Pub Date : 2022-03-01DOI: 10.1108/jfmpc-07-2021-0042
S. Abdullah, Muhammad Rosmizan Abdul Wahab, Arman Abdul Razak, M. Hanafi
Purpose The purpose of this study was identifying factors that encourage property tax payment among property owners, specifically from the residential property segment within the Malaysian context. This aim is derived from existing evidence which clearly indicates a steady annual increase in property tax arrears from non-complying property owners as reported by the local governments (LGs). Design/methodology/approach This research was conducted using a survey method where a questionnaire was used as the research instrument in garnering the necessary study data. The collected data was analyzed through quantitative means towards gleaning study findings to fulfil the set objectives. The analyses used within this study were reliability analysis, descriptive analysis and factor analysis. Findings Research findings indicate that there are five factors that encourage property tax payment, namely, the proactive action capability of LGs; stimulation of payment; quality of staff and service; reliable tax foundation and governance; and smart expenditure. The identification of these factors has the potential to act as a mitigation mechanism for LGs to alleviate the issue of property tax arrears. Research limitations/implications The findings of this study may be used by LGs in developing a comprehensive action plan to encourage property owners to pay taxes. The study findings are exploratory in nature, based on the locality of the LG selected in this study, the Penang Island City Council (MBPP). As such, the findings may not be considered as a generalization of the property tax situation throughout Malaysia as study data was only collected from the administrative region of MBPP. However, these findings can still be used as a basis in establishing similar studies within other LGs which demonstrate similar characteristics with MBPP. Originality/value In the Malaysian scenario, the focus of the previous studies on property tax arrears revolves around actions that have been taken by LGs to encourage the payment of property tax. However, in this study, the determination of encouraging factors is no longer referred to LG perspectives but was investigated from the taxpayer dimension. This approach allows new mitigating ideas to be developed and adds value in the context of a different perspective towards establishing a more practicable action plan in reducing property tax arrears.
{"title":"Property taxation: the encouraging factors for payment among the taxpayers","authors":"S. Abdullah, Muhammad Rosmizan Abdul Wahab, Arman Abdul Razak, M. Hanafi","doi":"10.1108/jfmpc-07-2021-0042","DOIUrl":"https://doi.org/10.1108/jfmpc-07-2021-0042","url":null,"abstract":"\u0000Purpose\u0000The purpose of this study was identifying factors that encourage property tax payment among property owners, specifically from the residential property segment within the Malaysian context. This aim is derived from existing evidence which clearly indicates a steady annual increase in property tax arrears from non-complying property owners as reported by the local governments (LGs).\u0000\u0000\u0000Design/methodology/approach\u0000This research was conducted using a survey method where a questionnaire was used as the research instrument in garnering the necessary study data. The collected data was analyzed through quantitative means towards gleaning study findings to fulfil the set objectives. The analyses used within this study were reliability analysis, descriptive analysis and factor analysis.\u0000\u0000\u0000Findings\u0000Research findings indicate that there are five factors that encourage property tax payment, namely, the proactive action capability of LGs; stimulation of payment; quality of staff and service; reliable tax foundation and governance; and smart expenditure. The identification of these factors has the potential to act as a mitigation mechanism for LGs to alleviate the issue of property tax arrears.\u0000\u0000\u0000Research limitations/implications\u0000The findings of this study may be used by LGs in developing a comprehensive action plan to encourage property owners to pay taxes. The study findings are exploratory in nature, based on the locality of the LG selected in this study, the Penang Island City Council (MBPP). As such, the findings may not be considered as a generalization of the property tax situation throughout Malaysia as study data was only collected from the administrative region of MBPP. However, these findings can still be used as a basis in establishing similar studies within other LGs which demonstrate similar characteristics with MBPP.\u0000\u0000\u0000Originality/value\u0000In the Malaysian scenario, the focus of the previous studies on property tax arrears revolves around actions that have been taken by LGs to encourage the payment of property tax. However, in this study, the determination of encouraging factors is no longer referred to LG perspectives but was investigated from the taxpayer dimension. This approach allows new mitigating ideas to be developed and adds value in the context of a different perspective towards establishing a more practicable action plan in reducing property tax arrears.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2022-03-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"49614996","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}
Purpose This paper aims to develop a crisis readiness framework for road traffic crisis response for law enforcement agencies in the United Arab Emirates (UAE). Design/methodology/approach A Delphi method was used that combined questionnaire-based survey and the analytical hierarchy process to collect quantitative and qualitative data from an expert panel of crisis readiness professionals on how they prioritise and weigh the different strategic criteria, sub-criteria and performance indicators in the context of law enforcement agencies’ traffic response. Findings The findings of this paper resulted in the identification, ranking and validation of ten key dimensions of crisis readiness clustered into three distinct sets of priority rankings: response planning, resources, training and coordination; information management and communication and risk and hazard assessment; and early warning, legal and institutional frameworks, recovery initiation and property protection. The results additionally established the relative priority of sub-criteria for each criterion and validated a broad set of key performance indicators (KPIs) for the top six ranked criteria. Research limitations/implications The findings are based on a single case study focused on a specific area of operation within crisis response and one group of organisations of the UAE police sector. This potentially places a constraint on the wider generalisation of the findings to different operational areas and agencies, as they may have different priorities or organisational conditions that have implications for the framework application and the relative importance of certain criteria and sub-criteria. Practical implications This paper provides strategic guidance in the form of a prioritised list of criteria, sub-criteria and KPIs that can direct efforts to optimise different dimensions of crisis readiness at a strategic and operational level. Originality/value This paper makes an original contribution in identifying the key criteria and performance indicators of crisis readiness for road traffic situations. The findings contribute a comprehensive strategic readiness framework that supports planning and decision-making for the development of organisational capacities that can enhance response times of police to road traffic crises. This framework ranks dimensions of crisis readiness and key sub-criteria in order of priority and validates the key components of crisis readiness that can support practitioners to structure, standardise and benchmark key processes and elements of crisis response.
{"title":"Prioritisation of resilience criteria and performance indicators for road emergencies crisis response: an analytic hierarchy process (AHP) approach","authors":"Zeeshan Aziz, Ebrahim Alzaabi, Mohamad Syazli Fathi","doi":"10.1108/jfmpc-11-2021-0065","DOIUrl":"https://doi.org/10.1108/jfmpc-11-2021-0065","url":null,"abstract":"\u0000Purpose\u0000This paper aims to develop a crisis readiness framework for road traffic crisis response for law enforcement agencies in the United Arab Emirates (UAE).\u0000\u0000\u0000Design/methodology/approach\u0000A Delphi method was used that combined questionnaire-based survey and the analytical hierarchy process to collect quantitative and qualitative data from an expert panel of crisis readiness professionals on how they prioritise and weigh the different strategic criteria, sub-criteria and performance indicators in the context of law enforcement agencies’ traffic response.\u0000\u0000\u0000Findings\u0000The findings of this paper resulted in the identification, ranking and validation of ten key dimensions of crisis readiness clustered into three distinct sets of priority rankings: response planning, resources, training and coordination; information management and communication and risk and hazard assessment; and early warning, legal and institutional frameworks, recovery initiation and property protection. The results additionally established the relative priority of sub-criteria for each criterion and validated a broad set of key performance indicators (KPIs) for the top six ranked criteria.\u0000\u0000\u0000Research limitations/implications\u0000The findings are based on a single case study focused on a specific area of operation within crisis response and one group of organisations of the UAE police sector. This potentially places a constraint on the wider generalisation of the findings to different operational areas and agencies, as they may have different priorities or organisational conditions that have implications for the framework application and the relative importance of certain criteria and sub-criteria.\u0000\u0000\u0000Practical implications\u0000This paper provides strategic guidance in the form of a prioritised list of criteria, sub-criteria and KPIs that can direct efforts to optimise different dimensions of crisis readiness at a strategic and operational level.\u0000\u0000\u0000Originality/value\u0000This paper makes an original contribution in identifying the key criteria and performance indicators of crisis readiness for road traffic situations. The findings contribute a comprehensive strategic readiness framework that supports planning and decision-making for the development of organisational capacities that can enhance response times of police to road traffic crises. This framework ranks dimensions of crisis readiness and key sub-criteria in order of priority and validates the key components of crisis readiness that can support practitioners to structure, standardise and benchmark key processes and elements of crisis response.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2022-02-16","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43096527","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 : 2022-01-27DOI: 10.1108/jfmpc-04-2021-0027
D. Kantianis
Purpose This research aims to develop conceptual phase building project cost forecasting models by exploring the relationship of existing plan shape complexity indices and general design morphology parameters with total construction cost. Design/methodology/approach Plan shape indices proposed to date by the literature for measuring building design complexity are critically reviewed. Building morphology is also dictated by town planning restrictions such as plot coverage ratio or number of storeys. This study analyses historical data collected from 49 residential building projects to develop multiple linear regression (MLR) and artificial neural network (ANN) models for forecasting construction cost. Existing plan shape coefficients are calculated to evaluate the geometrical complexity of sampled projects. Ten regression-based cost estimating equations are totally derived from stepwise backward and forward methods, and their predictive accuracy is contrasted: to performance levels reported in past studies and to ANN models developed in this research with multilayer perceptron architecture. Findings Analysis of plan shape indices revealed that 85.7% of examined past projects possess a high degree of design complexity, hence resulting in expensive initial decisions. This highlights the need for more effective early design stage decision-making by developing new building economic tools. The most accurate regression model, with a mean absolute percentage error (MAPE) of 19.2%, predicts the log of total cost from wall to floor index and total building envelope surface. Other explanatory variables resulting in MAPE values in the order of 20%–22% are total volume, volume above ground level, gross floor area below ground level, gross floor area per storey and total number of storeys. The overall MAPE of regression-based equations is 24.3% whilst ANN models are slightly more accurate with MAPE scores of 21.8% and 21.6% for one hidden and two hidden layers, respectively. The most accurate forecasting model in the research is the ANN with two hidden layers and the sigmoid activation function which predicts total building cost from total building volume (19.1%). Originality/value This paper introduces MLR-based and ANN-based conceptual construction cost forecasting models which are founded solely on building morphology design parameters and compare favourably with previous studies with an average predictive accuracy less than 25%. This paper is expected to be beneficial to both practitioners and academics in the built environment towards more effective cost planning of building projects. The methodology suggested can further be implemented in other countries provided that accurate and relevant data from historical projects are used.
{"title":"Design morphology complexity and conceptual building project cost forecasting","authors":"D. Kantianis","doi":"10.1108/jfmpc-04-2021-0027","DOIUrl":"https://doi.org/10.1108/jfmpc-04-2021-0027","url":null,"abstract":"\u0000Purpose\u0000This research aims to develop conceptual phase building project cost forecasting models by exploring the relationship of existing plan shape complexity indices and general design morphology parameters with total construction cost.\u0000\u0000\u0000Design/methodology/approach\u0000Plan shape indices proposed to date by the literature for measuring building design complexity are critically reviewed. Building morphology is also dictated by town planning restrictions such as plot coverage ratio or number of storeys. This study analyses historical data collected from 49 residential building projects to develop multiple linear regression (MLR) and artificial neural network (ANN) models for forecasting construction cost. Existing plan shape coefficients are calculated to evaluate the geometrical complexity of sampled projects. Ten regression-based cost estimating equations are totally derived from stepwise backward and forward methods, and their predictive accuracy is contrasted: to performance levels reported in past studies and to ANN models developed in this research with multilayer perceptron architecture.\u0000\u0000\u0000Findings\u0000Analysis of plan shape indices revealed that 85.7% of examined past projects possess a high degree of design complexity, hence resulting in expensive initial decisions. This highlights the need for more effective early design stage decision-making by developing new building economic tools. The most accurate regression model, with a mean absolute percentage error (MAPE) of 19.2%, predicts the log of total cost from wall to floor index and total building envelope surface. Other explanatory variables resulting in MAPE values in the order of 20%–22% are total volume, volume above ground level, gross floor area below ground level, gross floor area per storey and total number of storeys. The overall MAPE of regression-based equations is 24.3% whilst ANN models are slightly more accurate with MAPE scores of 21.8% and 21.6% for one hidden and two hidden layers, respectively. The most accurate forecasting model in the research is the ANN with two hidden layers and the sigmoid activation function which predicts total building cost from total building volume (19.1%).\u0000\u0000\u0000Originality/value\u0000This paper introduces MLR-based and ANN-based conceptual construction cost forecasting models which are founded solely on building morphology design parameters and compare favourably with previous studies with an average predictive accuracy less than 25%. This paper is expected to be beneficial to both practitioners and academics in the built environment towards more effective cost planning of building projects. The methodology suggested can further be implemented in other countries provided that accurate and relevant data from historical projects are used.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2022-01-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47518827","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 : 2022-01-13DOI: 10.1108/jfmpc-07-2021-0045
Moses Gambo
Purpose The purpose of this paper is to evaluate the effects of housing finance institutional and financial context on beneficiaries’ context to low income earners in Bauchi Local Government Area, Bauchi, Nigeria Design/methodology/approach This paper adopted a quantitative research approach. Self-administered structured questionnaires were used to collect information from 357 primary school teachers in Bauchi Local Government Area, Bauchi, Nigeria. Partial least squares-structural equation modeling was used to analyze the data collected using SmartPLS 2 software Findings This study revealed that effectiveness of financial institutions and their performance has significant positive causal effect on low income earners housing ownership context, which shows that performance and effectiveness of the housing finance institutions is vital to housing ownership for the low income earners in the study area. Thus, performance of housing finance institutions and their effectiveness has direct effects on low income earners housing ownership through finance affordability Practical implications The prime consumer of these research findings are the financial institutions, this will make them bulk up in terms of their performance and effectiveness toward housing finance accessibility and affordability to the low income earners such as the primary school teachers in the study area. Originality/value This paper used the technology organization environment theory, which is a multi-perspective theory to evaluate the concepts of institutional, finance and beneficiaries context with respect to housing finance in Bauchi by conceptualizing institutional context as effectiveness and performance, finance context as affordability and accessibility and beneficiaries context as ownership.
{"title":"Effect of institutional context and finance context of housing finance on home ownership among low-income earners in Bauchi","authors":"Moses Gambo","doi":"10.1108/jfmpc-07-2021-0045","DOIUrl":"https://doi.org/10.1108/jfmpc-07-2021-0045","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to evaluate the effects of housing finance institutional and financial context on beneficiaries’ context to low income earners in Bauchi Local Government Area, Bauchi, Nigeria\u0000\u0000\u0000Design/methodology/approach\u0000This paper adopted a quantitative research approach. Self-administered structured questionnaires were used to collect information from 357 primary school teachers in Bauchi Local Government Area, Bauchi, Nigeria. Partial least squares-structural equation modeling was used to analyze the data collected using SmartPLS 2 software\u0000\u0000\u0000Findings\u0000This study revealed that effectiveness of financial institutions and their performance has significant positive causal effect on low income earners housing ownership context, which shows that performance and effectiveness of the housing finance institutions is vital to housing ownership for the low income earners in the study area. Thus, performance of housing finance institutions and their effectiveness has direct effects on low income earners housing ownership through finance affordability\u0000\u0000\u0000Practical implications\u0000The prime consumer of these research findings are the financial institutions, this will make them bulk up in terms of their performance and effectiveness toward housing finance accessibility and affordability to the low income earners such as the primary school teachers in the study area.\u0000\u0000\u0000Originality/value\u0000This paper used the technology organization environment theory, which is a multi-perspective theory to evaluate the concepts of institutional, finance and beneficiaries context with respect to housing finance in Bauchi by conceptualizing institutional context as effectiveness and performance, finance context as affordability and accessibility and beneficiaries context as ownership.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2022-01-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43626226","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 : 2022-01-11DOI: 10.1108/jfmpc-03-2021-0020
Wei Yang, A. Firouzi, Chun-qing Li
Purpose The purpose of this paper is to demonstrate the applicability of the Credit Default Swaps (CDS), as a financial instrument, for transferring of risk in project finance loans. Also, an equation has been derived for pricing of CDS spreads. Design/methodology/approach The debt service cover ratio (DSCR) is modeled as a Brownian Motion (BM) with a power-law model fitted to the mean and half-variance of the existing data set of DSCRs. The survival probability of DSCR is calculated during the operational phase of the project finance deal, using a closed-form analytical method, and the results are verified by Monte Carlo simulation (MCS). Findings It is found that using the power-law model yields higher CDS premiums. This in turn confirms the necessity of conducting rigorous statistical analysis in fitting the best performing model as uninformed reliance on constant time-invariant drift and diffusion model can erroneously result in smaller CDS spreads. A sensitivity analysis also shows that the results are very sensitive to the recovery rate and cost of debt values. Originality/value Insufficiency of free cash flow is a major risk in the toll road project finance and hence there is a need to develop innovative financial instruments for risk management. In this paper, a novel valuation method of CDS is proposed assuming that DSCR follows the BM stochastic process.
{"title":"Risk transfer in project finance loans for toll road using credit default swaps","authors":"Wei Yang, A. Firouzi, Chun-qing Li","doi":"10.1108/jfmpc-03-2021-0020","DOIUrl":"https://doi.org/10.1108/jfmpc-03-2021-0020","url":null,"abstract":"\u0000Purpose\u0000The purpose of this paper is to demonstrate the applicability of the Credit Default Swaps (CDS), as a financial instrument, for transferring of risk in project finance loans. Also, an equation has been derived for pricing of CDS spreads.\u0000\u0000\u0000Design/methodology/approach\u0000The debt service cover ratio (DSCR) is modeled as a Brownian Motion (BM) with a power-law model fitted to the mean and half-variance of the existing data set of DSCRs. The survival probability of DSCR is calculated during the operational phase of the project finance deal, using a closed-form analytical method, and the results are verified by Monte Carlo simulation (MCS).\u0000\u0000\u0000Findings\u0000It is found that using the power-law model yields higher CDS premiums. This in turn confirms the necessity of conducting rigorous statistical analysis in fitting the best performing model as uninformed reliance on constant time-invariant drift and diffusion model can erroneously result in smaller CDS spreads. A sensitivity analysis also shows that the results are very sensitive to the recovery rate and cost of debt values.\u0000\u0000\u0000Originality/value\u0000Insufficiency of free cash flow is a major risk in the toll road project finance and hence there is a need to develop innovative financial instruments for risk management. In this paper, a novel valuation method of CDS is proposed assuming that DSCR follows the BM stochastic process.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2022-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46135450","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 : 2022-01-04DOI: 10.1108/jfmpc-01-2021-0004
Sa’id N. Ahmed, C. Pasquire, E. Manu
Purpose Extensive research on the importance of collaborative working (CW) and aligning stakeholders’ interests in construction has been widely conducted. But often the practice of commercial actors during CW has often been overlooked, particularly within the UK setting, where scholars have lamented on the lack of industry-wide collaboration. This study aims to explore the factors affecting commercial actors in CW, specific to the UK construction industry. Design/methodology/approach The research used a context-based approach to seek stakeholders’ perspectives on the key factors affecting commercial actors in CW within the UK. Semi-structured interviews with individuals (contractors, cost consultants, designers among others) from construction and infrastructure organisations were conducted, using multiple case study investigations. The collected data was analysed using a case study approach, and principles of inductive thematic analysis to identify the key factors. Findings Findings from the analysis identified “institutional” factors such as transactional cost economic influence, the prevailing construction model influence and professional related drivers. Key drivers within these factors include commercial background and training, custom and practice, misaligned interests in projects, clients’ perception of consultants, cost-driven environment, conventional procurement protocols and bureaucratic functions. Originality/value In conclusion, these factors continue to affect CW with undue influence on commercial actors in the UK, thus preventing performance improvement demanded by successive UK Government reports. The context-based approach applied in this study is expected to provide some insight in construction management research, especially from a commercial perspective in the UK, to gain an understanding of how these factors are manifesting.
{"title":"Key factors affecting commercial actors in collaborative working within the UK construction industry","authors":"Sa’id N. Ahmed, C. Pasquire, E. Manu","doi":"10.1108/jfmpc-01-2021-0004","DOIUrl":"https://doi.org/10.1108/jfmpc-01-2021-0004","url":null,"abstract":"\u0000Purpose\u0000Extensive research on the importance of collaborative working (CW) and aligning stakeholders’ interests in construction has been widely conducted. But often the practice of commercial actors during CW has often been overlooked, particularly within the UK setting, where scholars have lamented on the lack of industry-wide collaboration. This study aims to explore the factors affecting commercial actors in CW, specific to the UK construction industry.\u0000\u0000\u0000Design/methodology/approach\u0000The research used a context-based approach to seek stakeholders’ perspectives on the key factors affecting commercial actors in CW within the UK. Semi-structured interviews with individuals (contractors, cost consultants, designers among others) from construction and infrastructure organisations were conducted, using multiple case study investigations. The collected data was analysed using a case study approach, and principles of inductive thematic analysis to identify the key factors.\u0000\u0000\u0000Findings\u0000Findings from the analysis identified “institutional” factors such as transactional cost economic influence, the prevailing construction model influence and professional related drivers. Key drivers within these factors include commercial background and training, custom and practice, misaligned interests in projects, clients’ perception of consultants, cost-driven environment, conventional procurement protocols and bureaucratic functions.\u0000\u0000\u0000Originality/value\u0000In conclusion, these factors continue to affect CW with undue influence on commercial actors in the UK, thus preventing performance improvement demanded by successive UK Government reports. The context-based approach applied in this study is expected to provide some insight in construction management research, especially from a commercial perspective in the UK, to gain an understanding of how these factors are manifesting.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2022-01-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43127752","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 : 2021-12-07DOI: 10.1108/jfmpc-09-2020-0058
Azelia Machsari Haqq, Yohanna M. L. Gultom
Purpose This study aims to explore the reasons behind the lengthy delays in completing a single public-private partnership (PPP) project in Indonesia and investigates how the transaction costs play a significant role in hindering the project’s success. Design/methodology/approach To broaden insight into the transaction cost theory, the authors used a single case study approach to provide a more in-depth analysis of a context whose complexity can be fully explored. As the primary data sources, 16 face-to-face semi-structured interviews were conducted with the stakeholders directly involved in the project’s initiation, design and execution. Findings This case study demonstrates that transaction cost issues, both political and economic, play a significant role. This study has identified four main problems associated with transaction costs hindering project success, namely, executing agencies’ lack of knowledge and experience, lack of coordination for such a complex governance structure that links too many stakeholders and the financial and political risk that increase the uncertainty and public distrust. Research limitations/implications This study contributes mainly to the PPP and transaction costs economics literature, providing empirical evidence on why major PPP projects may fail to be procured. The Greater Bandung waste to energy (WTE) Project case demonstrates that transaction costs, both political and economic, have played a significant role in the lengthy delay of the PPP project. Practical implications As the project involves many transaction cost issues, mapping the failure factors at the project sites can significantly contribute to the practitioners/stakeholders involved in the PPP WTE projects. Therefore, this study provides a lesson to the policymakers at all levels interested in PPPs to consider the issues of transaction costs related to the PPP projects. It can be used as guidance as well as a reference for future PPP WTE projects in Indonesia. Social implications Mapping the failure factors also signifying the response of the public in the PPP WTE projects undertaken. As the citizens become more rule-conscious and rights-conscious, they demand the opportunity to participate in creating rules and project plans. If the project failed to consult with affected communities and undermined democratic accountability, the angry citizens will confront the government to cancel the project. Therefore, political and economic influences for public attitude play significant roles in making the PPP WTE projects successful. Originality/value This study provides insight into the transaction cost issues that have hindered the completion of Indonesia’s PPP WTE project over the past 15 years. Additionally, the project feasibility analysis should include an understanding of transaction costs for partnering in PPP.
{"title":"The challenge of implementing public-private partnerships: a transaction costs perspective on waste to energy projects in Indonesia","authors":"Azelia Machsari Haqq, Yohanna M. L. Gultom","doi":"10.1108/jfmpc-09-2020-0058","DOIUrl":"https://doi.org/10.1108/jfmpc-09-2020-0058","url":null,"abstract":"\u0000Purpose\u0000This study aims to explore the reasons behind the lengthy delays in completing a single public-private partnership (PPP) project in Indonesia and investigates how the transaction costs play a significant role in hindering the project’s success.\u0000\u0000\u0000Design/methodology/approach\u0000To broaden insight into the transaction cost theory, the authors used a single case study approach to provide a more in-depth analysis of a context whose complexity can be fully explored. As the primary data sources, 16 face-to-face semi-structured interviews were conducted with the stakeholders directly involved in the project’s initiation, design and execution.\u0000\u0000\u0000Findings\u0000This case study demonstrates that transaction cost issues, both political and economic, play a significant role. This study has identified four main problems associated with transaction costs hindering project success, namely, executing agencies’ lack of knowledge and experience, lack of coordination for such a complex governance structure that links too many stakeholders and the financial and political risk that increase the uncertainty and public distrust.\u0000\u0000\u0000Research limitations/implications\u0000This study contributes mainly to the PPP and transaction costs economics literature, providing empirical evidence on why major PPP projects may fail to be procured. The Greater Bandung waste to energy (WTE) Project case demonstrates that transaction costs, both political and economic, have played a significant role in the lengthy delay of the PPP project.\u0000\u0000\u0000Practical implications\u0000As the project involves many transaction cost issues, mapping the failure factors at the project sites can significantly contribute to the practitioners/stakeholders involved in the PPP WTE projects. Therefore, this study provides a lesson to the policymakers at all levels interested in PPPs to consider the issues of transaction costs related to the PPP projects. It can be used as guidance as well as a reference for future PPP WTE projects in Indonesia.\u0000\u0000\u0000Social implications\u0000Mapping the failure factors also signifying the response of the public in the PPP WTE projects undertaken. As the citizens become more rule-conscious and rights-conscious, they demand the opportunity to participate in creating rules and project plans. If the project failed to consult with affected communities and undermined democratic accountability, the angry citizens will confront the government to cancel the project. Therefore, political and economic influences for public attitude play significant roles in making the PPP WTE projects successful.\u0000\u0000\u0000Originality/value\u0000This study provides insight into the transaction cost issues that have hindered the completion of Indonesia’s PPP WTE project over the past 15 years. Additionally, the project feasibility analysis should include an understanding of transaction costs for partnering in PPP.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-12-07","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48723200","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 : 2021-11-23DOI: 10.1108/jfmpc-04-2020-0021
Varaprasad Mallisetti, T. Dolla, B. Laishram
Purpose The most recent advent of the unsolicited proposal in the public private partnership mode of infrastructure procurement has changed the duties and roles of private and public sector agencies. Also, they have increased the practitioners' difficulties to work out strategic mechanisms and methods to manage these unsolicited proposals (USP) effectively. So, this study aims to understand how well equipped are the Indian USP guidelines for managing procurement. Design/methodology/approach Content analysis with coding procedures was carried to understand the regulations of USP frameworks of India over the four stages of USP procurement. Findings The findings show that there are severe flaws in various states' frameworks. The states have flaws in their policies in implementation features across the stages of USP such as defined objectives, the absence of fees and review timeframes in the submission, time frame and guidance on benchmarking and market testing in evaluation and development, time frame for bidding and access to information in procurement stages. Originality/value The USP implementation framework developed as part of this study can direct the policymakers and practitioners to improve public procurement regulations and the necessary changes for the successful implementation of USPs. In doing this, the private sector is enabled to develop more competitive and innovative proposals.
{"title":"Unpacking the framework of unsolicited proposal for public private partnership projects – the Indian case","authors":"Varaprasad Mallisetti, T. Dolla, B. Laishram","doi":"10.1108/jfmpc-04-2020-0021","DOIUrl":"https://doi.org/10.1108/jfmpc-04-2020-0021","url":null,"abstract":"\u0000Purpose\u0000The most recent advent of the unsolicited proposal in the public private partnership mode of infrastructure procurement has changed the duties and roles of private and public sector agencies. Also, they have increased the practitioners' difficulties to work out strategic mechanisms and methods to manage these unsolicited proposals (USP) effectively. So, this study aims to understand how well equipped are the Indian USP guidelines for managing procurement.\u0000\u0000\u0000Design/methodology/approach\u0000Content analysis with coding procedures was carried to understand the regulations of USP frameworks of India over the four stages of USP procurement.\u0000\u0000\u0000Findings\u0000The findings show that there are severe flaws in various states' frameworks. The states have flaws in their policies in implementation features across the stages of USP such as defined objectives, the absence of fees and review timeframes in the submission, time frame and guidance on benchmarking and market testing in evaluation and development, time frame for bidding and access to information in procurement stages.\u0000\u0000\u0000Originality/value\u0000The USP implementation framework developed as part of this study can direct the policymakers and practitioners to improve public procurement regulations and the necessary changes for the successful implementation of USPs. In doing this, the private sector is enabled to develop more competitive and innovative proposals.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43222098","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 : 2021-11-23DOI: 10.1108/jfmpc-03-2021-0022
Emmanuel Dele Omopariola, A. Windapo, D. Edwards, N. Chileshe
Purpose Construction companies require meticulous and thorough financial planning to ensure business survival in an increasingly competitive global market. Past studies assert that cash flow management is also crucial to meeting project and organisational performance expectations. However, the link between an advance payment system (APS), cash flow and project performance has hitherto received scant academic attention. Therefore, this study aims to investigate the attributes and impact of APS on cash flow, project and organisational performance. This study surveyed all registered contractors listed in Grades 1–9 on the Construction Industry Development Board Register of Contractors in South Africa. Design/methodology/approach This study adopted an empirical epistemological design and deductive reasoning to analyse primary data collated via a questionnaire data collection instrument. Summary statistical and regression analysis were used to explore data garnered. Findings This study found that key significant attributes of APS in South Africa were payment of balance to the contractor upon project delivery; advance payment to contractors before the commencement of the work; and payment to contractors as agreed. This study proffers that project performance in terms of cost, time and quality performance is highly and positively supported by APS. Moreover, APS positively supports the efficiency, competitiveness and profitability of construction organisations. Cumulatively, these findings confirm that APS attributes in South Africa conforms to the global attributes of APS. The research concludes that client use of APS on projects improves the likelihood of attaining improved quality and time performance. This paper concludes with a recommendation that both public and private clients consider the option of an APS as the ideal payment system to support project and organisational performance. Originality/value To the best of the authors’ knowledge, this work constitutes the first attempt to explore the linkages between an APS, cash flow and project performance in South Africa and seeks to engender wider polemic debate and further discussion among industry stakeholders.
{"title":"Attributes and impact of advance payment system on cash flow, project and organisational performance","authors":"Emmanuel Dele Omopariola, A. Windapo, D. Edwards, N. Chileshe","doi":"10.1108/jfmpc-03-2021-0022","DOIUrl":"https://doi.org/10.1108/jfmpc-03-2021-0022","url":null,"abstract":"Purpose Construction companies require meticulous and thorough financial planning to ensure business survival in an increasingly competitive global market. Past studies assert that cash flow management is also crucial to meeting project and organisational performance expectations. However, the link between an advance payment system (APS), cash flow and project performance has hitherto received scant academic attention. Therefore, this study aims to investigate the attributes and impact of APS on cash flow, project and organisational performance. This study surveyed all registered contractors listed in Grades 1–9 on the Construction Industry Development Board Register of Contractors in South Africa. Design/methodology/approach This study adopted an empirical epistemological design and deductive reasoning to analyse primary data collated via a questionnaire data collection instrument. Summary statistical and regression analysis were used to explore data garnered. Findings This study found that key significant attributes of APS in South Africa were payment of balance to the contractor upon project delivery; advance payment to contractors before the commencement of the work; and payment to contractors as agreed. This study proffers that project performance in terms of cost, time and quality performance is highly and positively supported by APS. Moreover, APS positively supports the efficiency, competitiveness and profitability of construction organisations. Cumulatively, these findings confirm that APS attributes in South Africa conforms to the global attributes of APS. The research concludes that client use of APS on projects improves the likelihood of attaining improved quality and time performance. This paper concludes with a recommendation that both public and private clients consider the option of an APS as the ideal payment system to support project and organisational performance. Originality/value To the best of the authors’ knowledge, this work constitutes the first attempt to explore the linkages between an APS, cash flow and project performance in South Africa and seeks to engender wider polemic debate and further discussion among industry stakeholders.","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48072602","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 : 2021-10-27DOI: 10.1108/jfmpc-11-2020-0074
C. Tembo, A. Akintola
Purpose This paper presents a review of research methodologies used in addressing problems in the financial management of property and construction journals from 2005 to 2020. Design/methodology/approach Content analysis of 258 research papers published in the Journal of Financial Management of Property and Construction was carried out, enabling the exploration of research approaches, epistemology, strategies, data collection and data analysis methods used in addressing problems researched in the area of financial management of property and construction Findings The findings show that quantitative approaches and methods dominate, whereas qualitative and mixed methods were prominent in-depth understanding of a topics were needed. Interestingly, almost a third of the publications did not adopt quantitative approaches. In some journal issues, there was relatively high use of qualitative and multi-method approaches and up to 12% of the articles published over the past 16 years could be described as based on pragmatism. Research limitations/implications An important implication of this paper is that a conventionally number-based area of research does not preclude the use of qualitative and mixed approaches. The findings are only generalisable to the Journal of Financial Management of Property and Construction. Practical implications Financial management researchers could benefit greatly by considering pluralistic approaches more in the design of their studies. Originality/value To the best of the authors’ knowledge, this study is an original synthesis of the articles published between 2005 and 2020. It provides new insight into the use of research methodologies by authors and how they have been combined to address their research problems. It further investigates an old issue or question about methodological choice-making using new evidence and original empirical work.
{"title":"A retrospection of methodological pluralism in the Journal of Financial Management of Property and Construction (2005-2020)","authors":"C. Tembo, A. Akintola","doi":"10.1108/jfmpc-11-2020-0074","DOIUrl":"https://doi.org/10.1108/jfmpc-11-2020-0074","url":null,"abstract":"\u0000Purpose\u0000This paper presents a review of research methodologies used in addressing problems in the financial management of property and construction journals from 2005 to 2020.\u0000\u0000\u0000Design/methodology/approach\u0000Content analysis of 258 research papers published in the Journal of Financial Management of Property and Construction was carried out, enabling the exploration of research approaches, epistemology, strategies, data collection and data analysis methods used in addressing problems researched in the area of financial management of property and construction\u0000\u0000\u0000Findings\u0000The findings show that quantitative approaches and methods dominate, whereas qualitative and mixed methods were prominent in-depth understanding of a topics were needed. Interestingly, almost a third of the publications did not adopt quantitative approaches. In some journal issues, there was relatively high use of qualitative and multi-method approaches and up to 12% of the articles published over the past 16 years could be described as based on pragmatism.\u0000\u0000\u0000Research limitations/implications\u0000An important implication of this paper is that a conventionally number-based area of research does not preclude the use of qualitative and mixed approaches. The findings are only generalisable to the Journal of Financial Management of Property and Construction.\u0000\u0000\u0000Practical implications\u0000Financial management researchers could benefit greatly by considering pluralistic approaches more in the design of their studies.\u0000\u0000\u0000Originality/value\u0000To the best of the authors’ knowledge, this study is an original synthesis of the articles published between 2005 and 2020. It provides new insight into the use of research methodologies by authors and how they have been combined to address their research problems. It further investigates an old issue or question about methodological choice-making using new evidence and original empirical work.\u0000","PeriodicalId":45720,"journal":{"name":"Journal of Financial Management of Property and Construction","volume":" ","pages":""},"PeriodicalIF":1.9,"publicationDate":"2021-10-27","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"47385339","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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