Global Dimension of Robust Project Network Design

Managing the increased complexity, emerging uncertainties, and diversity of cultures on global projects is creating significant challenges for architecture, engineering, and construction firms. In global projects, differences in “institutions”—including language, beliefs, values, group norms, work practices, professional roles, industry organizations, and legal frameworks—among team members from different national backgrounds can lead to misunderstanding and conflicts that cause delays, increase costs, and reduce quality. Previous research has examined risk factors associated with international project execution. However, little research to date has explored whether reconfiguring project networks might mitigate such risks. Project organizational simulation tools have been combined with “robust design” experimental techniques to design robust project networks that can perform reliably in uncertain conditions. This paper extends project network design research to examine whether robust designs for given project networks differ between “domestic” and “global” projects, given differing organizational uncertainties. The results demonstrate that robust project network designs may differ for global project networks. This finding has significant implications for the design of project networks in an industry where firm participation in global project networks is increasing, both domestically and abroad.     

Exploiting Knowledge Management: The Engineering and Construction Perspective

Construction companies have always relied on their knowledge assets to provide services to clients. In recent years the terminology “knowledge management” has been introduced. Knowledge management (KM) seeks to formalize the manner in which companies exploit their knowledge assets by harnessing organizational knowledge, promoting greater collaboration between groups with similar interests, capturing and using lessons learned on previous projects, etc. This paper investigates how major United States engineering design and construction firms are implementing knowledge management initiatives in order to identify best practice. It adopts a case study methodology to investigate companies’ strategy and implementation, people aspects, and metrics for performance. The study finds that there is a clear distinction between the knowledge management activities undertaken by large engineering design firms and those of construction firms. There is also a much greater emphasis on knowledge sharing, which is just one component of knowledge management. Moreover, some companies have specific KM initiatives while others have activities that are part of their normal business processes.     

Macrofirms: Construction Firms for the Computer Age

The turbulent building construction industry—a condition applying today to the entire economic system—determined both by macroeconomic causes (general trends) and by micro economic factors (the irregularity of contract awards) points to the need for flexible organizational models in which large firms become “Macrofirms,” playing a role based predominantly on coordination and management, while the smaller enterprises would undertake activities of a specialized character. The implementation of such models can only be attained by subcontracting specialized work, making it possible for small specialized firms to count on continuous specialized work for their personnel. In this type of model, defined as a “heliocentric Copemican” type system, the use of management information systems must be highly developed and computer utilization extended not only to bookkeeping and general clerical tasks, but also and above all to management and planning. Eventually, these information systems should be extended to support preventive, routine and special maintenance services for the upkeep and improvement of the buildings constructed.     

Moving toward a Zero Injury Objective

In the past decade the terms “zero accidents” and “zero injuries” have been used a great deal by construction firms espousing their commitment to safety. Studies have shown that many construction firms, especially those in the industrial sector, have enjoyed significant improvements in their safety performances. These performance statistics have been considerably better than those of the overall construction industry and provide clear testimony of the effectiveness of efforts to improve safety. Although safety performances have been impressive among many of these firms, a study was conducted to see if additional improvements could be made. The study was conducted with a selected group of large, primarily industrial, firms to determine if any changes had been made since the Construction Industry Institute publicized its findings on effective means to improve safety performance. Results show that additional changes have been made by many of these firms and that the benefits were also realized. Safety performances have improved since these additional safety practices have been implemented. The implication is that firms with good safety records can still make improvements by implementing specific safety practices.     

Quality Function Deployment in Design∕Build Projects

In the manufacturing sector, companies have successfully applied concurrent engineering tools, including Quality Function Deployment (QFD) to determine customers' needs for the design at its early stages of development. However, despite its success stories in other industries, QFD has been applied only sparingly in the construction industry. The design∕build (D∕B) contractor, who bears both design and construction responsibilities, would find the QFD methodology useful. This paper examines the awareness and applicability of QFD methodology in D∕B contracts. The research looks into the benefits, relevance, and problems in the application of QFD in D∕B contracts. A qualitative approach in the form of in-depth interviews with experienced contractors involved in D∕B contracts was carried out. The results suggest that, generally, D∕B contractors could appreciate the merits of the QFD system. However, the decisions for implementation of QFD by the contractors were subjected to the “push” and “pull” factors that may vary from one organization to another.     

Situational Reengineering: Case Study Analysis

Owners and contractors faced with the drastic consequences of a “crisis” often accomplish projects whose short schedules, tight budgets, or technical complexity require adoption of extraordinary approaches to design and construction. Crisis or “exceptional” projects occur for many reasons; industrial accidents or acts of God cause damage to crucial manufacturing capacity or changes in the economy or international markets require a rapid product to market cycle. Often, these crisis projects are completed in record time, with superior quality or within a very low budget. It is also common on exceptional projects for strategies that are designed to (say) reduce schedule, to exhibit collateral beneficial impacts on the project's cost or quality. The research reported herein, investigates 30 exceptional projects to identify and document work process changes and their impact on cost and schedule as compared to traditional projects of similar scope and complexity. Results illustrate that changing work processes and providing appropriate cultural environments can result in significant schedule reduction (35%) with no increase in project costs. Additionally, over half of the exceptional projects studied demonstrate a reduction in cost as well as a reduced schedule. Fundamentally, this paper demonstrates the efficacy of ingenious and innovative changes to existing work paradigms in response to a variety of situational requirements. Additionally, this paper includes a discussion of barriers to implementation and organizational issues surrounding situational reengineering.     

Impact of the Leadership in Energy and Environmental Design Accredited Professional Credential on Design Professionals

Leadership in energy and environmental design (LEED) accreditation is quickly becoming one of the most popular professional designations available to members of the building design and construction community. The purpose of this research was to determine the impact that the LEED accredited professional (AP) designation has had on architecture/engineering (A/E) firm employees versus employees of owners, contractors, subcontractors, and other organization types. The researchers analyzed 9,060 responses from LEED-APs using a one-way ANOVA to determine whether or not significant differences in perceived benefit exist between LEED-APs working for A/E firms and LEED-APs working for other organization classifications. Results indicated a statistically significant difference in six of the eight “impact” categories. LEED-APs working for A/E firms did not feel as strong as LEED-APs working for other organization types that the credential provided any more recognition, professional opportunities for contributions, and prestige among superiors and individuals within their organization. There were no significant differences between the groups, however, with regard to the credential’s impact on salary and job responsibilities.     

Corporate Ethics in the Construction and Engineering Industry

Ethical conduct is closely related to legal conduct although they do not always overlap, leaving ambiguity over appropriate actions in specific circumstances. This uncertainty can be reduced by designing organizations which encourage ethical behavior. This paper investigates the organizational factors that inhibit and encourage ethical behavior in the construction and engineering industry. A total of 27 factors are identified as playing a potentially important role in influencing ethical conduct in the industry. A survey of construction firms identifies three factors as particularly influential, namely, the absence of ethics training programs; the absence of reward systems for those who act ethically within the industry, and the low level of “visibility” that exists within the industry. These findings are important for an industry that has become negatively stigmatized with poor ethical conduct. The paper concludes with a series of organizational and contractual recommendations to help the industry achieve higher standards of ethical conduct.     

Managing Computer-Aided Civil Engineering Design Services

Computer-aided engineering (CAE) technology is rapidly altering the design services delivery process. The implementation of this technology is affecting the management of design production as well as associated quality control activities. Many civil engineering managers do not recognize the organizational impact of this change. Among the numerous issues with which managers must deal in order to improve future company performance and maximize the benefit of CAE technology are: (1) the changing business environment; (2) the need to revise design production and quality control processes; (3) the identification of appropriate organizational structures; and (4) the effective management of human resources. Architect-engineering firms must develop a strategy to answer these questions if they are to remain competitive in the future. This paper suggests the basis for developing such a strategy.     

中国制造2025：推进钢铁企业智慧化

介绍了“中国制造2025”的概念,结合中国钢铁企业信息化的发展过程与现状,论述了中国钢铁企业实施“中国制造2025”、逐步实现两化融合是发展的必然选择。“中国制造2025”将为钢铁行业带来新一轮的变革和创新驱动。钢铁企业智能制造的构建需要从推进工厂智建设、产品智生产、流程智引导、能源网络智设计、员工智专业和市场智营销6个方面来实现。     

Causes of Delay in the Planning and Design Phases for Construction Projects

Problems of delay occur in all phases of construction projects. While most previous studies have focused on finding causes or overcoming delays in the construction phase, few studies have analyzed delay problems in the planning and design phases. The main purpose of this study is to identify and rank delay causes in the planning and design phases. A structured questionnaire was sent to engineers at the A/E companies for public construction projects in Taiwan. Based on 95 valid responses, this study identified the delay causes and analyzed the importance and frequency of delays using the relative importance index. Analytical results reveal that “changes in client’s requirement” are the main causes of delays in both planning and design phases. The finding is good justification for many public clients who usually change their requirements during the planning and design phases that really delay construction projects.     

Communication Patterns in Construction at Construction Manager Level

The procurement process of construction projects has been affected by developments in the field of Information Technology, as well as by the need to cope with growing technological challenges stemming from the integration of multiple building systems into tall and complex buildings. Furthermore, since the procurement phases are undertaken simultaneously, project complexity is increased, and increased integration among them is therefore required. These constraints have made the management of complex construction projects less of an architectural and engineering issue and more of a managerial one. In turn, this has led to an increasing use of the “construction management” concept in the procurement process. This study focused on communications in construction management procurement of building and residential projects in Israel. Communications between the construction manager and the design team were found to be vital in ensuring adherence to project objectives. Communication means were classified as “formal”—written technical information, and as “informal”—verbal communications. Construction managers in Israel still use informal communications in 50% of their interactions with their project counterparts. The study concludes that design capabilities should be one of the essential qualifications required of a construction management firm. In addition to the more traditional responsibilities, such as planning, scheduling, and coordination, the scope of the construction manager’s professional duties should emphasize the aspect of quality management.     

Probabilistic Construction Load Model for Multistory Reinforced-Concrete Buildings

This paper develops a probabilistic construction load process model for multistory reinforced-concrete building construction. This model considers loads causing peak structural actions on floor slabs for two widely used shoring procedures and includes probability distributions and temporal characteristics of slab self-weight, sustained construction live loads, “material stacking” loads, and “move-in” loads. Construction load statistics derived from Monte Carlo simulation show that the mean of maximum construction loads exceeds nominal (design) service (occupancy) loads whenever the nominal live-to-dead load ratio is less than approximately 1.0. A Type I extreme value distribution provided the best fit to the inferred distributions of construction live loads.     

Long-Term Entropy and Profitability Change of United States Public Construction Firms

A firm’s business composition and the sales volume of each business segment are subject to change depending, to a considerable extent, on the firm’s business strategy. These changes were first weighted and represented as a single index, referred to by scholars in strategic management and industrial organization research fields as “firm entropy,” then the impact of firm entropy on firms’ profitability was assessed over 12?years. The performance differences between contractor and noncontractor firms, as well as focused and diversified firms, were compared through a longitudinal data analysis technique within a hierarchical linear modeling framework. Two hypotheses were formulated based on firm diversification theories and previous research findings. These hypotheses were tested according to the modeling outcomes, and implications are presented. The research findings indicate that the entropy changed constantly for both contractor and noncontractor firms. In addition, the level of firms’ long-term profitability supports the argument that the construction industry is highly competitive and mature.     

Emerging Hybrid Practices in Construction Design Work: Role of Mixed Media

Information technologies are used across all stages of the construction process, and are crucial in the delivery of large projects. Drawing on detailed research on a construction megaproject, we take a practice-based approach to examining the practical and theoretical tensions between existing ways of working and the introduction of new coordination tools in this paper. We analyze the new hybrid practices that emerge, using insights from actor-network theory to articulate the delegation of actions to material and digital objects within ecologies of practice. The three vignettes that we discuss highlight this delegation of actions, the “plugging” and “patching” of ecologies occurring across media and the continual iterations of working practices between different types of media. By shifting the focus from tools to these wider ecologies of practice, the approach has important managerial implications for the stabilization of new technologies and practices and for managing technological change on large construction projects. We conclude with a discussion of new directions for research, oriented to further elaborating on the importance of the material in understanding change.     

Concerns with Safety in Design∕Build Process

Since the time architecture and construction were separated from a master-builder concept, the issue of construction safety has plagued the architect, owner, and contractor relationship. What should be a process to ensure the adequate completion of a project often becomes a struggle between all parties involved. The construction process has become a haven for litigation, with owners routinely shopping for the cheapest designer. This designer is often the one who becomes the “low bidder” by shorting the design services, such as coordination of disciplines, cost estimating, field supervision, or adequate shop drawings review. Contractors bid work with the intent of being responsible for “means and methods,” but many court cases have determined that the issue of construction safety cannot be their sole responsibility. There exists a need to foster synergy among participants in the construction process. Developing a cohesive idealogy, through design∕build, has shown itself as a vehicle to institute lines of communication, which stimulate productivity, unifying parties and sharing risk. The resolution of risk-shifting is important to those who design, construct, and use architecture.     

Tailoring Competitive Advantages Derived from Innovation to the Needs of Construction Firms

Innovation is often classified as a cost intensive investment in the construction industry with indefinite returns. Due to the clients’ tendency to award projects based on the lowest costs, innovation is often seen as an unfeasible strategy toward the competitiveness that construction firms are seeking. This study questions whether it is indeed ineffective for construction firms to develop their competitive advantage through innovation. By the application of statistical data across 18 Organization for Economic Cooperation and Development (OECD) countries and expert interviews in Singapore, innovation systems models are developed for both manufacturing and construction firms, respectively. Through comparison of both models, the results suggest that the peculiarities of the construction industry deem innovation as a poor competitive instrument for direct profits. Instead, construction firms can develop their competitive advantage through manipulating innovations that consumers are willing to pay for and innovations that would reduce construction costs. It is recommended that construction firms first utilize quality improvements to exploit consumers’ willingness to pay for innovative products. This initiative would enable construction firms to improve their finances for innovation and develop their “brand” in construction products. Sustainable competitive advantage could then be firmly established when construction firms engage in productivity improvements that lead to lower construction costs and/or faster completion times. This study concludes that innovation can be a useful competitive tool if construction firms aptly strategize it in according to its competitive environment.     

Strategic Assets Driving Organizational Capabilities of Thai Construction Firms

This research study aims to identify strategic assets which currently drive and enhance the organizational capabilities of construction firms. There were 258 sets of questionnaires assessing the level of importance given to 106 substantial resources underlying six organizational capabilities of Thai construction firms that were analyzed. Using factor analysis, these 106 items were reduced to 14, which were termed strategic assets. These 14 strategic assets were then classified based on their influence on the six organizational capabilities. The results indicate that Thai construction firms concentrate mostly on developing excellent reputation, creating strong bargaining power with suppliers and subcontractors, and strengthening the firm’s financial stability. However, they do not give much importance to effective risk and investment management, continuous development and innovation, and explicit strategic management. These findings provide in-depth insight to comprehensively understanding a Thai construction firm’s capabilities. These 14 strategic assets should thereafter be used to develop a practical tool for managers of construction firms to evaluate their firm’s strengths and weaknesses as well as to identify strategic assets required to enhance competitiveness in the market.     

Forces Driving Adoption of New Information Technologies

This paper investigates the forces that drive construction firms to adopt new information technologies. The research focuses on CAD and electronic data interchange technologies and studies in-depth eight innovation adoption decisions. The paper presents the findings regarding the forces that created the managerial stimuli for innovation and the organizational characteristics that played an important role in the adoption. The investigation identified four forces that drive innovation: competitive advantage, process problems, technological opportunity, and institutional requirements. These forces change over time and drive the diffusion of a technology in the industry. The study also found that different organizational characteristics determine a company's sensitivity to each force. The paper proposes a new model of diffusion of new technologies and presents the implications for increasing the rate of innovation in the industry.