Journal of Construction Engineering and Management

Today’s construction business relies on first-to-market product strategies to gain competitive advantages and increase profit margins. This has created an increased demand for a high performance capital project delivery system that can achieve a dramatic reduction in project cycle time. Very few decision tools and guidelines exist to assist owners in choosing appropriate delivery systems and project strategies to radically reduce the project cycle time from the preplanning stage through start up. The research presented in this paper surveyed the construction owners and architectural/engineering/construction firms to identify projects that have achieved greater than 25% reduction in overall project cycle time when compared to current industry standards. The data collected were analyzed to determine the techniques that facilitate radical reduction in project cycle time. These techniques include, best practices and schedule reduction techniques as well as the various management techniques employed on the projects identified by the Construction Industry Institute (CII). This research also identified the barriers to radical schedule reduction. The research concludes that radical schedule reduction well in excess of 25% can be achieved through the selective employment of management techniques, schedule reduction techniques and CII best practices. Almost every construction manager can utilize this research to improve project performance whether for radical reduction or simply more effective execution.

This paper presents a multicriteria decision-making approach to evaluate contractor candidates in the open competition of construction project procurement by means of a knowledge-framed analytic network process (KANP), which embeds a construction knowledge framework into a formal analytic network process procedure. An applied KANP model named KANP.BID is set up and used in an experimental case study. The paper concludes that the KANP.BID model is a viable and capable tool for selecting the most appropriate tender alternative under criteria of sustainable construction. It is expected that the proposed KANP.BID model can attract interest from both practitioners and researchers in terms of further research and development.

The ways to manage a construction project very much depend on the attitude of the people involved. Collectively this is identified as construction contracting behavior (CCB). The CCB of the construction industry is adversarial as pinpointed in many industry-wide reviews. A more cooperative project delivery approach has therefore been advocated. In fact, drive for efficiency provides the incentive for cooperation. Nevertheless, members of a project team, in representing their respective organizations, are often in conflict. The dichotomous pair of cooperation and aggression forces therefore coexist. It is not uncommon to note that CCB turns aggressive as the construction activities of a project intensify. This change is often sudden and thus matches well with the phenomenon of hysteresis described by the catastrophe theory (CT). It is hypothesized that the dynamics of CCB can be modeled by CT. The three-variable CT models include CCB (as dependent variable), cooperation forces (as normal factor) and aggression forces (as splitting factor). With data collected from a survey fitted by the Cuspfit program, it was found that trust intensity is an effective normal factor. Contract incompleteness and competitive inertia are splitting factors that trigger aggression.

This paper investigates the likelihood of occurrence and quantifies the magnitude and rate of discrepancies in highway project final costs with respect to their contract award amounts. Using data from Indiana, we develop a multistep econometric approach that can be used to estimate the effects of factors associated with the contract bidding process, project type, and the project physical environment on cost discrepancies in highway contracts. Estimation findings indicate that for a given project type and project year, contracts of larger size or longer duration are generally more likely to incur cost overruns. In addition, for contracts that incur cost overruns, the cost overrun rate decreases nonlinearly with increasing contract size up to a certain point after which the cost overrun rate increases with increasing contract size. Our approach allows for the possibility that cost overrun amounts are not linearly related to contract award amounts (contract size), and shows that greater analytical flexibility needs to be incorporated into any investigation of contract cost overruns. Agencies interested in improving their financial forecasts can replicate our proposed methodology using local contract data.

Project goals expressed in terms of time, cost, and quality requirements are seldom disputed. However, it is not easy to ensure that the defined goals will be implemented by all parties involved in the implementation process as goal commitment is one of the key variables in project success and participant satisfaction in construction projects. In order to ensure professional commitment in the management process and optimize construction performance in the complex situation, it is necessary to identify the moderate variables and clarify the interactions among affective commitment, job performance, and job satisfaction of construction professionals. A questionnaire survey was conducted in Hong Kong. Both correlation analysis and hierarchical regression models were applied. The results revealed that both job acceptance/contribution and specificity/teamwork are moderate variables influencing the relationships between affective commitment and job performance and between job performance and job satisfaction. A series of conditional relationships is revealed in detail in this study and some suggestions, such as formal briefing sessions, regular formal meeting, and value engineering workshop, are recommended.

Gaining or maintaining a “contractor’s” competitive advantage is not easy as it is determined by a large number of factors. Identification of critical success factors (CSFs) allows one to reduce the vast number of factors to some manageable few but vital ones. Based on the CSFs, contractors’ limited resources such as money and manpower can be allocated and aligned appropriately for yielding a maximum outcome of overall competitiveness. This paper describes the CSFs identified from a survey study carried out in Mainland China. The ranking analysis of the survey results shows that 35 factors are rated as critical for determining the competitiveness of a contractor. Factor analysis reveals that the 35 CSFs identified can be grouped into eight clusters, namely, project management skills, organization structure, resources, competitive strategy, relationships, bidding, marketing, and technology. The CSFs in this study provide a vehicle for guiding a contractor in managing its resources in order to improve competitive advantage. The study also provides insights into the management of competitiveness for contractors that are operating in the particular context of the Chinese construction industry.

China is a new market to many international architectural, engineering, and construction (AEC) firms and it is not known what would be the likely project outcomes, based on different project management (PM) practices adopted. This research developed and tested five models to predict the likely project success levels, based on PM practices adopted by foreign AEC firms in China. Based on data obtained from 33 projects, multiple linear regression (MLR) models for predicting the performance of foreign managed projects in China were constructed. The models were tested against 13 new cases, and the results show that they are able to predict project outcomes with some level of accuracy. The models show that certain scope management practices can be used to predict owner satisfaction, profit margin, and cost and quality performance of the project. Construction industry practitioners who are managing projects in China may benefit from the findings by focusing more on upstream management, like managing project scope, in order to ensure project success. It is recommended that construction industry practitioners use the MLR models to make preliminary assessment of the possibility of project success based on the type of PM practices they intend to adopt in China. From the results, they can then decide if they should change their practices or abort the project.

This multiple-case study induces alternative strategies to coordinate the overlap of tasks to detail and physically execute base building with tasks to conceptualize the business-critical fit out. Base-building subsystems provide service space for occupancy, whereas fit-out subsystems make the space functional. Our empirical findings on problem-solving base-building design under uncertainty and ambiguity stem from a number of projects in an airport expansion program. They suggest that base-building subsystems show low sensitivity to incremental changes in fit out as their definitions are seldom optimized to eliminate slack. Yet, base-building subsystems show high sensitivity to radical changes in fit out when the architectures of the two subsystems are integral to one another. Three strategies for problem-solving base building stand out: (1) iterate design when preliminary information about fit out is ambiguous, or precise but unstable; (2) physically decouple the architectures of base building and fit out; and (3) design buffers in base building when preliminary information about fit out lacks precision but it is not ambiguous. These buffers can be designed out if uncertainties in fit out resolve favorably before starting the physical execution for base building.

The sourcing of a construction program has always been a fluid process for many construction owners. A construction owner must balance the performance of all construction functions between internal staff and external service providers. Described herein are recent sourcing trends of construction programs identified through a survey of nonresidential construction owners. The survey data is representative of 170 respondents with varying demographic characteristics that account for about $72 billion in annual construction spending. Included are outsourcing trends of specific functions across the construction lifecycle and the sourcing strategy employed for each. A comparison of the outsourcing volume reported and the sourcing strategy employed is presented. A clear relationship between the amount of outsourcing and the sourcing strategy employed for the performance of construction is shown. The paper provides the academic community with new outsourcing data for construction lifecycle functions. It also provides contractors with new information about the current behavior of construction owners while providing owners with a better understanding of the relationship between sourcing and outsourcing.

This paper presents a bootstrap approach for integration of parametric and probabilistic cost estimation techniques. In the proposed method, a combination of regression analysis and bootstrap resampling technique is used to develop range estimates for construction costs. The method is applied to parametric range estimation of building projects as an example. The bootstrap approach includes advantages of probabilistic and parametric estimation methods, at the same time it requires fewer assumptions compared to classical statistical techniques. This study is of relevance to practitioners and researchers, as it provides a robust method for conceptual estimation of construction costs.