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.
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.
Abstract Resource leveling involves minimizing resource fluctuations without changing the completion time of a project. A smooth distribution of resources minimizes logistical problems and results in cost savings. Line‐of‐balance (LOB) is a resource‐based scheduling system that is used in projects that exhibit repetitive characteristics, performs resource allocation as a matter of course, but does not deal with resource leveling. In the past, researchers experienced declines in productivity whenever they leveled resources in different linear scheduling models by adjusting activities’ production rates. The objective of this research is to develop a genetic algorithm‐based resource leveling model for LOB schedules that does not impact productivity negatively. This model is based on the “natural rhythm” principle, according to which a crew of optimum size will be able to complete an activity in the most productive way. The “natural rhythm” principle allows shifting the start time of an activity at different units by adjusting the number of crews without changing the duration of the activity in any one unit and without violating the precedence relationships between activities. An LOB schedule is established for a pipeline project and is used to illustrate the proposed resource leveling model. It was observed that the model provides a smoother resource utilization histogram. Performing resource leveling in LOB scheduling without sacrificing productivity is the major contribution of the proposed model.
Sustainability has gained importance in the building design/construction industry due to the increase in the need for energy, the extensive use of non-renewable resources, and therefore the damage caused to the environment by traditional building design and construction. The concept of green building was developed for this reason. Green buildings can be defined as structures that consume less water, energy, and other resources while emphasizing human health and protecting the environment. While green buildings have these advantages over traditional buildings, the rate of green building production is less than expected because many barriers are encountered during the design and production of green buildings, despite the recent attention paid to sustainable practices. This research focuses on exploring the barriers encountered during green building production in Turkiye and the possible solutions for overcoming these barriers. According to the data obtained through a questionnaire survey, the most important difficulties encountered in Turkiye include the lack of government subsidies, the lack of green building regulations, the public’s indifference to green building technologies, and education and technology deficiencies. According to the respondents, the possible solutions involve government incentives, adoption of national standards and best practices, educating the public and the design/construction professionals about green buildings, and the development of novel green building technologies. The major contribution of the findings is that it highlights the fact that the stakeholders of green building projects (i.e., owners, designers, constructors, and facility managers) face important barriers and lets stakeholders recognize that solutions to overcome these barriers are available. The major implication is that the stakeholders in green building projects will likely be better prepared to deal with any barrier before undertaking green building projects in Turkiye and countries with similar socio-economic conditions.
The construction of buildings is a complex process that is carried out by a large number of participants with conflicting objectives. This complexity and fragmentation makes the management of the process particularly difficult. This paper presents an integrated system called MITOS - a multi-phase integrated automation system that has been designed primarily for design/build firms, i.e., firms or alliances of firms that do both design and construction. But the system can also be used by independent design firms and construction companies as long as they are cooperating on the same project. This integrated system allows designers as well as constructors to receive information about all aspects of the project (including clients, subcontractors, suppliers, human resources, time, design, materials, equipment, cost, communication, quality, and procurement) in the design and construction phases of the project and hence to manage the project effectively. The system makes use of a central component called ASDB - an automation system for design/build and a set of satellite programs.
This paper introduces a contractor quality performance (CQP) evaluation model that measures the quality performance of pavement contractors. The model uses a modified quality function deployment model to support the quality performance measurement that is involved in multiattribute and multiparticipant decision-making and the Delphi method to deal efficiently with the uncertainties in the input data. State DOTs that are in the process of selecting a pavement contractor for a project would benefit from the CQP evaluation model because the system allows a client to expeditiously assess the quality performance of potential pavement contractors in their bidding list. A test case is presented to illustrate the functioning of the model. The model contributes to improve the quality of the nation's pavements because it enhances the contract administration procedures by reengineering the current contractor assessment, prequalification, and/or selection process within the owner organizations (state departments of transportation) by accentuating total client (both the road users' and the owners') satisfaction. The model helps to improve the state DOT's pavement project bidding system.
Developments in technology such as Building Information Modeling (BIM) have recently created serious competitive pressures on architectural design firms and building construction companies. Design firms and construction companies need to adopt these new technologies to survive and thrive in this environment. Despite the advantages of BIM in building design, its adoption by architectural design firms has been slow due to obstacles such as lack of familiarity with BIM, lack of training in BIM, and lack of supporting resources such as hardware and software. The problems faced in adopting BIM were investigated by only few researchers who focused on the acceptance or penetration of BIM into construction firms. The objective of this research is to develop an integrated model to understand the adoption of BIM in architectural design firms. The model involves (1) the fit between the tasks to be performed by design professionals and the technology provided by BIM, (2) the fit between the organizational competency in the design firm and the capabilities offered by BIM, and (3) the fit between the designers’ knowledge/skills in BIM and the sophistication of the BIM product. After a thorough review and synthesis of technology adoption models and theories, this paper proposes an integrated model to understand the adoption of BIM by architectural design firms. The model argues that using BIM depends on BIM’s properties as well as the tasks at hand, the organizational competency of the company, and the perceived ease of use.
Construction activities are strongly affected by the properties of the site. Site conditions direct the investment decision and development approach. Leadership in Energy and Environmental Design (LEED), the most widely used certification system around the world, covers site properties with two sections, i.e., Location and Transportation, and Sustainable Sites. These two sections in LEED v4 NC add up to 42 points, which corresponds to approximately 33.3% of the total points that a building can receive. Issues such as neighborhood development location, sensitive land protection, high priority site, surrounding density and diverse uses, access to quality transit, bicycle facilities, reduced parking footprint, and green vehicles that are treated in the Location and Transportation section have different priorities and implications in developing countries. Similarly, issues such as pollution prevention, site assessment, site development - protect or restore habitat, open space, rainwater management, heat island reduction, and light pollution reduction that are treated in the Sustainable Sites section are based largely on local practices and standards, and therefore offer different challenges. In this study, these two sections of LEED v4 NC are assessed relative to practices in developing countries. A comparative review of the topics is performed by means of a thorough literature survey. It is expected that the outcome of the study will provide guidance to professionals in selected developing countries towards improvement of the existing state and practices.
Abstract: This paper concentrates on the three main stages of expert system development: knowledge acquisition, knowledge representation (which includes the treatment of uncertainties), and verification and validation. The findings of a survey of expert system applications in the construction management domain are reported. A model is presented that regulates the process of creating an expert system and that eliminates the shortcomings of existing techniques used with knowledge of subjective nature. This model is based on the Delphi method, a tool used for collecting data and information to solve nonanalytical problems. It is proposed that the use of the Delphi method in the knowledge acquisition, knowledge representation, and validation stages of expert system development will improve user confidence in the final product.
The construction project is subject to several risks, one of the most important of which is contractor default because contractor default may increase the final project cost considerably. In the US construction industry, owners commonly shield themselves from the risk of contractor default by transferring this risk to the contractor, who in turn transfers this risk to a surety company. On the other hand, the General Directorate of Military Works (GDMW) of the Kingdom of Saudi Arabia retains the risk of contractor default rather than transferring it to a third party. An artificial neural network (ANN) and a genetic algorithm (GA) are used in this study to predict the risk of contractor default in construction projects undertaken for the Saudi armed forces. Based on this prediction, the Saudi GDMW can make a decision to engage or not to engage the services of a contractor. In case the models are not able to generate reliable predictions (or generate contradictory outcomes), the GDMW will have to augment its budget with contingency funds to be used in the event of contractor default. The outcome of this study is of particular relevance to construction owners because it proposes an approach that can allow them to replace an indiscriminate blanket policy by a policy that is rational, effective, prudent and economical.
Due to the nature of the construction industry, disputes arise frequently. Resolving these disputes through the court system is both a time‐ and cost‐consuming process. The outcome of construction litigation is normally affected by a large number of complex and interrelated factors and therefore is very difficult to predict. Methods to predict the outcome of construction litigation are not available today because this decision carries very big risks. In this study, case‐based reasoning (CBR) is used to predict the outcome of construction litigation tried in Illinois circuit courts. These circuit court cases are organized in 43 input features and 1 output feature. If CBR systems such as the one developed in this study (prediction rate 83%) are available to the parties before they litigate, legal expenses could be avoided, and considerable time could be saved.
ISO 9000 is one of the most important administrative innovations of the last two decades. The Turkish precast concrete industry is an interesting example of the diffusion of this important administrative innovation. Innovation diffusion theory proposes that the diffusion of an innovation is driven by internal (i.e. behaviours of copying others) and external (i.e. complying with client requirements, changes in government regulations, demand conditions, and consulting firms' suggestions) influence factors. The propositions of innovation diffusion theory are empirically tested by using three mathematical models: the internal influence model, the external influence model and the mixed influence model. The mixed influence model has the highest explanatory power and the diffusion of ISO 9000 certification in the precast concrete industry is primarily driven by internal rather than external influence factors.
The international construction market shrank considerably in the period 1980–88. US contractors' performance in this period was less than satisfactory. This paper first discusses briefly the principal causes for this decline in international construction (the reduction in oil prices, an increase in Third World countries' external debts, local companies becoming more competitive, and governments' barriers to foreign contractors). It then uses published statistical data to identify the common features of US construction companies that undertake work overseas. Finally, it attempts to explain the factors such as financing, taxing, the Foreign Corrupt Practices Act, and foreign competition that may have affected US competitiveness abroad.
