Abstract Building Information Modeling (BIM) has been acknowledged for promoting effectiveness and efficiency in project planning and management activities including design, bidding, and construction. Yet limited effort has been made to investigate the impacts of BIM implementation on corporate performance. Using the financial information of 314 Architecture, Engineering, and Construction (AEC) companies listed in the A-share market of China, this paper examines the economic benefits of BIM practice and assesses the influential mechanism of BIM implementation at the corporation level. The results reveal that BIM adoption contributes to better corporate profitability, especially in non-state-owned enterprises (non-SOEs). The positive impact of BIM implementation on profitability is achieved by the functions of promoting schedule efficiency and operation cost reduction. However, high initial BIM investment is still required in China's AEC companies at the current stage, and the effectiveness enhancement in corporation management has not been realized. By providing clear empirical evidence of the economic benefits of BIM adoption from a corporation perspective, this study might help improve top managers’ awareness, intention, or support of future BIM utilization in China's AEC companies.
{"title":"Understanding the effects of BIM implementation in corporation finance: An empirical study in China","authors":"Zhimin Wang, Jianjun Ma","doi":"10.2478/otmcj-2021-0028","DOIUrl":"https://doi.org/10.2478/otmcj-2021-0028","url":null,"abstract":"Abstract Building Information Modeling (BIM) has been acknowledged for promoting effectiveness and efficiency in project planning and management activities including design, bidding, and construction. Yet limited effort has been made to investigate the impacts of BIM implementation on corporate performance. Using the financial information of 314 Architecture, Engineering, and Construction (AEC) companies listed in the A-share market of China, this paper examines the economic benefits of BIM practice and assesses the influential mechanism of BIM implementation at the corporation level. The results reveal that BIM adoption contributes to better corporate profitability, especially in non-state-owned enterprises (non-SOEs). The positive impact of BIM implementation on profitability is achieved by the functions of promoting schedule efficiency and operation cost reduction. However, high initial BIM investment is still required in China's AEC companies at the current stage, and the effectiveness enhancement in corporation management has not been realized. By providing clear empirical evidence of the economic benefits of BIM adoption from a corporation perspective, this study might help improve top managers’ awareness, intention, or support of future BIM utilization in China's AEC companies.","PeriodicalId":42309,"journal":{"name":"Organization Technology and Management in Construction","volume":"13 1","pages":"2484 - 2495"},"PeriodicalIF":2.1,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48890922","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract We aim to draw in-depth insights into the current literature in construction health and safety and provide perspectives for future research efforts. The existing literature on construction health and safety is not only diverse and rich in sight, but also complex and fragmented in structure. It is essential for the construction industry and research community to understand the overall development and existing challenges of construction health and safety to adapt to future new code of practice and challenges in this field. We mapped the topic landscape followed by identifying the salient development trajectories of this research area over time. We used the topic modeling algorithm to extract 10 distinct topics from 662 abstracts (filtered from a total of 895) of articles published between 1991 and 2020. In addition, we provided the most cited references and the most popular journal per topic as well. The results from a time series analysis suggested that the construction health and safety would maintain its popularity in the next 5 years. Research efforts would be devoted to the topics including “Physical health and disease”, “Migrant and race”, “Vocational ability and training”, and “Smart devices.” Among these topics, “Smart devices” would be the most promising one.
{"title":"Construction health and safety: A topic landscape study","authors":"Xiaorui Cao, Ruodan Lu, Liang Guo, Jianya Liu","doi":"10.2478/otmcj-2021-0027","DOIUrl":"https://doi.org/10.2478/otmcj-2021-0027","url":null,"abstract":"Abstract We aim to draw in-depth insights into the current literature in construction health and safety and provide perspectives for future research efforts. The existing literature on construction health and safety is not only diverse and rich in sight, but also complex and fragmented in structure. It is essential for the construction industry and research community to understand the overall development and existing challenges of construction health and safety to adapt to future new code of practice and challenges in this field. We mapped the topic landscape followed by identifying the salient development trajectories of this research area over time. We used the topic modeling algorithm to extract 10 distinct topics from 662 abstracts (filtered from a total of 895) of articles published between 1991 and 2020. In addition, we provided the most cited references and the most popular journal per topic as well. The results from a time series analysis suggested that the construction health and safety would maintain its popularity in the next 5 years. Research efforts would be devoted to the topics including “Physical health and disease”, “Migrant and race”, “Vocational ability and training”, and “Smart devices.” Among these topics, “Smart devices” would be the most promising one.","PeriodicalId":42309,"journal":{"name":"Organization Technology and Management in Construction","volume":"13 1","pages":"2472 - 2483"},"PeriodicalIF":2.1,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46187749","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Due to the wide range of opportunities, collaborations, and challenges offered by the international construction sector, interest in international construction is on the rise. Construction companies must be able to carry out international construction projects (ICPs) more effectively and efficiently. However, executing ICPs is more challenging than executing domestic construction projects. Considering the peculiarities of the construction industry and the associated complexity of construction projects, construction companies should decide on international capability and the selection of an ICP through a careful evaluation of their critical success factors (CSFs). Most of the previous research deals with the concept of CSFs in the context of project management in general, but few studies have identified CSFs for ICPs. To fill that gap in current research, the main objective of this study was to identify and group CSFs for ICPs. A total of 37 CSFs were identified after conducting a detailed literature review and a pre-pilot study. A new framework of CSFs for ICPs was proposed following primary research, which was conducted through in-depth interviews with leading experts in international projects. Although the constructability/complexity factor of the project received the highest rating in terms of importance to the success of the ICP, the next most critical factors were found to be external factors, such as local contractor/subcontractor, investor, and presence of a foreign partner. The results of this research may help participants involved in ICPs to improve their understanding of the international construction environment and deliver more successful ICPs.
{"title":"A new framework for ranking Critical Success Factors for International Construction Projects","authors":"Lana Lovrenčić Butković","doi":"10.2478/otmcj-2021-0030","DOIUrl":"https://doi.org/10.2478/otmcj-2021-0030","url":null,"abstract":"Abstract Due to the wide range of opportunities, collaborations, and challenges offered by the international construction sector, interest in international construction is on the rise. Construction companies must be able to carry out international construction projects (ICPs) more effectively and efficiently. However, executing ICPs is more challenging than executing domestic construction projects. Considering the peculiarities of the construction industry and the associated complexity of construction projects, construction companies should decide on international capability and the selection of an ICP through a careful evaluation of their critical success factors (CSFs). Most of the previous research deals with the concept of CSFs in the context of project management in general, but few studies have identified CSFs for ICPs. To fill that gap in current research, the main objective of this study was to identify and group CSFs for ICPs. A total of 37 CSFs were identified after conducting a detailed literature review and a pre-pilot study. A new framework of CSFs for ICPs was proposed following primary research, which was conducted through in-depth interviews with leading experts in international projects. Although the constructability/complexity factor of the project received the highest rating in terms of importance to the success of the ICP, the next most critical factors were found to be external factors, such as local contractor/subcontractor, investor, and presence of a foreign partner. The results of this research may help participants involved in ICPs to improve their understanding of the international construction environment and deliver more successful ICPs.","PeriodicalId":42309,"journal":{"name":"Organization Technology and Management in Construction","volume":"13 1","pages":"2505 - 2520"},"PeriodicalIF":2.1,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43151306","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
X. Ferrada, Silvia Barrios, P. Masalan, Solange Campos-Romero, J. Carrillo, Yerko Molina
Abstract The construction industry is known for its high rate of accidents. Among the different possible causes of this situation, we could find lack of sleep and fatigue. Chronic sleep deprivation is a determining factor in the deterioration of vigilance and alert, and consequently a risk factor for occupational accidents. Fatigue is the answer of our organism to sustained physical and mental stress. Regretfully, those topics have been ovelooked in the construction industry. The objective of this study is to understand better these phenomena, such as sleep duration and fatigue, and whether they are interrelated, and to propose strategies to mitigate them and contribute to the reduction of accidents in construction projects. We worked with 154 male construction workers from one Chilean construction company. To assess sleep quality, we used the Pittsburgh Sleep Quality Index (PSQI). To evaluate fatigue, we used a personal computer version of the Psychomotor Vigilance Test (PC-PVT) that measures alertness and vigilance. This 5-minute test was performed on construction workers on-site in the morning. Those people who took part in the test were classified into various groups according to self-reported sleep hours, namely: 7–9 h (26%), 5–7 h (61.7%), and <5 h (12.3%). These results were compared for three variables (Mean Reaction Time (RT), 10% faster, and 10% slower) using an Analysis of Variance (ANOVA) test. Differences were found for Mean RT and Slowest 10%, the difference being greater in the group that reported sleeping <5 h, but without statistical significance. Studies with a greater number of subjects and measurements are required throughout the working day.
{"title":"Sleep duration and fatigue in construction workers: A preliminary study","authors":"X. Ferrada, Silvia Barrios, P. Masalan, Solange Campos-Romero, J. Carrillo, Yerko Molina","doi":"10.2478/otmcj-2021-0029","DOIUrl":"https://doi.org/10.2478/otmcj-2021-0029","url":null,"abstract":"Abstract The construction industry is known for its high rate of accidents. Among the different possible causes of this situation, we could find lack of sleep and fatigue. Chronic sleep deprivation is a determining factor in the deterioration of vigilance and alert, and consequently a risk factor for occupational accidents. Fatigue is the answer of our organism to sustained physical and mental stress. Regretfully, those topics have been ovelooked in the construction industry. The objective of this study is to understand better these phenomena, such as sleep duration and fatigue, and whether they are interrelated, and to propose strategies to mitigate them and contribute to the reduction of accidents in construction projects. We worked with 154 male construction workers from one Chilean construction company. To assess sleep quality, we used the Pittsburgh Sleep Quality Index (PSQI). To evaluate fatigue, we used a personal computer version of the Psychomotor Vigilance Test (PC-PVT) that measures alertness and vigilance. This 5-minute test was performed on construction workers on-site in the morning. Those people who took part in the test were classified into various groups according to self-reported sleep hours, namely: 7–9 h (26%), 5–7 h (61.7%), and <5 h (12.3%). These results were compared for three variables (Mean Reaction Time (RT), 10% faster, and 10% slower) using an Analysis of Variance (ANOVA) test. Differences were found for Mean RT and Slowest 10%, the difference being greater in the group that reported sleeping <5 h, but without statistical significance. Studies with a greater number of subjects and measurements are required throughout the working day.","PeriodicalId":42309,"journal":{"name":"Organization Technology and Management in Construction","volume":"13 1","pages":"2496 - 2504"},"PeriodicalIF":2.1,"publicationDate":"2021-07-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42999497","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Communication technology has drastically evolved in the last 10 years across the globe. With increased demand for data and voice traffic, fibre-optic network is preferred to transmit high-speed broadband. Nonetheless, fibre-optic infrastructure involves huge construction challenges and continues to fail because of ineffective leadership, stakeholder management and government policies. The main purpose of this study was to investigate how government policy intervenes on the joint influence of leadership skills and stakeholder management on execution of fibre-optic infrastructure in Nairobi County, Kenya. This study adopted the pragmatism paradigm approach, with a cross-sectional survey design. Census was used to select 187 respondents from a target population of 187 functional staff in fibre-optic infrastructure departments. A questionnaire was used to collect quantitative data while an interview guide was used to collect qualitative data. Statistical analysis techniques were used to analyse the data. It was demonstrated that government policy has a significant intervening influence on the joint influence of leadership skills and stakeholder management on execution of fibre-optic infrastructure. Therefore, governments should come up with policies to guide and regulate execution of fibre-optic infrastructure, review building code to allow for fibre-optic services in new buildings, develop right of way conduits and establish a centrally coordinated authority to facilitate time-bound issuance of permits and related services. It was suggested that similar studies should be carried out in other countries and target vendors and contractors engaged in supply of equipment and construction of fibre-optic infrastructure.
{"title":"Leadership skills, stakeholder management and execution of fibre-optic infrastructure: intervening influence of government policy","authors":"J. Akhwaba","doi":"10.2478/otmcj-2020-0014","DOIUrl":"https://doi.org/10.2478/otmcj-2020-0014","url":null,"abstract":"Abstract Communication technology has drastically evolved in the last 10 years across the globe. With increased demand for data and voice traffic, fibre-optic network is preferred to transmit high-speed broadband. Nonetheless, fibre-optic infrastructure involves huge construction challenges and continues to fail because of ineffective leadership, stakeholder management and government policies. The main purpose of this study was to investigate how government policy intervenes on the joint influence of leadership skills and stakeholder management on execution of fibre-optic infrastructure in Nairobi County, Kenya. This study adopted the pragmatism paradigm approach, with a cross-sectional survey design. Census was used to select 187 respondents from a target population of 187 functional staff in fibre-optic infrastructure departments. A questionnaire was used to collect quantitative data while an interview guide was used to collect qualitative data. Statistical analysis techniques were used to analyse the data. It was demonstrated that government policy has a significant intervening influence on the joint influence of leadership skills and stakeholder management on execution of fibre-optic infrastructure. Therefore, governments should come up with policies to guide and regulate execution of fibre-optic infrastructure, review building code to allow for fibre-optic services in new buildings, develop right of way conduits and establish a centrally coordinated authority to facilitate time-bound issuance of permits and related services. It was suggested that similar studies should be carried out in other countries and target vendors and contractors engaged in supply of equipment and construction of fibre-optic infrastructure.","PeriodicalId":42309,"journal":{"name":"Organization Technology and Management in Construction","volume":"13 1","pages":"2426 - 2437"},"PeriodicalIF":2.1,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49389243","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract This paper aims to develop a framework to achieve sustainability by overcoming the challenges of the construction supply chain (CCSC) during the design process. To achieve this, two approaches, namely theoretical and practical, were used to accomplish four objectives. For the theoretical approach, based on literature review and case studies, the objective used was to identify, classify and validate the challenges that the construction supply chain (CSC) encounter. For the practical approach, a survey questionnaire was employed to quantify the CCSC and investigate the perception of architectural design firms (ADFs) in Egypt towards achieving sustainability by overcoming the CCSC during the design process. Based on the results, the research developed a framework to overcome the CCSC as an approach towards achieving sustainability in construction projects during the design process. The research identified and validated 20 challenges that the CSC encounter towards achieving sustainability during the design process. These challenges were classified under four categories, namely (1) design and technical process; (2) coordination, information flow and accuracy; (3) material specification, technology, supplier rework and whole life cycle cost; and (4) skills gap of the qualified architects and design managers and non-compliance to building codes, regulations, laws and standards. In addition, a survey questionnaire was employed to rank these challenges according to their importance on 1–5 Likert scale using the measure of central tendency and dispersion and relative importance index (RII).
{"title":"A framework for achieving sustainability by overcoming the challenges of the construction supply chain during the design process","authors":"A. Othman, Nooran AlNassar","doi":"10.2478/otmcj-2021-0008","DOIUrl":"https://doi.org/10.2478/otmcj-2021-0008","url":null,"abstract":"Abstract This paper aims to develop a framework to achieve sustainability by overcoming the challenges of the construction supply chain (CCSC) during the design process. To achieve this, two approaches, namely theoretical and practical, were used to accomplish four objectives. For the theoretical approach, based on literature review and case studies, the objective used was to identify, classify and validate the challenges that the construction supply chain (CSC) encounter. For the practical approach, a survey questionnaire was employed to quantify the CCSC and investigate the perception of architectural design firms (ADFs) in Egypt towards achieving sustainability by overcoming the CCSC during the design process. Based on the results, the research developed a framework to overcome the CCSC as an approach towards achieving sustainability in construction projects during the design process. The research identified and validated 20 challenges that the CSC encounter towards achieving sustainability during the design process. These challenges were classified under four categories, namely (1) design and technical process; (2) coordination, information flow and accuracy; (3) material specification, technology, supplier rework and whole life cycle cost; and (4) skills gap of the qualified architects and design managers and non-compliance to building codes, regulations, laws and standards. In addition, a survey questionnaire was employed to rank these challenges according to their importance on 1–5 Likert scale using the measure of central tendency and dispersion and relative importance index (RII).","PeriodicalId":42309,"journal":{"name":"Organization Technology and Management in Construction","volume":"13 1","pages":"2391 - 2415"},"PeriodicalIF":2.1,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44963199","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Purpose The purpose of this study is to investigate the use of on-site factories that combine the strengths of both prefabrication techniques and a traditional work environment to support lean principles and promote industrialized construction for on-site operations. Design/methodology/approach Based on the principles of lean construction and design for manufacturing and assembly (DfMA), discrete-event simulation is used to evaluate different arrangements and configurations of an on-site factory for the prefabrication of structural insulated panels (SIPs). Findings The proposed on-site factory provided a feasible way to promote lean and industrialized construction principles. Also, these types of factories are particularly relevant for projects in remote areas that do not have sufficient infrastructure. Further, it is also a good solution for strengthening the local economy by using local labor and suppliers, hence assisting in the creation of a socially responsible framework. Originality/value This study presents the design of an on-site factory for the prefabrication of SIPs. This type of on-site assembly supports not only lean principles but also promotes social responsibility by capitalizing on local labor. This approach could be particularly interesting for construction companies in developing countries or working in a project with limited infrastructure.
{"title":"On-site factories to support lean principles and industrialized construction","authors":"Anton Rosarius, Borja García de Soto","doi":"10.2478/otmcj-2021-0004","DOIUrl":"https://doi.org/10.2478/otmcj-2021-0004","url":null,"abstract":"Abstract Purpose The purpose of this study is to investigate the use of on-site factories that combine the strengths of both prefabrication techniques and a traditional work environment to support lean principles and promote industrialized construction for on-site operations. Design/methodology/approach Based on the principles of lean construction and design for manufacturing and assembly (DfMA), discrete-event simulation is used to evaluate different arrangements and configurations of an on-site factory for the prefabrication of structural insulated panels (SIPs). Findings The proposed on-site factory provided a feasible way to promote lean and industrialized construction principles. Also, these types of factories are particularly relevant for projects in remote areas that do not have sufficient infrastructure. Further, it is also a good solution for strengthening the local economy by using local labor and suppliers, hence assisting in the creation of a socially responsible framework. Originality/value This study presents the design of an on-site factory for the prefabrication of SIPs. This type of on-site assembly supports not only lean principles but also promotes social responsibility by capitalizing on local labor. This approach could be particularly interesting for construction companies in developing countries or working in a project with limited infrastructure.","PeriodicalId":42309,"journal":{"name":"Organization Technology and Management in Construction","volume":"13 1","pages":"2353 - 2366"},"PeriodicalIF":2.1,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44577289","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
M. Šopić, M. Vukomanović, D. Car-Pušić, I. Zavrski
Abstract Current estimates of the actual productivity of heavy construction machinery at a construction site are not supported by an appropriate and widely used methodology. Recently, for the purpose of estimating the actual productivity of heavy construction machinery, vision-based technologies are used. This paper emphasizes the importance of estimating actual productivity and presents a way (i.e. a research framework) to achieve it. Therefore, the aim of this paper is to propose a simple research framework (SRF) for quick and practical estimates of excavator actual productivity and cycle time at a construction site. The excavator actual productivity refers to the maximum possible productivity in real construction site conditions. The SRF includes the use of a video camera and the analysis of recorded videos using an advanced computer program. In cases of continuous application of SRF, a clear and transparent base for monitoring and control of earthworks can be obtained at an observed construction site.
{"title":"Estimation of the excavator actual productivity at the construction site using video analysis","authors":"M. Šopić, M. Vukomanović, D. Car-Pušić, I. Zavrski","doi":"10.2478/otmcj-2021-0003","DOIUrl":"https://doi.org/10.2478/otmcj-2021-0003","url":null,"abstract":"Abstract Current estimates of the actual productivity of heavy construction machinery at a construction site are not supported by an appropriate and widely used methodology. Recently, for the purpose of estimating the actual productivity of heavy construction machinery, vision-based technologies are used. This paper emphasizes the importance of estimating actual productivity and presents a way (i.e. a research framework) to achieve it. Therefore, the aim of this paper is to propose a simple research framework (SRF) for quick and practical estimates of excavator actual productivity and cycle time at a construction site. The excavator actual productivity refers to the maximum possible productivity in real construction site conditions. The SRF includes the use of a video camera and the analysis of recorded videos using an advanced computer program. In cases of continuous application of SRF, a clear and transparent base for monitoring and control of earthworks can be obtained at an observed construction site.","PeriodicalId":42309,"journal":{"name":"Organization Technology and Management in Construction","volume":"13 1","pages":"2341 - 2352"},"PeriodicalIF":2.1,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49621700","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Large infrastructure investments are expected to be of sustained value to society for a long time. Such investment projects include, for instance, hospitals, tunnels, sport arenas, power plants, roads, railways, and bridges. They involve a complex organization of contracts and agreements. The client is expected to plan, procure, and determine the critical steps of a project, while the contractor should solve issues raised by the client. Many of these agreements are path-dependent and reflect past routines, experiences, and contacts. As such, many investments tend to return to similar sources instead of replacing routines and collaborations that did not work. This can cause change orders that furthermore reflect consequences such as cost and time overruns. While much is known about these effects in construction projects, this paper sheds light on the drivers of change orders. We build upon a sample of 234 observations responding to a survey on investment planning. The results show that project assumptions are often wrong and inadequate in large investments. Such wrong assumptions are caused by interpersonal and leadership issues, poor planning, or sometimes even intentional profit-seeking. Our results show that clients and contractors have different perceptions and enter contractual obligations differently. The implication is, therefore, that better routines of documentation, more frequent feedback, and more accurate or precise standards may close the gap between planning and what is actually achieved. More precise contractual agreements may also create a better process to procure, manage projects, and allocate resources.
{"title":"Drivers of cost and time overruns: A client and contractor perspective","authors":"P. Dahlin, Ossi Pesämaa","doi":"10.2478/otmcj-2021-0006","DOIUrl":"https://doi.org/10.2478/otmcj-2021-0006","url":null,"abstract":"Abstract Large infrastructure investments are expected to be of sustained value to society for a long time. Such investment projects include, for instance, hospitals, tunnels, sport arenas, power plants, roads, railways, and bridges. They involve a complex organization of contracts and agreements. The client is expected to plan, procure, and determine the critical steps of a project, while the contractor should solve issues raised by the client. Many of these agreements are path-dependent and reflect past routines, experiences, and contacts. As such, many investments tend to return to similar sources instead of replacing routines and collaborations that did not work. This can cause change orders that furthermore reflect consequences such as cost and time overruns. While much is known about these effects in construction projects, this paper sheds light on the drivers of change orders. We build upon a sample of 234 observations responding to a survey on investment planning. The results show that project assumptions are often wrong and inadequate in large investments. Such wrong assumptions are caused by interpersonal and leadership issues, poor planning, or sometimes even intentional profit-seeking. Our results show that clients and contractors have different perceptions and enter contractual obligations differently. The implication is, therefore, that better routines of documentation, more frequent feedback, and more accurate or precise standards may close the gap between planning and what is actually achieved. More precise contractual agreements may also create a better process to procure, manage projects, and allocate resources.","PeriodicalId":42309,"journal":{"name":"Organization Technology and Management in Construction","volume":"13 1","pages":"2374 - 2382"},"PeriodicalIF":2.1,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44169669","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Abstract Introduction Construction companies hold great significance in Saudi Arabia due to new developments taking place in the region. A project automatically turns out better if it has been selected based on the level of expertise and resources available to the construction company and vice versa. Purpose The study aims to investigate the importance of project selection by the contractors within the Saudi construction industry. Methodology The study has employed a quantitative research design to conduct a survey through the administration of questionnaire. A total of 46 employees from construction companies were selected. A questionnaire was distributed among maintenance contractors, contractors, and construction contractors. Findings The findings have shown that mostly organizations were unclassified or classified under the fifth category (projects valuing AED10,000,000 or lesser) (34.8%). Most of the respondents (94.4%) agreed that consideration of the project selection is important. Moreover, there is a positive correlation between the level of importance given to the project selection and the organizational size of the respondents. Success factors play an important role in the project selection phase. Practical implications Careful project selection is the first step toward the success of the construction company, so it needs to be carried out carefully.
{"title":"Assessing the role and significance of project selection by the contractors in the Saudi construction industry","authors":"A. Bageis, S. Alsulamy","doi":"10.2478/otmcj-2021-0005","DOIUrl":"https://doi.org/10.2478/otmcj-2021-0005","url":null,"abstract":"Abstract Introduction Construction companies hold great significance in Saudi Arabia due to new developments taking place in the region. A project automatically turns out better if it has been selected based on the level of expertise and resources available to the construction company and vice versa. Purpose The study aims to investigate the importance of project selection by the contractors within the Saudi construction industry. Methodology The study has employed a quantitative research design to conduct a survey through the administration of questionnaire. A total of 46 employees from construction companies were selected. A questionnaire was distributed among maintenance contractors, contractors, and construction contractors. Findings The findings have shown that mostly organizations were unclassified or classified under the fifth category (projects valuing AED10,000,000 or lesser) (34.8%). Most of the respondents (94.4%) agreed that consideration of the project selection is important. Moreover, there is a positive correlation between the level of importance given to the project selection and the organizational size of the respondents. Success factors play an important role in the project selection phase. Practical implications Careful project selection is the first step toward the success of the construction company, so it needs to be carried out carefully.","PeriodicalId":42309,"journal":{"name":"Organization Technology and Management in Construction","volume":"13 1","pages":"2367 - 2373"},"PeriodicalIF":2.1,"publicationDate":"2021-01-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41666982","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":0,"RegionCategory":"","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
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