Engineering, Construction and Architectural Management

A macroeconomic regression analysis of the European construction industry : Table of Contents

Teresa M. Pellicer, Eugenio Pellicer, David Eaton — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – The purpose of this paper is to analyse the international construction sector from a macroeconomic point of view through production functions. The aim is to contribute additional knowledge on the European construction sector, highlighting differences in the industry among European countries Design/methodology/approach – In order to analyse the sector panel, data from 1996-2005 for nine European countries were used. Raw data were obtained from Eurostat (Bach Project). Variables for the production functions were chosen after a correlation analysis. Annual turnover was taken as the dependent variable, whereas total assets and personnel costs were the independent variables. The econometric regression models considered were linear (bivariate and multivariate) and logarithmic (Cobb-Douglas). Findings – In spite of the limitations stated, there are some factors that can explain the results obtained, such as the diverse preponderance of small and medium enterprises and the different roles played by informal economy, migration and subcontracting in each of the countries. Research limitations/implications – Data collected by Eurostat are provided by the enterprises voluntarily. This implies a bias in the representativeness of the data. Thus, the discrepancies and inconsistencies in the results obtained are a direct consequence of the data limitations. Furthermore, the regression models obtained should be tested using future data to predict the behaviour of the construction industry in each one of the countries. Originality/value – The use of production functions in the construction industry is a novel approach that should be further developed to gather more precise information on the behaviour of the sector.

Forecasting final budget and duration of highway construction projects : Table of Contents

Thammasak Rujirayanyong — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – The purpose of this paper is to develop models to forecast final budget and duration of a highway construction project during construction stage. Design/methodology/approach – Highway construction project data are collected and analyzed to find out factors affecting project final budget and duration before developing the forecasting models, research for which is based on the principle of Artificial Neural Network (ANN). The forecasting results obtained from the proposed method are compared with those obtained from the current method based on earned value. Findings – Factors affecting final budget and duration are presented. The forecasting results obtained from the proposed method based on ANN application are more accurate and stable than those obtained from the current method based on earned value. Research limitations/implications – Factors affecting final budget and duration may differ if applied in other countries, since the project data were collected in the Kingdom of Thailand. The forecasting models, therefore, must be reconsidered for better outcomes. Practical implications – The study presents a useful tool for the highway construction project manager to predict project final budget and duration. The results can potentially provide early warning of over-budget and schedule delay. Originality/value – The ANN models to forecast final budget and duration of highway construction projects during the construction stage, developed by using project data reflecting continual and seasonal cycle data, can provide better predicting results.

Framework for managing multicultural project teams : Table of Contents

Edward Godfrey Ochieng, Andrew David Price — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – The purpose of this paper is to present literature that suggests that project teams comprising members from culturally diverse backgrounds bring fresh ideas and new approaches to problem solving. The challenge, however, is that they also introduce different understandings and expectations regarding team dynamics and integration. The question becomes how a project manager can effectively work and influence a multicultural construction project team, at the same time being attentive to the diversity and creating the structure required for success. Design/methodology/approach – Using a qualitative methodology, participants of heavy construction engineering projects revealed a number of multi-dimensional factors that either facilitated or limited the effectiveness of multicultural teamwork. These were synthesised into a framework of eight key dimensions that need to be considered when managing multicultural teams. The identified key dimensions include: leadership style, team selection and composition process, cross-cultural management of team development process, cross-cultural communication, cross-cultural collectivism, cross-cultural trust, cross-cultural management and cross-cultural uncertainty. Findings – The proposed framework has implications for construction managers who work with multicultural teams and are committed to improving team performance and productivity. The utilisation of the proposed framework would not instantly transform multicultural teams into high-performing ones; however, it does identify eight key cross-cultural dimensions, which need to be considered. Originality/value – Though the benefits of culturally diverse teams have been acknowledged within the industry, the study highlighted that cultural differences among project teams can cause conflict, misunderstanding and poor project performance.

Overcoming barriers to partnering through cooperative procurement procedures : Table of Contents

Per Erik Eriksson, Brian Atkin, TorBjörn Nilsson — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – The purpose of this paper is to report on research into investigating ways in which construction clients can overcome barriers to partnering through the adoption of purposeful procurement procedures within an overall project management context. Design/methodology/approach – Data were collected through interviews, document analysis, surveys and workshops as part of a longitudinal case study using an action-research approach. Findings – Analysis reveals how the early involvement of partners, selected for their long-term perspective and willingness to use collaborative working arrangements, can help to overcome cultural and organizational barriers. Research limitations/implications – The research results are based on empirical study for which reasonable generalisations could be made, albeit cautiously. Clients' implementation of partnering requires an appropriate use of a broad range of suitable procurement procedures that are quite different from more commonly used procedures. Hence, clients need to reassess their procurement procedures and tailor them to different project situations. Additionally, a long-term perspective is crucial in order to facilitate continual improvement over time. Originality/value – The case study data support the analysis of how utilised procurement procedures affect project results.

Commercial reviews in the tender process of contractors : Table of Contents

Samuel Laryea, Will Hughes — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – The purpose of this paper is to show the extent to which clients amend standard form contracts in practice, the locus of the amendments, and how contractors respond to the amendments when putting together a bid. Design/methodology/approach – Four live observational case studies were carried out in two of the top 20 UK construction firms. The whole process used to review the proposed terms and conditions of the contract was shadowed using participant observation, interview and documentary analysis. Findings – All four cases showed strong evidence of amendments relating mostly to payment and contractual aspects: 83 amendments in Case Study 1 (CS1), 80 in CS2, 15 in CS3 and 29 in CS4. This comprised clauses that were modified (37 per cent), substituted (23 per cent), deleted (7 per cent) and new additions (33 per cent). Risks inherent in the amendments were mostly addressed through contractual rather than price mechanisms, to reflect commercial imperatives. “Qualifications” and “clarifications” were included in the tender submissions for post-tender negotiations. Thus, the amendments did not necessarily influence price. There was no evidence of a “standard-form contract“ being used as such, although clients may draw on published “standard-form contracts” to derive the forms of contract actually used in practice. Practical implications – Contractors should pay attention to clauses relating to contractual and financial aspects when reviewing tender documents. Clients should draft equitable payment and contractual terms and conditions to reduce risk of dispute. Indeed, it is prudent for clients not to pass on inestimable risks. Originality/value – A better understanding of the extent and locus of amendments in standard form contracts, and how contractors respond, is provided.

Road testing a health and safety worker engagement tool-kit in the construction industry : Table of Contents

A. Meldrum, B. Hare, Iain Cameron — Sat Nov 21 08:00:12 GMT 2009

Abstract:
Purpose – Worker engagement in health and safety (H & S) is a means to reduce risks in construction projects. A measure for worker engagement in H & S is a first step in ensuring improvement and maintenance of worker engagement in the construction industry. The purpose of this paper is to explore the nature of worker engagement in construction by testing a management instrument (WISH) developed to measure it during a construction project. Design/methodology/approach – A stratified sample of workers in a construction project organisation was studied to test the effectiveness of a site-wide engagement programme (IIF) run by the main contractor. The measurement was repeated 13 months after the first phase to check engagement at that stage of the project and to reduce bias in scoring. Findings – Four key factors emerged as the independent variables on which worker engagement depends. These are: knowledge and capability to engage, perceptions, attitudes and behaviours and actual involvement in H & S risk management. The IIF gave a check on the validity (face, construct and content) of the instrument as a measure of worker engagement. Reliability of the measure was tested by peer scoring at the second measurement phase. The Spearman-Brown R showed a high degree of inter-rater reliability in scores, supporting the reliability of the WISH measure. Originality/value – The study provides a valid and reliable measure of worker engagement in H & S management for construction. The use of this instrument within the construction industry should help managements to improve the effectiveness of their worker engagement programmes.