EVALUATION OF THE COMPETITIVENESS OF CONSTRUCTION COMPANY OVERHEAD COSTS

2009 ◽  
Vol 15 (2) ◽  
pp. 215-224 ◽  
Author(s):  
Ala Šiškina ◽  
Arvydas Juodis ◽  
Rasa Apanavičienė
Keyword(s):  
Work Organization ◽  
Evaluation Methodology ◽  
Competitive Advantages ◽  
Construction Operations ◽  
Strategic Objectives ◽  
Construction Company ◽  
Construction Companies ◽  
Advantages And Disadvantages ◽  
Bidding Price ◽  
Office Employees

The enhancement of the competitiveness of a construction company is one of the most important strategic objectives in construction industry. The company's management system, work organization and employment of available assets are some of the most important factors upon which overhead costs and the bidding price of a construction company depend directly. A statistical analysis of a homogenous group of construction companies reveals the company's overhead costs value distribution function, which can be used to evaluate the competitive advantages and disadvantages of a specific construction company. A detailed overhead costs categorization and the findings of a survey conducted among contractors influenced the selection of the principal parameters of the company's activity, on which the value of overhead costs depends; they are the number of company's head office employees and the area of company's facilities. The developed competitiveness evaluation methodology enables the construction managers to adequate and scientific position the company on the market of homogenous construction companies group, to estimate its activity as well as to evaluate the competitive advantages and disadvantages of bidding prices and certain costs in public tendering of construction operations and services. Santrauka Didinti statybos įmonės konkurencingumą yra vienas svarbiausių statybos verslo strateginių uždavinių. Įmonės valdymo struktūra, veiklos organizavimas, turimo turto naudojimas yra vieni iš svarbiausių veiksnių, nuo kurių tiesiogiai priklauso statybos įmonės pridėtinės išlaidos, kartu ir siūlomos statybos darbų kainos. Statistiškai tiriant homogeninę statybos įmonių grupę nustatyta statybos įmonių pridėtinių išlaidų reikšmių pasiskirstymo funkcija, pagal kurią gali būti įvertinti konkrečios statybos įmonės konkurenciniai pranašumai ar trūkumai. Išsamiai apibrėžta pridėtinių išlaidų struktūra ir statybos rangovų apklausos rezultatai darė įtaką pagrindinių įmonės veiksnių, nuo kurių priklauso pridėtinių išlaidų dydis, parinkimui – tai įmonės administracijos darbuotojų skaičius ir nekilnojamojo turto plotas. Sudarytas statybos įmonės valdymo sistemos ir infrastruktūros charakteristikų regresinis modelis yra patogus planavimo ir prognozavimo įrankis parenkant tinkamą įmonės veiklos pridėtinių išlaidų struktūrą ir pritaikant įmonės plėtrai reikalingą strategiją. Siūloma statybos įmonių konkurencingumo įvertinimo metodika leidžia statybos organizacijų vadovams adekvačiai ir moksliškai pagrįstai nustatyti įmonės padėtį homogeninės statybos įmonių grupės rinkoje, įvertinti jos veiklos efektyvumą ir nesunkiai nustatyti kainos, išlaidų konkurencinius pranašumus bei trūkumus dalyvaujant statybos darbų ir paslaugų viešuosiuose pirkimuose.

Strategic or operational perspectives on performance: what is prioritized in a large construction company?

2006 ◽  
Vol 10 (1) ◽  
pp. 36-47 ◽  
Author(s):  
Peter Samuelsson ◽  
Per Ekendahl ◽  
Petter Ekevärn
Keyword(s):  
Competitive Advantages ◽  
Content Type ◽  
Strategic Objectives ◽  
Large Organization ◽  
Construction Company ◽  
Construction Companies ◽  
Corporate Strategies ◽  
Organizational Levels ◽  
Operational Criteria

PurposeThis case study sets out to discuss the balance of operational and strategic perspectives on performance measurement in a large construction company.Design/methodology/approachIn interviews, managers at two middle organizational levels in the case company were asked to prioritize which criteria they found most important to direct their business. The results from these interviews were compiled in success maps in order to describe how the managers thought these criteria were interrelated.FindingsA gap was found between operational and strategic perspectives at the two organizational levels: lower management ranked criteria that corresponded to strategic objectives lower than did the middle management. One reason for this gap seems to be the lack of incentives for aligning with the strategic objectives. If there were no incentives, lower managers tended to prioritize operational criteria prior to strategic criteria.Practical implicationsThis study emphasizes the need to link strategic objectives to criteria that give incentives for lower management to comply with the strategic objectives, to formulate unambiguous strategies and to communicate these strategies clearly.Originality/valueIn large construction companies, measurement of effectiveness is particularly complicated since adjustment to local markets must be balanced with alignment with corporate strategies in order to benefit from the competitive advantages of a large organization. Managers in a large construction company have to combine operational and strategic perspectives in measurement and management. Little research has been done to investigate and understand this area and therefore this paper can make a useful contribution.

scholarly journals Quantity assessment method for the sustainability of a construction company

Vestnik MGSU ◽  
2019 ◽  
pp. 1619-1627 ◽  
Author(s):  
Ivan L. Abramov
Keyword(s):  
Evaluation Method ◽  
Stable Condition ◽  
Assessment Method ◽  
Construction Operations ◽  
Construction Company ◽  
Construction Companies ◽  
Basis Construction ◽  
The Stability ◽  
High Level ◽  
Quantitative Indicators

Introduction. Professional construction customers (investors) often face the problem of selecting a reliable contractor, when they have to assess construction companies for potential involvement in their projects guided, among other things, by a directly non-measurable emergent indicator of sustainability (from now on referred to as sustainability of a construction company). The given problem is of particular concern as most construction companies are now financially unstable. Materials and methods. The article defines the sustainability of a construction company. It also evaluates the sustainability of a construction company indicator by a number of statistical estimate iterations. The study proposes an evaluation method for quantitative integrated synthetic aggregators of sustainability of a construction company and identifies several private indicators Xj characterizing a construction company’s stable condition. Results. The advantages of the proposed evaluation method for the sustainability of a construction company are as follows: a unified information basis (construction operations indicators) for the assessment of qualitative and quantitative integrated synthetic aggregators of sustainability. This method is based on unified evaluation indicators of construction operations: technical, technological, organizational, and economical. The proposed method has an advantage of the versatility of the resultant own and comparative assessments of the sustainability of construction companies, visual clarity of obtained results, and relative ease of calculation procedures. Conclusions. This study illustrates a procedure developed for evaluating quantitative indicators of the sustainability of a construction company. This procedure offers a high level of accuracy in determining the reasons contributing to the lower sustainability of a construction company and identifying symptoms indicative of loss of sustainability. An integral indicator is formed that assesses the stability of the construction company according to the results of statistical analysis and represents a weighted sum of the values of the initial indicators of construction operations and activities of the enterprise. In this way, businesses can assess both their own condition and the condition of proposed contractors.

Organizational Aspects of the Strategic Victory in the Competition Among Small Construction Companies

2021 ◽  
pp. 267-281
Author(s):  
Ihor Kharchenko ◽  
◽  
Oleksandr Lizunkov ◽  
Keyword(s):  
Work Performance ◽  
Economies Of Scale ◽  
Point Of View ◽  
Competitive Advantages ◽  
Project Implementation ◽  
Important Conclusion ◽  
Program Complex ◽  
Construction Company ◽  
Construction Companies ◽  
Building Owner

The purpose of the research is the search for the strategic steps to win the competition among small construction and installation companies in the market conditions, where the factors of scale and differentiation do not work. In order to achieve the aim the following scientific principles are used: the principle of applied targeting, system, dynamics, and the methods of observation, modelling, formalization, analysis, synthesis, mathematization and generalization within specific scientific methodology. It is a major problem to create serious stable competitive advantages for winning in the competition for the small construction and installation company. Creation of competitive advantages is based on the definite economic correlates. Thus the question arises what to base them on. M. Porter determined U-like dependence between the market share of the company and the level of the returns on investments. [Porter, p.60]. It made it possible to make a principally important conclusion about two types of strategies that achieve significant success: 1) differentiation 2) leadership in prices and expenses. Thus, it’s necessary to analyze the company market from the point of view of: possibilities for differentiation; presence of the economies of scale, which help to decrease expenses and price of the product. The new (updated) BKG matrix helps to find ways to solve the problem of creating competitive advantages. BKG defines four competitive fields. Competitive field where small construction company operates is called “frustration”, and according to the recommendations of the modernized BKG matrix, the factor of scale does not work here and differentiation is not appropriate. Among the recommendations for this field the most efficient, in our opinion, is the proposition to use factors of production the sphere of the largest return and to control geographical markets. Actual expenditures of the company depend to a considerable extent on the term of work performance among other factors. Having conducted the research, we defined the correlation between the term of work performance and their actual cost value. The research was conducted based on calculations of estimated costs of construction works with the help of the program complex AVK-5, taking into consideration the character of dependence of the cost value components on the terms of work performance. These correlations are presented in chart and graphic form. After analyzing the graph it is possible to determine how the estimated cost value will change when changing the terms of work performance and define the zone of minimal cost of work performance which allows to build the strategy for tenders and negotiations on construction costs and terms. Optimum zone is the zone of minimal variable costs, corresponds to normative duration of work performance. Upon the analysis of the received correlations and possible tasks of the construction company while conducting tenders we can suggest the following strategies of tenders’ conduction to a construction company: a) In terms of strict restriction of the costs of project implementation from the building owner; b) In terms of the strict restriction of the terms of the project implementation by the building owner; c) In case, when the subject of negotiation during tender are both term and cost of work performance.

scholarly journals NEW CLASSIFICATION OF CONSTRUCTION COMPANIES: OVERHEAD COSTS ASPECT / NAUJAS STATYBOS ĮMONI ŲKLASIFIKAVIMAS: PRIDĖTINIŲ IŠLAIDŲ ASPEKTAS

2011 ◽  
Vol 17 (4) ◽  
pp. 457-466 ◽  
Author(s):  
Rasa Apanavičienė ◽  
Ala Daugėlienė
Keyword(s):  
Statistical Methods ◽  
Competitive Advantages ◽  
New Classification ◽  
Construction Companies ◽  
Relative Value ◽  
Economical Evaluation ◽  
Traditional Classification ◽  
Bidding Price

The traditional classification of construction companies depending on the number of employees is not appropriate when analysing the competitiveness of construction companies. The collected data of Lithuanian construction companies was analysed by applying statistical methods and the construction companies were classified into competitiveness classes according to the relative value of the overhead costs. The new classification provides the basis for economical evaluation of the construction companies and modelling of their competitiveness in regard to the value of overhead costs as well as applying the competitive advantages for the estimation of construction bidding price. Santrauka Tradicinė statybos įmonių klasifikacija pagal įmonės darbuotojų skaičių nėra korektiška statybos įmonėms analizuoti ir jų konkurencingumui vertinti. Taikant statistinius duomenų apdorojimo metodus išnagrinėti Lietuvos statybos įmonių duomenys ir pasiūlyta nauja statybos įmonių klasifikacija į konkurencingumo klases pagal jų pridėtinių išlaidų santykinio rodiklio reikšmę. Sukurta nauja statybosį monių klasifikacija leidžia atlikti ekonominį statybos įmonių įvertinimą ir modeliuoti jų konkurencingumą pridėtinių išlaidų aspektu, suformuoti konkurencingą pasiūlymo kainą, įvertinant konkrečius statybos įmonės konkurencinius pranašumus.

Balanced Scorecard in the strategic planning of a construction company

2018 ◽  
Vol 1 (1) ◽  
pp. 1
Author(s):  
Roberth Frias ◽  
Maria Medina
Keyword(s):  
Strategic Planning ◽  
Strategic Management ◽  
Balanced Scorecard ◽  
Organization Theory ◽  
Management Control ◽  
Management Tool ◽  
The Balanced Scorecard ◽  
Construction Company ◽  
Construction Companies ◽  
The Impact

This research focused on the strategic management tool Balanced Scorecard and strategic planning, as a guide to guide the management of companies, allowing communication and the functionality of the strategy using KPIs that allow to identify, maintain control and increase efficiency and the achievement of optimal results. For the deductive hypothetical analysis, the specific factors that affect business management performance were grouped into two variables: Balanced Scorecard and Strategic Planning. The objective of the work was to demonstrate the impact of the Balanced Scorecard in the strategic planning of a construction company. In order to support the research, the following theories were approached: the Financial Theory, the Economic Theory of the Company, the Transaction Costs, the Network Theory, the Organization Theory, the Dependence on Resources, the Strategic Management Theory and the Business Diagnosis Theory. The result obtained confirms the hypothesis that there is a significant incidence of the Balanced Scorecard in the strategic planning of construction companies. In conclusion, the construction company has obtained significant improvements in the results in each of the indicators evaluated with the implementation of the Balanced Scorecard, demonstrating improvements in their management results, affirming that there is better performance and management control allowing them to achieve the organizational objectives set.

scholarly journals Systematic Analysis of Literature on the Marketing of Healthcare Systems. Challenges for Russian and Romanian Healthcare Systems

Healthcare ◽  
2021 ◽  
Vol 9 (6) ◽  
pp. 656
Author(s):  
Vladimir Bulatnikov ◽  
Cristinel Petrişor Constantin
Keyword(s):  
Quality Of Healthcare ◽  
Healthcare Systems ◽  
Business Environment ◽  
Competitive Advantages ◽  
Systematic Analysis ◽  
Scientific Databases ◽  
Advantages And Disadvantages ◽  
Funds Allocation ◽  
New Perspective

This paper aims at finding the most dominant ideas about the marketing of healthcare systems highlighted in the mainstream literature, with a focus on Russia and Romania. To reach this goal, a systematic analysis of literature was conducted and various competitive advantages and disadvantages of the medical models that require special attention from the governments are considered. In this respect we examined 106 papers published during 2006 to 2020 found on four scientific databases. They were selected using inclusion and exclusion criteria according to PRISMA methodology. The main findings of the research consist of the opportunity to use marketing tools in order to improve the quality of healthcare systems in the named countries. Thus, using market orientation, the managers of healthcare systems could stimulate the innovation, the efficiency of funds allocation and the quality of medical services. The results will lead to a better quality of population life and to an increasing of life expectancy. As this paper reviews some articles from Russian literature, it can add a new perspective to the topic. These outcomes have implications for government, business environment, and academia, which should cooperate in order to develop the healthcare system using marketing strategies.

BUILDING DEVELOPMENT PLANS FOR A CONSTRUCTION COMPANY BASED ON A DYNAMIC ASSESSMENT OF ITS LEVEL OF COMPETITIVENESS

2020 ◽  
Vol 6 (4) ◽  
pp. 295-319
Author(s):  
Vadim V. Krivorotov ◽  
Alexei V. Kalina ◽  
Sergei E. Erypalov ◽  
Maxim V. Aksenov
Keyword(s):  
Performance Indicators ◽  
Building Information Modeling ◽  
Information Modeling ◽  
Construction Company ◽  
Advantages And Disadvantages ◽  
Industrial Enterprises ◽  
Stage Of Development ◽  
Development Cycle ◽  
Building Information ◽  
Integrated Information

Improving the competitiveness of Russian industrial enterprises (including the construction industry) is a priority task at the current stage of development of the country’s economy. The purpose of this study is to develop methodological tools that would allow building strategic plans for the development of a construction company using a dynamic method for assessing its competitiveness. The hypothesis is that the target parameters of the development of a construction company, which take into account the influence of competitive factors, inevitably increase its level. This article provides an analytical review of existing methods for assessing the competitiveness of enterprises, identifies their advantages and disadvantages. The authors have chosen the dynamic approach to assessing the competitiveness of an enterprise; they propose certain aspects of its modernization, taking into account the specifics of construction production; the main indicators and algorithms used in this approach are presented. The competitiveness of the PIK group, Russia’s largest construction company, was evaluated in comparison with the Swedish development company Skanska Group, which is successful on the world market. The most problematic performance indicators of the Russian company that have a negative impact on its competitiveness are identified. Modeling of the dependence of the company’s competitiveness level on these indicators is performed. The results show that the key tool for eliminating these shortcomings can be the introduction of integrated information modeling based on big data for the entire development cycle: building information modeling — BIM (Building Information Modeling), augmented and virtual reality (AR/VR) technologies, and customer relationship management systems (CRM), among some others. The authors show how the key performance indicators of the company change after the introduction of integrated information modeling of the entire development cycle and what the forecast level of the company’s competitiveness can be expected at the end of 2020.

scholarly journals Framework of performance measurement practices in construction companies in Egypt

2018 ◽  
Vol 10 (2) ◽  
pp. 7-14 ◽  
Author(s):  
Krzysztof Dziekoński ◽  
Omar Hesham Mohamed Fawzy Ibrahim ◽  
Abdul-Majeed Mahamadu ◽  
Patrick Manu
Keyword(s):  
Performance Measurement ◽  
Performance Assessment ◽  
Performance Management ◽  
Construction Industry ◽  
Dominant Role ◽  
Holistic Approach ◽  
Company Performance ◽  
Construction Company ◽  
Construction Companies ◽  
Performance Measurement Systems

Abstract Construction industry is considered as one of the most important sectors in Egypt. One of the major challenges faced by the industry, however, is the unavailability of suitable performance measurement systems for assessing companies’ performance. Modern performance assessment systems adopt a more universal approach to the measurement of construction company performance as opposed to the traditional project triangle. This paper aims to examine the practice of performance measurement in the Egyptian construction industry. Results show dominant role of in-house developed performance management systems as well as the use of KPIs as a method of performance assessment. The study further reveals that the highest importance is given to measures related to the time of project delivery, quality of works, clients’ satisfaction and profitability. Hence, the traditional project triangle of project’s success is the most prevalent approach to performance evaluation in the construction industry in Egypt. However, a shift towards a more holistic approach to performance assessment in larger companies was observed.

Effective Labor Organization «Remote» Employees: From Functional Tasks to Software

2021 ◽  
Vol 9 (6) ◽  
pp. 62-69
Author(s):  
N. Nagibina ◽  
A. Bestuzhev
Keyword(s):  
Data Storage ◽  
Corporate Culture ◽  
Industrial Revolution ◽  
Work Organization ◽  
Document Management ◽  
Remote Work ◽  
Video Communications ◽  
Remote Employees ◽  
Human Labor ◽  
Office Employees

In the new realities of the world, including the COVID-19 pandemic, the paradigm of management and work organization in companies is changing. The industrial revolution and digitalization are “threatening” to replace human labor with automation, robotics and artificial intelligence. The cluster of IT companies is actively developing. The management of the companies accepted the challenge of lightning fast transfer of office employees to the remote mode. The study provides recommendations on the use of software to solve functional tasks for managing employees and remote teams. Based on a detailed analysis of the characteristics, practices of companies and price guidelines, a list of software for managing employees on remote employment is formed. The software is presented for functional tasks: discussion of operational tasks using video communications, setting and monitoring long-term tasks, document management and online accounting, quick access to services and data storage. Maintaining a healthy and developing digital corporate culture is key to the success of remote work.

A selection of remarks on the measurement of correlations between variables of a panel data structure

2021 ◽  
Vol 66 (5) ◽  
pp. 7-25
Author(s):  
Mieczysław Kowerski ◽  
Jarosław Bielak
Keyword(s):  
Panel Data ◽  
Correlation Coefficient ◽  
Linear Correlation ◽  
Stock Exchange ◽  
Panel Data Analysis ◽  
Correlation Coefficients ◽  
Data Dependencies ◽  
Construction Companies ◽  
Advantages And Disadvantages ◽  
Warsaw Stock Exchange

Many articles featuring panel data modelling tend to begin their considerations with an introduction of the Pearson linear correlation coefficients matrix between the analysed variables. The aim of the article is to prove such an approach unsuitable in the analysis of panel data dependencies. Instead, an attempt has been made to propose a more appropriate measure – a correlation coefficient between the empirical and fitted values of the dependent variable of the estimated panel model (with fixed or random effects) in relation to the variable whose dependency towards the dependent variable is being studied. Pearson’s linear correlation coefficient does not reflect the basic advantage of panel data, which is the ability to provide information about the dependencies of the studied phenomena simultaneously in time and space. The fact that one observation relates to object i during period t and another to object j during period t + 1 is irrelevant for the calculation of the coefficient. Pearson’s coefficient, however, can be used when conducting sub-calculations in panel data analysis. The presented considerations have been illustrated by the calculations of the relationships between the structure of capital and the profitability and size of 17 construction companies listed on the Warsaw Stock Exchange in the years 2009–2018 (170 observations) which created a balanced panel. A specification of the advantages and disadvantages of the proposed solution was formulated on the basis of the calculations.

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