Union and Open Shop Labor Cost Differences

One area within the construction industry that has dramatically changed is the growth of open shop construction. This growth suggests that open shop general contractors may have a competitive advantage over union general contractors. This paper investigates productivity and wage rate variances between Colorado open shop and union general contractors on projects completed since January 1981. Though there is little productivity variance, a significant variance of wage rates indicate the Colorado open shop general contractor presently has a clear overall labor advantage. The productivity and wage rate variance of 29 individual project job tasks were investigated. Data was collected from 35 union and 20 open shop contractors' project labor costs reports. Additional information was collected during interviews with representatives of eleven general contractors. The productivity and wage rate variances are described by individual job tasks; by the union craft jurisdictions of laborers, carpenters, ironworkers, and cement finishers; and by an overall comparison between open shop and union general contractors.     

Testing of Minimization of Subjectivity in Best Value Procurement by Using Artificial Intelligence Systems in State of Utah Procurement

The Performance Information Procurement System (PIPS) was tested on the procurement of the $2.96 million Bridgerland Academic Training Center (ATC) for the state of Utah Division of Facilities Construction Management. The artificial intelligence (AI) information based PIPS was run two ways—selection with biased subjectivity (similar to current best value processes) and without biased subjectivity. Unlike other best value processes, PIPS minimizes the decision-making and subjective bias of the owner’s representatives. The procurement test at Bridgerland ATC provides a comparison between the AI selection versus the user agency’s subjective prioritization. The result of the system was one of the “best” construction projects procured at the state of Utah (on time, on budget, high quality), with no contractor generated change orders for additional cost, minimized construction management requirements, and high customer satisfaction.     

The psychologist's role in measuring and improving customer satisfaction.

482 customers completed a survey that measured their satisfaction with an organization, with each of its three units, and with processes performed by each of the units. Means and correlations were analyzed to determine the processes that had the greatest potential to improve customer satisfaction through the application of traditional psychological interventions. A framework for assessing and using customer satisfaction data is presented. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

The relationship between membership decline and union commitment: A field study of local unions in crisis.

In this field study, I examined relationships between membership decline in 20 locals affiliated with a large industrial union and commitment as measured by a short-form version of the Union Commitment Scale (L. Friedman and R. J. Harvey; see record 1986-28952-001). Commitment level was positively related to percentage of decline, with members in locals with more severe membership losses reporting higher commitment than members in locals with less severe or no losses. Also examined was the influence of decline on satisfaction with company and with union, as well as attitudes toward past and future strike activity. Satisfaction results were partially consistent with union–management climate influences on dual commitment. Results on strike attitudes were generally consistent with results on decline and commitment. Findings are interpreted as illustrating predictable adjustments made by union members in support of local activity under crisis conditions. The need for further field studies to explore the impact of prolonged crisis on union–management relations is stressed. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Predicting union attitudes in student part-time workers.

Examined the predictors of general union attitudes in a sample of 84 high school and 42 first year university students (aged 15–21 yrs) who were employed part-time. In addition to two aspects of family socialization towards unions (parents' perceived union attitudes and perceived union activities), Ss' job quality and satisfaction with both co-workers and supervisors were also assessed as predictors of their own general union attitudes. Results show that only Ss' perception of their parents' general union attitudes was significantly associated with their own general union attitudes. Thus, family socialization contributed the greatest amount of variance to general union attitudes. Neither job quality, nor supervisory or co-worker satisfaction were associated with Ss' union attitudes. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Fuzzy Approach to Prequalifying Construction Contractors

Construction contractor prequalification (CCPQ) is a crucial decision making process to select capable potential bidders and ensure the success of construction projects. The purpose of CCPQ is to guarantee a contractor’s characteristic to meet the construction project’s requirements, which has been established worldwide as a standard practice. However, existing methods, i.e., marking method, subjective judgment method, etc., for contractor prequalification have been inadequate because it is difficult for decision makers to investigate contractor’s capabilities against inexact, vagueness, and qualitative criteria. The objective of this paper is to propose a fuzzy framework-based fuzzy number theory to solve construction contractor prequalification issues, which include decision criteria analysis, weights assessment, and decision model development. Finally, a case study for a tunnel construction project was used to demonstrate the feasibility of fuzzy approaches.     

Project Management in the Chinese Construction Industry: Six-Case Study

Originating from the West, project management was introduced into China after the country’s economic reforms in the 1980’s and has since spread quickly throughout the whole country, particularly in the construction industry. However, despite the wide adoption of project management practices by construction organizations and the growing recognition of the importance of project management as an enabler of organizational success, empirical studies on project management in the context of the Chinese construction industry have been inadequate. This paper presents the results of an empirical study of six Chinese construction organizations in order to come to a more comprehensive and sophisticated understanding of project management practices in the Chinese construction industry. The findings revealed: (1) a good appreciation of the role of projects and project management and satisfaction with current project management practices; (2) 11 key aspects of project management implementation; (3) 12 resultant value and benefits; and (4) five aspects of the main challenges facing the organizations. Meanwhile, variations in project management practices and the resultant organizational value were identified, first between the three owner- and the three contractor-case study organizations, then between the two construction contractor organizations and the one design contractor organization.     

Benefits and Costs of EEO Rules in Construction

The findings of a study designed to investigate the benefits and costs of Equal Employment Opportunity (EEO) regulations in the construction industry are presented. The data indicate that large contractors have less difficulty than smaller organizations in meeting EEO requirements. In addition, it is shown that the regulations both benefit and increase the number of minority construction workers. According to the study, however, EEO procedures have not increased the number of qualified minority craftsmen. The data also indicate that EEO regulations have increased the cost of the construction projects. The amount spent on both record keeping and low productive personnel, although significant, is not substantial. For example, the unweighted values, in terms of construction dollar volume, range from 1.05% for the Engineering News Record (ENR) 400 organizations to 2.31% for the Indiana Constructors. The weighted values range from 0.48% for the ENR 400 contractors to 1.55% for the Indiana Constructors. The great majority of firms surveyed indicated that EEO rules and regulations should be modified. Better recruiting efforts and comprehensive union and contractor programs to train competent workers appear to be a necessity.     

Contractor’s Opportunistic Bidding Behavior and Equilibrium Price Level in the Construction Market

The competitive bidding system has been to blame for abnormally low bids, which are considered as one of the main causes of poor project quality. Previous studies have regarded the pricing of bidders as an optimum decision based on contractor’s cost and market competition level. However, the sell to produce characteristic of construction projects may induce contractors to offer a low bid and then make up the amount initially sacrificed from beyond-contractual reward (BCR) gained through cutting corners and claims. System dynamics was adopted in this study to develop a contractor’s pricing model with consideration of the dimensions of cost, market competition, and BCR. The model was then examined by statistical analysis of data collected from 44 highway projects in Taiwan. It was found that the equilibrium market price is significantly associated with BCR, which is assumed to be determined by the strictness of the owner’s construction management, including both soundness of contract and tightness in construction supervision. Research results suggest that contractors divide the market into different segments according to the owner’s strictness of construction management and the equilibrium price level of each market segment varies. The price level for projects with a strict owner is remarkably higher than for those with relatively less strict owners. Improvement in the construction management system of projects is crucial to lower the possibility that contractors gain BCR and do opportunistic bidding, and to further enhance project quality.     

Factors That Influence Safety Performance of Specialty Contractors

In the construction industry specialty contractors perform most of the construction work. Given their impact on the industry, the safety performance of specialty contractors should be of concern to the construction industry. This paper describes a study conducted to identify factors that significantly influence the safety performance of specialty contractors. The study was composed of separate surveys of three different specialty contractor populations—a variety of trade contractors located primarily in southern Nevada, roofing contractors in the state of Florida, and the regional offices of a large, nationwide mechanical contractor. While there appeared to be contradictions between the surveys in some areas, the study concluded that specialty contractor safety performance was consistently influenced, in part, by a number of factors. The factors shown to positively affect safety performance include minimizing worker turnover, implementing employee drug testing with various factors initiating the testing, and training with the assistance of contractor associations. Safety incentive programs were not necessarily associated with better safety performance. Growth in company size was found to be associated with improved safety performance as well.     

Mechanisms linking employee affective delivery and customer behavioral intentions.

Past empirical evidence has indicated that employee affective delivery can influence customer reactions (e.g., customer satisfaction, service quality evaluation). This study extends previous research by empirically examining mediating processes underlying the relationship between employee affective delivery and customer behavioral intentions. Data were collected from 352 employee-customer pairs in 169 retail shoe stores in Taiwan. Results showed that the influence of employee affective delivery on customers' willingness to return to the store and pass positive comments to friends was indirect through the mediating processes of customer in-store positive moods and perceived friendliness. The study also indicated that employee affective delivery influences customers' time spent in store, which, in turn, influences customer behavioral intentions. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Contractor Selection Criteria: Investigation of Opinions of Singapore Construction Practitioners

The construction industry has witnessed the failure of many contractors due to varying reasons such as financial problems, poor performance, or accidents arising from the lack of adequate safety consideration at worksites. All these incidents have led to the impression that the current system of awarding the contracts is inefficient in selecting the contractor capable of meeting the demands and challenges of present times and hence needs to be reviewed accordingly. Therefore, in an attempt to investigate the current situation of the Singapore construction industry a questionnaire survey was conducted for accruing the data required to identify the important contractor selection criteria (CSC) and to draw upon construction practitioners’ opinions regarding the importance of those CSC in assessing the capabilities of the candidate contractors during the selection process. The research reported upon forms part of a larger study that aims to develop a computer-interactive multicriteria decision system for contractor selection involving identification of CSC for inclusion in the system, investigation of CSC preferences of construction practitioners, and establishment of weights for those CSC from their perceived importance determined through the questionnaire survey of Singapore construction practitioners. The study highlights that there are statistically significant differences in opinions regarding the degree of importance assigned to some CSC among public clients, private clients, and contractors. Findings from the study may act as an aid in improving the Singapore construction industry by helping construction clients identify multiple CSC apart from cost which should always be considered when assessing the capability of candidate contractors during the selection process, by assisting contractors in improving their attributes in line with clients’ preferences and by facilitating Singapore construction clients and researchers to develop a contractor selection system capable of assessing multiple attributes of the candidate contractors so that the risk of the project failure due to the selection of an inappropriate contractor is minimized.     

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.     

Risk Allocation and Risk Handling of Highway Projects in Taiwan

Risks always exist in construction projects and often cause schedule delay or cost overrun. Risk management is a key issue in project management. The first step of risk management is risk identification. It includes the recognition of potential risk event conditions in the project and the clarification of risk responsibilities. We conducted multiple-case studies using a systematic analytical procedure to identify risks in highway projects in Taiwan, to recognize risk allocation by contract clauses, and to analyze the influence of risk allocation on the contractor’s risk handling strategies. The results show that the owner allocates risks by stipulating specific contract clauses into five kinds of risk allocation conditions. If a risk is more controllable by the contractor, the owner has a greater tendency to allocate the risk to the contractor. Risk allocation determines which kinds of risks the contractor would take and influences the contractor’s risk handling decisions. The analysis furthermore indicates that, if the probability of a certain risk event condition is uncontrollable, then with the increasing possibility of taking the risk, the contractor’s tendency of risk handling changes from actively transferring the risk to passively retaining the risk. In contrast, if a risk is controllable and certainly allocated to the contractor, the contractor tends to take the initiative to reduce the impact caused by the risk event rather than retain the risk.     

Educating Professional Construction Managers

The management of construction has traditionally been the function of the civil engineer. The civil engineer is no longer educated to hit the ground running in an entry level position in the construction industry. To better serve the traditional needs of the industry, two year and four year construction technology programs were developed. The curriculum emphasis has generally been toward the general contractor as the employer. However, the construction industry is undergoing change. Innovative contracting systems such as design‐build and construction management have become increasingly popular. There are new leadership requirements. The potential for future high level positions can be enhanced to meet these requirements by augmenting engineering capabilities with business and construction management theory. This can be done within civil engineering curriculums leading to an advanced degree.     

Impact of Total Quality Management on Home-Buyer Satisfaction

Providing superior quality and keeping customers satisfied are rapidly becoming the ways construction companies differentiate themselves from competitors. Many companies are, however, frustrated in their efforts to improve quality and customer satisfaction through the implementation of total quality management (TQM). The primary objective of this study was to increase understanding of how TQM affects home-buyer satisfaction. For the first time an empirical study has confirmed that implementation of TQM is positively associated with home-buyer satisfaction. Supplier quality management has emerged as the most important factor in shaping home-buyer satisfaction, but it is the area in which home builders do not practice extensively.     

Strategies Adopted by International Architectural, Engineering, and Construction Firms in Southeast Asia

There are many business opportunities for international architectural, engineering, and construction firms to work in Southeast Asia (SEA) due to its high volume of construction demand and its growing economy. Before entering the region, these industry practitioners need to decide on the appropriate market entry modes and business strategies. The objectives of this research are to investigate the effective market entry modes and business management strategies that industry practitioners can adopt for SEA projects. The research method is based on a structured questionnaire. The study found that the most effective market entry modes are: setting up wholly owned foreign subsidiaries and forming project joint ventures with local firms. The most effective business strategies are: providing a superior product or service and paying great attention to client satisfaction. It is recommended that industry practitioners place emphasis on customer satisfaction by considering all aspects of the client’s requirements and the proposed project’s usage throughout its intended life cycle, to differentiate itself from its competitors.     

Contractual Approach for Facilitating the Resolution of Dispute over a Contractor’s Failure to Comply with Time Limit for Notice of Delays

The enforcement of a contractor’s notice of delays and claims as “a condition precedent” to a contractor’s claims is a controversial issue among practitioners, researchers, and legal scholars. Strict enforcement or liberal interpretations (no enforcement) of time limit for a contractor’s notice have some implications for the success of projects and for the construction industry. This paper examines and compares the different views regarding enforceability of notice provisions. The paper evaluates those views and thereafter proposes an alternative contractual approach for dealing with a contractor’s noncompliance with the provision. The applicability of the proposed approach is evaluated vis-à-vis legal principles. The proposed approach appears to be practical and equitable. It could facilitate early resolution of disputes relating to notice. It could also make the outcome of notice-related dispute more predictable. Considering the contractual, legal, and practical problems that could arise from a strict enforcement and a liberal interpretation (no enforcement) of time limit for a contractor’s notice, the paper highlights the benefits of the proposed approach to the employers (project owners), contractors, and the construction industry at large.     

Causes of Delay in Building Construction Projects in Egypt

Delay in construction projects is considered one of the most common problems causing a multitude of negative effects on the project and its participating parties. This paper aims to identify the main causes of delay in construction projects in Egypt from the point of view of contractors, consultants, and owners. A literature review was conducted to compile a list of delay causes that was purged based on appropriateness to Egypt in seven semistructured interviews. The resulting list of delay causes was subjected to a questionnaire survey for quantitative confirmation and identification of the most important causes of delay. The overall results indicated that the most important causes are: financing by contractor during construction, delays in contractor’s payment by owner, design changes by owner or his agent during construction, partial payments during construction, and nonutilization of professional construction/contractual management. The contractor and owner were found to have opposing views, mostly blaming one another for delays, while the consultant was seen as having a more intermediate view. Results’ analyses suggest that in order to significantly reduce delay a joint effort based on teamwork is required. Furthermore, causes of project delay were discussed based on the type and size of the project.     

Improved Baseline Productivity Analysis Technique

Previous studies have aimed to develop effective methods to derive baseline productivity (BP) for labor-intensive activities in construction sites. However, there are two different definitions of BPs: one is defined as a performance benchmark of best practice and the other as a standard reflecting a contractor’s normal operating performance. It is necessary to clarify the difference between the two definitions and their corresponding BPs. This research introduces data envelopment analysis (DEA) as a new method for deriving BP and compares DEA with the other four BP deriving methods. DEA is concluded as the best method in terms of objectivity, effectiveness, and consistency to find BP that represents the best performance a contractor can possibly achieve. With the capability of deriving productivities of multi-input and multi-output activities, the proposed DEA has raised the scale of labor productivity from the level of single factor productivity to total factor productivity which will help construction researchers and managers to evaluate performances of interests in a much more effective way.