2000 Peurifoy Lecture: Construction Practices in Developing Countries

Many contractors are expanding into global markets. Further, many owners procure construction services to build facilities in developing countries. The construction practices in these countries differ in important respects from practices in industrialized countries. This paper reviews some of the more significant differences in construction practices in developing countries. Five primary factors are discussed: cost of labor, cost of money, technology and methods, infrastructure, and role of the design professional. The hypothesis is presented that the main driving factors affecting construction practices are the cost of labor and the cost of money. These two factors place speed of construction as a secondary objective. Low labor costs lead to construction practices being labor-intensive. There is a distinct absence of construction equipment, especially small lifting devices used for material handling. Additionally, the lack of infrastructure means that many materials commonly purchased in the United States from a vendor are fabricated using on-site labor in developing countries.     

Empirical Assessment of Internationalization Strategies for Small and Medium Construction Companies

In the wake of increased globalization, more small and medium construction companies (SMCCs) are expanding into the global market. However, the international construction industry is different from the domestic with respect to resource, regulations, culture, entry strategies, and risk levels among other factors. This paper explores various ways and modes of internationalization for SMCCs under 13 key hypotheses that are relevant to the issues of internationalization from the perspective of SMCCs. To verify these hypotheses, this study used actual data from 560 cases of SMCCs’ overseas projects performed between 1990 and 2007. It was found that SMCCs’ entry scheme as prime contractors was more rewarding than in the case of subcontractors. Moreover, SMCCs are likely to evolve from subcontractors engaged with home-country contractors to subcontractors engaged with foreign contractors. Also, cultural distance is positively related to performance, but the effects of cultural properties are not as strong compared to the international manufacturing industry. The results are expected to help SMCCs build internationalization strategies by determining promising entry modes, proposing possible evolutionary paths to enter overseas projects, and assessing cultural effects in reference to SMCCs’ successful performance.     

Manual Bar Bending—An Occupational Hazard for Construction Workers in Developing Nations

Bar bending is the process of bending reinforcement bars to required angles in civil and construction engineering. Manual bar bending involves strenuous physical activity, which is usually performed in a poor ergonomic environment at a construction worksite. This could lead to chronic musculoskeletal disorders such as low back pain among bar benders. The aim of this study is to assess the ergonomics of manual bar bending and thereby develop a customized optimal workplace for bar bending. Biomechanical analysis was done using a three-dimensional Schultz–Andersson model to determine the influence of the diameter of the bar on the compressive force (Fc) at L5/S1. The effect of table height, grip arm distance, and back bend angle on Fc were also evaluated. Fc decreased up to 53%, with an increase of table height by 400?mm, and up to 41%, with an increase of grip arm distance by 500?mm; however it increased with back bend angle. Fc was higher than the NIOSH safety limit of (3.4?kN) in all cases except when bending 8?mm bars. A quick field reference for optimal table height and grip arm distance was prepared based on subjects’ anthropometry and diameter, using Nash bargaining principles.     

Strengths, Weaknesses, Opportunities, and Threats Analysis of Chinese Construction Companies in the Global Market

Recent years have seen a growing trend of Chinese companies making significant inroads into the international construction market. However, comparing to their fast development, only few studies have been reported to introduce the Chinese international construction companies (CICCs) as an emerging competing force. This research, by conducting a strength, weakness, opportunity, and threat analysis, aims to help understand CICCs which have been stereotypically viewed as a somewhat heterogeneous group. Data supporting the analysis were derived from multiple sources including statistical reports, literature review, interviews, and in particular first-hand experience from those who are competing on the forefront. The research opens a window through which all players in the global construction market can perceive internal and external conditions of their Chinese counterpart.     

Health and Safety Management within Small- and Medium-Sized Enterprises (SMEs) in Developing Countries: Study of Contextual Influences

Considerable attention has been focused on addressing construction health and safety risks in developed economies. Sadly, the same cannot be said of developing countries in Sub-Saharan Africa where accident figures are extremely high. The aim of this study is to examine the influence of the contextual environment within which Ghanaian construction small- and medium-sized enterprises (SMEs) manage occupational health and safety (OH&S). A questionnaire survey was administered to construction SMEs to better understand the health and safety management practices and associated problems followed up by field interviews to explore key issues identified by the survey. The results of the study highlight the institutional structure for implementing OH&S standards, prevailing economic climate, and extended family culture as challenges to the management of OH&S. The study identifies low literacy levels, low socioeconomic status of workers, owner/managers’ ignorance of their OH&S responsibilities, commitment to extended family obligations, and ineffective OH&S administration as key factors limiting the capacity of construction SMEs to manage OH&S effectively. The study concludes that effective institutional structure and an enabling socioeconomic environment are needed to enhance the OH&S performance of SMEs and advocates for more proactive OH&S management that take into consideration the work cultures of SMEs.     

Implications of Culture in the Performance of International Construction Joint Ventures

Joint ventures have become popular because of their importance as a strategic alternative in global competition. One of the reasons why international joint ventures (IJVs) are difficult to manage is because the cultural distance between IJV partners has significant impact on alliance performance. Since construction projects are highly sensitive to external risks, the effect of the culture in the location in which the IJV operates is also significant. In this study, the effect of cultural similarity/difference relative to the national and organizational characteristics of partner companies on IJV performance is examined through a questionnaire survey. The impact of the cultural similarity/difference between an IJV partner and the host country is also assessed. The results of the study suggest that differences in organizational culture have a greater impact on IJV performance than differences in national and host country culture. The findings also reveal that similarity between the national cultures of IJV partners has a negative effect on IJV performance. The analysis of the data failed to provide evidence that IJV performance is affected by differences between the culture of the host country and the culture of an IJV partner.     

Emergence and Role of Cultural Boundary Spanners in Global Engineering Project Networks

Engineering project networks are increasingly global in scope and outsourcing is increasingly common. Along with globalizing trends in project delivery, the workforce is also globalizing. It is common for engineers to move to other countries as expatriate workers or as emigrants to pursue job opportunities in other firms. Where much is known about global networks of engineers collaborating on projects, little is known about the mediating role played by individuals that share the same nationality as an international partner on a project. In this paper, we examine two project teams executing complex, reciprocally interdependent design projects in India. One team was comprised of Indians and Americans. The other team was identical, but also contained an Indian national who had studied and worked in the United States. Both teams worked on similar design schedule optimization problems. Over the duration of three days, we examined the interactions of the teams assembled to finalize their designs. Through quantitative network analysis and qualitative observations of the cross-cultural interactions, we found the Indian expatriate to play a cultural boundary spanning role resolving cross-cultural knowledge system conflicts and increasing collaboration effectiveness. We induce a propositional theoretical model of cultural boundary spanning in global engineering project networks.     

Association of Risk Attitude with Market Diversification in the Construction Business

In construction, many large firms are diversified, and their diversification is recognized as a corporate strategy for growth and risk management. Diversification indicates extended competition into a different market sector. It is a departure from a firm’s experience base, and it can be riskier than improving performance in the currently operating market. Then, contractors’ diversification and their aggregate pattern in the market, if there is any, are realized outcomes through competition among contractors over different market sectors. The competing contractors may have different risk attitudes, which are the subconscious but critical basis of their risk-taking behaviors in competition. This study investigates the association of contractors’ organizational risk attitudes with their diversification on the basis of simulated competition among multiple contractors. The simulation replicates the actual diversification pattern of large U.S. construction contractors. The results provide new insight on the relationship between contractors’ risk attitude and their diversification as well as their competitive success.     

Chinese Contractors in Africa: Home Government Support, Coordination Mechanisms, and Market Entry Strategies

Africa is a traditional overseas market for Chinese contractors. Since the launch of “going out’ national strategy in the new century, and with the support and control of the government and subordinate agencies, associations and banks, and innovative approach such as Angola Mode, Chinese contractors’ presence in the emerging African market continues to grow. Based on original empirical data collected through interview and questionnaire surveys, this paper analyzes the mechanisms the Chinese government has established to facilitate Chinese contractors’ entry into Africa and the perspectives of Chinese contractors about the African market in terms of opportunities and threats. Regression analysis based on existing datasets indicates that despite perceived opportunities and threats, Chinese contractors’ performance in Africa in terms of business revenue actually hinges upon the availability of construction capital. The study also reviews the market entry modes used by Chinese contractors, concluding that they prefer to establish a long term presence and opt to commit large resources. Overall, the paper summarizes evidence about the status and innovative approaches of Chinese contractors in penetrating the African construction market, and also characterizes the potential of the African construction market for Chinese contractors.     

Development Model for Competitive Construction Industry in the People’s Republic of China

This paper identifies and analyzes the open-policy trend of the Chinese construction industry, which is characterized by trade liberalization, the underlying principle of the World Trade Organization (WTO). Compared to the construction industries in the United States, Japan, and the U.K., the construction industry in China is less developed in its legal framework, industrial structure, technological level, and international market share. To develop a competitive construction industry, the Chinese construction industry needs not only to accommodate appropriate international practice, but also to adapt and adopt it according to the market environment in China. A model to enhance the performance of the Chinese construction industry is proposed. The model consists of six modules: defining government’s role, opening up the construction market and establishing a competitive mechanism, promoting design institutes’ services and empowering professional bodies, encouraging technological innovations, upgrading employees’ educational level, and adopting multiprocurement routes. Recognizing China’s recent accession to the WTO and the attendant boost to its economy and industry development, the paper gives a timely evaluation of the post-WTO Chinese construction industry and proposes a model for its development. The model may serve the needs of academics, Chinese construction policymakers, construction enterprises, design institutes, and foreign contractors.     

International Construction Dispute Adjudication under International Federation of Consulting Engineers Conditions of Contract and the Dispute Adjudication Board

The role of institutional arbitration has become significantly less commercially viable in the international construction industry as a primary means of dispute resolution because of the uniqueness of the construction process. As a result, the construction industry has developed an innovative form of primary dispute adjudication called the Dispute Adjudication Board (DAB). This paper will show the need for an efficient dispute resolution process because of the globalization of the construction industry. It will focus on the standard contract forms of the Féderation Internationale des Ingénieures-Conseils (International Federation of Consulting Engineers) (FIDIC), which are widely used in international construction projects. The paper will then discuss recent developments in the FIDIC, including the development of the DAB to address the fundamental need for a commercially viable means of construction dispute adjudication.     

Adoption Patterns of Advanced Information Technologies in the Construction Industries of the United States and Korea

The results of a survey conducted by the ASCE Wireless Construction Committee are presented. The goal of the effort is to better understand how much construction contractors have advanced in adopting information technologies in general and wireless communications in particular. Responses were collected from 152 U.S. and 31 Korean firms. It was found that, overall, the strongest interest among the responding contractors is in document and content management applications. Differences between Korean and U.S. contractors are discussed. The data indicate that the use of information technology by contractors is generally higher in Korea than in the United States. Both practitioners and scientists will be able to use the presented study because the data reveal the managers’ perceptions of the most promising opportunities for and highest barriers to implementation of advanced communication systems in construction. With the information provided, interested readers of this journal will be able to focus their attention on pursuing specific opportunities and removing barriers to future adoptions.     

Investing the Wealth: Intentional Strategies for Psychology Training in Developing Countries.

The knowledge and skills of psychology can be useful in developing countries where indigenous mental health resources are sometimes scarce. Although it may be useful for psychologists to provide short-term training in developing countries, the potential for long-term change is best accomplished by investing in training students from developing countries, especially those committed to returning to their homeland after completing their training. Three "investment strategies" are suggested for training students from developing countries: faculty awareness, intentional mentoring, and facilitated launching. Challenges and implications for professional psychologists are discussed. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Performance and Strategy of Chinese Contractors in the International Market

The past decade has witnessed the steady growth of Chinese international contractors (CICs), who have become important and influential players in the international market. The enormous development demands worldwide, especially in developing countries, attract CICs to engage in the market. Similarly, the strong support from the Chinese government plays an important role for the expansion of Chinese contractors globally. Some leading CICs perform very well in certain fields and countries. This brings the competitiveness of CICs to the attention of the international community. The strengths, weaknesses, opportunities, and threats (SWOT) approach was adopted in order to analyze CICs’ strengths, weaknesses, opportunities and threats in international construction markets. Literature from various sources was reviewed in the first instance, which is followed by an interview survey with 42 CICs employees. A SWOT strategy matrix is used to establish a framework that can help CICs to select suitable business development strategies in overseas markets. The applicability of the strategy framework was tested through the case study of two CICs. The strategies to reinforce their positions in the international market were studied based on the SWOT analysis. The results indicate that CICs are on their way to becoming major competitors to other overseas contractors. In essence, the research results offer a valuable reference of practices that construction firms need to master in order to survive and grow in the international market.     

Developing Case-Based Communities of Practice for Teaching the Legal Aspects of Construction: Lessons Learned in Taiwan

To enhance the learning for graduate students to understand legal issues and dispute resolution in the construction industry, students can be provided with a learning platform for exchanging and sharing knowledge and experience among students and experienced instructors. With the assistance of the Internet, construction law related experiences acquired from previous projects can be discussed and shared with students. This study utilizes the case-based communities of practice approach to capture and manage engineer experiences. Via the case-based communities of practice approach, students and instructors can exchange and share discussions and comments related to selected topics and cases. The proposed case-based communities of practice learning (CCPL) system was developed and demonstrated to be effective when applied to teach students about construction law at a university in Taiwan. Construction law related experiences can be taught and shared among students, thus enhancing students’ abilities to resolve problems and disputes related to construction law. The combined results of various case studies demonstrate that the application of the CCPL system to the legal aspects of construction courses offers an effective means of sharing practical legal knowledge and experience, especially among graduate students who lack previous legal experience.     

Developing Construction Professionals of the 21st Century: Renewed Vision for Leadership

The construction industry faces several technical, social, financial, political, and cultural challenges. Developments such as the growing volume of activity, increasing number of active stakeholders, advancement in technology, more intense global competition, and demand for fast-track completion, have created many distinct challenges for construction professionals. Consequently, there is a need to equip the professionals with hard (technical) as well as soft (management and leadership) skills. Construction professionals invariably work in teams and often assume leadership roles as the design manager, construction manager, procurement manager, contracts manager, or project manager. They deal with various project stakeholders and often get involved in sensitive decision making and dispute resolution processes. There is a broad sentiment in the industry that today’s new graduates are not adequately trained to deal with the soft issues on complex construction projects. In particular, academic programs do not prepare professionals with an appropriate blend of hard and soft skills. In this paper, it is argued that in order to develop competent professionals who have strong leadership skills, the universities, the construction industry, professional organizations, and the government need to form a broad collaboration. A conceptual model of this potential collaborative relationship is presented, and specific roles for the universities, the industry, professional bodies, and government in the lifelong professional development of the industry’s human resources are discussed.     

Potential of a Combination of UASB and DHS Reactor as a Novel Sewage Treatment System for Developing Countries: Long-Term Evaluation

A novel municipal wastewater treatment system, consisting of a combination of an upflow anaerobic sludge blanket (UASB) and down-flow hanging sponge (DHS) posttreatment unit, was continuously evaluated for more than three years with raw sewage as an influent. The system was installed at a sewage treatment site and operated at 25±3°C. This paper reports on the results of a long term monitoring of the system. The whole experimental period was divided into three distinct phases with different operating conditions. Organic pollutants were only partially removed in anaerobic UASB pretreatment unit. The remaining organics as well as nitrogenous compounds were almost completely removed by the DHS posttreatment unit. In all phases the system demonstrated removal efficiency consistently over 95% for unfiltered biochemical oxygen demand (BOD), 80% for unfiltered-chemical oxygen demand and 70% for suspended solids. The system produced an excellent effluent quality with only 4–9?mg/L of residual unfiltered BOD. Dissolved oxygen in the final effluent was 5–7?mg/L although no aeration was provided to DHS system. Moreover, excess sludge production from DHS was negligible thus eliminating secondary sludge that is troublesome to dispose off. The system also exhibited substantial stability against twofold hydraulic shock load and fourfold organic shock load. The results suggested that the proposed system may be a competitive solution for municipal sewage treatment under variable conditions.     

International Comparison of Cost for the Construction Sector: Purchasing Power Parity

The importance of the construction sector in national economies around the globe and the global nature of the industry require a prudent international comparison of construction costs. From the view of international construction ventures, cost comparisons have generally been accomplished using published currency exchange rates. Global organizations dealing with development aid and the comparison of the gross domestic product (GDP) of nations have used an approach that has its roots in established econometric theories. This approach is based on the Casselian purchasing power parity (PPP) doctrine that essentially conducts the comparison based on the local purchasing power of currencies, as opposed to exchange rates. The World Bank, which conducts the GDP comparison, uses the PPP-based approach to compare construction sector output. This paper provides an overview of the background and application of PPP and its use for international cost comparisons conducted for various nations. Methods currently used for construction cost comparisons are reviewed. A critical review of domestic construction cost comparison approaches is provided with the intent to identify the key differences between temporal and spatial comparisons. Case studies of construction cost factors are used to demonstrate the importance of PPP-based cost comparisons for construction economics.     

Drivers of Conflict in Developing Country Infrastructure Projects: Experience from the Water and Pipeline Sectors

Despite the considerable scholarship focused on infrastructure investment in the developing world and the substantial sums of money spent each year on developing-country infrastructure, little attention has been given to understanding the drivers of conflict that shape the trajectory and cost structures of these massive investments. The manifestation of conflict among stakeholders in infrastructure projects ranges from the renegotiation of contract terms by project partners to popular protests among consumers of privatized services. The principal objective of this research is to identify combinations of country, project, and stakeholder factors that are associated with the emergence of legal and political conflict within natural gas and oil pipeline projects and water supply concessions and leases. The analysis includes data from 26 infrastructure projects spanning 31 countries and uses an analytical approach derived from Boolean algebra. Country-level characteristics, such as extent of democracy and rate of international NGO membership, are found to be important elements in the recipes for conflict among water supply projects but not for pipeline projects. Local impacts such as service price increases (water supply) and limited provision of oil and gas to the project host country (pipelines) are also important drivers of conflict for both subsectors. The involvement of one or more international financial institutions is also associated with the emergence of conflict in projects. Contrary to expectations, public consultation is associated with conflict in both subsectors. Overall, the study findings suggest that several factors associated with conflict in infrastructure projects can be minimized with careful project design.