269 publications from this institution
Incentive/disincentive (I/D) contracting has developed from basic cost- and profit-sharing arrangements between an owner and a contractor. To motivate the contractor to put in an extra effort to realize one or more project objectives of an accelerated, costly, and complex undertaking, the owner may offer an award to the contractor. The owner may also threaten the contractor with a penalty if the objectives are not met. This paper reviews the fundamental incentive/disincentive arrangements in contracting literature. Then, results are reported of a survey conducted on a sample of Illinois DOT highway contracts that included I/D provisions. The survey investigates whether there exists an agreement or disagreement between IDOT's and the contractors' perceptions of I/D contract provisions. The findings reveal how I/D contract milestones are established, how they are executed, what kind of work practices the contractor uses to fulfill I/D targets, and how the contracting parties perceive I/D contracts' effectiveness as opposed to non-I/D contracts. Certain issues pointed out by the respondents as problematic and in need of further refinement in I/D applications are also highlighted.
The degree to which the design of a building embraces maintenance considerations has a major impact on its performance. A survey was conducted of the largest 211 building design firms in the United States to investigate the relationship between design practices and maintenance considerations. The findings shed light on the extent to which maintenance issues are considered when designers specify building materials and service equipment; the level of designers' knowledge in maintenance-related issues; the degree to which design personnel is exposed to training in maintenance-related matters; the extent to which designers consult property managers and maintenance consultants; the relative importance of maintenance issues to other design factors; the level of difficulty in cleaning, inspecting, repairing, and replacing various building components; and the magnitude and frequency of maintenance-related complaints that designers receive from clients and tenants. The performance of buildings is likely to be enhanced if designers are cognizant of maintenance-related matters.
Line-of-balance (LOB) methodology produces a work schedule in which resource allocation is automatically performed to provide a continuous and uninterrupted use of resources, but the distribution of resources could be further improved by resource leveling even if multiple resources are involved. The objective of this study is to develop a genetic algorithm (GA)-based multiresource leveling model for schedules that are established by LOB. The proposed model postulates that the production rate and duration of an activity are governed by the resource that requires the longest duration in completing a unit. Once the LOB schedule is established, resource leveling is performed according to the principle of optimum crew size that makes use of a utility data curve, which shows that productivity will suffer if the crew size is different than the optimum crew size, and the principle of natural rhythm that allows shifting the start times of an activity forward or backward at different units of production by changing the number of crews employed. The duration of an activity in any one unit and the precedence relationships between activities do not change during the leveling procedure. When applied to the LOB schedule of a pipeline project that was used to illustrate the model, it was observed that the proposed multiresource leveling model provided a smoother resource utilization histogram while maintaining optimum productivity.
There exist several reasons for construction firms to expand their business into international markets. But the complex international environment is affected by diverse factors and creates risks that are not well understood by companies that are active mostly in domestic markets. It is therefore essential for construction companies to follow a disciplined and well-informed strategy when deciding whether to enter international markets. Company strengths relative to conducting business in international markets, the threats and opportunities associated with overseas work, and the costs and benefits of undertaking construction projects in specific countries need to be considered in this decision. The interactions between the complex factors can be structured in a model that can help one to make a rational judgment. The International Expansion Decision Model developed in this study is based on the Analytic Hierarchy Process (AHP) improved by the addition of a Delphi survey. The main objective of this research study is to facilitate the entry decision into foreign markets and to highlight the importance of the factors involved in this decision. This study is of relevance to practitioners as it allows executives of construction companies to test if their company is ready for expansion into international markets in general and into a specific country in particular. It is also of relevance to researchers as it demonstrates the successful use of the combined Delphi and AHP methods.
The Future of Automation and Robotics in Construction Activites David Arditi, Shankar Sundareswaran, Arturo E. Gutierrez Pages 447-454 (1990 Proceedings of the 7th ISARC, Bristol, United Kingdom, ISSN 2413-5844) Abstract: It is the general consensus in the literature that the potential that the potential for the development and use of advanced robotics in construction is promising. It is belived that automation and robotics will put a stop to the decline in construction productivity that occured in the last 20 years and achieve productivity increases like those experienced between 1920 and 1970. Indeed, computer technology, remote sensing, signal and control systems, artificial intelligence, and material science and engineering have advanced far enough to allow for the introduction of robotics technology into the construction industry. How do contractors feel about that? Are they ready for this new technology? Do they think it is feasible? What areas in particular do they regard as most appropriate for this kind of application? What advantages do they see for the use of robotics in construction operations? What type of robots do they think lends itself best to internal and external construction activities? Do they conduct or support research and development activites in this field? The paper reports the findings of a survey that was carried out of the top 400 contractors reactions to automation and robotics in construction oprations. Keywords: No keywords DOI: https://doi.org/10.22260/ISARC1990/0057 Download fulltext Download BibTex Download Endnote (RIS) TeX Import to Mendeley
The pricing strategy predominantly used in construction is cost based. But this pricing logic may lead to the underpricing or overpricing of a bid offer. In response to this problem, alternate pricing strategies are proposed in this paper that make use of market-based approaches. These models are centered on marketing intelligence functions. In this paper, marketing intelligence systems developed and used in manufacturing industries are explored, including marketing research, marketing information systems, and decision support systems. The current developments and practices of marketing intelligence in construction are reviewed. The findings of a survey that investigates the marketing intelligence and pricing strategy practices of the largest 400 U.S. contractors are presented. In conclusion, it is discovered that contractors use mostly traditional marketing intelligence strategies. It is recommended that contractors develop computerized intelligence activities such as using resources on the Internet and developing management information systems and decision support systems. As expected, it is found that "marketing intelligence capabilities" is a significant variable associated with pricing strategy.
Purpose The purpose of this paper is to investigate the role of exogenous factors in the strategic performance of construction companies. A conceptual model is proposed where strategic performance is influenced by a two‐dimensional construct composed of market conditions and strategic alliances. Design/methodology/approach A questionnaire survey was administered to 73 construction companies. Structural equation modeling was used to analyze the data and test the hypothesis that strategic performance is impacted by exogenous factors. The individual constructs used in the study passed the internal reliability test, all factor loadings were statistically significant at α =0.05, all goodness of fit indices consistently indicated a good fit, and the hypothesized path coefficient was large and significant at α =0.05. Findings The hypothesis was supported by the data and analysis. Indeed, macro‐economic, political, legal, socio‐cultural conditions and the level of competition and demand are expected to impact differentiation strategies, and market/project/partner selection strategies. The quality of the relationships with government agencies and clients is expected to influence client/project/market selection strategies, while the quality of the relationships with labor unions may affect the ability to differentiate by using innovative construction methods, materials and equipment. Research limitations/implications It is likely that endogenous factors such as company resources, capabilities and project management competencies also impact strategic performance. But the study is confined only to the exogenous factors of market conditions and strategic alliances. Practical implications The findings of the study benefit construction company executives in that they make the executives more cognizant of the market environment and they draw the executives' attention to the importance of alliances with other parties. While market conditions are beyond the control of construction executives, relationships with other parties are somewhat within their sphere of influence. Originality/value Only a few studies have ever investigated non‐financial measures to assess the effectiveness of company strategies. Also, exogenous factors which are unavoidable in a project environment were also rarely discussed in the construction management literature. The originality of this study is that it uses non‐financial measures to assess the effects of exogenous factors on strategic performance.
The history of the use of network analysis in the construction industry is reviewed. The difficulties encountered in the diffusion process from country to country, from industry to industry, and from company to company are examined. Differences between industrialized and developing countries are also considered. It is found that: (1) Research and development activities in the construction industry are inadequate whereas implementation problems in network applications require thorough investigation; (2) the diffusion of networks in developing countries is taking place with a delay when compared to the diffusion in industrialized countries, mainly because of the smaller sizes of companies and projects, limited resources, and because of the inherent higher uncertainty in the construction industry; (3) most civil engineering curricula have recently been revised and incorporate new management topics; and (4) successful introduction of network planning into construction companies, and therefore the rate of diffusion, seem to be directly dependent on the reasons why they were introduced initially.
Linear scheduling method (LSM) is a scheduling method that is based on achieving a continuous flow of resources as well as precedence requirements. Although LSMs have recognized strengths in dealing with resource-intensive projects that are composed of repetitive activities, LSMs are not used extensively. This study proposes a staff-technology fit model that aims to measure the extent to which the features provided by LSM match scheduling staff experience, know-how and capabilities. The aim is to understand why LSM is not used as extensively as expected in construction scheduling. A questionnaire survey was administered to professionals listed in the directory of the Construction Management Association of America (CMAA) to measure staffing-technology fit in LSM applications. Research findings indicate that LSM applications satisfy user requirements in construction scheduling by (1) providing information that is useful to project participants depending on their position and function in the project organizations, (2) presenting graphics that are easy to understand, and (3) providing ease in communication. Research findings also reveal that LSM is not only a scheduling tool but also a control tool. However, the findings also point out that (1) LSM schedules require much time and effort to produce, (2) there are only very few commercially available software programs capable of running LSM schedules, and (3) there are not enough training opportunities for project managers and their staff to learn how to use LSM.
The concept of competitive positioning is explored in the context of the United States construction industry along two dimensions—scope and mode of competition. The effects of competitive positioning on construction company performance are also explored while controlling the size of construction companies. Construction firms' choices regarding scope and mode of competition and their economic performance are self-reported. The statistical analyses used in this research include cluster analysis, Duncan multiple range tests, one-way analysis of variance, and one-way analysis of covariance. Research findings point out that construction companies address the challenges of the industry by adopting a number of competitive positioning alternatives. Research findings also reveal that construction companies' choices regarding scope and mode of competition are significantly related to company performance, measured by means of three criteria—profitability, growth in contract awards, and overall performance. Construction firms that place a strong emphasis on all modes of competition and adopt a neutral approach to scope of competition outperform their rivals.
Since the selection of a delay analysis method depends on the delay analyst's subjective judgment, there is a risk of making problematic decisions due to the delay analyst's ignorance, lack of experience, carelessness, or intention. Each one of these methods may yield different analysis results. Therefore, it is necessary to develop an objective decision-making system based solely on the project environment. The existing delay analysis methods are classified into four types, according to the basic principles used in the analysis. Seven conditions that affect the selection of a delay analysis method (i.e., type of schedule, type of information, timing of analysis, expectations from the delay analysis, acceptance by courts of law, capabilities of delay analysis team, and budget constraint) were identified in a literature review. A delay analysis selection system (DASS) was developed using if-then rules constructed by considering which conditions should exist in a given project environment for successfully performing a specific type of delay analysis and getting realistic results. This system was computerized and validated by implementing it in several but different scenarios considered in this study. The contributions of this study include (1) an objective selection decision can be made based on only the project environment, without relying on the analyst's subjective preference, and (2) unnecessary and expensive legal disputes caused by delay-related issues between construction owners and construction companies can be minimized.
Unbalanced bidding is a serious problem for the construction owner because it may increase the cost of construction The most common way to mathematically unbalance a bid is frontloading where a bidder overstates the unit price of line items scheduled to be performed early in the project and understates the unit price of line items performed later. A bidder can also overstate the unit price of a line item whose quantity was somehow underrated by the engineer. If the owner proves that a mathematically unbalanced bid costs more to perform, the bid is said to be materially unbalanced, in which case the owner can reject the bid. A model is presented that formalizes and automates the process of detecting mathematically and materially unbalanced bids by comparing line item prices with the engineer's estimates and the average prices offered by the bidders. This model allows owners to detect and reject unbalanced bids, and deters bidders from unbalancing their bid.
