Pub Date : 2023-09-12DOI: 10.1108/jfmpc-03-2023-0012
Pramod Malaka Silva, Niluka Domingo, Noushad Ali Naseem Ameer Ali
Purpose The construction industry is complex, human-intensive and driven by monetary values. Hence, disputes are widespread. Initial conflicts among parties may develop into a disastrous dispute that costs the project success and good relationships and affects stakeholders' expectations. There has been a focus on causes of construction-related disputes, and studies over the past three decades have attempted to identify a more comprehensive list of reasons for disputes. Some of these studies' limitations were geographical, project delivery methods and project types. The purpose of this study is to identify the most recent and conclusive list of causes of disputes based on current literature by undertaking a systematic literature review (SLR). Design/methodology/approach Considering the large number of studies that focused on causes of disputes, this study aims to develop a comprehensive list of causes, using a SLR, as it ensures that all previous articles in multiple databases are reviewed to produce a comprehensive outcome. A six-stage SLR was followed from background study to analysis and reporting. Findings Not surprisingly, the number of publications has increased over time, most from the Middle East region. The interconnected nature of the causes was widely emphasised. The SLR has produced eight common core causes of disputes. They are: poor contractual arrangements, employer-initiated scope changes, unforeseen site changes, poor contract understanding and administration, contractor’s quality of works, the inability of the contractor to achieve time targets, non- or delayed payments and poor quality of design. The majority of previous authors realised that disputes could be avoided by parties’ involvement during the early stages, avoiding being opportunistic and acting collaboratively. Originality/value Even though numerous studies have been carried out to identify the causes of disputes in the construction industry, none did a SLR. This study aggregates all the previous studies that focused on construction-related disputes systematically. Categorising causes based on the party primarily responsible help various stakeholders by providing a distinct list of factors to avoid that contribute to disputes.
{"title":"Causes of disputes in the construction industry – a systematic literature review","authors":"Pramod Malaka Silva, Niluka Domingo, Noushad Ali Naseem Ameer Ali","doi":"10.1108/jfmpc-03-2023-0012","DOIUrl":"https://doi.org/10.1108/jfmpc-03-2023-0012","url":null,"abstract":"Purpose The construction industry is complex, human-intensive and driven by monetary values. Hence, disputes are widespread. Initial conflicts among parties may develop into a disastrous dispute that costs the project success and good relationships and affects stakeholders' expectations. There has been a focus on causes of construction-related disputes, and studies over the past three decades have attempted to identify a more comprehensive list of reasons for disputes. Some of these studies' limitations were geographical, project delivery methods and project types. The purpose of this study is to identify the most recent and conclusive list of causes of disputes based on current literature by undertaking a systematic literature review (SLR). Design/methodology/approach Considering the large number of studies that focused on causes of disputes, this study aims to develop a comprehensive list of causes, using a SLR, as it ensures that all previous articles in multiple databases are reviewed to produce a comprehensive outcome. A six-stage SLR was followed from background study to analysis and reporting. Findings Not surprisingly, the number of publications has increased over time, most from the Middle East region. The interconnected nature of the causes was widely emphasised. The SLR has produced eight common core causes of disputes. They are: poor contractual arrangements, employer-initiated scope changes, unforeseen site changes, poor contract understanding and administration, contractor’s quality of works, the inability of the contractor to achieve time targets, non- or delayed payments and poor quality of design. The majority of previous authors realised that disputes could be avoided by parties’ involvement during the early stages, avoiding being opportunistic and acting collaboratively. Originality/value Even though numerous studies have been carried out to identify the causes of disputes in the construction industry, none did a SLR. This study aggregates all the previous studies that focused on construction-related disputes systematically. Categorising causes based on the party primarily responsible help various stakeholders by providing a distinct list of factors to avoid that contribute to disputes.","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":"33 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-09-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135824719","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}
Pub Date : 2023-08-07DOI: 10.1108/jfmpc-06-2021-0035
Mohammad Javad Abdolahi, Behnod Barmayehvar, Taimoor Marjani, Reza Esmaeilabadi
Purpose This study aims to show that human resource development (HRD) criteria have a significant role on the quality of building projects. Design/methodology/approach It is worth mentioning that the present research is a survey in terms of practical purpose and in terms of data collection. In this regard, first, review of the related literature and then the HRD criteria were identified and initial questionnaire was developed after interviews with connoisseurs and approved them. The questionnaire consists of three main criteria and 21 subcriteria that have been distributed among 50 experts. The statistical population of the research includes project managers of grade 1 building companies. Data were processed by SPSS software tests. Findings Findings showed that all three main criteria of HRD, including training, motivation and participation have a direct and positive effect on the quality index, but the effectiveness of the training criterion is more than motivation and participation. In other words, the desired quality cannot be achieved only by training employees, and with it, a sense of motivation and participation of employees must be aroused. Originality/value Most researchers believe that achieving good quality in construction projects depends on the performance of human resources, so the development of human resources in the construction industry is very important.
{"title":"Investigating the relationship between human resource development and quality in building projects","authors":"Mohammad Javad Abdolahi, Behnod Barmayehvar, Taimoor Marjani, Reza Esmaeilabadi","doi":"10.1108/jfmpc-06-2021-0035","DOIUrl":"https://doi.org/10.1108/jfmpc-06-2021-0035","url":null,"abstract":"Purpose This study aims to show that human resource development (HRD) criteria have a significant role on the quality of building projects. Design/methodology/approach It is worth mentioning that the present research is a survey in terms of practical purpose and in terms of data collection. In this regard, first, review of the related literature and then the HRD criteria were identified and initial questionnaire was developed after interviews with connoisseurs and approved them. The questionnaire consists of three main criteria and 21 subcriteria that have been distributed among 50 experts. The statistical population of the research includes project managers of grade 1 building companies. Data were processed by SPSS software tests. Findings Findings showed that all three main criteria of HRD, including training, motivation and participation have a direct and positive effect on the quality index, but the effectiveness of the training criterion is more than motivation and participation. In other words, the desired quality cannot be achieved only by training employees, and with it, a sense of motivation and participation of employees must be aroused. Originality/value Most researchers believe that achieving good quality in construction projects depends on the performance of human resources, so the development of human resources in the construction industry is very important.","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":"1 1","pages":"0"},"PeriodicalIF":0.0,"publicationDate":"2023-08-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"135840245","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}
Pub Date : 2023-07-28DOI: 10.1108/jfmpc-04-2022-0022
A. Senawi, A. Osmadi
Purpose The role of local authorities is crucial in addressing the essential needs of communities, and they possess the right to impose property taxes on all properties within their territory. Property taxes are levied on all properties, contributing to approximately 60% of the local authority’s finances. However, their role in this policy is not frequently understood, primarily in executing property tax reassessment. Hence, this paper aims to reveal property tax reassessment implementation and identify its key challenges. Design/methodology/approach The latest tone of the list record was extracted from the local government division, Ministry of Housing and Local Government Malaysia, to answer the research objective. The data were received on November 2021 by email. Furthermore, through the literature review, the most significant challenges in property tax reassessment were identified, compared and presented. Findings The results highlight that property tax reassessment implementation in West Malaysia is at the level of concern where only two councils have the latest tone of the list. However, larger councils have a higher performance compared to smaller councils. The findings also reveal various challenges in property tax reassessment, such as insufficient human resources, inadequate property systems and software and lack of financial capacity. Others include a shortage of competent assessors, lower public education, political interference and socioeconomic uncertainty. Practical implications This study offers practical implications to policy and decision-makers in the West Malaysian local authorities. Despite inferior performance by West Malaysian local authorities, there is a need for conducting property tax reassessment activity to ensure the quality and uniformity of the assessment. This study suggests that local government stakeholders and managers should devote more attention to formulating long-term plans and promoting the property tax reassessment practice. The property tax reform could solve the current situation of substandard reassessment activity. Originality/value This study explains, compares and interprets the actual statistical data through the figures and summarises the challenges of property tax reassessment activity among local authorities.
{"title":"Property tax reassessment among local authorities: the implementation and its key challenges","authors":"A. Senawi, A. Osmadi","doi":"10.1108/jfmpc-04-2022-0022","DOIUrl":"https://doi.org/10.1108/jfmpc-04-2022-0022","url":null,"abstract":"\u0000Purpose\u0000The role of local authorities is crucial in addressing the essential needs of communities, and they possess the right to impose property taxes on all properties within their territory. Property taxes are levied on all properties, contributing to approximately 60% of the local authority’s finances. However, their role in this policy is not frequently understood, primarily in executing property tax reassessment. Hence, this paper aims to reveal property tax reassessment implementation and identify its key challenges.\u0000\u0000\u0000Design/methodology/approach\u0000The latest tone of the list record was extracted from the local government division, Ministry of Housing and Local Government Malaysia, to answer the research objective. The data were received on November 2021 by email. Furthermore, through the literature review, the most significant challenges in property tax reassessment were identified, compared and presented.\u0000\u0000\u0000Findings\u0000The results highlight that property tax reassessment implementation in West Malaysia is at the level of concern where only two councils have the latest tone of the list. However, larger councils have a higher performance compared to smaller councils. The findings also reveal various challenges in property tax reassessment, such as insufficient human resources, inadequate property systems and software and lack of financial capacity. Others include a shortage of competent assessors, lower public education, political interference and socioeconomic uncertainty.\u0000\u0000\u0000Practical implications\u0000This study offers practical implications to policy and decision-makers in the West Malaysian local authorities. Despite inferior performance by West Malaysian local authorities, there is a need for conducting property tax reassessment activity to ensure the quality and uniformity of the assessment. This study suggests that local government stakeholders and managers should devote more attention to formulating long-term plans and promoting the property tax reassessment practice. The property tax reform could solve the current situation of substandard reassessment activity.\u0000\u0000\u0000Originality/value\u0000This study explains, compares and interprets the actual statistical data through the figures and summarises the challenges of property tax reassessment activity among local authorities.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-07-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47711614","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}
Pub Date : 2023-07-13DOI: 10.1108/jfmpc-11-2022-0057
A. Oyegoke, Ben Williams Fisher, Saheed Ajayi, T. Omotayo, Duga Ewuga
Purpose Supply chain disruptions have a significant impact on overall project delivery. This study aims to identify the supply chain disruptive factors and develop a framework to mitigate the disruptive effects on the supply chain. Covid-19 and Brexit disruption and their longevity effects in the short, medium and long term on the supply chain are relied upon to develop the framework. Design/methodology/approach The study adopted a mixed-method approach with a sequential explanatory design. The main disruptive factors were identified through a literature review, and key factors were selected through a focus group exercise. A questionnaire survey was carried out to sample opinions from the practitioners; 41 questionnaires were received and analysed using the relative importance index (RII) method for ranking the factors and percentage frequency distribution to determine the longevity effects. Five follow-up semi-structured interviews were conducted over the telephone and later transcribed. Findings The results of Covid-19 disruption indicate that material cost increase ranked first (RII: 0.863), logistics cost increase and supply chain interaction ranked second and third, respectively. They have long-term, medium-term and short-term longevity effects, respectively. The lowest-rated factors were communication (RII: 0.561), staff shortages (RII: 0.629) and impact on relationships (RII: 0.639). The three most ranked Brexit disruptive factors are supply chain interaction (RII: 0.775), material cost increase (RII: 0.766) and logistic and haulage delay (RII: 0.717). The first two factors have long-term effects, and the logistics and haulage delays have a medium-term impact. The mitigating solutions suggested in the framework are collaborative working, stronger resilience to external forces and better transparency and communication that will lead to good relationships among the supply chain members. Research limitations/implications The scope of the study was limited to the UK construction industry; however, the pandemic effect on supply chain can serve as critical learning curve in other developed and developing countries. Practical implications The study will help the government and construction firms to understand the focal areas of importance in solving the supply chain disruption problems based on the effects of Brexit and Covid-19. The research would be useful in ensuring the proactive involvement of the government and contracting firms in their preparedness for similar events in the future. The results could be interpreted for critical learning in other developed/developing countries. Originality/value Identifying and ranking the supply chain disruptive factors affecting the small‐ and medium‐sized enterprises (SMEs) in the UK construction industry has been the focal point of this study. The study also proposes a simple but effective framework comprising the highly ranked factors, their longevity effects and mitigating measures. This wi
{"title":"The disruptive factors and longevity effects of Covid-19 and Brexit on the SMEs construction supply chain in the UK","authors":"A. Oyegoke, Ben Williams Fisher, Saheed Ajayi, T. Omotayo, Duga Ewuga","doi":"10.1108/jfmpc-11-2022-0057","DOIUrl":"https://doi.org/10.1108/jfmpc-11-2022-0057","url":null,"abstract":"\u0000Purpose\u0000Supply chain disruptions have a significant impact on overall project delivery. This study aims to identify the supply chain disruptive factors and develop a framework to mitigate the disruptive effects on the supply chain. Covid-19 and Brexit disruption and their longevity effects in the short, medium and long term on the supply chain are relied upon to develop the framework.\u0000\u0000\u0000Design/methodology/approach\u0000The study adopted a mixed-method approach with a sequential explanatory design. The main disruptive factors were identified through a literature review, and key factors were selected through a focus group exercise. A questionnaire survey was carried out to sample opinions from the practitioners; 41 questionnaires were received and analysed using the relative importance index (RII) method for ranking the factors and percentage frequency distribution to determine the longevity effects. Five follow-up semi-structured interviews were conducted over the telephone and later transcribed.\u0000\u0000\u0000Findings\u0000The results of Covid-19 disruption indicate that material cost increase ranked first (RII: 0.863), logistics cost increase and supply chain interaction ranked second and third, respectively. They have long-term, medium-term and short-term longevity effects, respectively. The lowest-rated factors were communication (RII: 0.561), staff shortages (RII: 0.629) and impact on relationships (RII: 0.639). The three most ranked Brexit disruptive factors are supply chain interaction (RII: 0.775), material cost increase (RII: 0.766) and logistic and haulage delay (RII: 0.717). The first two factors have long-term effects, and the logistics and haulage delays have a medium-term impact. The mitigating solutions suggested in the framework are collaborative working, stronger resilience to external forces and better transparency and communication that will lead to good relationships among the supply chain members.\u0000\u0000\u0000Research limitations/implications\u0000The scope of the study was limited to the UK construction industry; however, the pandemic effect on supply chain can serve as critical learning curve in other developed and developing countries.\u0000\u0000\u0000Practical implications\u0000The study will help the government and construction firms to understand the focal areas of importance in solving the supply chain disruption problems based on the effects of Brexit and Covid-19. The research would be useful in ensuring the proactive involvement of the government and contracting firms in their preparedness for similar events in the future. The results could be interpreted for critical learning in other developed/developing countries.\u0000\u0000\u0000Originality/value\u0000Identifying and ranking the supply chain disruptive factors affecting the small‐ and medium‐sized enterprises (SMEs) in the UK construction industry has been the focal point of this study. The study also proposes a simple but effective framework comprising the highly ranked factors, their longevity effects and mitigating measures. This wi","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-07-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46289996","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}
Pub Date : 2023-07-13DOI: 10.1108/jfmpc-02-2023-0006
Haitham Alajmani, Salma Ahmed, S. El-Sayegh
Purpose This paper aims to measure the severity, frequency and importance of the factors causing delays in the United Arab Emirates (UAE) construction industry following the Covid-19 pandemic onset. The study also measures the likelihood of the effects caused by these delays. Design/methodology/approach A mixed approach of both qualitative and quantitative. Literature review was conducted to extract 40 factors of delays and 10 effects of delays. A survey was then administered to construction professionals in the UAE to collect the perceptions on the severity and frequency of factors of the causes of delays using a Likert Scale of 1–5 where 1 represented very low and 5 represented very high. Similarly, the respondents were also asked to rate the likelihood of the occurrence of the effects of the delays based on a Likert scale of 1–5 as well. Furthermore, Spearman’s rank correlation was also conducted to compute the level of agreement between the different parties; owner, consultants and contractors. Findings The results revealed that the top five factors of delays include: award the project for the lowest bidder, delay in progress payment, change orders by the owner, poor subcontractor performance and inadequate planning and scheduling by the contractor. The findings of this study emphasize the financial challenges and economic crisis brought upon the construction industry due to the pandemic. Furthermore, the pandemic also shifted the perceptions of construction professionals, who are now more aware of the delays caused by awarding the project to the lowest bidder who would not have the required qualifications to conduct efficient planning and scheduling that are relevant in the case of extraordinary events such as Covid-19. Moreover, a high level of agreement between the consultants and contractors was observed, with a Spearman’s rank correlation of 0.804. Additionally, the most likely effects of delays concluded from this study were time overrun/extension and poor quality of work. Originality/value Literature review is very rich in the field of construction projects delays. However, there is very limited research on the impact of Covid-19 in the context of construction projects delays, and insights from construction professionals regarding this matter are particularly lacking in literature. Therefore, this paper bridges the gap in literature by providing perceptions of construction professionals on the impact of Covid-19 on the factors causing delays in the UAE construction industry. The findings of this research are expected to be an invaluable resource for future to help the construction industry heal faster when encountering similar epidemics or extraordinary events.
{"title":"Factors causing delays in the UAE construction industry amid the Covid-19 pandemic","authors":"Haitham Alajmani, Salma Ahmed, S. El-Sayegh","doi":"10.1108/jfmpc-02-2023-0006","DOIUrl":"https://doi.org/10.1108/jfmpc-02-2023-0006","url":null,"abstract":"\u0000Purpose\u0000This paper aims to measure the severity, frequency and importance of the factors causing delays in the United Arab Emirates (UAE) construction industry following the Covid-19 pandemic onset. The study also measures the likelihood of the effects caused by these delays.\u0000\u0000\u0000Design/methodology/approach\u0000A mixed approach of both qualitative and quantitative. Literature review was conducted to extract 40 factors of delays and 10 effects of delays. A survey was then administered to construction professionals in the UAE to collect the perceptions on the severity and frequency of factors of the causes of delays using a Likert Scale of 1–5 where 1 represented very low and 5 represented very high. Similarly, the respondents were also asked to rate the likelihood of the occurrence of the effects of the delays based on a Likert scale of 1–5 as well. Furthermore, Spearman’s rank correlation was also conducted to compute the level of agreement between the different parties; owner, consultants and contractors.\u0000\u0000\u0000Findings\u0000The results revealed that the top five factors of delays include: award the project for the lowest bidder, delay in progress payment, change orders by the owner, poor subcontractor performance and inadequate planning and scheduling by the contractor. The findings of this study emphasize the financial challenges and economic crisis brought upon the construction industry due to the pandemic. Furthermore, the pandemic also shifted the perceptions of construction professionals, who are now more aware of the delays caused by awarding the project to the lowest bidder who would not have the required qualifications to conduct efficient planning and scheduling that are relevant in the case of extraordinary events such as Covid-19. Moreover, a high level of agreement between the consultants and contractors was observed, with a Spearman’s rank correlation of 0.804. Additionally, the most likely effects of delays concluded from this study were time overrun/extension and poor quality of work.\u0000\u0000\u0000Originality/value\u0000Literature review is very rich in the field of construction projects delays. However, there is very limited research on the impact of Covid-19 in the context of construction projects delays, and insights from construction professionals regarding this matter are particularly lacking in literature. Therefore, this paper bridges the gap in literature by providing perceptions of construction professionals on the impact of Covid-19 on the factors causing delays in the UAE construction industry. The findings of this research are expected to be an invaluable resource for future to help the construction industry heal faster when encountering similar epidemics or extraordinary events.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-07-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43471036","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}
Pub Date : 2023-07-12DOI: 10.1108/jfmpc-10-2022-0055
A. S. Kukah, D. Owusu-Manu, E. Badu, D. J. Edwards, E. Asamoah
Purpose Public-private partnership (PPP) power projects are associated with varying risk factors. This paper aims to develop a fuzzy quantitative risk allocation model (QRAM) to guide decision-making on risk allocation in PPP power projects in Ghana. Design/methodology/approach A total of 67 risk factors and 9 risk allocation criteria were established from literature and ranked in a two-round Delphi survey using questionnaires. The fuzzy synthetic evaluation method was used in developing the risk allocation model. Findings The model’s output variable is the risk allocation proportions between the public body and private body based on their capability to manage the risk factors. Out of the 37 critical risk factors, the public sector was allocated 12 risk factors with proportions = 50%, while the private sector was allocated 25 risk factors with proportions = 50%. Originality/value To the best of the authors’ knowledge, this research presents the first attempt in Ghana at endeavouring to develop a QRAM for PPP power projects. There is confidence in the model to efficiently allocate risks emanating from PPP power projects.
{"title":"Fuzzy quantitative risk allocation model (FQRAM) to guide decision-making on risk allocation in Ghanaian public-private partnership (PPP) power projects","authors":"A. S. Kukah, D. Owusu-Manu, E. Badu, D. J. Edwards, E. Asamoah","doi":"10.1108/jfmpc-10-2022-0055","DOIUrl":"https://doi.org/10.1108/jfmpc-10-2022-0055","url":null,"abstract":"\u0000Purpose\u0000Public-private partnership (PPP) power projects are associated with varying risk factors. This paper aims to develop a fuzzy quantitative risk allocation model (QRAM) to guide decision-making on risk allocation in PPP power projects in Ghana.\u0000\u0000\u0000Design/methodology/approach\u0000A total of 67 risk factors and 9 risk allocation criteria were established from literature and ranked in a two-round Delphi survey using questionnaires. The fuzzy synthetic evaluation method was used in developing the risk allocation model.\u0000\u0000\u0000Findings\u0000The model’s output variable is the risk allocation proportions between the public body and private body based on their capability to manage the risk factors. Out of the 37 critical risk factors, the public sector was allocated 12 risk factors with proportions = 50%, while the private sector was allocated 25 risk factors with proportions = 50%.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this research presents the first attempt in Ghana at endeavouring to develop a QRAM for PPP power projects. There is confidence in the model to efficiently allocate risks emanating from PPP power projects.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-07-12","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43910182","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}
Pub Date : 2023-07-07DOI: 10.1108/jfmpc-08-2022-0041
Xiaojie Xu, Yun Zhang
Purpose The Chinese housing market has witnessed rapid growth during the past decade and the significance of housing price forecasting has undoubtedly elevated, becoming an important issue to investors and policymakers. This study aims to examine neural networks (NNs) for office property price index forecasting from 10 major Chinese cities for July 2005–April 2021. Design/methodology/approach The authors aim at building simple and accurate NNs to contribute to pure technical forecasts of the Chinese office property market. To facilitate the analysis, the authors explore different model settings over algorithms, delays, hidden neurons and data-spitting ratios. Findings The authors reach a simple NN with three delays and three hidden neurons, which leads to stable performance of about 1.45% average relative root mean square error across the 10 cities for the training, validation and testing phases. Originality/value The results could be used on a standalone basis or combined with fundamental forecasts to form perspectives of office property price trends and conduct policy analysis.
{"title":"Office property price index forecasting using neural networks","authors":"Xiaojie Xu, Yun Zhang","doi":"10.1108/jfmpc-08-2022-0041","DOIUrl":"https://doi.org/10.1108/jfmpc-08-2022-0041","url":null,"abstract":"\u0000Purpose\u0000The Chinese housing market has witnessed rapid growth during the past decade and the significance of housing price forecasting has undoubtedly elevated, becoming an important issue to investors and policymakers. This study aims to examine neural networks (NNs) for office property price index forecasting from 10 major Chinese cities for July 2005–April 2021.\u0000\u0000\u0000Design/methodology/approach\u0000The authors aim at building simple and accurate NNs to contribute to pure technical forecasts of the Chinese office property market. To facilitate the analysis, the authors explore different model settings over algorithms, delays, hidden neurons and data-spitting ratios.\u0000\u0000\u0000Findings\u0000The authors reach a simple NN with three delays and three hidden neurons, which leads to stable performance of about 1.45% average relative root mean square error across the 10 cities for the training, validation and testing phases.\u0000\u0000\u0000Originality/value\u0000The results could be used on a standalone basis or combined with fundamental forecasts to form perspectives of office property price trends and conduct policy analysis.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-07-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44695798","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}
Pub Date : 2023-06-27DOI: 10.1108/jfmpc-09-2022-0048
N. Fernando, Kasun Dilshan T.A., Hexin Zhang
Purpose The Government’s investment in infrastructure projects is considerably high, especially in bridge construction projects. Government authorities must establish an initial forecasted budget to have transparency in transactions. Early cost estimating is challenging for Quantity Surveyors due to incomplete project details at the initial stage and the unavailability of standard cost estimating techniques for bridge projects. To mitigate the difficulties in the traditional preliminary cost estimating methods, there is a requirement to develop a new initial cost estimating model which is accurate, user friendly and straightforward. The research was carried out in Sri Lanka, and this paper aims to develop the artificial neural network (ANN) model for an early cost estimate of concrete bridge systems. Design/methodology/approach The construction cost data of 30 concrete bridge projects which are in Sri Lanka constructed within the past ten years were trained and tested to develop an ANN cost model. Backpropagation technique was used to identify the number of hidden layers, iteration and momentum for optimum neural network architectures. Findings An ANN cost model was developed, furnishing the best result since it succeeded with around 90% validation accuracy. It created a cost estimation model for the public sector as an accurate, heuristic, flexible and efficient technique. Originality/value The research contributes to the current body of knowledge by providing the most accurate early-stage cost estimate for the concrete bridge systems in Sri Lanka. In addition, the research findings would be helpful for stakeholders and policymakers to propose policy recommendations that positively influence the prediction of the most accurate cost estimate for concrete bridge construction projects in Sri Lanka and other developing countries.
{"title":"An artificial neural network (ANN) approach for early cost estimation of concrete bridge systems in developing countries: the case of Sri Lanka","authors":"N. Fernando, Kasun Dilshan T.A., Hexin Zhang","doi":"10.1108/jfmpc-09-2022-0048","DOIUrl":"https://doi.org/10.1108/jfmpc-09-2022-0048","url":null,"abstract":"\u0000Purpose\u0000The Government’s investment in infrastructure projects is considerably high, especially in bridge construction projects. Government authorities must establish an initial forecasted budget to have transparency in transactions. Early cost estimating is challenging for Quantity Surveyors due to incomplete project details at the initial stage and the unavailability of standard cost estimating techniques for bridge projects. To mitigate the difficulties in the traditional preliminary cost estimating methods, there is a requirement to develop a new initial cost estimating model which is accurate, user friendly and straightforward. The research was carried out in Sri Lanka, and this paper aims to develop the artificial neural network (ANN) model for an early cost estimate of concrete bridge systems.\u0000\u0000\u0000Design/methodology/approach\u0000The construction cost data of 30 concrete bridge projects which are in Sri Lanka constructed within the past ten years were trained and tested to develop an ANN cost model. Backpropagation technique was used to identify the number of hidden layers, iteration and momentum for optimum neural network architectures.\u0000\u0000\u0000Findings\u0000An ANN cost model was developed, furnishing the best result since it succeeded with around 90% validation accuracy. It created a cost estimation model for the public sector as an accurate, heuristic, flexible and efficient technique.\u0000\u0000\u0000Originality/value\u0000The research contributes to the current body of knowledge by providing the most accurate early-stage cost estimate for the concrete bridge systems in Sri Lanka. In addition, the research findings would be helpful for stakeholders and policymakers to propose policy recommendations that positively influence the prediction of the most accurate cost estimate for concrete bridge construction projects in Sri Lanka and other developing countries.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-06-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45677773","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}
Pub Date : 2023-06-23DOI: 10.1108/jfmpc-12-2022-0067
Xiangyang Hu, Eliza Nor, C. Hooy
Purpose This study aims to investigate the relationship between political connections and the over-indebtedness of firms in the construction industry. Furthermore, this study explores the moderating effect of corporate governance mechanisms with monitoring intent on this relationship. Design/methodology/approach This study uses the data from China’s listed construction firms for the years 2010–2019 to run the fixed-effect regression. This study constructs the optimal capital structure mathematical model by following the trade-off approach. Findings The research results show that most of China’s listed construction firms are surprisingly over-indebted in the long run. This study affirms that political connections positively impact the over-indebtedness of China’s listed construction firms. However, corporate governance can alleviate the impact of political connections on the over-indebtedness of China’s listed construction firms. Originality/value There were limited studies to discuss the relationship between political connections and the over-indebtedness of construction firms, and no particular attention has been given to the moderating effect of corporate governance mechanisms on the relationship between political connections and over-indebtedness. Moreover, in calculating the over-indebtedness of China’s listed construction firms, this study considers the financial characteristics of China’s construction firms when building the mathematical model of optimal capital structure, which makes the calculation results of over-indebtedness closer to reality.
{"title":"Do political connections cause over-indebtedness? Empirical evidence from China’s listed construction firms","authors":"Xiangyang Hu, Eliza Nor, C. Hooy","doi":"10.1108/jfmpc-12-2022-0067","DOIUrl":"https://doi.org/10.1108/jfmpc-12-2022-0067","url":null,"abstract":"\u0000Purpose\u0000This study aims to investigate the relationship between political connections and the over-indebtedness of firms in the construction industry. Furthermore, this study explores the moderating effect of corporate governance mechanisms with monitoring intent on this relationship.\u0000\u0000\u0000Design/methodology/approach\u0000This study uses the data from China’s listed construction firms for the years 2010–2019 to run the fixed-effect regression. This study constructs the optimal capital structure mathematical model by following the trade-off approach.\u0000\u0000\u0000Findings\u0000The research results show that most of China’s listed construction firms are surprisingly over-indebted in the long run. This study affirms that political connections positively impact the over-indebtedness of China’s listed construction firms. However, corporate governance can alleviate the impact of political connections on the over-indebtedness of China’s listed construction firms.\u0000\u0000\u0000Originality/value\u0000There were limited studies to discuss the relationship between political connections and the over-indebtedness of construction firms, and no particular attention has been given to the moderating effect of corporate governance mechanisms on the relationship between political connections and over-indebtedness. Moreover, in calculating the over-indebtedness of China’s listed construction firms, this study considers the financial characteristics of China’s construction firms when building the mathematical model of optimal capital structure, which makes the calculation results of over-indebtedness closer to reality.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-06-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"45980872","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}
Pub Date : 2023-06-19DOI: 10.1108/jfmpc-01-2022-0004
Magali Costa, Inês Lisboa
Purpose This paper aims to study the default risk of small and medium-sized enterprises in the construction sector. Design/methodology/approach An unbalanced sample of 2,754 Portuguese companies from the construction sector, from 2008 to 2020, is analysed. Companies are classified in default or compliant following an ex-ante criterion. Then, using the stepwise analysis, the most relevant variables are selected, which are later used in the logit model. To verify the robustness of the results, a sample of legally insolvent companies is added (mixed criterion) and the initial sample is split into two subperiods. Findings Financial variables are the most relevant to predict the pattern for this sample. The main conclusions show that smaller and older companies, more indebted, with more liquidity and with higher EBIT have a higher probability of default. These conclusions are confirmed using a mixed criterion to classify companies as default or compliant and including a macroeconomic dummy. Practical implications This work not only contributes to enlarging the literature review but also makes relevant contributions to practice. Companies from the construction sector can understand which indicators must control to avoid financial problems. The government also has relevant information that can help in adapting or creating regulations for recovering or revitalizing companies. Originality/value This study proposed an ex-ante criterion that can be used for all types of companies. Most works use a legal or a mixed criterion that does not allow for detecting signs of financial problems in advance. Moreover, the sample used is almost unexplored – SMEs from a sector with great mortality rate.
{"title":"Default prediction of small and medium enterprises: Portuguese construction sector","authors":"Magali Costa, Inês Lisboa","doi":"10.1108/jfmpc-01-2022-0004","DOIUrl":"https://doi.org/10.1108/jfmpc-01-2022-0004","url":null,"abstract":"\u0000Purpose\u0000This paper aims to study the default risk of small and medium-sized enterprises in the construction sector.\u0000\u0000\u0000Design/methodology/approach\u0000An unbalanced sample of 2,754 Portuguese companies from the construction sector, from 2008 to 2020, is analysed. Companies are classified in default or compliant following an ex-ante criterion. Then, using the stepwise analysis, the most relevant variables are selected, which are later used in the logit model. To verify the robustness of the results, a sample of legally insolvent companies is added (mixed criterion) and the initial sample is split into two subperiods.\u0000\u0000\u0000Findings\u0000Financial variables are the most relevant to predict the pattern for this sample. The main conclusions show that smaller and older companies, more indebted, with more liquidity and with higher EBIT have a higher probability of default. These conclusions are confirmed using a mixed criterion to classify companies as default or compliant and including a macroeconomic dummy.\u0000\u0000\u0000Practical implications\u0000This work not only contributes to enlarging the literature review but also makes relevant contributions to practice. Companies from the construction sector can understand which indicators must control to avoid financial problems. The government also has relevant information that can help in adapting or creating regulations for recovering or revitalizing companies.\u0000\u0000\u0000Originality/value\u0000This study proposed an ex-ante criterion that can be used for all types of companies. Most works use a legal or a mixed criterion that does not allow for detecting signs of financial problems in advance. Moreover, the sample used is almost unexplored – SMEs from a sector with great mortality rate.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2023-06-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46093569","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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