Journal of Construction Engineering and Management

Within Australia, civil engineering works continue to meet the insatiable demand for new infrastructure despite project complexity and cost and schedule overruns. A significant factor that can contribute to such overruns is rework; yet to date research into the root causes and consequential costs of rework in civil infrastructure projects has been limited. Using a questionnaire survey, rework costs and probable causes were obtained from 115 civil infrastructure projects. Stepwise multiple regression was then used to determine the significant variables that contributed to rework. The regression model revealed that the following five significant predictors accounted for 25% of the variance in total rework cost: (1) ineffective use of information technologies; (2) excessive client involvement in the project; (3) lack of clearly defined working procedures; (4) changes made at the request of the client; and (5) insufficient changes initiated by the contractor to improve quality. The findings also revealed that mean total rework costs were 10% of the contract value for the sample. Interestingly, the extent of rework experienced was significantly correlated with project cost and schedule growth $\left(p<0.01\right)$ . It is suggested that future work is required to determine the underlying factors that contribute to rework in civil infrastructure projects before effective preventive strategies can be identified.

Twenty years ago, public owners did almost all of their own design work and project inspection, but this is no longer the case. Innovative construction ideas of 15 years ago are now considered mainstream, and newer ideas are taking their places. Fifteen years ago, the concept of fast-track construction was still being researched and many federal agencies refused to fund it; today, most large federal projects call for some sort of fast tracking. These systems allow construction input into the design process of construction projects. Whoever performs tasks such as scope development, prebid cost estimates, and quality assurance can significantly affect the quality of the project, as can which delivery system is used. The Construction Institute of ASCE sponsored a survey of construction owners to determine what delivery systems are used in their projects and whom they select to perform various tasks. The survey also sought to ascertain the owners’ satisfaction level with the performance of the individuals and systems they choose. This paper, written for practitioners and researchers, describes the results of that survey.

The objective of this research is to present an innovative technique for managing the knowledge contained in construction contract documents to facilitate quick access and efficient use of such knowledge for project management and contract administration tasks. Knowledge Management has become the focus of a lot of scientific research during the second half of the 20th century as researchers discovered the importance of the knowledge resource to business organizations. Despite early expectations of improved document management techniques, document management systems used in the construction industry have failed to deliver the anticipated performance. Recent research attempts to utilize analysis of the contents of documents to improve document categorization and retrieval functions. It is hypothesized that natural language processing can be effectively used to perform document text analysis. The proposed system, technique for concept relation identification using shallow parsing (CRISP), utilizes a shallow parser to extract semantic knowledge from construction contract documents which can be used to improve electronic document management functions such as document categorization and retrieval. When compared with human evaluators, CRISP achieved almost 80% of the average kappa score attained by the evaluators, and approximately 90% of their $F$ -measure score.

This paper develops theoretical foundation and implements technologies for generation of legal arguments based on precedent construction disputes. First, the authors simulated the process of legal discourse in construction disputes using a formal logic algorithm that is based on adversarial precedent law. In this regard: (1) facts associated with construction change order cases were factorized into binary, dimensional, and abstract factors; (2) relevance of the developed factors was associated with the disputing parties; (3) logical predicates and rules were generated based on the said factors; (4) factors were logically analyzed into distinct classifications; and (5) an 11 stage logical induction algorithm was used to show similarities, differences, strengths, and weaknesses between current and precedent construction disputes. Second, the authors created a multiagent system for construction dispute resolution (MAS-COR) that automates the developed algorithm. In this connection: (1) an agent-based role model was developed to represent the developed algorithms; (2) an agent-based role model was built to represent the developed algorithm; and (3) system implementation was carried using object-oriented programming on NetBean’s integrated development environment. Using 30 previously arbitrated construction disputes, testing and validation steps were rigorously applied to assess the developed formal logic algorithm as well as the associated created agents and their integration into the MAS-COR system through syntactical debugging using theorem proving, model checking, and system testing. The results of this validation process illustrated that the system was capable of deriving significant legal arguments that help save time and effort of construction claim and dispute professionals while preparing the defense for their respective positions.

There is a need to support collaborative coordinated construction through the integration of work processes across various stakeholders, disciplines, and projects. Due to the fast-growing complexities of domain-wide coordination and collaboration, coupled with the emerging opportunities of knowledge sharing, a knowledge-based approach is believed to be the way to go. Knowledge-based process integration takes into account explicit and formal semantics (meaning) of processes. It aims at supporting seamless integration of knowledge-carrying processes. This paper presents a prototype collaborative portal for domain-wide process integration. The portal is ontology-based: semantic process representation is enabled through ontologies, and knowledge-based process integration is facilitated through an ontology merger. The portal aims at offering an efficient value-adding collaboration platform through multidimensional process integration for producing a common workflow that goes beyond listing of processes to a knowledge-enabled view. The prototype was evaluated through a focus group.

The innovation diffusion modeling approach proposes that the diffusion of an innovation in an industry is mainly driven by internal and external influence factors. But the innovation diffusion models used in previous research studies conducted in the construction management literature are excessively restrictive. This research uses a more flexible model called the nonuniform influence (NUI) model to study the diffusion of a technological innovation, namely, computer aided design (CAD) technology in the Turkish architectural design practice; and an administrative innovation, namely, ISO 9000 certification in the Turkish precast concrete industry. The research findings point out that the NUI model performs significantly better than previously used models and that internal rather than external influence plays a predominant role in the diffusion of both types of innovation. The research findings provide additional insights into the diffusion of CAD technology and ISO 9000 certification which could not be captured by the previously used diffusion models. They show that internal influence on the diffusion of CAD technology increases with passage of time and that internal influence on the diffusion ISO 9000 certification decreases with passage of time. The research has academic importance because it addresses the limitations of previous innovation diffusion research and provides quantitative insights into the diffusion of innovations; knowledge that is lacking in the construction management literature. The research is of practical importance because it provides useful observations that architecture/engineering/construction firms can use to understand the presence of imitative behavior in the innovation diffusion process and the role of innovation characteristics in imitative behavior.

Psychological capital (PsyCap) has gained prominence as an important construct in leadership research. Comprising four factors (self-efficacy, hope, optimism, and resiliency), PsyCap is considered to be a vital factor for authentic leadership development and influence. The current study reports the results of a questionnaire survey that was conducted in the construction industry of Singapore. The survey explored the correlations of PsyCap with authenticity, leadership, and leadership outcomes. The results show that PsyCap significantly correlates with authenticity and transformational leadership. It was also found that transformational leadership plays a mediating role for PsyCap to predict leadership outcomes (effectiveness, extra effort, and satisfaction). The discussion in the paper also considers the implications of PsyCap for leadership development and effectiveness in general and in the context of the construction industry.

International joint ventures in construction often face a highly complex and dynamic environment because, in most instances, they are formed to build large-scale engineering projects. One can distinguish two organizational levels that together constitute the joint venture system: (1) the interorganizational level formed by the partners and (2) the intraorganizational level of the joint venture. The partners seek to reconcile their different interests on the interorganizational level, as each of them follows the goal of profit optimization. Here, formal control mechanisms are more important than trust. Actors on the intraorganizational level face the construction task. One of the primary requirements is to reduce the project complexity. Within the joint venture, many international construction joint ventures disentangle their responsibilities by functional separation and delegation of work. In a social group, delegation of work requires trust in the capability and willingness of others to perform their duties without supervision. Especially during the initial phase, international construction joint ventures are high-pressure environments without established teams. Trust is a mechanism that allows to reach goals efficiently within this setting. As a consequence, we can find a special form of trust in international construction joint ventures: necessitated general trust that is extended to everyone even without prior knowledge. These findings are new and have high practical relevance as trust proves to be a most important success factor.

This paper presents a mathematical model for calculating the budgetary impact of increasing the required confidence level in a probabilistic risk assessment for a portfolio of projects. The model provides a rational approach for establishing a probabilistic budget for an individual project in such a way that the budget for a portfolio of projects will meet a required confidence level. The use of probabilistic risk assessment in major infrastructure projects is increasing to cope with major cost overruns and schedule delays. The outcome of the probabilistic risk assessment is often a distribution for project costs. The question is at what level of confidence (i.e., the probability that budget would be sufficient given the cost distribution) should be used for establishing the budget. The proposed method looks at a portfolio of such projects being funded by the same owner. The owner can establish a target probability with respect to its annual budget. The model can help the owner establish confidence level for individual projects and also examine the effect of changing the confidence level of the portfolio budget on the budget and the confidence level of individual projects. The paper is relevant to practitioners because it provides a methodology for establishing confidence levels by the owner agencies in the emerging field of cost risk assessment for infrastructure projects. A numerical example is provided using actual transit project data to demonstrate the model application.

Previous studies have aimed to develop effective methods to derive baseline productivity (BP) for labor-intensive activities in construction sites. However, there are two different definitions of BPs: one is defined as a performance benchmark of best practice and the other as a standard reflecting a contractor’s normal operating performance. It is necessary to clarify the difference between the two definitions and their corresponding BPs. This research introduces data envelopment analysis (DEA) as a new method for deriving BP and compares DEA with the other four BP deriving methods. DEA is concluded as the best method in terms of objectivity, effectiveness, and consistency to find BP that represents the best performance a contractor can possibly achieve. With the capability of deriving productivities of multi-input and multi-output activities, the proposed DEA has raised the scale of labor productivity from the level of single factor productivity to total factor productivity which will help construction researchers and managers to evaluate performances of interests in a much more effective way.

Architecture, engineering, and construction industry participants often find it pragmatic to implement a project-specific dispute resolution ladder (DRL) as a managerial tool to assist in the prompt resolution of claims and change orders (CCOs) that might arise during the project construction phase. This project-specific DRL consists of a single or multiple alternative dispute resolution (ADR) techniques that require capital expenditures to cover the expenses incurred by the owner’s/contractor’s employees and third-party neutrals. If a project-specific DRL is properly chosen, then the capital expenditures are outweighed by the expected benefits from the DRL implementation; namely, prompt resolution of the CCOs without incurring excessive cost overruns on an already financially stressed project budget, as well as avoiding the escalation of the claims to a dispute that requires long protracted litigation for final settlement. Typically, the decision as to which ADR techniques to include in the project-specific DRL is undertaken during the project planning phase prior to the actual occurrence of the CCOs. In this case, the project owner decide to invest in a DRL in exchange for the expected savings in the project. This decision regarding the project-specific DRL is usually done based on the experience of the project parties with the ADR techniques. However, such a decision needs to be guided by a financial tool that allows the project owner to evaluate alternative DRLs and choose the most economically feasible alternative based on the project and ADR characteristics. In this paper, a financial model is developed to evaluate DRL implementations in construction projects by drawing analogies from real option theory with exogenous competitive entry. More specifically, the occurrence of a given CCO will result in a reduction in the value of expected savings in the project due to DRL implementation. This is similar to the reduction in the gross value of a capital investment project in a commercial property due to competitive entry by another similar commercial property developer in the market. At the same time, the CCO resolution due to an effective DRL implementation will allow project owner to recover part of the losses in the expected savings in the project due to the DRL implementation. The model presented in this paper takes into account the characteristics of the various ADR techniques included in the project-specific DRL, and the characteristics of the CCOs occurring during the construction phase of the project. A case study of a real construction project is used to illustrate the practical implementation of the model. The results indicate that for this case project and from a financial point of view, the investment in the chosen project-specific DRL was not worthwhile because of the high uncertainty in the project, and the low effectiveness of the selected DRL. These conditions did not provide the owner with the anticipated advantage of the DRL implementation in reducing the value of the CCOs occurring in the project. At the same time the cost of the DRL implementation exceeded the actual savings attained in the project.

A contingency is a crisis situation such as a national disaster, civil disorder, or military invasion that creates a major threat to the safety and security of a population. Essentially all contingencies require construction support that is generally mission critical and inherently challenging due to the dynamics and uncertainty with the availability of resources and the demands for the projects. This paper considers a military contingency for which all construction projects must be completed within a fixed time to achieve mission success. The effectiveness in accomplishing the construction mission is based on mission time reliability assessed using the probability of interference between load measured in the number of days required for the project, and the capacity which is taken as the available allotted resources. Two models are developed to assist in managing the allocation of resources for the construction operations; one based on conditions of moderate risk with randomly occurring repetitive loads, and the other a Markov chain model for high risk conditions. Examples are provided.