Chinese Values and Stressors of Construction Professionals in Hong Kong

The construction industry has been recognized as a stressful industry, and a great deal of stress is placed on various construction professionals (CPs). However, due to the different “values” among CPs in Hong Kong, susceptibility to stressors varies from individual to individual. People who grow up and live in different cultural environments have different values and this leads to different perceptions of stressors. This study aims to investigate the impact of Chinese values on the stressors of CPs in Hong Kong, one of the main cities in China. To achieve this aim, factor analysis, Pearson correlation analysis, and structural equation modeling were applied based on the survey data collected from CPs in Hong Kong. Four types of Chinese values and eight stressors are identified. The results reveal that: (1) social conventions value alleviate role ambiguity and poor workgroup relationship; (2) value of disciplined work ethos triggers work overload, although it alleviate poor workgroup relationship and work underload; (3) value of conservative personality alleviates work overload; (4) interpersonal integration value has indirect impacts on the various stressors; and (5) the objective poor working environment stressor has significant impact on the poor workgroup relationships and role ambiguity of individual CPs.     

Drivers for Adopting Public Private Partnerships—Empirical Comparison between China and Hong Kong Special Administrative Region

The private sector has long been involved in delivering public sector projects, whether its role has been as a partner or just as a contractor for the government. Over recent years the interest in adopting public private partnerships (PPPs) has increased internationally. Many research studies have presented positive reasons for the governments and the private sector to welcome this form of procurement, rather than continue adopting the traditional options. This paper aims to explore and compare the key drivers for adopting PPP in China and the Hong Kong Special Administrative Region (referred to as Hong Kong from here onwards). An empirical questionnaire survey was conducted in both of these administrative systems and survey respondents were invited to rate their perceptions on the importance of 15 different drivers identified. Eighty-seven completed survey questionnaires were returned for analysis. The findings indicated that respondents from China rated economy-related drivers higher, whereas Hong Kong respondents tended to rate efficiency-related drivers higher. China’s demand for more public infrastructure and services has imposed great pressure on the government’s budget, and therefore economic drivers were rated higher. On the other hand, with adequate financial reserve in hand and budget surplus over recent years, Hong Kong has tended to prefer paying for projects upfront, and hence efficiency was regarded more significantly. Among the 15 drivers, both of the respondents from China and Hong Kong selected, “provide an integrated solution (for public infrastructure/services)” and “solve the problem of public sector budget restraint” to be within the top three drivers. Despite the general agreement on the ranking pattern, the results of independent two-sample t-test showed that China and Hong Kong shared very different views on the driver “reduce the total project cost.” This driver was ranked rather high by the mainland Chinese respondents, but much lower by the Hong Kong respondents. This finding can be construed that economic drivers are in general rated higher in China as compared to that in Hong Kong.     

Exploring Factors for Ethical Decision Making: Views from Construction Professionals

The construction industry has experienced malpractice, which is a significant cause for concern. Does the nature of the industry provide some hint for tracing the underlying reasons of the relatively severe ethical problems in construction? Can one of the most influential stakeholders in the industry, the professionals, improve the situation? This study was conducted in Hong Kong to investigate what kinds of ethical problems are faced by construction professionals, and to explore the factors influencing their ethical decision making. Statistical factor analyses identified six intuitive underlying factors that affect ethical decision making when construction professionals are facing ethical dilemmas in the industry. Four of them influencing decision making are “deontological factor,” “consequential factor—egoism,” “consequential factor—utilitarianism,” and “legal requirement.” Two other factors are “oneself/family” and “stakeholders.” Results show that construction professionals’ ethical behavior is guided by legal requirements. When making ethical decisions, they adopt an egoism approach that prioritizes their self-interest and their families’ interests higher than the public’s interest; they would consciously evaluate the consequences of any unethical behavior.     

Potential Obstacles to Successful Implementation of Public-Private Partnerships in Beijing and the Hong Kong Special Administrative Region

Public-private partnership (PPP) has been practiced for quite some time around the world and there are numerous infrastructure, construction, and building projects which are employing the concepts. Unfortunately, not all of these PPP projects are equally successful and some of these projects have been exposed to formidable obstacles. The need to identify potential obstacles for PPP projects is therefore becoming an important issue for both research and practice. Despite the amount of interest vested in PPP, it is normally the advantages of PPP that are touched on rather than the potential obstacles. Both Beijing and the Hong Kong Special Administrative Region (referred to as Hong Kong from here onwards) have been keen to introduce more PPP projects. This paper presents part of the findings of an empirical questionnaire survey in relation to the prevailing barriers to PPP success conducted in these two administrative systems. It was anticipated that the obstacles would be similar for these jurisdictions. Respondents were asked to rate the level of severity of thirteen potential obstacles toward PPP projects identified from a literature review. The top three obstacles rated by the Beijing respondents were found to be “lengthy delays in negotiation,” “lack of experience and appropriate skills,” and “lengthy delays because of political debate.” Similarly the first and third obstacles ranked by the Beijing respondents were also ranked within top three by the Hong Kong respondents, together with “very few schemes have actually reached the contract stage (aborted before contract).” It was also discerned that “less employment positions,” “reduce the project accountability,” and “high project costs” were all ranked bottom by both of the Beijing and Hong Kong respondents. Moreover, the results obtained in the United Kingdom reported in other studies also shown consistency with those of Beijing and Hong Kong. Therefore the research hypothesis was proved to be true. Although the importance of the obstacles was similar it was realized that the scores obtained in the United Kingdom survey were much lower. This observation showed that the British respondents were less threatened by the obstacles, probably due to the fact that they are much more experienced and confident in undertaking PPP projects compared to Beijing and Hong Kong. Further analysis of the data reflected that the responses within each administrative system were consistent as revealed from the Kendall’s concordance analysis. Although the Spearman rank correlation test indicated that there was no significant disagreement on the rankings of obstacles between respondents of the two administrative systems, considerable difference was detected by the independent two-sample t-test in the mean value of their responses between the two administrative systems for the two obstacles lack of experience and appropriate skills and lengthy delays in negotiation. In Beijing, respondents felt that lack of experience and appropriate skills were highly important ranking it second place, but in Hong Kong this obstacle was ranked eighth, showing their confidence in experience and skills. For lengthy delays in negotiation, although the ranking between Beijing and Hong Kong was similar the difference in score showed a large variation. This represents a difference in tendering procedures between the two administrative regions. Triangulation with real cases largely supports the survey findings.     

Empirical Study of the Risks and Difficulties in Implementing Guaranteed Maximum Price and Target Cost Contracts in Construction

Over the past few decades, both the guaranteed maximum price (GMP) and target cost contracting (TCC) arrangements have been regarded as alternative integrated procurement strategies for clients to mitigate risks, minimize claims, integrate the diverse interests of a complex construction project, and offer incentives to provide value-added services. However, the adoption of GMP/TCC contracts may also generate significant risks and difficulties that merit considerable attention. This paper aims to provide a concise review of the potential pitfalls of the GMP/TCC scheme in general and identifies the key risk factors and potential difficulties associated with GMP/TCC in comparison with other procurement strategies in construction in particular via an empirical survey of clients, contractors, and consultants in Hong Kong. The survey data gleaned from 45 valid replies were analyzed using the mean score ranking technique, Kendall’s concordance test, and Spearman’s rank correlation test. The survey results indicated that “involvement of inexperienced or claim-conscious contractors in a project procured by a GMP/TCC contract” was considered to be the most significant risk factor; while “design development must keep pace with main contractor’s program for tendering the domestic subcontractors’ works packages” as the major difficulty in implementing GMP/TCC projects. The research findings derived from this study are particularly essential in assisting the contracting parties to mitigate the detriments brought about by potential risks or difficulties when embarking on GMP/TCC contracts. It has also generated valuable insights into developing effective recommendations for alleviating the barriers to GMP/TCC success for future construction projects.     

Logistic Likelihood Analysis of Mediation Outcomes

Dispute persists in all building and construction projects. Alternative dispute resolution methods are now commonly used as a means to resolve construction disputes. Mediation, interalia, is the popular choice in Hong Kong due to its cost-saving, flexible, speedy, confidential, and voluntary attributes. In mediation, tactics used by a mediator is central in driving desired outcomes. This paper reports a study that employs logistic regression (LR) to predict mediation outcomes respective to the tactics used. To achieve this, three main stages of work are involved. First, taxonomies of mediator tactics and mediation outcomes were developed. With these, the second stage included the development of logistic regression models each with a mediation outcome taxonomy as dependent variables and the taxonomies of tactics as independent variables. In the third stage of the study, the LR models were validated using an independent set of testing data. The LR models suggested that “win-win settlement,” “progress,” “improvement,” and “time advantage” are responsive to mediator tactics of “ice-breaking,” “trust building,” “encourage for self-improve,” and “process control,” respectively. In addition, it is observed that these relationships are positively correlated.     

Comparative Study of the Variables in Construction Project Briefing/Architectural Programming

Briefing is the process by which client requirements are identified, clarified, and articulated in the early design stage of construction projects. It is crucial to the successful delivery of construction projects. Considerable research has been conducted in briefing during the past two decades. However, researchers consider many current briefing practices to be inadequate, and little research has been done in sufficient depth to explore briefing variables in the construction industry. This paper introduces a comprehensive framework of the variables that have an impact on construction project briefing. A questionnaire survey was conducted to validate these variables among project managers and architects in Hong Kong, the United Kingdom, and the United States. The results indicate that although no significant differences existed between the samples in the United Kingdom and the United States on the variables for construction project briefing, the views of the samples in Hong Kong deviated from the two Western countries. The Western professionals have more positive answers to most statements in the questionnaire. The findings have significant implications for industry practitioners in producing their guidelines for the briefing process and for writers in drafting how-to briefing guide for construction projects.     

Insight into Resolving Construction Disputes by Mediation/Adjudication in Hong Kong

Resolving construction disputes using an adversarial approach is considered to be in opposition of the maintenance of a harmonious relationship between two parties. The modern arbitration process may emulate the litigation proceeding leading to delay and cost escalation. During the past decade, the Hong Kong Government has implemented a mediation clause as an alternative mode for settlement of construction disputes. In this paper, the experience and insight into resolving construction disputes by integrating mediation and then arbitration in Hong Kong are highlighted. The state-of-the-art modern mediation process and its philosophical origins are reviewed. The shortcomings of the present system are pinpointed. The success of the adjudication now practiced in the United Kingdom may suggest that there is a place for another process of dispute resolution, which may help improve the situation. The prospect of the proposed mediation/adjudication and then arbitration mechanism is discussed with particular reference to the construction industry in Hong Kong.     

Difficulties and Hindrances Facing End Users of Electronic Information Exchange Systems in Design and Construction

Since information and communication technology (ICT) was introduced into the construction industry over a decade ago, the once fledging technologies have now been well developed. ICT has been commonly adopted, particularly in places where speedy construction is the norm, e.g., in Hong Kong. At the time when ICT is seemingly well developed, this paper aims at identifying the difficulties and hindrances facing the end users of such information exchange systems during design and construction and the consequential effects on project performance. Through literature review, a series of structured interviews, and a questionnaire survey, it is found that industry users welcomed the advancement of ICT, but that the necessary technical and psychological supports from their organizations were insufficiently provided. In addition, significant differences on the hindrances and their consequential effects have been identified between end users in the private sector and those in the public sector. The study findings have also highlighted factors impeding the smooth implementation of ICT systems at the end-user level, which would help organizations to formulate effective strategies to cope with ever-evolving communication technologies and changes in working style.     

Comparative Study on the Perception of Construction Safety Risks in China and Australia

Safety is a major concern in the construction industry because fatalities and injuries from construction work bring great losses to individuals, organizations, and societies as a whole. This paper aims to understand how construction personnel perceive safety risks in China as compared with those in Australia. Postal questionnaire surveys were used to collect data on safety risk perceptions from the two nations. The safety risk factors were assessed using a risk significance index based on the likelihood of occurrences and the impacts on safety performance. The survey results revealed that in China the main perception of safety risks came from human-and/or procedure-related issues, with “low/no safety education” paramount, followed by “inadequate fire prevention and electrical prevention procedures,” etc. In contrast, the major safety risks perceived in Australia were related to the environment and physical site conditions with “contamination of land, water and air” ranked first, followed by “unforeseen excavation of soil,” etc. To minimize construction safety risks in China, this paper suggests that the government should develop collective legislation and safety protection procedures, and enforce safety education and training to all site participants. Risks related to environmental and site conditions were generally realized by the Australia construction industry, which were not highly acknowledged in China. This may also bring imminent attention in this regard to the Chinese government.     

Adjudication: Temporary Binding and Tiered Dispute Resolution in Construction and Engineering: Hong Kong Experience

Hong Kong (under the “One Country Two Systems” Policy, Hong Kong, although an administrative region of the PRC operates a separate legal system, whose roots lie in the English common law system) has a justified reputation for being at the forefront of developments in techniques to avoid and resolve disputes in the construction industry. [This is illustrated by the adoption of the UNITRCAL Model Law by the Arbitration (Amendment) Ordinance 1996, specific powers given to Arbitral Tribunals under the Arbitration Ordinance (Cap. 341) including powers to consolidate, and the development of the dispute resolution adviser system. See the genesis, development and future use of the dispute resolution adviser system by Colin J Wall, Hong Kong Society of Construction Law dated November 17, 2004]. However, it has not, to date, seen the widespread adoption of adjudication as a means of resolving disputes. This article examines the history of the use of adjudication in Hong Kong, current trends, and offers some possible reasons for the limited adoption of adjudication.     

Exploring Critical Success Factors for Partnering in Construction Projects

The construction industry is a very competitive high-risk business. Many problems, such as little cooperation, lack of trust, and ineffective communication resulting in adversarial relationships between contracting parties, are facing the construction industry. Partnering is perhaps one of the most innovative developments in delivering a project efficiently and reducing construction disputes. It provides a sound basis for a “win-win” climate and synergistic teamwork. Project partnering in the Hong Kong construction industry has gained in popularity since 1994. A number of potential factors contributing to partnering success have emerged and deserve further study. This paper presents a review of the development of the partnering concept in general and identifies critical success factors for partnering projects from the Hong Kong perspective in particular. Through a postal questionnaire survey geared toward project participants with hands-on partnering experience, the opinions of various parties—clients, consultants, and contractors were sought and evaluated in relation to partnering success factors. The relationship between the perception of partnering success and a set of success factors hypothesized in the study was derived using factor analysis and multiple regression. The results indicated that certain requirements must be met for partnering to succeed. In particular, the establishment and communication of a conflict resolution strategy, a willingness to share resources among project participants, a clear definition of responsibilities, a commitment to a win-win attitude, and regular monitoring of partnering process were believed to be the significant underlying factors for partnering success. Such an identification of success factors could well formulate effective strategies for minimizing construction conflicts and improving project performance.     

Work at Height Fatalities in the Repair, Maintenance, Alteration, and Addition Works

Hong Kong’s construction industry has shown significant improvement in safety performance since the turn of the century. The number of industrial accidents in the construction industry has decreased from 11,925 in 2000 to 3,833 in 2004, which is an encouraging drop of almost 68%. However, the category “fall of person from height” has always represented a large proportion of the industrial accidents, particularly fatal accidents. In 2004, fall of person from height represented just over 47% of the total number of fatal accidents in the construction industry. The statistics show that although the overall number of accidents has dropped immensely, the same does not apply for fall from height accidents. According to statistics provided by the Labor Dept. of the Hong Kong Special Administrative Region, there were a total of 22 fatal industrial accidents associated with fall of persons from height in repair, maintenance, alteration, and addition works during 2000–2004. When analyzing these case studies, 12 common factors were identified for analyzing these case studies and strategies were suggested to prevent recurrence of similar accidents in each case. The top five strategies were: (1) provide and maintain a safe system of work; (2) provide a suitable working platform; (3) (tier) provide safety information/training/instruction/supervision; (4) (tier) provide suitable fall arresting system/anchorage; and (5) maintain safe workplace.     

Strategic Management Practices in Turkish Construction Firms

This paper presents a study that aims to define the present position of Turkish construction companies in terms of strategic management. It is based on a survey measuring strengths and weaknesses in the “strategic management” practices of Turkish construction companies, and thus reveals potential opportunities and threats in a generalized manner. The results highlight the current strategic management practice of construction firms for designing their own future. Toward this aim, a detailed questionnaire was administered to 52 construction companies. The culture of companies and their perceptions of strategic management were shown to have serious shortcomings. However, specialization on different project types through joint venture companies established by their partners was found to be a major strength of many companies. These companies also pointed out the developing and unstable nature of both the political and economic structure of Turkey as their most significant threat. This disadvantage has inclined many firms to choose investment in the private sector as a response.     

Contractor as Trust Initiator in Construction Partnering—Prisoner’s Dilemma Perspective

Partnering has been advocated for use in construction as a project-delivery approach to curb dispute and enable a cooperative contracting environment. Successful construction partnering is perceived to derive benefits to both developers and contractors. In view of significant implications to successful project delivery, there has been a surge of research and studies on construction partnering. These studies typically focus on the partnering process as well as the identification of critical success factors. Among the various success factors that underpin partnering success, establishing trust among partners is considered the most important. Moreover, skeptics have been swift to point out that establishing trust in construction is daunting. A better understanding of the role of trust and its manifestation in partnering efforts is therefore of both academic and practical value. In this study, motivating trust in construction partnering is described within the classic framework of “the prisoner’s dilemma,” which suggests the trust cycle can be kick-started if construction partners put cooperation before competition and self-interest. This paper reports a study that is designed to suggest a suitable candidate for the trust initiator. As such, the critical trust factors for two groups of construction partners in Hong Kong—developers/consultants and contractors—are first identified. It is found that “performance” and “permeability” of partners are the two most critical trust factors. “Performance” describes the partner’s competence and problem-solving ability as perceived by their counterpart. “Permeability” reflects the partner’s openness in sharing information. The result of a multiple-regression analysis further suggests that the contractor is in a position to initiate trust through competent performance and maintaining effective communication with the client. In this manner, the trust cycle can expand with reciprocal trustworthiness from the client.     

Measuring Safety Climate of a Construction Company

Safety climate can benefit contractors, specialty contractors, and owners of industries by providing them with the knowledge of attitudes and perceptions that can help to consistently achieve better safety performance. The objective of this research was to determine safety climate that would enhance safety culture and positively impact perceived safety performance on construction projects. A safety climate questionnaire survey was conducted on the construction sites of a leading construction company and its subcontractors in Hong Kong. Approximately, 1,500 hard copy questionnaires were distributed and the response rate was excellent, resulting in 1,120 valid questionnaires being collected from 22 construction projects. By means of factor analysis, two underlying safety climate factors were extracted, accounting for 43.9% of the total variance. Multiple regression analysis confirmed that these climate factors, “management commitment and employee involvement” and “inappropriate safety procedure and work practices” were significant predictors of workers’ perceptions of safety performance. The findings indicated that the relationship between perceived safety performance and “inappropriate safety procedure and work practices” was inversely correlated. The results suggest that safety climate can be used as an effective measure of assessing and improving site safety for projects under construction. The findings of this study and the methodology might be useful for research at other construction sites in other regions and countries. This work provides useful information for project managers and safety practitioners who desire to improve safety climate and safety performance on construction sites.     

Whole Life Performance Assessment: Critical Success Factors

Whole life costing (WLC) has become the best practice in construction procurement and it is likely to be a major issue in predicting whole life costs of a construction project accurately. However, different expectations from different organizations throughout a project’s life and the lack of data, monitoring targets, and long-term interest for many key players are obstacles to be overcome if WLC is to be implemented. A questionnaire survey was undertaken to investigate a set of ten common factors and 188 individual factors. These were grouped into eight critical categories (project scope, time, cost, quality, contract/administration, human resource, risk, and health and safety) by project phase, as perceived by the clients, contractors and subcontractors in order to identify critical success factors for whole life performance assessment (WLPA). Using a relative importance index, the top ten critical factors for each category, from the perspective of project participants, were analyzed and ranked. Their agreement on those categories and factors were analyzed using Spearman’s rank correlation. All participants identify “Type of Project” as the most common critical factor in the eight categories for WLPA. Using the relative index ranking technique and weighted average methods, it was found that the most critical individual factors in each category were: “clarity of contract” (scope); “fixed construction period” (time); “precise project budget estimate” (cost); “material quality” (quality); “mutual/trusting relationships” (contract/administration); “leadership/team management” (human resource); and “management of work safety on site” (health and safety). There was relatively a high agreement on these categories among all participants. Obviously, with 80 critical factors of WLPA, there is a stronger positive relationship between client and contactor rather than contractor and subcontractor, client and subcontractor. Putting these critical factors into a criteria matrix can facilitate an initial framework of WLPA in order to aid decision making in the public sector in South Korea for evaluation/selection process of a construction project at the bid stage.     

Reconstructing Cultures for Relational Contracting

Although previous research has pointed to potential performance gains through relational contracting (RC), reservations remain as to its value and viability. Even those who wish to use RC need guidelines for introducing it, especially where it clashes with prevalent project cultures. A study was launched from Hong Kong to identify the critical factors which promote RC and team building in the context of specific cultures. This paper consolidates the perceptions of 60 respondents to a questionnaire survey in Singapore, in relation to the hypothesized 24 factors facilitating RC, and 28 factors impeding/deterring RC. It indicates the evident readiness of the Singaporean contracting industry to embrace collaborative working practices. On the whole: (1) all the 24 factors facilitating RC, and 23 of the 28 factors deterring RC, are significant; (2) these two sets of factors could be represented by six and seven “broad factors,” respectively; and (3) except in a few cases, respondents from large and medium companies, as well as with and without experience in RC, have similar perceptions of the importance of different factors. It was perceived that trust should be at the core of RC approaches to construction procurement, but also seen that the current level of trust is low. Identifying the principal “facilitators” and “impediments”/ deterrents to RC, provides pointers to building relationally integrated teams to boost performance to much higher levels, as are now expected from the industry. The literature indicates that the outcome of the survey in Singapore reflects the trends in many countries that are moving toward RC. This research model and approach may be conveniently replicated in other contractual regimes, in order to reinforce these observations.     

Construction Mediation Landscape in the Civil Justice System in Hong Kong

Alternative dispute resolution techniques as means to speedily and economically resolve certain types of disputes have been well recognized. In this regard, some jurisdictions have opted to use mandatory adjudication to deal with construction, in particular payment-related disputes. The situation in Hong Kong is a bit different. The Government of the Hong Kong Special Administrative Region aspires to make Hong Kong a hub for arbitration and mediation services for the region. Voluntary mediation has been introduced in the civil procedures rules of the High Court as part of the newly launched Civil Justice Reform. Adverse cost order is used to discourage “refusal to mediate” and “failing to attempt to mediate.” While the new measures that came into effect on April 2, 2009, sound sensible, a better picture on the actual impacts will unfold as more cases reach the Court. Nonetheless, the cost sanction may be able to make the voluntary use of mediation less voluntary.