scholarly journals MANAGEMENT OF TIME AND COST CONTINGENCIES IN CONSTRUCTION PROJECTS: A CONTRACTOR PERSPECTIVE

2018 ◽  
Vol 24 (3) ◽  
pp. 254-264 ◽  
Author(s):  
José I. Ortiz ◽  
Eugenio Pellicer ◽  
Keith R. Molenaar
Keyword(s):  
Construction Projects ◽  
Actual Behavior ◽  
Key Factors ◽  
Team Members ◽  
Construction Companies ◽  
Use Of Time ◽  
Negative Contingency ◽  
General Contractors ◽  
Project Objectives

The management of threats and opportunities plays a key-role in enhancing project performance. However, there is a gap in literature concerning how general contractors manage threats and opportunities in construction projects, in particular in the use of time and cost contingencies. This research partially addresses this gap through a case study of two large Spanish construction companies. The research presented two key factors determining how the contractors analyzed manage time and cost contingencies: project objectives and existing mistrust among the contractor’s team members. The research also found that managers use time and cost contingencies not only to manage threats, but also as tools for managing opportunities, thereby providing insight into a previously undescribed form of contingency: the negative contingency. The research results enable a better understanding of the actual behavior of general contractors, which contributes to paving the way for developing enhanced methods for contingencies management.

High Performance Teams

2016 ◽  
Vol 7 (2) ◽  
pp. 72-82 ◽  
Author(s):  
Caroline Dominguez ◽  
Isabel C. Moura ◽  
João Varajão
Keyword(s):  
High Performance ◽  
Business Environment ◽  
Reward Systems ◽  
Team Management ◽  
Key Factors ◽  
Team Members ◽  
High Performing ◽  
Exploratory Case Study ◽  
Performance Teams

Effective team management is one of the key factors that allow companies to tackle the challenges of today's demanding business environment. Although high-performing teams have been studied for some time, very little has been written on them from the construction industry's perspective. Based on the conclusions of previous work and on a project involving 44 professionals of seven teams, this exploratory case study intends to evaluate if there is a gap between what team members and leaders perceive as being (a) the most important features for managing teams into high performance and (b) the features that are present in their teams. The present study shows that, although teams under investigation had some high-performing features at the leadership dimension, there is room for improvement, in particular when it comes to empowering team members, involving them in planning the work, and creating proper reward systems.

scholarly journals Application of BIM and 3D Laser Scanning for Quantity Management in Construction Projects

2020 ◽  
Vol 2020 ◽  
pp. 1-10
Author(s):  
Thu Anh Nguyen ◽  
Phong Thanh Nguyen ◽  
Sy Tien Do
Keyword(s):  
Construction Industry ◽  
Construction Projects ◽  
Laser Scanning ◽  
Essential Role ◽  
Industrial Revolution ◽  
Management Process ◽  
3D Laser Scanning ◽  
Economic Sectors ◽  
Construction Companies

The construction industry has played an essential role in the process of modernization and industrialization and it has also been a major factor in determining the development of the infrastructure for other economic sectors. Construction companies consider the measurement of work progress, which often wastes time and has a low resolution, to be one of the most challenging problems faced by project management. Therefore, this research aimed to propose practical solutions by applying recent technological achievements of the 4.0 industrial revolution to improve the efficiency of the quantity management process. By utilizing the advantages and features of a BIM model and 3D laser scanning, this paper proposes that adopting a BIM model and 3D laser scanning has the potential to improve the accuracy and efficiency of the quantity management process. The case study demonstrated some typical tasks to evaluate accuracy and efficiency as well as to showcase the research proposal.

Determining Contingencies in the Management of Construction Projects

2019 ◽  
Vol 50 (2) ◽  
pp. 226-242 ◽  
Author(s):  
José I. Ortiz ◽  
Eugenio Pellicer ◽  
Keith R. Molenaar
Keyword(s):  
Project Management ◽  
External Validity ◽  
Construction Projects ◽  
Construction Project ◽  
Construction Project Management ◽  
Depth Analysis ◽  
Different Types ◽  
General Contractors ◽  
Project Objectives

This research describes the managerial approaches that contractors follow to determine different types of contingencies in construction project management. Two large Spanish general contractors were selected for an in-depth analysis. Interviews and surveys were conducted with six additional companies to explore the external validity of the findings. Managers constrain time and cost buffers through project objectives, applying heuristics to determine inventory buffers. The management of capacity buffers is entrusted to subcontractors. The contractors take advantage of scope and quality buffers to meet project objectives but rarely share these buffers with the owner, unless the owner is an internal client.

scholarly journals CASH FLOW FORECASTING WITH RISK CONSIDERATION USING BAYESIAN BELIEF NETWORKS (BBNS)

2017 ◽  
Vol 23 (8) ◽  
pp. 1045-1059 ◽  
Author(s):  
Mostafa KHANZADI ◽  
Ehsan ESHTEHARDIAN ◽  
Mahdiyar MOKHLESPOUR ESFAHANI
Keyword(s):  
Risk Factors ◽  
Cash Flow ◽  
Construction Projects ◽  
Bayesian Belief Networks ◽  
Influence Diagrams ◽  
Belief Networks ◽  
Cash Flow Management ◽  
Construction Companies ◽  
Cash Flow Forecasting

Cash-flow management is very important for contractors given that inadequate cash resources typically are the main causes for bankruptcy of construction companies. In comparison to most other industries, the construction industry is severely plagued by risk, and the success of construction projects usually depends on valuating all risks. However, conventional methods suggested by extant research on cash flow forecasting do not consider comprehensive identifica­tion of risk factors, interactions between the factors, and simultaneous occurrences of the factors. This study introduced a simple and appropriate probabilistic cash flow forecasting model using Bayesian Belief Networks (BBNs) to avoid bankruptcy of contractors by considering influence diagrams and risk factors that affect a project. Workability and reli­ability of the proposed approach was tested on an important building construction project in Iran as a real case study, and the results indicated that the model performed well.

scholarly journals Productivity Metrics and Its Implementations in Construction Projects: A Case Study of Singapore

2021 ◽  
Vol 13 (21) ◽  
pp. 12132
Author(s):  
Ming Shan ◽  
Yu-Shan Li ◽  
Bon-Gang Hwang ◽  
Jia-En Chua
Keyword(s):  
Construction Projects ◽  
Statistical Tests ◽  
Construction Productivity ◽  
Construction Companies ◽  
Four Levels ◽  
Project Company ◽  
Different Levels ◽  
Design Score ◽  
Assessment Results

Although some studies have used or developed different types of metrics to assess construction productivity in the existing literature, few of them investigated those metrics systematically and the differences between assessment results. This study examined the various types of metrics used in the assessment of the productivity of construction projects. First, a literature review was conducted first to identify prevailing productivity metrics at four levels, namely trade, project, company, and industry. Then, the questionnaire was developed and disseminated to 53 Singapore-based construction companies for data collection. Subsequently, non-parametric statistical tests were conducted to analyze the data collected by the questionnaire. Results showed that the top five metrics in terms of usage frequency and relative importance were “constructability score”, “buildable design score”, “square meter of built-up floor area per man-day”, “square meter per dollar”, and “output per worker.” In addition, results showed that differences existed in the assessment results when productivity metrics at different levels were used to conduct the same measurement. This is the first study to explore the most widely used metrics in productivity assessments of construction projects and investigate possible differences in assessment results. This study could help the authorities to review, evaluate, and modify the productivity metrics used in practice. Thus, this study is beneficial to the practice as well.

scholarly journals Construction delays: a case study in the Brazilian Amazon

2017 ◽  
Vol 17 (3) ◽  
pp. 167-181 ◽  
Author(s):  
Luiz Mauricio Furtado Maués ◽  
Wylliam Bessa Santana ◽  
Paulo Cerqueira dos Santos ◽  
Renato Martins das Neves ◽  
André Augusto Azevedo Montenegro Duarte
Keyword(s):  
Factor Analysis ◽  
Construction Projects ◽  
City Planning ◽  
Brazilian Amazon ◽  
Construction Time ◽  
Construction Companies ◽  
Industrial Sectors ◽  
Planning Department ◽  
The Government

Abstract he construction industry is one of the industrial sectors with the lowest rates of fulfilment of contract deadlines, especially in developing countries. This fact has been the focus of considerable discussions seeking to identify the causes of the delays. The main purpose of this paper is to use factor analysis to identify the factors that are correlated with delay, contemplating exclusively residential real estate projects and using a city in the Brazilian Amazon as a case study. Based on the database from the government agency that authorises constructions in the city of Belém (City Planning Department - Secretaria Municipal de Urbanismo, SEURB) and data from construction companies, the study investigated 274 construction projects from the past 11 years. Factor analysis and work with the variables that can be identified and measured in the initial phase of the project, i.e., during the feasibility study, demonstrate that the physical characteristics of the apartments and the construction project are the primary causes for variations in construction delays; these causes have not yet been reported in the literature. We hope that the results of this study will contribute to more consistent forecasting of construction time, minimising the risk of delays.

scholarly journals Three Theoretical Perspectives for Understanding Inter-firm Coordination of Construction Project Supply Chains

2011 ◽  
Vol 11 (3) ◽  
pp. 1-17 ◽  
Author(s):  
Carlos Torres Formoso ◽  
Eduardo Luis Isatto
Keyword(s):  
Supply Chains ◽  
Construction Industry ◽  
Construction Projects ◽  
Construction Project ◽  
Theoretical Perspectives ◽  
Complementary Role ◽  
General Contractors ◽  
Coordination Process

The success of construction projects is highly dependent on the coordination of a fairly large number of stakeholders, such as client organizations, designers, general contractors, and subcontractors. Each of those stakeholders can both affect and be affected by the way a project is managed, and none of them usually has the power or the ability to coordinate project supply chains. However, the existing literature on supply chain management does not provide a comprehensive theoretical foundation for describing or explaining the coordination of construction project supply chains. This paper discusses the role of three different theoretical perspectives for understanding the inter-firm coordination process of project supply chains in the construction industry: the Theory of Coordination, the Transaction Cost Theory and the Language-Action Perspective. The contribution of each theoretical approach is pointed out in the paper, and their complementary role is illustrated in a case study carried out in a petrochemical construction project in Brazil.

Examining the effect of xenophobia on “transnational” mega construction project (MCP) success

2020 ◽  
Vol 27 (5) ◽  
pp. 1119-1143 ◽  
Author(s):  
Umer Zaman
Keyword(s):  
Construction Industry ◽  
Structural Equation ◽  
Construction Projects ◽  
Research Direction ◽  
Equation Modeling ◽  
Content Type ◽  
Team Members ◽  
Construction Companies ◽  
Negative Effect ◽  
Global Construction

Purpose The purpose of this paper is to argue that modern-day xenophobia has emerged as one of the high-risk factors for transnational mega construction projects (MCP’s). While research in transnational MCP’s remains surprisingly under-explored, this study aimed to examine how transformational leadership (TFL) and HPW practices can still achieve MCP success despite the rise of xenophobia in the global construction industry. Design/methodology/approach This study examined survey-based sample evidence from 220 respondents including project team members (operational, quality and technical), project stakeholders (e.g. regulatory authority, subcontractors, functional managers, etc.) and project clients/sponsors. Partial least squares structural equation modeling (PLS-SEM) technique was employed to test the theoretical hypotheses and to highlight significance of a holistic and novel framework of MCP success. Findings This study’s core finding unveiled a significantly negative effect of xenophobia on MCP success (ß=−0.389, t=5.574, p<0.000). Interestingly, PLS-SEM results also showed a significantly negative effect of TFL on MCP success (ß=−0.172, t=2.323, p<0.018), whereas HPW practices demonstrated a significantly positive effect on MCP success (ß=0.633, t=9.558, p<0.000). In addition, xenophobia and MCP success relationship were positively moderated by TFL (ß=0.214, t=2.364, p<0.018) and HPW practices (ß=0.295, t=3.119, p<0.002), respectively. Research limitations/implications This study underscores the importance of TFL and HPW practices in explaining the linkage between xenophobia and MCP success. Besides advancement of broader multi-disciplinary research and cross-pollination of research ideas, this study also offers unique research direction to explore the potential impact of TFL and HPW practices in demographically diverse project settings especially in countries where xenophobia has swiftly become inevitable. Practical implications As many countries undertake MCP’s with national pride and high strategic importance, this study provides an exemplary model of transnational MCP success. This study shows that conscious use of TFL and HPW practices could guard against escalating xenophobia in the global construction industry. Originality/value This study is first to provide an empirically grounded model of MCP success that collectively examines the role of xenophobia, TFL and HPW practices. This research has developed practical references for transnational construction companies in strategic planning and management of MCP’s.

scholarly journals Valuing the contribution of knowledge-oriented workers to projects: a merit based approach in the construction industry

2015 ◽  
Vol 12 (4) ◽  
pp. 1-12 ◽  
Author(s):  
Mehrdad Arashpour ◽  
Majeed Shabanikia ◽  
Mohammadreza Arashpour
Keyword(s):  
Construction Industry ◽  
Influencing Factors ◽  
Construction Projects ◽  
Key Factors ◽  
Professional Skills ◽  
Construction Companies

Evidence points to the fact that frequent resignation of project engineers from construction companies is primarily the result of dissatisfaction with the factors that shape the salary scale. This research aims to identify the major influencing factors in merit based salary calculation systems for knowledge-oriented engineers so as to more accurately reflect their contribution to construction projects. Results from a questionnaire sent to managers, engineers and HR professionals throughout the Iranian construction industry revealed that while there was overall agreement on principles to a merit-based approach, engineers in particular identified ‘professional skills’, ‘experience’ and ‘creativity’. Management-oriented parties should take into account engineer perspectives in order to more accurately value the knowledge-oriented contribution of these workers to construction projects. This research provides a basis for understanding the key factors in the merit based salary scale formulation through the construction industry.

scholarly journals Nigeria’s construction industry: barriers to effective communication

2017 ◽  
Vol 24 (4) ◽  
pp. 652-667 ◽  
Author(s):  
Obuks Augustine Ejohwomu ◽  
Olalekan Shamsideen Oshodi ◽  
Ka Chi Lam
Keyword(s):  
Factor Analysis ◽  
Construction Industry ◽  
Attribution Theory ◽  
Construction Projects ◽  
Effective Communication ◽  
Content Type ◽  
Team Members ◽  
Research Outcome ◽  
Past Experiences ◽  
Project Objectives

Purpose Communication plays an important role in the quality of the relationship, trust and collaboration among construction project teams. Literature suggests that effective communication is vital for achieving improved project performance. The purpose of this paper is to identify and assess the barriers to effective communication in the Nigerian construction industry, using attribution theory paradigm. Design/methodology/approach Questionnaires detailing 15 barriers to effective communication were administered to consultants and contractors engaged in the Nigerian construction sector. In total, 100 valid responses were analysed using mean score, factor analysis and factor score. Findings Unclear project objectives, ineffective reporting systems and poor leadership were ranked as the most significant barriers to effective communication. Factor analysis uncovered that the principal reasons responsible for ineffective communication include: managerial and technical barriers and credibility and background barriers. Practical implications The results provide information on barriers which needs to be addressed in order to improve communication in construction projects in Nigeria. There is a need to conduct post-completion reviews of construction projects so that project team members can learn and share knowledge on past experiences. Although the present study was conducted in the Nigerian context, it is envisaged that the research outcome will be widely applicable to other developing countries. Originality/value The study provides insights on the perceived barriers to effective communication in Nigerian construction projects. The paper presents the direction for further research aimed at improving communication in construction projects in Nigeria.

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