Relationship between Automation and Integration of Construction Information Systems and Labor Productivity

Information technology (IT) has been used to increase automation and integration of information systems on construction projects for over two decades. However, evidence that overall costs have been reduced or project performance has been improved with IT in construction is limited and mostly focused on application specific studies. A comprehensive understanding of the relationship between IT and project performance helps industry practitioners better understand the likely outcomes of implementation of IT application and likewise benefits researchers in improving the effectiveness in their IT development efforts. An opportunity to examine new evidence exists with the emergence of the Construction Industry Institute’s Benchmarking and Metrics database on construction productivity and practices. This article presents an analysis of that data to determine if there is a relationship between labor productivity and level of IT implementation and integration. Data from industrial construction projects are used to measure the relationships between the automation and integration of construction information systems with productivity. Using the independent sample t-test, the relationship was examined between jobsite productivity across four trades (concrete, structural steel, electrical, and piping) and the automation and integration of various work functions on the sampled projects. The results showed that construction labor productivity was positively related to the use of automation and integration on the sampled projects.     

Demystifying Moderate Variables of the Interrelationships among Affective Commitment, Job Performance, and Job Satisfaction of Construction Professionals

Project goals expressed in terms of time, cost, and quality requirements are seldom disputed. However, it is not easy to ensure that the defined goals will be implemented by all parties involved in the implementation process as goal commitment is one of the key variables in project success and participant satisfaction in construction projects. In order to ensure professional commitment in the management process and optimize construction performance in the complex situation, it is necessary to identify the moderate variables and clarify the interactions among affective commitment, job performance, and job satisfaction of construction professionals. A questionnaire survey was conducted in Hong Kong. Both correlation analysis and hierarchical regression models were applied. The results revealed that both job acceptance/contribution and specificity/teamwork are moderate variables influencing the relationships between affective commitment and job performance and between job performance and job satisfaction. A series of conditional relationships is revealed in detail in this study and some suggestions, such as formal briefing sessions, regular formal meeting, and value engineering workshop, are recommended.     

Using Weibull Analysis for Evaluation of Cost and Schedule Performance

Large amounts of money are lost each year in the construction industry because of poor schedule and cost control. Few contractors specify and follow systematic schedule monitoring practices. Traditionally, the earned value method (EVM) is used to control and monitor schedule performance using the schedule and cost performance indices which compare the budgeted cost of work performed to what was originally scheduled or what is actually expended. This paper presents a statistical approach, namely Weibull analysis, to evaluate stochastically the schedule performance of construction or design projects. The approach can be used in conjunction with the EVM to enhance the evaluation and control of schedule performance. Weibull analysis is a common method for failure analysis and reliability engineering used in a wide range of applications. In this paper, the applicability of Weibull analysis for evaluating and comparing the reliability of the schedule performance of multiple projects is presented. The various steps in the analysis are discussed along with an example in which two projects are analyzed and compared. The authors conclude that Weibull analysis has several advantages and provides a relatively robust and effective method for construction managers to better control and monitor their projects.     

Multiple Simulation Analysis for Probabilistic Cost and Schedule Integration

One of the major goals of the construction industry today is the quantification and minimization of the risk associated with construction engineering performance. When specifically considering the planning of construction projects, one way to control risk is through the development of reliable project cost estimates and schedules. Two techniques available for achieving this goal are range estimating and probabilistic scheduling. This paper looks at the integration of these techniques as a means of further controlling the risk inherent in the undertaking of construction projects. Least-squares linear regression is first considered as a means of relating the data obtained from the application of these techniques. However, because of various limitations, the application of linear regression was not considered the most appropriate means of relating the results of range estimating and probabilistic scheduling. Integration of these techniques was, therefore, achieved through the development of a new procedure called the multiple simulation analysis technique. This new procedure combines the results of range estimating and probabilistic scheduling in order to quantify the relationship existing between them. Having the ability to accurately quantify this relationship enables the selection of high percentile level values for the project cost estimate and schedule simultaneously.     

Statistical Analysis on the Cost and Duration of Public Building Projects

A probabilistic model is proposed to predict the risk effects on time and cost of public building projects. The research goal is to utilize a real history data in estimating project cost and duration. The model results can be used to adjust floats and budgets of the planning schedule before project commencement. Statistical regression models and sample tests are developed using real data of 113 public projects. The model outputs can be used by project managers in the planning phase to validate the schedule critical path time and project budget. The comparison of means analysis for project cost and time performance indicated that the sample projects tend to finish over budget and almost on schedule. Regression models were developed to model project cost and time. The regression analysis showed that the project budgeted cost and planned project duration provide a good basis for estimating the cost and duration. The regression model results were validated by estimating the prediction error in percent and through conducting out-of-sample tests. In conclusion, the models were validated at a probability of 95%, at which the proposed models predict the project cost and duration at an error margin of ±0.035% of the actual cost and time.     

Managing Construction Projects Using the Advanced Programmatic Risk Analysis and Management Model

Risk management is an important part of construction management, yet the risk-based decision support tools available to construction managers fail to adequately address risks relating to cost, schedule, and quality together in a coherent framework. This paper demonstrates the usefulness of the Advanced Programmatic Risk Analysis and Management Model (APRAM) originally developed for the aerospace industry, for managing schedule, cost, and quality risks in the construction industry. The usefulness of APRAM for construction projects is demonstrated by implementing APRAM for an example based on an actual building construction project and comparing the results with other risk analysis techniques. The results show that APRAM simultaneously addresses cost, schedule, and quality risk together in a coherent, probabilistic framework that provides the information needed to support decision making in allocating scarce project resources.     

Contractors in Cyclical Economic Environments

This study investigated how the performance of construction firms during different extremes in the business cycle was impacted by a variety of the firms' characteristics. A performance index for a firm's relative market performance was devised and used with a step‐wise regression technique to model the relationships between operational variables and the performance index. Ten interviews wifh senior construction executives were conducted to guide the development of the model. The results show that a firm's relative market performance can be influenced by: Efforts in planning and control; control at firm level; effectiveness of project planning and control; efforts in marketing; effectiveness of marketing; subcontracting; long‐range planning; safety; geographic diversification; technological competence; and union∕open‐shop construction. Significance varied with cycle point and size. Recommendations are made on how to improve a contractor's performance in cyclical business environments.     

Benchmarking Studies on Construction Safety Management in China

This paper presents information by which to measure safety management performance on construction sites. In China, the conventional construction safety benchmarking approach is to assess safety performance by evaluating the physical safety conditions on site as well as the accident records, while no attention has been paid to the management factors that influence site safety. This paper is to identify the key factors that influence safety management and to develop a method for measuring safety management performance on construction sites. Based on the survey and interview data collected on safety management factors in 82 construction projects in China, the safety management index as a means to evaluate real-time safety management performance by measuring key management factors was developed. The quantified factors were compared with the commonly accepted physical safety performance index, which was derived from inspection records of physical safety conditions, accident rates, and the satisfaction of the project management team. Multifactor linear regression was conducted and the result indicates that safety management performance on site is closely related to organizational factors, economic factors, and factors related to the relationship between management and labor on site. Based on this benchmarking study, a practical safety assessment method was developed and then implemented on six construction projects. The results show that this method can be an effective tool to evaluate safety management on construction projects.     

Empirical Analysis of Construction Enterprise Information Systems: Assessing System Integration, Critical Factors, and Benefits

Attaining higher levels of system integration is seen as the primary goal of construction enterprise information systems (CEIS). Increased system integration resulting from CEIS implementation is expected to lead to numerous benefits. These benefits encompass information technology infrastructure and strategic, operational, organizational, and managerial aspects of the firm. By adopting CEIS, firms seek tangible and intangible benefits, such as cost reduction, improved productivity, enhanced efficiency, and business growth. Through the use of statistical analysis, this study quantifies the critical success factors that impact CEIS integration and the ensuing benefits. Furthermore, it analyzes the effects of system integration on CEIS induced benefits. It also investigates the impact of CEIS strategy on CEIS induced benefits and identifies the relationship between CEIS strategy and system integration. Finally, it assesses the effects of CEIS induced benefits on user satisfaction and provides a CEIS implementation guide map for construction firms.     

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.     

Examining the Business Impact of Owner Commitment to Sustainability

The purpose of this study was to establish a research mechanism to investigate the impact of corporate commitment to sustainability on capital project planning and capital project performance. The research hypothesized that increasing commitment to sustainability leads to increasing sustainable project planning, and to better cost and schedule performances in large projects. Two sustainability indices, CSCI and SCPPI, were used to determine the level of corporate sustainability commitment and its impact on sustainability practices in capital project planning, and the impacts of corporate sustainability commitment and sustainable practices in project planning on cost and schedule performances, design changes, and safety compliances. Limited data collected from 17 Fortune 100 owner organizations suggested that a relationship between the two indices existed and that there are strong grounds supporting further development of such sustainability indices. Such indices can help multinational corporations better allocate resources and strike a balance between sustainable practices and financial bottom line.     

Measuring the Impact of Rework on Construction Cost Performance

Rework continues to affect both cost and schedule performance throughout the construction industry. The direct costs alone often tally to 5% of the total construction costs. Using the data obtained from 359 construction projects in the Construction Industry Institute database, this paper assesses the impacts of rework on construction cost performance for projects in various categories. In addition, it identifies the sources of this rework, permitting further analyses and the development of rework reduction initiatives. The results of this study establish that the impacts of rework differ according to project characteristics and that the sources of rework having the greatest impact are not significantly different among project categories. By recognizing the impacts of rework and its sources, the construction industry can reduce rework and ultimately improve project cost performance.     

Viability of Designing for Construction Worker Safety

Designing for construction safety entails consideration of the safety of construction workers in the design of a project. Research studies have identified the design aspect of projects as being a significant contributing factor to construction site accidents. Designing to eliminate or avoid hazards prior to exposure on the jobsite is also listed as the top priority in the hierarchy of controls common to the safety and health professions. Widespread implementation of the concept in the United States by engineering and architecture firms, however, is lacking due to perceived industry and project barriers. Given its absence from standard design practice, a question arises as to the viability of designing for safety as an intervention in the construction industry. This paper presents a pilot study that was conducted to investigate the practice of addressing construction worker safety when designing a project and to determine the feasibility and practicality of such an intervention. Through interviews of architects and engineers, the study found that a large percentage of design professionals are interested and willing to implement the concept in practice. Among the perceived impacts of implementation, project cost and schedule were mentioned most often along with limitations being placed on design creativity. The results of the pilot study indicate that designing for safety is a viable intervention in construction. The factors that impact the consideration of safety in the design of a project do not entirely prohibit its implementation or make its implementation extremely impractical and therefore not feasible. Additionally, the outcomes of implementation provide sufficient motivation to implement the concept in practice. The paper describes the key changes needed for implementation of the concept in practice which include: a change in designer mindset toward safety; establishment of a motivational force to promote designing for safety; increase designer knowledge of the concept; incorporate construction safety knowledge in the design phase; utilize designers knowledgeable about design-for-safety modifications; make design for safety tools and guidelines available for use and reference; and mitigate designer liability exposure.     

Valence of and Satisfaction with Job Outcomes

Approximately 2,800 unionized construction workers were surveyed and responses were received from 703, representing all crafts except boilermakers. The workers were asked about the importance they attach to various job related factors and their satisfaction with each factor. The 28 individual factors were reduced to seven using a factor analysis technique. The most important set of factors were those relating to the intrinsic nature of the work: working like a craftsman, performing challenging work, etc. The set of factors with which the workers was most satisfied was that of performance level: high productivity; quantity; and doing your work in a craftsmanlike manner. Individual factors that require attention on the part of contractors to improve worker motivation and satisfaction were identified using a 2×2 matrix that allowed the combination of importance and satisfaction scores. Overall satisfaction with the job was measured and a multiple regression analysis revealed that satisfaction with intrinsic factors makes the greatest contribution to general job satisfaction.     

Quality, Environmental, and Health and Safety Management Systems for Construction Engineering

The philosophy behind quality, environmental, and safety (QES) management systems is a concept that has been accepted by various contractors. Furthermore, a process has been developed insuring that the output produced conforms to customer satisfaction without violating any environmental, health, and safety rules and regulations. An effective QES program not only assures a quality product but also reduces costs, and enhances productivity. It is a top down process, i.e., top management together with line management and other employees develop the program and motivate all personnel to accept the process. Important functions to take under consideration are (1) explain and clarify the quality, environmental, and safety performance expected; (2) involve employees in decision-making and problem solving; (3) describe the consequences of poor quality and unsafe/unhealthy work conditions; (4) establish QES goals and provide feedback on performance; (5) provide a self-monitoring system; and (6) recognize and reinforce good performance and develop a reward system. This paper presents a discussion of the development of a portion of a QES management system which has been employed by a medium to large size construction company. In particular, Items 1–4, listed above, are described in detail.     

Labor-Management Cooperation and Customer Satisfaction

The satisfaction that a customer has with the construction product and construction services provided by a contractor has a direct influence on the customer’s willingness to select that contractor for future work. Labor and management working together have the opportunity to influence customer satisfaction. Activities at the contractor/craft worker level, the contractor/local union level, and the contractor association/local union level have the greatest potential to influence customer satisfaction. A precisely defined plan incorporating labor-management activities targeted at specific satisfaction factors will have the greatest likelihood of creating high customer satisfaction.     

Implementing Total Quality Management in Construction Firms

As building projects get larger and more complex, clients are also increasingly demanding higher standards for their delivery. Total quality management (TQM) has been recognized as a successful management philosophy in the manufacturing and service industries. TQM can likewise be embraced in the construction industry to help raise quality and productivity. Two case studies of construction companies showed how TQM can be successfully implemented in the construction industry. The benefits experienced include reduction in quality costs, better employee job satisfaction because they do not need to attend to defects and client complaints, recognition by clients, work carried out correctly right from the start, subcontractors with proper quality management systems, and closer relationships with subcontractors and suppliers. TQM performance measures were also reflected through top management commitment, customer involvement and satisfaction, employee involvement and empowerment, customer–supplier relationships, and process improvement and management. Finally, a framework for implementing TQM in construction is recommended.     

Divergence or Congruence? A Path Model of Rework for Building and Civil Engineering Projects

Rework has been identified as a major contributor to cost and schedule overrun in construction projects. Previous studies that have examined rework are based on a limited data sets and thus eschew generalizations being made about the key determinants. Using data from 260 completed building (n = 147) and civil engineering (n = 113) projects, path analysis is used to develop a structural model of the most significant causes of rework. The model revealed that the paths of client-directed changes, site management and subcontractors, and project communication were statistically significant contributors to rework costs. The analysis confirmed that the lack of attention to quality management resulted in higher rework costs being incurred in the projects sampled. The analysis also revealed that there were no significant differences between building and civil engineering projects in terms of the direct and indirect cost of rework experienced, and the effectiveness of the project management practices implemented. Considering the findings, it is suggested that generic strategies for reducing the incidence rework in construction and civil engineering projects can be developed.     

Developing a Resource Supply Chain Planning System for Construction Projects

The high variability of construction environments results in high construction-cost variation, especially in material costs. Inadequate planning may cause material shortages that delay the project schedule or, alternatively, a substantial increase in inventory costs by producing or supplying materials earlier than they are needed at the construction site. In order to solve these problems, this paper studies steel rebar production and supply operations and establishes an optimal model that minimizes the integrated inventory cost of the supply chain. Based on the optimal model, this paper develops a decision-support system to generate a production and supply plan for a supplier and buyers of steel rebar. After utilizing the decision-support system to create the supply and production plan, this paper analyzes the results to study the influence of transaction constraints on inventory cost. This paper also discusses cases of global optimization of the inventory cost for the entire supply chain and compares them with cases of local optimization for individual members.     

Methodology for Integrated Risk Management and Proactive Scheduling of Construction Projects

An integrated methodology is developed for planning construction projects under uncertainty. The methodology relies on a computer supported risk management system that allows for the identification, analysis, and quantification of the major risk factors and the derivation of their probability of occurrence and their impact on the duration of the project activities. Using project management estimates of the marginal cost of activity starting time disruptions, a heuristic procedure is used to develop a stable proactive baseline schedule that is sufficiently protected against the anticipated disruptions that may occur during project execution and that exhibits acceptable makespan performance. We illustrate the application of the methodology on a real life construction project and demonstrate that our proactive scheduler generates baseline schedules that outperform the schedules generated by commercial software packages in terms of robustness and timely project completion probability.