Joint ventures have been an important research topic over the last few decades primarily because of their importance as a strategic alternative in global competition. Due to the inherent complexities of international joint ventures (IJVs), involving a mixture of different managerial systems, attitudes, and business strategies, such entities are very difficult to manage. In this study, the effect of strategic, organizational, and cultural fit between IJV partners and of interpartner relations on IN performance is examined through a questionnaire survey. IJV performance is measured by means of two constructs: "project performance" and "performance of IJV management." The results point out the significance of the quality of partner relations for a successful IJV operation. Findings of the study also suggest that the level of organizational fit between the partners has a moderate influence on IJV performance. It was observed that strategic fit between IN partners affects interpartner relations extensively, which in turn affects IJV performance. IN partners with compatible technical and managerial skills, financial resources, organizational size, workload, and project experiences are expected to achieve greater IJV success.
This paper compares the performance of three optimization techniques, namely feature counting, gradient descent, and genetic algorithms (GA) in generating attribute weights that were used in a spreadsheet-based case based reasoning (CBR) prediction model. The generation of the attribute weights by using the three optimization techniques and the development of the procedure used in the CBR model are described in this paper in detail. The model was tested by using data pertaining to the early design parameters and unit cost of the structural system of 29 residential building projects. The results indicated that GA-augmented CBR performed better than CBR used in association with the other two optimization techniques. The study is of benefit primarily to researchers as it compares the impact attribute weights generated by three different optimization techniques on the performance of a CBR prediction tool.
Researchers have attempted to develop methods that detect collusive bidding. But no method can detect collusion with certainty unless it is based on legal evidence. A method is proposed to detect collusive bidding behaviour that improves the performance of previous methods. It analyses the historical bidding data provided by a construction owner in a two-step approach which is mainly based on a multiple regression model. The first step involves identifying the potential cartel bidders using the residual test and the cost structure stability test developed in earlier work. The second step is the focus of this paper and involves comparing the behaviour of the potential cartel bidders and non-cartel bidders by analysing bid distributions, their cost dispersion, and the differences in their cost structures. After conducting the second step of the study, it was found that the suspected cartel bidders identified in Step 1 behaved in ways to confirm collusion. Also, in an unrelated search, it was found that two of the six potential cartel bidders who were identified in this study had been audited by the public agency for bid fraud, and that another potential cartel bidder had been found guilty by the courts and forbidden from doing business with the public agency.
Computerized quantity take-off and cost-estimating systems have proliferated in the last 4-5 years. Companies that decide to computerize estimating are faced with the problem of making the right selection. Selecting a package first involves the identification of a potential user's needs. Then, a review is made of the packages available and their capabilities and, finally, the selection of a package by matching the potential user's needs with estimating system capabilities. ESSEX, whose conceptual framework is presented in this paper, is a knowledge-based expert system that facilitates the decision to be made by a potential user of estimating software as to what package to acquire. ESSEX uses an expert system shell to manipulate three main files: ‘UserMod’, the interface with the potential user that also develops the user's decision criteria; ‘SysMod’, the interface with the developers that records commercially available systems' characteristics; and ‘MatchMod’, that matches user and system characteristics to reach the most appropriate selections. An objective evaluation of ESSEX and suggestions for further research are made.
Transaction costs occur when a good or service is transferred across a technologically separable interface, and include the costs of drafting, negotiating and enforcing an agreement, and also the costs of governance and bonding to secure commitments. In the complex and high risk environment of a construction project, questionable decisions can be made in the planning and design phase, and disagreements, conflicts, disputes, change orders, and claims can occur in the construction phase. These problems contribute to an increase in transaction costs. Transaction costs at the pre-contract phase of a project are different from the transaction costs at the post-contract phase. However, there is no consensus on a standard definition of transaction costs in construction projects. In this study, a detailed literature review focusing on transaction costs in construction project management is presented. The factors that affect transaction costs are identified and categorized under the headings of the owner’s and contractor’s roles in the transaction, project management efficiency, and the characteristics of the transaction environment.
Although the general consensus is that linear scheduling methods (LSMs) are quite powerful, their use in construction has been very limited. The linkage between the characteristics of scheduling methods and the requirements of the tasks performed by schedulers has been an on-going concern in the construction industry. This study proposes a “task-technology fit” model to understand why LSMs are not being used as extensively as expected. The model aims to determine whether the characteristics of LSM (technology) satisfy the duties and obligations of construction schedulers (tasks). By scrutinizing the task-technology fit in LSM applications, deficiencies can be detected which hinder the wider use of these methods in the industry. A questionnaire survey was administered to measure task-technology fit in LSM applications. The target population included schedulers, project managers, construction managers, and other professionals listed in the directory of the Construction Management Association of America (CMAA). The findings indicate that LSM is effective in repetitive projects and is able to provide a smooth and efficient flow of resources by adjusting activities’ rate of production. In addition, research findings point out that LSM effectively shows activity sequences as well as progress. However, the findings also reveal that LSM is not applicable when reliable resource data are not available. It should also be noted that very few software packages that perform LSM scheduling are commercially available on the market.
This note describes a model that measures the quality of the project service of a D/B firm using quality function deployment (QFD). This model is an add-on to a model developed previously by the authors to measure the corporate service quality performance of D/B firms. The project service quality performance model makes use of 10 service quality factors and their relative weights (transferred from the corporate service quality performance model), three components of quality management systems in place in D/B projects (ranked by senior managers in D/B firms) and the relationships between service quality factors and quality system requirements (established by a professional quality system assessor). It uses QFD to calculate a quality performance index. The combined corporate and project service quality performance index can be used by D/B firms to benchmark themselves against their competitors or to monitor their own performance. It can also be used by owners to rank D/B firms relative to their service quality performance.
This paper presents a method that guides designers in obtaining the desired number of earned points in the “Optimize Energy Performance” credit of the “Energy and Atmosphere” category of LEED version 4 (v4) certification at minimum cost. The model creates different scenarios, identifies the LEED points and costs for each scenario. The energy analysis calculations are performed by Sefaira, the quantities of materials are received from Autodesk Revit, and the cost information comes from the RSMeans Database. A macro in Excel automates the process. An office building was used as a case study to illustrate the applicability of the proposed method. The minimum cost necessary to achieve any number of points in the “Optimize Energy Performance” credit were calculated, such as a minimum cost of $842,500 to obtain 16 points, and $476,684 for 5 points. The primary contributions of this research include (1) the development of a tool that allows designers to pick the most economical alternative for the desired points in the “Optimize Energy Performance” credit, and (2) the first time integrated use of an energy simulation software (Sefaira), a cost database (RSMeans), and a BIM software (Autodesk Revit)
Purpose The purpose of this paper is to investigate sustainability efforts in the managerial processes of design, consulting, construction, and facility management firms and to identify the differences between these parties. Design/methodology/approach A questionnaire survey was administered to design, consulting, construction, and facility management firms in the USA to seek information about the state of sustainability efforts in these firms relative to strategic planning, marketing, business management, financial management, organizational structure, and people management. χ 2 tests were performed on the data collected to determine if statistically significant differences exist between the project participants relative to sustainability efforts. Findings Sustainability efforts are related to a firm’s strategic positioning, reputation and experience, and hiring/employment policies, while profit margins are not higher in sustainable projects compared to traditional projects. Statistically significant differences were detected in three of the six items investigated, indicating conflicting interests among the parties. Research limitations/implications The study’s limitation is that it is limited to sustainability efforts in the USA. Practical implications It is concluded that sustainability demands have changed the nature of design, construction, and operation of buildings in ways that deserve special attention on the part of all parties involved. Originality/value The firms that participate in building construction projects need to adopt management practices that accommodate sustainable building design, construction, and operation in order to remain competitive in a market where demand for environmental sustainability has grown significantly in recent years.
In order to stay within schedule and budget limits, construction projects require fluent communication and information exchange between the collaborating parties. Unnecessary project delays and rework are often caused by missing or outdated information. Easily available, accurate and up-to-date information on project status can improve work efficiency and quality. Such information can be efficiently shared between project parties in electronic form, but recording the information on-site and transmit it to the office requires mobile devices and wireless communication. This paper presents a prototype smartphone application called Construction Progress Control (CPC) that can record on-site progress in different activities, convert this information into a format that can be imported to a project management software (e.g., Primavera P6) and send this information to a PC where the project management software picks up this information and updates the schedule accordingly. The efficiency of construction projects can be improved by collecting and recording progress information at the worksite using electronic devices, by providing schedulers in the office with accurate and up-to-date progress information, and by updating the work schedule in a timely fashion, hence allowing the project manager to make decisions without delay.
The frequency of construction litigation has increased over the years, making litigation a costly and time-consuming activity. It is in the interests of all parties to a construction contract to avoid litigation. A tool (Ant Miner) is proposed to predict the outcome of construction litigation, hence encouraging the parties to settle out of court. Ant Miner, a rule-based classification system extracts classification rules by using ant colony optimization. It is used on 151 Illinois circuit court cases filed in the period 1987-2005. The prediction model is composed of data consolidation, attribute selection, classification and assessment. The results provide evidence that Ant Miner performs better than models used in earlier studies and that the rule sets discovered by this tool are highly interpretable, but that this tool suffers a great deal from noisy data. If the parties involved in a dispute have access to the proposed system that predicts the decision of the courts with higher accuracy and reliability than before, then they are expected to avoid litigation and settle out of court in order to save considerable time, money and aggravation.
Abstract. The vertical clearance of a bridge over a highway is important in preventing oversized vehicles from hitting the bridge. The vertical clearance of a bridge is traditionally measured by using surveying equipment such as leveling rods and total stations. Typically, measurements are taken at multiple locations in order to determine the minimum vertical clearance under the bridge. This process is time and labor consuming. Also, these measurements may not be accurate because of the traffic, the uneven surface, and the reading error caused by the surveyor. Additionally, when one is faced with a multitude of reports especially in large projects with multiple ramps and bridges, it is not easy and it often takes a long time to find the bridge under study. This research provides a highly accurate measurement of the vertical bridge clearance by using terrestrial laser scanners. The clearance can be measured in the office by processing the collected point cloud data. The minimum vertical clearance is easily identified and the measurement is visualized and geo-referenced. An approach to reduce data noise caused by traffic is also introduced in this study. In addition, to help reduce the confusion of finding the bridge under study and to facilitate access to the clearance data, the clearance measurements are geo-referenced to an online mapping system. This system allows access to the final deliverable very easily through a single web portal. Finally, Illinois Department of Transportation's Circle Interchange is used to demonstrate this new method.
A scheduling and progress control system called Photo‐net is introduced where a digital movie of construction activities can be played back along with an animation of as‐built vs. as‐planned performance of these activities. A technique to make time‐lapse digital films of construction activities is used. A method to store a digital film is developed allowing thousands of pictures to be stored and managed in a Windows environment. A program is developed that generates critical path method (CPM) derived bar‐charts. A recording system is devised enabling the user to specify the day‐by‐day progress achieved in construction activities, allowing the program to link the playback film with the progress observed on the construction site. A set of input screens are generated by the system that provide a friendly, intuitive and easy way to enter project data. A case study is presented where the system is used, the performance of the system is discussed and the results are analyzed.
Stringent budget constraints and the need to build infrastructures have resulted in Public–Private Partnerships (PPP) being acknowledged as a desirable delivery/financing system for public projects. A PPP is an agreement between a public agency and a private consortium that allows the financing, design, construction, and operation of large scale infrastructure. While the public agency can be a single government department (e.g., a highway department), the private consortium is composed of several parties including contractors, designers, financial institutions, and other investors. The party that plays a critical role in the consortium is typically a large construction company. Various researchers have identified some of the critical factors that affect the success of a PPP, but only few studies have undertaken a comprehensive examination of financial issues. This paper aims to fill this research gap by analyzing information collected from large construction companies pertaining to financial issues. A structured questionnaire survey was administered to the largest 190 international construction companies listed by Engineering News–Record to investigate the relative significance of 19 financial issues that were identified in a thorough review of the literature. The findings indicate that factors such as inappropriate financial analysis, a low rate of return, and long delays in reaching financial closure have a high impact on the success of PPPs. Moreover, the public agency’s tendency for corruption and the private consortium’s weak financial standing can also undermine the financial strength of the arrangement. The findings can be used by all participants in PPPs to evaluate the financial issues in such projects.
The main goal of this research is to develop a model that construction company executives can use to determine whether their company is healthy, whether decline is setting in, or whether decline has reached an advanced stage. The construction company decline model is a statistical model that was developed by making use of nonfinancial data collected from construction companies that have filed bankruptcy under Chapter 11 and construction companies that have been functioning without bankruptcy protection. The company profile survey provided information about 21 organizational, human capital, and strategic posture characteristics of construction companies. Factor analysis was used to reduce the number of variables. The factors obtained by performing factor analysis were regressed against decline ratings using multinomial logistic regression. The model allows a user to determine the condition of a company relative to decline. The model was validated by testing it using randomly selected data from the sample. The paper is of relevance to researchers because it contributes to the rather slim body of research in this area. It is of relevance to practitioners too as it provides them with an early warning tool that allows them to conduct a timely turnaround in case their company is in decline.
This paper presents a critical appraisal of the project evaluation and ranking procedures currently used by the General Directorate of Highways in Turkey. The effects of the inclusion of accident and discomfort costs in the calculation of benefits, and the effect of using incremental analysis in the determination of priority ranking have been investigated by studying data obtained from 64 highway improvement projects. This paper discusses the findings of the study. (TRRL)
