Decision Support System to Evaluate and Compare Concession Options

With the increased popularity of concession projects over the last three decades, there is a need for a decision support system (DSS) capable of evaluating and comparing several concession project investment (CPI) options in an effective and efficient manner. Hence, a novel DSS has been developed that takes into consideration both financial and nonfinancial aspects of the investment option, as well as the uncertainties commonly encountered during the feasibility stage of a project. The DSS is fully implemented as a standalone computer software package, ECCO (evaluate and compare concession options), in order to be of practical use. This paper outlines and validates ECCO’s design and structure through the demonstration of its capabilities in the evaluation and comparison of three real-life CPI case studies.     

FMS Approach to Construction Automation

The need to increase safety, productivity, quality, and resource efficiency in construction is a challenge to researchers that requires bold innovative changes. Technological adaptation of successful concepts from other industries to construction offers an important path for innovative progress. This paper provides insight into some central aspects of flexible manufacturing systems (FMS) that show the greatest transferability to construction. A flexible manufacturing system is a production facility consisting of computer‐controlled machines, or work stations, connected by an automated material‐handling system, which is used to produce a variety of parts in low and medium volume. The state of the art in automated material handling and process planning is presented as a basis for construction automation, a new field of civil engineering. Ongoing research in flexible construction systems is described, and directions for future research needed to establish a knowledge base of principles relating to construction automation are outlined.     

Construction Site Management Team Working: A Serendipitous Event

Despite the pervasive appeal of team working in the construction industry, the empirical relationship between team effectiveness and task performance continues to be generally overlooked. Recognized team performance appraisal remains one of the last frontiers of performance management. This paper sets out to challenge the conventional discourse of team working and test the hypothesis that construction site management team working and project performance is unrelated. The explanatory case-study research method utilizes a variety of data-gathering techniques. An attitude statement questionnaire evaluates team efficacy. A customized suite of key performance indicators sympathetic to project performance is used to measure project success. Statistical examination of the data demonstrates a marked correlation between the two variables. Although the results authenticate the universally acclaimed wisdom; teams and performance are inextricably linked, secondary analysis expose widespread contradictions between the rhetoric of team working and the action of practice. Obstacles to team working include management indifference towards substantive team building, organizational barriers to communication, and the absence of team rewards. A paradigm of individualism predominates, abetted by organizational structures and cultural subsystems that uphold individual answerability at the expense of collective responsibility.     

Risk-Based Framework for Safety Investment in Construction Organizations

The costs of construction injuries can have a substantial impact on the financial success of construction organizations and increase the overall costs of construction up to 15%. Following the Occupational Safety and Health Act of 1970, construction firms began to implement a variety of management techniques to reduce the frequency of injuries. Although these strategies decrease the cost of injuries, they consume time and other significant resources. Thus, it is imperative for construction organizations to objectively evaluate the cost-benefit of investments in injury prevention through formal and robust processes. This paper presents a risk-based framework that can be used to evaluate the incremental return on investment of a series of investments in highly effective injury prevention strategies. The framework was developed using foundational risk quantification and analysis techniques and is illustrated using a hypothetical case study that is based on archival data published by United States government agencies. The conclusion of this study is that the optimal investment strategy can be identified through a formal analysis and that optimization depends on the frequency and cost of injuries, the sequence in which the specific injury prevention techniques are implemented, the risk mitigated by each strategy, and the organization’s attitude toward acceptable risk.     

Analytic Network Process Applied to Project Selection

Owing to the complexity of a construction project, the analytic network process (ANP) is helpful to deal with interdependent relationships within a multicriteria decision-making model. This paper demonstrates an example to illustrate how to empirically prioritize a set of projects by using a five-level project selection model. A questionnaire was filled by a group of construction professionals of a medium-sized local developer and scores were computed for prioritizing the potential projects. The paper is relevant to both industry practitioners and researchers. Industry practitioners may adopt the weighted criteria for direct project selection or apply the ANP method to prioritize their own set of selection criteria. Researchers may rely on this paper as a point of departure for exploring other uses of ANP.     

Relationship between Governance Structure and Financial Performance in Construction

Although corporate governance has emerged as an issue of considerable importance in shaping the organizational structure and the vision of the firm, this entity has yet to receive sufficient scrutiny in the construction industry. The purpose of this study is to determine the extent by which the configuration of corporate governance may impact on the financial performance of construction firms. The investigation utilizes 100 companies of differing sizes. The analysis reveals that a critical mass of outside independent directors and the dissociation of the roles of CEO and Chairmanship of the board do translate into superior financial market returns for the firms. Other corporate governance variables have no apparent impact on the financial performance of the firms. These findings are significant to construction firms that are already established or in the process of being formed.     

Project Performance versus Use of Technologies at Project and Phase Levels

Lack of information regarding technology benefits along with uncertain competitive advantage from new technology have resulted in industry reluctance to implement new technologies. An industry-wide survey was used to collect project data from more than 200 capital facility projects on the issue of technology usage and overall project success. Twenty-two research hypotheses are presented and analyzed according to five different data class variables: industry sector, total installed cost, public versus private, greenfield versus expansion versus renovation, and typical versus advanced projects. Findings pertaining to associations between project success and technology usage at the project and phase level are discussed. The results of this research indicate that several technologies may contribute significantly to project performance in terms of cost and schedule success, particularly for certain types of projects. In addition, project schedule success is more closely associated with technology utilization than is project cost success. Findings from this study can provide companies with information on technology benefits and whether to use certain technologies.     

Critical Success Factors for Bond Financing of Construction Projects in Asia

Although bonds have been commonly used for financing construction works in developed countries such as the United States, Asian governments would like to see their construction growth increasingly funded by alternative sources such as the capital market, instead of overrelying on bank loans. Yet even in relatively active markets such as Hong Kong and Singapore, the use of bond financing for infrastructure development is limited. In a recent study based on two questionnaire surveys with subsequent interviews about retail and institutional investors, results demonstrated that credit risk was a major concern and that deterrents include lack of bond market information, illiquidity of domestic bonds, and the reliability of external credit ratings. Institutional investors, however, welcome infrastructure bonds because of the stable income stream matching their long-term commitments. To address these practical concerns, we have proposed credit and liquidity enhancement measures in this paper as the critical success factors for international construction promoters to tap into the bond market for financing construction works in Asia. Hence, this paper will be of interest to academics and practitioners who are working on project financing, because empirical findings reveal investors’ concerns, which are then addressed with recommendations.     

Center for Excellence in Construction Safety

The National Institute for Occupational Safety and Health (NIOSH) has funded the establishment of a Center for Excellence in Construction Safety at West Virginia University. The overall objectives of the Center include: (1) The promotion of hazard control components in engineering curricula; (2) the promotion of hazard awareness and safety‐related knowledge and skills specific to the construction industry; and (3) the promotion of the consideration of safety issues during project design for the purpose of reducing injury during construction. Specific tasks to be accomplished by the Center include: (1) The development of course materials and instruction on construction safety for civil engineering students at the undergraduate and graduate levels; (2) the promotion of such course materials for adoption by other civil engineering academic institutions; (3) the design and conduct of projects related to the improvement of current construction practices that would develop design parameters to reduce trauma during the construction phase; and (4) the establishment of techniques for the collection and dissemination of construction safety information, educational materials, developed guidelines, and design criteria to engineers, architects, contractors, and trade unions.     

Promise and Barriers to Technology Enabled and Open Project Team Collaboration

In today’s world, construction projects require the collaboration of several parties who work independently for a shared purpose, sometimes across space and time, and most of the time across organizational boundaries. Working with a wide diversity of knowledge and skills brings a broad range of viewpoints and expertise to the construction projects. In design and construction, organizations depend on information technology to execute their specific well-defined tasks to make construction projects possible. Technology is used either for executing these tasks more efficiently, or for doing things that were not possible before. Nevertheless, despite the potential positive contribution of these tools to the design and construction processes and organizations, barriers still exist for achieving success. This paper presents potential benefits of technology enabled and open project team collaboration with a case study example and outlines cultural and legal barriers to its widespread adoption by the construction industry.     

Application of Innovative Critical Chain Method for Project Planning and Control under Resource Constraints and Uncertainty

This research proposes an innovative critical chain method (ICCM) for project planning and control under resource constraints and uncertainty. An improved genetic algorithm is developed to identify the critical chain and to obtain the optimal start time of each activity under the most optimistic duration of each activity and resource constraints. Furthermore, a feeding buffer is added in an insert point in order to deal with uncertainties. The benefits of applying this ICCM are demonstrated in an example project.     

Field Experiments to Evaluate and Control Light Tower Glare in Nighttime Work Zones

An increasing volume of highway repair and construction work is being performed during the off-peak nighttime hours to mitigate the impact of construction-related daytime traffic congestions and shorten the duration of construction operations. The utilization and placement of light towers to illuminate the work zone in this type of construction can cause harmful levels of glare for both drivers and construction workers. This paper presents the results of field experiments which were conducted to (1) study the levels of glare and lighting performance generated by light towers in and around nighttime work zones; (2) analyze the combined impact of the light tower set up parameters including its height as well as its aiming and rotation angles on glare and lighting performance; and (3) provide practical recommendations to reduce and control lighting glare in and around nighttime work zones. The results of these experiments confirm that the set up of light towers has a significant impact on glare and therefore it should be carefully designed and executed on nighttime highway construction projects to ensure the safety of the traveling public as well as construction workers.     

Postprocessing the Hybrid Method for Addressing Uncertainty in Risk Assessments

In a previous paper in this Journal, a “hybrid method” was proposed for the joint propagation of probability distributions (expressing variability) and possibility distributions (i.e., fuzzy numbers, expressing imprecision or partial ignorance) in the computation of risk. In order to compare the results of the hybrid computation (a random fuzzy set) to a tolerance threshold (a tolerable level of risk), a postprocessing method was proposed. Recent work has highlighted a shortcoming of this postprocessing step which yields overly conservative results. A postprocessing method based on Shafer’s theory of evidence provides a rigorous answer to the problem of comparing a random fuzzy set with a threshold. The principles behind the new postprocessing scheme are presented and illustrated with a synthetic example.     

Development and Application of the Specialist Task Organization Procurement Approach

The study focuses on the development of an innovative procurement method in order to improve owners’ contracting strategies. The aim of this paper is to develop a procurement system that improves the overall project implementation process, in order to meet the project objectives of time, cost, and quality. The Specialist Task Organization (STO) approach is suggested based on a constructive research approach, where extensive theoretical development of the STO concept is developed. The analogical validation was carried out through the review of four case study examples in order to find the analogies between the positive outcomes of four case studies and the elements of the STO route. The proposed task-oriented approach utilizes integrated product (task) development, integrated management, and fragmented execution via task organizations. The merits of the STO approach include, the shifting of competition from only single design and cost based to multiple designs, life-cycle costs, alternative materials, and maintainability implications. The STO approach assumes a modular approach to design, and allows experts knowledge in design and construction through their involvement from preconstruction through project starts up. The suggested STO route is a potential tool in realizing complete sustainability in construction in terms of environmental and social sustainability, as well as economic sustainability.     

Ontology for Relating Risk and Vulnerability to Cost Overrun in International Projects

Risk management is about identifying risks, assessing their impacts, and developing mitigation strategies to ensure project success. The difference between the expected and actual project outcomes is usually attributed to risk events and how they are managed throughout the project. Although there are several reference frameworks that explain how risks can be managed in construction projects, a major bottleneck is the lack of a common vocabulary for risk-related concepts. Poor definition of risk and patterns of risk propagation in a project decrease the reliability of risk models that are constructed to simulate project outcomes under different risk occurrence scenarios. This study aims to extend previous studies in risk management by presenting an ontology for relating risk-related concepts to cost overrun. The major idea is that cost overrun depends on causal relations between various risk sources (namely, risk paths) and sources of vulnerability that interfere with these paths. Ontology is used to develop a database system that represents risk event histories of international construction projects and to construct a model for estimation of cost overrun. It will form the basis of a multiagent system that can be used to simulate the negotiation process among project participants about sharing of costs considering the risk allocation clauses in the contract, sources of vulnerability, and causal relations between risk events and their impacts. The ontology is constructed by interaction with Turkish contractors working in international markets and extensive literature review on risk-related concepts. The validation test results provide evidence that the ontology is fairly effective to help Turkish contractors to assess cost overrun by considering sources of vulnerability and risk in international construction projects.     

Graphical Approach for Manpower Planning in Infrastructure Networks

Infrastructure networks such as highways and pipelines have recently been at the center of attention for contractors and owner organizations. Due to their large size and their repetitive/distributed nature, construction and/or maintenance operations for such networks become complex tasks that require huge resources, particularly manpower. In order to provide a transparent tool for quick manpower planning and sensitivity analysis, a graphical approach (using nomographs) is introduced in this paper. The nomographs encode the mathematical formulation, and the results of many optimization experiments, of a distributed model for scheduling large projects with multiple sites. Accordingly, the nomographs can be readily utilized by practitioners to estimate the manpower needed to meet a predefined deadline, under anticipated network-level risks due to unfavorable site conditions. Details on the development of the nomographs are presented in the paper along with an example to demonstrate their usefulness for supporting manpower planning decisions and for what-if analysis. The nomographs also present researchers with a simple yet powerful approach to make research results readily usable by practitioners.     

Identification of Effective Management Practices and Technologies for Lessons Learned Programs in the Construction Industry

Organizations in the construction industry cannot afford to make repetitive mistakes on major projects. Conversely, there are great benefits to repeating positive experiences from past projects. This need for institutional memory is amplified by the reality that in the course of normal turnover and retirement, people with years of experience leave their organizations. An effective lessons learned program is a critical element in the management of institutional knowledge; it will facilitate the continuous improvement of processes and procedures and provide a direct advantage in an even more competitive industry. This paper describes a research study that aimed to identify effective management practices and technologies for lessons learned programs in the construction industry. Data from 70 organizations that participated in this study are presented. Research found that even though more lessons learned programs are being initiated, the potential for savings and improvement has not been fully met. The study has also identified seven crucial characteristics of a successful program and verified that most organizations are stronger in some categories and weaker in others. The key to an effective program is to address all seven areas and guidance is provided for those wishing to implement lessons learned programs.