Journal of Construction Engineering and Management

Thirty-five international contractors from China were included by the Engineering News Record in the list of the Top 225 International Contractors in 2000. Although Chinese international contractors are increasingly playing a significant role in the global construction market, relatively few studies have been completed on their historical background and foray into the international arena. Apart from seeking to fill this lacuna, this paper also provides an analysis of the these 35 Chinese international contractors to evaluate their achievements using the following performance indicators: International Revenue/Total Revenue, International Business Distribution, Overseas Management Structure, Involvement in Specialized Fields, and Overall Index of Internationalization. The analysis identified the top ten Chinese international contractors who are truly global in outlook. The study also suggests that the traditional multinational enterprise theories may not explain the development of Chinese international construction firms adequately.

This paper examines the success factors for the implementation of ISO9000 in the Hong Kong construction industry. The critical factors for construction contractors to successfully implement ISO9000 were identified. An analytic hierarchy process model was then developed to determine the relative importance among those factors. The findings showed that the top management commitment is the most critical factor for the successful ISO9000 implementation, whilst the common goal, teamworking, education and training, and the cultural changes are also the important factors.

The design of tariff is a key issue in the development of privately financed infrastructure projects. It involves the determination of tariff magnitude, the choice of tariff structure, and the design of adjustment mechanisms. Tariff structures can be an all-in tariff or a compound tariff. Tariff adjustment mechanisms can be used to address different risk factors such as inflation, exchange rate, demand, and fuel prices. An appropriate combination of tariff structure and adjustment mechanism can be effective to manage key risks of privately financed infrastructure projects. Simulation results show that a well-designed tariff can create a “win-win” solution for both project promoter and the host government.

This paper reports on a self-reported survey of performance in international construction joint ventures formed and operated by Australian and British contracting organizations. Based on previous studies, a questionnaire survey was developed to investigate the relationships between reported risk and success factors, and the performance of ventures. Through structural equation modeling, the paper empirically examines the effect of key processes such as partner selection, venture formation, and operation on venture performance. The results provide evidence that local partner attributes influence venture formation which, in turn, is strongly and positively related to its operation. These results also suggest that the negative impact of host government-related risks on venture formation is direct, while their impact on venture performance is indirect, through creating a “less certain” operating environment. Project-related risks appear to have strong and negative dual “direct and indirect” effects on venture performance. Based on these empirical results, the paper advocates that selecting a suitable complementary local partner and adopting a proactive risk management strategy are vital antecedents to successful venture performance.

The coordination of mechanical, electrical, and plumbing (MEP) systems is a major challenge for complex buildings and industrial plants. The process involves locating equipment and routing connecting elements for each building system. This multidiscipline effort is time-consuming and expensive and requires knowledge regarding each system over the project life cycle. Current practice requires representatives from each MEP trade to work together to identify and resolve interferences. Effective MEP coordination requires recalling and integrating knowledge regarding design, construction, operations, and maintenance of each MEP system. Currently, designers and constructors use tailored CAD systems to design and fabricate MEP systems, but no knowledge-based computer technology exists to assist in the multidiscipline MEP coordination effort. The paper describes results from a research project to capture knowledge related to design criteria, construction, operations, and maintenance of MEP systems and apply this knowledge in a computer tool that can assist designers and builders in resolving coordination problems for multiple MEP systems.

The master builder system for designing and building construction projects was the dominant project delivery system in the construction industry during the early part of the 20th century. Master builders were generally charged with both design and construction services for a project. During the last half of the 20th century, many different systems for project delivery with fragmented responsibilities have replaced the master builder system. Reducing the use of the master builder system has led to the creation of elaborate systems for managing projects in the construction industry. In order to investigate the use of the master builder delivery system and other systems, a research project was conducted that included reviewing (1) the history of the construction industry, (2) project delivery systems, (3) constructability issues, (4) construction industry fragmentation, (5) the results of a survey of architecture, engineering, and construction professionals from the San Francisco Bay Area in California on the current processes they use for training engineers and architects, (6) an analysis of the survey results, (7) construction industry recommendations, and (8) conclusions based on the survey results and analysis. The information obtained from the research project, including the survey and an analysis of the results, is included in this document. The results of the research indicate that reduction in the use of the master builder project delivery system and the rise of numerous fragmented delivery systems have limited the designer’s knowledge of construction processes.

The need for better protecting our vital infrastructure from being damaged or destroyed has received increased attention since the terrorist attacks on September 11, 2001. The tragedy of having thousands of innocent people die before the eyes of an entire nation awakened people to the reality of “managed” attacks of unthinkable magnitudes. However, tragedies of a smaller scale are a daily occurrence but accepted as “collateral damage” of work in an unsafe environment. This paper presents a cost-benefit analysis to address the question of how much money should be spent in protecting underground utilities from damage. During the study of an actual incident it was found that the total costs of such accidents are vastly underreported because only costs for emergency responses and repair are tallied up. This paper makes the case that a comprehensive approach for assessing the total economic impact of such incidents on the public, business, and government is the critical stepping stone to a mathematical optimization of expenditure for damage prevention. In addition, the reader will quickly realize that the use of the presented optimization model provides theoretical underpinning for the engineering profession in its effort to better protect our critical infrastructure from terrorist attacks.

This paper presents a framework for managing the architecture/engineering/construction design process. The framework, called the process-parameter-interface (PPI) model, tries to address the design management issues of improved design process scheduling and efficient collaboration. The model comprises three main components—a design parameter vocabulary, in the form of a design dictionary; an interface; and an engine—that help to address these issues. In addition, the model promotes flexibility of design work flow, enables proactive collaboration, is implementable over the Internet, and is information-centric. The paper concludes with a case study for the design of a conference room to illustrate the functioning of the PPI model and the role of its components.

This paper presents a model, designed to optimize scheduling of linear projects. The model employs a two-state-variable, N-stage, dynamic programming formulation, coupled with a set of heuristic rules. The model is resource-driven, and incorporates both repetitive and nonrepetitive activities in the optimization process to generate practical and near-optimal schedules. The model optimizes either project construction duration, total cost, or their combined impact for what is known as cost-plus-time bidding, also referred to as A+B bidding. The model has a number of interesting and practical features. It supports multiple crews to work simultaneously on any activity, while accounting for: (1) multiple successors and predecessors with specified lead and lag times; (2) the impact of transverse obstructions, such as rivers and creeks, on crew assignments and associated time and cost; (3) the effect of inclement weather and learning curve on crew productivity; and (4) variations in quantities of work in repetitive activities from one unit to another. The model is implemented in a prototype software that operates in Windows^® environment. It is developed utilizing object-oriented programming, and provides for automated data entry. Several graphical and tabular output reports can be generated. An example project, drawn from the literature, is analyzed to demonstrate the features of the developed model.

A Dispute Review Board (DRB) is a panel of three respected, experienced industry professionals jointly selected by the owner and contractor of a project and established at the beginning of a construction project. It meets regularly at the job site to be briefed on the work, the schedule, and any potential issues in dispute. With the use of DRB growing, a pilot study was undertaken to determine the attitudes of industry members concerning its effectiveness in preventing and contemporaneously resolving disputes.

This paper provides construction industry owners and contractors with information about enhancing their operations using radio frequency identification (RFID) technology. Radio frequency identification involves the use of tags, or transponders, that collect data and manage it in a portable, changeable database; communicate routing instructions and other control requirements to equipment; and can withstand harsh environments. A construction industry-RFID supplier workshop was held to disseminate information about this technology and to generate suitable application ideas for the industry. With the information gathered during the workshop, one application idea was selected and pilot tests conducted to learn more about RFID and its applicability to the material procurement process on a construction site. The pilot tests showed that RFID tags reduced the time required to download data into a company’s material tracking system and could “flag” an item so an entry was not repeated. When scanning the tags, sun glare was not a problem as compared to using bar code labels. Although further analysis is necessary, RFID did show promise of being a beneficial technology as it relates to the materials receiving process. A flowchart is provided to assist contractors and owners in selecting the appropriate RFID system.

This study combines two luminous areas, geographical information systems (GIS) and E-commerce system, and applies the combined technology in the business of construction material trading. In the era of electronic business, trades can be accomplished without limitations on time and space. The statement is true in principle only, but in reality, any kind of business activity must involve transportation of goods from one place to another, and therefore, constrain in space is always in existence. GIS is capable to integrate, to manage, and to analyze information regarding to space (spatial information). This study investigates the roles of internet-based GIS in E-commence systems. It is identified that there is a great potential to use GIS in E-commerce system to provide better services in location-based queries, business area analysis, and transportation analysis. Accordingly, an E-commerce system for the business of construction material is developed. The implemented system is called construction materials exchange, this is currently operating for the over 2,000 buyers, 29,000 suppliers, and 1,000 agents, and the system mainly servers for the great China region. This paper presents the system from its conceptual business model, logical system design, to the system implementation.

This paper presents a new approach for resource optimization by combining a flow-chart based simulation tool with a powerful genetic optimization procedure. The proposed approach determines the least costly, and most productive, amount of resources that achieve the highest benefit/cost ratio in individual construction operations. To further incorporate resource optimization into construction planning, various genetic algorithms (GA)-optimized simulation models are integrated with commonly used project management software. Accordingly, these models are activated from within the scheduling software to optimize the plan. The result is a hierarchical work-breakdown-structure tied to GA-optimized simulation models. Various optimization experiments with a prototype system on two case studies revealed its ability to optimize resources within the real-life constraints set in the simulation models. The prototype is easy to use and can be used on large size projects. Based on this research, computer simulation and genetic algorithms can be an effective combination with great potential for improving productivity and saving construction time and cost.