessary use of time due to various factors and reasons, and hence suffer from unfavourable consequences. The purpose of this paper is to identify the universal delay factors from an intensive literature review, complemented by delay factors in major Norwegian construction projects based on empirical data. Design/methodology/approach The study in which this paper is based includes an intensive literature review, and semi-quantitative open survey questionnaires. This paper addresses frequency and type of delay factors in construction projects, in Norway based on the survey, and worldwide based on the previous studies. Findings From the study, the causes of delays facing the Norwegian construction industry are: poor planning and scheduling; slow/poor decision-making process; internal administrative procedures and bureaucracy within project organisations; resources shortage (human resources, machinery, equipment); poor communication and coordination between parties; slow quality inspection process of the completed work; design changes during construction/change orders; sponsor/owner/client lack of commitment and/or clear demands (goals and objectives); late/slow/incomplete/improper design; office issues; and users’ issues. And the top 10 universal delay factors are: design changes during construction/change orders; delays in payment of contractor(s); poor planning and scheduling; poor site management and supervision; incomplete or improper design; inadequate contractor experience/building methods and approaches; contractor’s financial difficulties; sponsor/owner/client’s financial difficulties; resources shortage (human resources, machinery, equipment); and poor labour productivity and shortage of skills. Research limitations/implications When it comes to the identification of delay factors in major Norwegian projects, the research is based on a sample of 202 respondents from an open survey questionnaire. It should be noted that analysing a large population of respondents that have been asked open questions can be challenging due to the vague findings it might lead to. Also, when it comes to the identification of the universal delay factors, there were different methods used by different authors, within different context. Similar future studies in Norway based on qualitative and quantitative methods will give better verification for the findings. Practical implications This paper has documented the critical delay factors/causes in Norway. The results of this study will help project managers, in Norway and elsewhere, to be aware and know about the potential causes of delay in their construction projects, which will help to identify the possible risks in the early phases of the project. Another practical implication is to make project managers and policy makers conscious that delays are quite universal, making it necessary to identify them as a first step. Social implications The identification of delays factors and causes can permit projects to implement mitigation actions to avoid delays, thus allowing delivering schools, hospitals and other necessary infrastructure on schedule or ahead of schedule to society. Originality/value This paper highlights most (almost all) of the studies in the literature, including to the study done in Norway, concerning the delay factors in construction projects and large construction projects in general. This wide review of relevant literature will save time other academicians from having to conduct similar studies. This study will assist both academic and professional experts providing more insight about the delay causes in large-scale construction projects.

scholarly journals The Research Model that Revolutionized the Dutch Construction Industry

2012 ◽  
Vol 4 (2) ◽  
pp. 133
Author(s):  
Dean Kashiwagi ◽  
Jacob Kashiwagi ◽  
Abraham Kashiwagi ◽  
Kenneth Sullivan
Keyword(s):  
Construction Industry ◽  
Measurement Theory ◽  
Research Model ◽  
Information Measurement ◽  
Leadership Model ◽  
Best Value ◽  
Traditional Research ◽  
Procurement System ◽  
And Control ◽  
Use Of Expertise

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).

scholarly journals Factors Causing Construction Litigation in Saudi Arabia

2020 ◽  
Vol 7 (1) ◽  
pp. 58
Author(s):  
Saud Almutairi ◽  
Jacob Kashiwagi ◽  
Dean Kashiwagi ◽  
Kenneth Sullivan
Keyword(s):  
Saudi Arabia ◽  
Construction Industry ◽  
Project Delivery ◽  
Delivery Method ◽  
Delivery Methods ◽  
Best Value ◽  
Design Build ◽  
Development Goals ◽  
Procurement System ◽  
Value Model

The problem of litigation and disputes in the construction sector is a major impediment to a country’s development goals. The purpose of this paper is to investigate the problem of high legal costs and long delays that arise due to litigation involving project owners, designers, contractors and other construction parties worldwide and in Saudi Arabia, as well as give recommendation according to the outcomes of this research. The causes of litigious behavior in Saudi Arabia and around the world were identified and documented; also the differences in litigation of the Saudi Arabian construction industry as compared to other countries were identified. Preliminary investigations revealed that there is some level of similarity in the nature of the causes. Thus, these causes were grouped into three main categories, which are expectation factors, communications factors and documentation factors. Further research based on existing literature showed that the practices used to minimize litigation in the construction industry were investigated. The following delivery processes were researched: Design-Build (DB) Delivery Method, Alliance Contracting, Construction Manager at Risk (CMAR), Best Value Model (BVM), Integrated Project Delivery (IPD), Public-Private Partnerships (PPP) and the Best Value Performance Information Procurement System (BV PIPS). Many of these delivery methods were found to have issues, which means the methods by observation do not seem to be the ideal solution to minimize litigation in the construction industry. The only delivery method found to have no litigation issues was the BV PIPS approach.

Analysing project risks in Ghana’s real estate industry

2018 ◽  
Vol 16 (4) ◽  
pp. 413-428
Author(s):  
Charles Amoatey ◽  
Doreen Danquah
Keyword(s):  
Risk Factors ◽  
Real Estate ◽  
Construction Industry ◽  
Project Managers ◽  
Environmental Risks ◽  
Real Estate Industry ◽  
Content Type ◽  
Market Risks ◽  
Project Risks ◽  
Technical Risks

Purpose The purpose of this paper is to analyse project risks in Ghana’s real estate construction industry in terms of likelihood of occurrence, severity of impact and controllability. Design/methodology/approach A quantitative research approach was used in this study to address the research objective. The study population consisted project managers, architects, surveyors and contractors from 17 members of the Ghana Real Estate Developers Association (GREDA) in Ghana. Random stratified sampling technique was used to select 97 participants from these firms. A structured questionnaire was used to collect primary data, whereas descriptive statistics were used to present findings. Findings All risks identified have some level of likelihood of occurrence, extent of severity of impact and controllability. Market risks, technical risks and environmental risks are more likely to occur. Market risks, technical risks and environmental risks had the highest severity of impact. Financial risks, market risks, managerial risks and technical risks are the most controllable. Among all risks, environmental risks are the direst because they have high likelihood of occurrence and severity of impact but very low controllability. Real estate construction firms (developers) are therefore expected to prioritize remedy of environmental risks. Research limitations/implications The study is based on self-reported perception of project parties on the likelihood, severity of impact and controllability of real estate project risk factors. Firms outside of GREDA were not included in the survey. Therefore, generalisation of these risk factors for the entire construction industry should be done with caution. Practical implications The research results show that Ghanaian real estate developers are aware of the existence of the risks which impact on the performance of the industry. To effectively and efficiently manage these risk factors, project parties must understand the likelihood of occurrence, severity of impact and controllability of the risk factors, as well as individual firm’s responsibilities and capabilities to manage them. Such knowledge helps project managers to prioritise risks in managing them in the face of scarce resources. From an academic research perspective, the paper contributes to a conceptual risk assessment framework for the real estate industry. Originality/value The paper’s main contributions relate to the introduction of real estate construction sector-specific factors to project risk management modelling.

scholarly journals Best Value Procurement/Performance Information Procurement System Development

2011 ◽  
Vol 3 (1) ◽  
pp. 12 ◽  
Author(s):  
Dean Kashiwagi
Keyword(s):  
The Netherlands ◽  
System Development ◽  
Measurement Theory ◽  
State University ◽  
Arizona State University ◽  
Performance Information ◽  
Information Measurement ◽  
Best Value ◽  
Procurement System ◽  
And Control

Best Value Procurement/Performance Information Procurement System (BVP/PIPS) has been developed by Dean Kashiwagi and the Performance Based Studies Research Group (PBSRG) from 1991 - 2010. BVP/PIPS is a licensed technology from Arizona State University that includes a deductive logic called Information Measurement Theory (IMT), an industry structure model which shapes the PIPS functions, and a process and structure that transfers risk and control to expert vendors. The BVP/PIPS has gone through numerous stages: the performance information centered PIPS (1994-2001); the PIPS testing phase (2001-2005); and the implementation stage (2005-2009); and the theoretical refinement and standardization of BVP/PIPS technology (2010). BVP/PIPS was introduced into the Netherlands in 2005 by a large general contractor Heijmans, the Rijkeswaterstaat, and aggressively proliferated by Scenter and others. BVP/PIPS usage in the Netherlands is modified to fit within the European procurement law. However, the main advantage of PIPS is the IMT based philosophy of minimized management, direction, and control of expert vendors.

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