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 Unnecessary project delays and rework are often caused by missing or outdated information.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.
Collusive bidding has been a major concern for both antitrust authorities and clients because it can inflate winning prices to artificially high levels. Deciding to initiate such an illegal business competition is subject to external environmental factors (EEFs). Understanding the EEFs' impacts on collusive bidding decisions allows institutional arrangements to encapsulate free and fair competition. Although previous studies have examined the EEFs separately, few have explored their synthesis in determining collusive bidding decisions. This study decomposed the EEFs into three categories: economic, industrial, and geographical (EIG), and detected their effects on collusive bidding decisions by using 254 collusive bidding cases gathered from the Chinese construction industry. Results of the data analysis indicated that as a key EEF, industrial competition has a positive effect on bidders' collusive willingness and collusive team number. However, its impacts on collusive bid prices are negative. In addition, the coupling of economic development and industrial competition positively affects bidders' collusive prices. These findings provide new insight into the essence of the EEFs and support the formulation of countermeasures to deter bidders from seeking a to-collude decision.
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.
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.
This paper presents several issues related to pricing in construction. First, problems with current pricing strategy in construction are explored. Second, pricing strategies based on a market-based approach are proposed. Third, survey findings of the top 400 US contractors are presented regarding their current pricing practices and the applicability of the proposed pricing strategies. In conclusion, the belief that current pricing strategy in construction is predominantly cost-based is confirmed by the survey findings; indeed, in setting the markup, most contractors rely on their intuition after subjectively assessing the competition. The three internal pricing variables that have the largest statistically significant contingency coefficients with pricing strategy are 'marketing intelligence capabilities', 'annual contract value', and 'the type of client in most projects'. 'Owner's characteristics', 'competitors'characteristics', and 'market demand' are statistically significant external variables in making pricing strategy decisions. A change of bidding procedure is proposed so that all parties in construction can maximize the benefits of market-based pricing strategies.
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)
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.
BIM is the trend of the future. User acceptance models of new technology have been empirically investigated in the construction industry only in a small group of studies. Three models are proposed that investigate whether the fit between BIM technology and (1) design tasks, (2) the organizational competence of the design firm, and (3) designer competence affect the performance of the design firm. The data used in the study were collected by conducting a survey of architectural design professionals employed by large design firms in the U.S. The results suggest that the fit between BIM technology and (1) design tasks, and (2) organizational competence is likely to affect project cost, time, and quality positively. The outcome of the research is expected to benefit the architectural design community by advancing their understanding of the factors that affect the acceptance of BIM technology, and their impact on a design firm's performance.
The actual cost of a construction project is comprised of not only production costs, but also transaction costs. Transaction costs include but are not limited to the costs of preparing the bidding package, estimating, drawing up a contract, administering the contract, and dealing with any deviations from contract conditions. Transaction costs constitute an important part of the construction owner’s budget. However, understanding transaction costs is difficult because of the inconsistency and ambiguity in defining transaction costs in the literature. The objective of this paper is to identify methods to minimize the transaction costs borne by the construction owner. A structural equation model is tested on data collected by means of a survey administered to construction owners. The findings indicate that the transaction costs borne by the owner can be minimized if the owner minimizes the uncertainties inherent in the transaction environment by (1) ensuring the engineering design is as complete as possible before bids are sought from contractors, (2) exploring the possibility of adopting integrated project delivery methods that would allow the owner to engage the services of a contractor early in the design phase, (3) agreeing to share some of the risks with the contractors, (4) understanding well the behavior of contractors, and (5) paying close attention to project management efficiency.
The economics of a materials management system is defined by the size of the shipments, the scheduling strategy that allows contractors to handle uncertainty and variability in the supply chain, and the timing of the shipments, which in turn depend on the environment in which the project is taking place. This study presents a simulation-based decision support system to assist contractors in selecting the most economical rebar management system prior to the start of construction by recommending lot sizes (large, small), a scheduling strategy (optimistic, neutral, pessimistic), and buffer sizes (large, medium, small) given the conditions of the project. This model is of benefit to contractors and researchers because it generates the probable cost of inventory of 18 alternative rebar management systems ranging from just in case (JIC) to just in time (JIT) and including different variations in between. It allows contractors to select the alternative with least cost of inventory at the planning stages of a project. The simulation model was tested by using actual data obtained from a trade center project in Istanbul, Turkey. As expected, the test indicated that JIC was the most economical rebar management system in a case study conducted in a developing country, as it generated a savings of 4.8% over JIT.
A construction company's decision to expand into international markets must be based on a good understanding of the opportunities and threats associated with international business, as well as the development of company strengths relative to international activities. These factors were evaluated in this study by surveying the executives in charge of international construction of large United States based contractors. The information was collected by means of two rounds of a Delphi survey, the results of which were used as input in an analytic hierarchy process (AHP). The findings indicate that track record, specialist expertise, project management capability are the most important company strengths; loss of key personnel, shortage of financial resources, and inflation and currency fluctuations are the most important threats relative to international markets; and increased long term profitability, the ability to maintain shareholders' returns, and the globalization and openness of the markets are the most important opportunities available in international works. This study is of relevance to practitioners as it systematically highlights the factors that affect international construction for the benefit of executives of medium-to-large size construction companies who are considering expanding into overseas markets. It is of relevance to researchers too as it demonstrates the successful use of the combined Delphi and AHP.
Accessing the required information in the supply chain of structural steel components is critical for minimizing costly reworks and delays. This paper identifies the information items generated in the different phases of the supply chain related to structural steel components and formalizes the process of producing and using this information. Precise details about different features of the components (e.g., their geometry and weight, connection details, cutting/bending/ punching requirements, and the type and grade of the material) are set in the various tasks performed in the different phases of the supply chain. Regardless of whether one uses paper-based systems or advanced technologies such as smart tags and radio-frequency identification (RFID), a better understanding is achieved of the processes through which a structural steel component passes. The results of this research can be used to streamline the information flow in the supply chain of structural steel components, regardless of the type of tracking technology used, hence reducing delays and reworks.
