Quantifying the impact of incentives on cost and schedule performance of construction projects in United States

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Description
In today's era a lot of the construction projects suffer from time delay, cost overrun and quality defect. Incentive provisions are found to be a contracting strategy to address this potential problem. During last decade incentive mechanisms have gained importance,

In today's era a lot of the construction projects suffer from time delay, cost overrun and quality defect. Incentive provisions are found to be a contracting strategy to address this potential problem. During last decade incentive mechanisms have gained importance, and they are starting to become adopted in the construction projects. Most of the previous research done in this area was purely qualitative, with a few quantitative studies. This study aims to quantify the performance of incentives in construction by collecting the data from more than 30 projects in United States through a questionnaire survey. First, literature review addresses the previous research work related to incentive types, incentives in construction industry, incentives in other industry and benefits of incentives. Second, the collected data is analyzed with statistical methods to test the significance of observed changes between two data sets i.e. incentive projects and non-incentive projects. Finally, the analysis results provide evidence for the significant impact of having incentives; reduced the cost and schedule growth in construction projects in United States.
Date Created
2015
Agent

Preparing for the talent drought: case study on succession planning methodology in the construction industry

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Description
The workforce demographics are changing as a large portion of the population is approaching retirement and thus leaving vacancies in the construction industry. Succession planning is an aspect of talent management which aims to mitigate instability faced by a company

The workforce demographics are changing as a large portion of the population is approaching retirement and thus leaving vacancies in the construction industry. Succession planning is an aspect of talent management which aims to mitigate instability faced by a company when a new successor fills a vacancy. Research shows that in addition to a diminishing pool of available talent, the industry does not have widespread, empirically tested and implemented models that lead to effective successions. The objective of this research was to create a baseline profile for succession planning in the construction industry by identifying currently implemented best practices. The author interviewed six companies of varying sizes and demographics within the construction industry and compared their succession planning methodologies to identify any common challenges and practices. Little consensus between the companies was found. The results of the interviews were then compared to current research literature, but even here, little consensus was found. In addition, companies lacked quantitative performance metrics demonstrating the effectiveness, or ineffectiveness, of their current succession planning methodologies. The authors recommended that additional research is carried out to focus on empirical evidence and measurement of industry practices surrounding talent identification, development, and transition leading to succession.
Date Created
2015
Agent

Causes of litigation in the Saudi Arabian construction Industry

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Description
ABSTRACT

The problem of litigation and disputes in the construction sector is a major impediment to countries’ development goals. The purpose of this paper is to investigate the problem of high legal costs and long delays that arise due to

ABSTRACT

The problem of litigation and disputes in the construction sector is a major impediment to countries’ development goals. The purpose of this paper is to investigate the problem of high legal costs and long delays that arise due to litigation involving project owners, designers, contractors and other construction parties worldwide and in Saudi Arabia, as well as to give recommendation according to the outcomes of this research. The causes of litigious behavior in Saudi Arabia and other countries around the world were identified and documented, also the differences in litigation of the Saudi Arabian construction industry as compared to other countries were identified. Preliminary investigations revealed that there are some level of similarity in the nature of the causes. Thus, these causes were grouped into three main categories which are expectation factors, communications factors and documentation factors. Further research based on existing literature showed that the practices used to minimize litigation in the construction industry were investigated. The following delivery process were researched: design-build (DB) delivery method, Alliance Contracting, Construction Manager at Risk (CMAR), Best Value Approach, Integrated Project Delivery (IPD), and Public-Private Partnerships (PPPs), and the PIPS/PIRMS approach. These delivery methods were found to have issues, which means the methods by observation do not seem to be the ideal solution to minimize litigation in the construction industry. The only delivery method found to have no litigation issues was the PIPS/PIRMS approach.
Date Created
2015
Agent

Upgrade the Saudi Arabian procurement system delivery method

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Description
Saudi Arabia has been having many issues with large construction projects such as delays, low performance and high cost. Some studies show that around 70% of the public projects in Saudi Arabia are delayed. These issues have resulted from many

Saudi Arabia has been having many issues with large construction projects such as delays, low performance and high cost. Some studies show that around 70% of the public projects in Saudi Arabia are delayed. These issues have resulted from many factors. One of the factors believed to be delaying projects is the Saudi procurement system. The Saudi procurement system only selects contracts based on the lowest bid price offered. However, the Saudi procurement system has been found to not only produce delayed low quality projects, but also has resulted in higher costs.

This paper shows how to modify the Saudi procurement system by implementing a clarification phase, which is the most important phase in the Performance Information Procurement System (PIPS). The clarification phase requires the bid’s winning contractor to submit a project scope, a project schedule, to identify risks that not their responsibility, performance measurements and a milestone schedule. The PIPS system has been one of the most successful systems around the world and has shown a 98% success rate in six different countries with risks and cost reductions up to 30%.

This research conducted a survey of 157 engineers, 33 consultants, 9 owners, 5 vendors, 13 academics, and 28 architects to develop the public procurement system in Saudi Arabia. The participants work in government sectors with an interest in the Saudi Arabian procurement system. 80.61 % of participants believe that the traditional Saudi procurement system consistently selects poor performing contractors. Moreover, 95.97% of participants think that the selection of contractors based only on the lowest price criterion affects projects negatively. Also, 96.20% of participants in the survey feel that there needs to be a change in the traditional Saudi Arabian procurement system. 88.7% of participants agree to require the contractor to identify risks, and 96.03 % of participants agree that the contractors must have a plan. Moreover, 95.45% of participants agree to require a contractor review the scope of a project and verify that it is correct. Finally, 82.18% of participants agree to require a contractor to resolve all owner concerns before signing a contract to improve construction projects performance. The paper shows the need to change the Saudi procurement system and a solution to this growing problem.
Date Created
2015
Agent

Owners perspective of factors contributing to project delay: case studies of road and bridge projects in Saudi Arabia

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Description
Delays are a major cause for concern in the construction industry both globally and locally in Saudi Arabia. This paper identifies the main causes of delay in infrastructure projects in the holy city of Makkah (Saudi Arabia) and compares these

Delays are a major cause for concern in the construction industry both globally and locally in Saudi Arabia. This paper identifies the main causes of delay in infrastructure projects in the holy city of Makkah (Saudi Arabia) and compares these with projects around the rest of the country and other Gulf countries as well. Data were obtained from 49 infrastructure projects that were undertaken by the owner and were analyzed quantitatively to understand the severity and causes of delay. 10 risk factors were identified in this study and these factors were grouped into four categories. The average delay in infrastructure projects in the city of Makkah was found to be 39%. The most severe cause of delay was found to be the land acquisition factor. This highlights the critical land ownership and acquisition issues that is prevailing in Makkah. In addition to this, other factors include contractors’ lack of expertise, haphazard underground utilities (line services), and re-designing. It is concluded that majority of delays were caused from the owner’s side as compared to contractors, consultants, and other project’s stakeholders. This finding was in line with the research findings of the Gulf Countries Construction (GCC) Industry’s literature as well. This study will fill an important practice and research gap for improving the efficiency in project delivery for infrastructure projects in the holy city of Makkah and the Gulf countries at large.
Date Created
2015
Agent

Postoccupancy Performance Evaluation of Time-of-Installation Factors: Seven-Year Study of SPF Roofing

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Description

Over the past couple of decades, quality has been an area of increased focus. Multiple models and approaches have been proposed to measure the quality in the construction industry. This paper focuses on determining the quality of one of the

Over the past couple of decades, quality has been an area of increased focus. Multiple models and approaches have been proposed to measure the quality in the construction industry. This paper focuses on determining the quality of one of the types of roofing systems used in the construction industry, i.e., sprayed polyurethane foam roofs (SPF roofs). Thirty-seven urethane-coated SPF roofs that were installed in 2005/2006 were visually inspected to measure the percentage of blisters and repairs three times over a period of four years, six years, and seven years. A repairing criteria was established after a six-year mark based on the data that were reported to contractors as vulnerable roofs. Furthermore, the relation between four possible contributing time-of-installation factors—contractor, demographics, season, and difficulty (number of penetrations and size of the roof in square feet) that could affect the quality of the roof was determined. Demographics and difficulty did not affect the quality of the roofs, whereas the contractor and the season when the roof was installed did affect the quality of the roofs.

Date Created
2015-04-01
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A longitudinal study of the post-occupancy energy performance of K-12 school buildings in Arizona

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Description
Energy performance and efficiency plays of major role in the operations of K-12 schools, as it is a significant expense and a source of budgetary pressure upon schools. Energy performance is tied to the physical infrastructure of schools, as well

Energy performance and efficiency plays of major role in the operations of K-12 schools, as it is a significant expense and a source of budgetary pressure upon schools. Energy performance is tied to the physical infrastructure of schools, as well as the operational and behavioral patterns they accommodate. Little documentation exists within the existing literature on the measured post-occupancy performance of schools once they have begun measuring and tracking their energy performance. Further, little is known about the patterns of change over time in regard to energy performance and whether there is differentiation in these patterns between school districts.

This paper examines the annual Energy Use Intensity (EUI) of 28 different K-12 schools within the Phoenix Metropolitan Region of Arizona over the span of five years and presents an analysis of changes in energy performance resulting from the measurement of energy use in K-12 schools. This paper also analyzes the patterns of change in energy use over time and provides a comparison of these patterns by school district.

An analysis of the energy performance data for the selected schools revealed a significant positive impact on the ability for schools to improve their energy performance through ongoing performance measurement. However, while schools tend to be able to make energy improvements through the implementation of energy measurement and performance tracking, deviation may exist in their ability to maintain ongoing energy performance over time. The results suggest that implementation of ongoing measurement is likely to produce positive impacts on the energy performance of schools, however further research is recommended to enhance and refine these results.
Date Created
2015
Agent

Feasibility of an open source repository for increasing the usage of best practices in the architecture-engineering-construction industry

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Description
Effective collection and dissemination of project information, including best practices, help increase the likelihood of project performance and are vital to organizations in the architecture-engineering-construction (AEC) industry. Best practices can help improve project performance, yet these practices are not universally

Effective collection and dissemination of project information, including best practices, help increase the likelihood of project performance and are vital to organizations in the architecture-engineering-construction (AEC) industry. Best practices can help improve project performance, yet these practices are not universally implemented and used in the industry, due to the following: 1) not all practices are applicable to every project or organization, 2) knowledge lost in organizational turnover which leads to inconsistent collection and implementation of best practices and 3) the lack of standardized processes for best practice management in an organization.

This research, sponsored by National Academy of Construction, the Construction Industry Institute and Arizona State University, used structured interviews, a Delphi study and focus groups to explore: 1) potential benefit and industry interest in an open repository of best practices and 2) important elements of a framework/model that guides the creation, management and sustainment of an open repository of best practices.

This dissertation presents findings specifically exploring the term "Practices for Excellence", its definition, elements that hinder implementation, the potential value of an open online repository for such practices and a model to develop an open repository.
Date Created
2014
Agent

Impact of a non-traditional research approach

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Description
Construction Management research has not been successful in changing the practices of the construction industry. The method of receiving grants and the peer review paper system that academics rely on to achieve promotion, does not align to academic researchers becoming

Construction Management research has not been successful in changing the practices of the construction industry. The method of receiving grants and the peer review paper system that academics rely on to achieve promotion, does not align to academic researchers becoming experts who can bring change to industry practices. Poor construction industry performance has been documented for the past 25 years in the international construction management field. However, after 25 years of billions of dollars of research investment, the solution remains elusive. Research has shown that very few researchers have a hypothesis, run cycles of research tests in the industry, and result in changing industry practices.

The most impactful research identified in this thesis, has led to conclusions that pre-planning is critical, hiring contractors who have expertise will result in better performance, and risk is mitigated when the supply chain partners work together and expertise is utilized at the beginning of projects.

The problems with construction non-performance have persisted. Legal contract issues have become more important. Traditional research approaches have not identified the severity and the source of construction non-performance. The problem seems to be as complex as ever. The construction industry practices and the academic research community remain in silos. This research proposes that the problem may be in the traditional construction management research structure and methodology. The research

has identified a unique non-traditional research program that has documented over 1700 industry tests, which has resulted in a decrease in client management by up to 79%, contractors adding value by up to 38%, increased customer satisfaction by up to 140%, reduced change order rates as low as -0.6%, and decreased cost of services by up to 31%.

The purpose of this thesis is to document the performance of the non-traditional research program around the above identified results. The documentation of such an effort will shed more light on what is required for a sustainable, industry impacting, and academic expert based research program.
Date Created
2014
Agent

Action research approach to implementation of APDMs within owner organizations strategic management and overcoming resistance to change in the AEC industry

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Description
Owner organizations in the architecture, engineering, and construction (AEC) industry are presented with a wide variety of project delivery approaches. Implementation of these approaches, while enticing due to their potential to save money, reduce schedule delays, or improve quality, is

Owner organizations in the architecture, engineering, and construction (AEC) industry are presented with a wide variety of project delivery approaches. Implementation of these approaches, while enticing due to their potential to save money, reduce schedule delays, or improve quality, is extremely difficult to accomplish and requires a concerted change management effort. Research in the field of organizational behavior cautions that perhaps more than half of all organizational change efforts fail to accomplish their intended objectives. This study utilizes an action research approach to analyze change message delivery within owner organizations, model owner project team readiness and adoption of change, and identify the most frequently encountered types of resistance from lead project members. The analysis methodology included Spearman's rank order correlation, variable selection testing via three methods of hierarchical linear regression, relative weight analysis, and one-way ANOVA. Key findings from this study include recommendations for communicating the change message within owner organizations, empirical validation of critical predictors for change readiness and change adoption among project teams, and identification of the most frequently encountered resistive behaviors within change implementation in the AEC industry. A key contribution of this research is the recommendation of change management strategies for use by change practitioners.
Date Created
2014
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