Journal of Construction Engineering and Management

Many contractors are expanding into global markets. Further, many owners procure construction services to build facilities in developing countries. The construction practices in these countries differ in important respects from practices in industrialized countries. This paper reviews some of the more significant differences in construction practices in developing countries. Five primary factors are discussed: cost of labor, cost of money, technology and methods, infrastructure, and role of the design professional. The hypothesis is presented that the main driving factors affecting construction practices are the cost of labor and the cost of money. These two factors place speed of construction as a secondary objective. Low labor costs lead to construction practices being labor-intensive. There is a distinct absence of construction equipment, especially small lifting devices used for material handling. Additionally, the lack of infrastructure means that many materials commonly purchased in the United States from a vendor are fabricated using on-site labor in developing countries.

A research project was conducted to explore construction failure investigation techniques and processes to determine whether they were adequate and to develop failure investigation guidelines. Data was collected on failures and failure investigation techniques from surveying 115 members of the engineering and construction industry. Construction failure case studies were created using documentation provided by the federal Occupational Safety and Health Administration, state offices of safety and health, and forensic engineers. The construction failure case studies were analyzed to determine how these organizations conduct their investigations and to develop guidelines that can be used for construction failure investigations. This article provides: (1) description of the methods used for the research; (2) results obtained from the industry survey; (3) summary of the results of an investigation into case studies on construction failures; (4) analysis of the results; (5) discussion on construction failure investigative techniques; (6) guidelines developed during the research project for investigating and documenting failures; and (7) recommended format for reporting the findings of failure investigations.

While it is widely recognized that additional costs due to rework can have an adverse effect on project performance, limited empirical research has been done to investigate the influencing factors. The research presented in this paper aims to determine the influence of different project types and procurement methods on rework costs in construction projects. Using a questionnaire survey, rework costs were obtained from 161 Australian construction projects. The direct and indirect consequences of rework are analyzed and discussed. It is shown that, contrary to expectation, rework costs do not differ relative to project type or procurement method. In addition, it was found rework contributed to 52% of a project’s cost growth and that 26% of the variance in cost growth was attributable to changes due to direct rework. To reduce rework costs and therefore improve project performance, it is posited that construction organizations begin to consider and measure them, so that an understanding of their magnitude can be captured, root causes identified, and effective prevention strategies implemented.

Project managers use budgets to satisfy multiple objectives such as cost control, short durations, and high quality. Contingency funds are included in project budgets to manage risk and achieve project goals. Understanding how managers use budget contingencies requires a dynamic information processing model of how managers bridge the gap between high project complexity and limited managerial capacity. The results of collecting contingency management practices of real estate development project managers is reported and a dynamic simulation model of contingency management described. The model is used to test hypotheses of the effectiveness of aggressive and passive management strategies on cost, timeliness, and facility value. Managers were found to pursue general project objectives in their management of contingency. An aggressive strategy was found to be more robust but performed poorer than a passive strategy. Conclusions include the prevalence of trade-offs between robust and high-performance contingency management policies in construction projects and the importance of incorporating uncertainty into project planning and management.

The “Decision Aids for Tunneling” are a procedure and computer code that can be used to assess the effect on construction cost and time of geologic/geotechnical uncertainties and uncertainties in the construction process. Previously, it was only possible to make predictions prior to construction. There is, however, a need for updated predictions while construction is in progress. Such predictions can be used to improve scheduling, resource allocation, financial planning, and so on. This article presents an updating procedure that allows one to refine predictions during construction. Updating not only involves replacing the original prediction with actual data from the excavation, but also includes a learning component using information from the actual excavation to arrive at an improved prediction for the unexcavated part of a tunnel.

Many urban concrete pavements in California need to be reconstructed, as they have exceeded their design lives and require frequent maintenance and repair. Information is needed to determine which methodologies for pavement design, materials selection, traffic management, and reconstruction strategies are most suitable to achieve the objectives of California Department of Transportation’s (Caltrans) long-life pavement rehabilitation strategies (LLPRS) program. To develop construction productivity information for several construction windows, a case study was performed on a Caltrans concrete rehabilitation demonstration project near Los Angeles on Interstate-10, where 20 lane-km was successfully rebuilt using fast setting hydraulic cement concrete (FSHCC) with one weekend closure for 2.8 lane-km and repeated 7- and 10-h nighttime closures for the remaining distance. The concrete delivery and discharge controlled the overall progress. In terms of the number of slabs replaced per hour, the 55-h weekend closure was 54% faster than the average nighttime closure. An excellent traffic management strategy helped to reduce the volume of traffic during the weekend closure and minimize the traffic delay through the construction zone.

Change, defined as any event that results in a modification of the original scope, execution time, or cost of work, is inevitable on most construction projects due to the uniqueness of each project and the limited resources of time and money available for planning. Change may occur on a project for a number of reasons, such as design errors, design changes, additions to the scope, or unknown conditions. For each change, contractors are entitled to an equitable adjustment to the base contract price and schedule for all productivity impacts associated with the change. Changes may or may not have an impact on labor productivity. Existing literature uses subjective evaluation to determine whether the project is impacted. Projects impacted by change cause the contractor to achieve a lower productivity level than planned. The focus of this paper is to quantify whether an electrical or mechanical project is impacted by a change order. Through statistical hypothesis testing, groups of factors that correlate with whether a project is impacted by change orders were identified and used to develop a quantitative definition of impact. Logistic regression techniques were used to develop models that predict the probability of a project being impacted. The results of this research show that percent change, type of trade, estimated and actual peak manpower, processing time of change, overtime, overmanning, and percent change related to design issues are the main factors contributing to the project impact.

This paper provides electrical contractors with significant information related to enhancing company financial performance. The methodology involves understanding the determinants of contractor financial success through: (1) an extensive literature review; (2) collection of financial- and management-related data from electrical contractors; and (3) analysis of data to identify management trends that are more prevalent in profitable firms. Ninety-six usable responses were collected from small, medium, and larger electrical contracting companies. General trends reveal that more profitable firms place greater emphasis in the areas of certain management initiatives (higher lines of credit and supporting continuing education), marketing initiatives (involvement in formal alliances and partnering), and technology initiatives related to spending more capital resources on computers and software. Significant differences are revealed with financial ratios as well. A Financial Success Scorecard is created for firms to compare their management inputs to those of successful firms. Findings from this study could provide helpful guidelines for nonelectrical contracting firms. Recommendations for achieving future financial success are also provided.

Before considering bids submitted by competing contractors for a public procurement project, the owner should determine a project ceiling price or cost estimate to use as a reference point for evaluating the bids. A high ceiling price conflicts with the owner’s interests in minimizing costs. Meanwhile, a low ceiling price can jeopardize the project if all bids exceed the ceiling price. This paper proposes a model for determining a reasonable project ceiling price. The model, called SIM-UTILITY, is based on a utility theory and facilitated by a cost simulation approach. The utility theory is applied to reflect the owner’s preferences regarding the determination criteria, while the simulation approach is used to generate more objective project cost data to support execution of the utility theory. The advantages of SIM-UTILITY are proven by its successful application to three construction projects in Taiwan. A computerized SIM-UTILITY is expected to be broadly applicable to public construction projects in Taiwan.

The cost of quality assurance programs in asphalt road construction is high in part because of the need for daily testing. This paper demonstrates the methodology used to investigate the timing of sampling and its effect on the quality assurance program. Fourteen lots over two highway paving projects were tested twice: during construction on a daily basis, and after construction was complete. Three quality measures were compared, namely asphalt content, degree of compaction, and aggregate gradation. The test data during construction were obtained from two sources: the consultant’s quality assurance, and the contractor’s quality control. One-way ANOVA tests and T-tests were used to compare the means. In addition, the arithmetic difference between the means was reviewed to understand how the time of sampling might affect contractor payment adjustments.