An analysis of success factors and benefits of partnering in construction

Partnering is increasingly being used on construction projects. Partnering involves the parties to a construction project working together in an environment of trust and openness to realise the project efficiently and without conflict. Using a UK-wide postal questionnaire survey, the opinions of different types of organisation — consultants, contractors, and clients were assessed in relation to the success factors and benefits of partnering. The study shows that UK contractors and clients are more positive about partnering than consultants. The research also indicates that certain requirements must be met if partnering is to succeed. In particular, trust, communication, commitment, a clear understanding of roles, consistency and a flexible attitude are necessary. It is recognised that nothing will change without considerable effort from all parties. Respondents believe that partnering can bring significant benefits, including fewer adversarial relationships and increased end-customer satisfaction, to the construction industry if all parties involved in a project strive for its success.     

Contractors’ perception of risk factors affecting cost overrun in building projects in Palestine

This study aims at identifying the risk factors affecting cost overrun in building construction projects in the West Bank in Palestine from contractors’ viewpoint. To do so, 31 contractors working on building construction completed a structured questionnaire survey. Forty factors were identified through a literature review. These factors were grouped into five groups: cost estimating, construction items, construction parties, environmental, and financing. The results indicated that the top five affecting factors are fluctuation in currency exchange rate, project financing, contract management, level of competitors, and cost of materials. The findings can support the government in improving the regulations to meet the construction market needs, owners in planning and designing and evaluating policy, contractors and managers in planning and taking external and internal risks when costing and scheduling contracts, consultants in applying comprehensive contract information, and workers in conducting their day-to-day activities. The results will fill an important research and practice gap.     

Factors influencing development of construction enterprises in Singapore

The literature stresses the importance of improvements in the effectiveness and efficiency of contractors if the construction industry is to fulfil its tasks in a cost-effective, timely and safe manner. Various factors are considered to be instrumental in the development of contractors. If the most important influencing factors in any country can be identified, measures can be taken to apply them in order to upgrade the contractors. The results of a study on the factors which have been important in the development of construction enterprises in Singapore are presented. A mailed questionnaire survey provided the basis for the study. The targeted respondents were local contractors, foreign contractors, and clients and consultants. It was found that the key factors could be grouped into four main categories: contractors' role; government's and institutions' help; practitioners' help and financial support; and clients' help. Recommendations are offered on measures which can improve the performance of contractors.     

Clients’ needs,wants and expectations from contractors and approach to the concept of repetitive works in the Northern Cyprus construction market

Intense competition existing in the construction market creates an industry that is dominated by the client groups. This paper provides insights into private clients’ needs, wants and expectations from contractor firms in the Northern Cyprus building construction market, by presenting survey findings of 91 clients regarding this issue. Moreover, it presents their perspective related to doing repetitive works with the same contractors in possible future works. The study has clearly confirmed the fact that the clients in the specified market place high emphasis on a wide variety of factors. The importance assigned to these factors varies according to the categories or characteristics of the clients within the private building construction sector. Another striking finding was the responding clients’ willingness to do possible repetitive works with the same contractors assuming that they are fully satisfied with the existing or past projects. This opportunity, if used properly by the contractor firms in this market, may be the key to beating the competition and lead to the easy path to increase a contractor firm's market share. Furthermore, it was found that the responding clients expect much more than quality, finishing on time and within budget for full satisfaction and continuing to do repetitive works. The importance and hence the contribution of a set of criteria related to achieving full client satisfaction, and leading to possible repetitive works is presented. Although it would not be reasonable to determine general strategies on just a single study, the contractor firms in the Northern Cyprus construction market will benefit from the framework given within this paper by recognizing what is important and essential to private building construction clients in particular situations and hence present the capabilities of the contracting or potential contracting organizations in ways that meet this to best advantage. Although the results given are based on input from the Northern Cyprus construction market, we believe that the contractor firms in other countries, who specialize in building works for private sector may also benefit from the findings or at least the approach of this research as well.     

Le monde de la pratique

What are the factors affecting the performance of design-bid-build projects? Ten performance metrics and 60 factors are identified that project team members can use to measure and manage the success levels of construction projects in four broad categories: cost, time, quality and administrative burden. A survey and correlation analysis of 65 design-bid-build projects in Singapore is used to suggest the factors that affect each performance metric significantly. Contractor characteristics are the key determinants affecting the highest number of performance metrics. The most significant variable is the contractor's past record for completing projects on budget and to an acceptable level of quality. Based on this evidence, it is recommended that clients and consultants pay closer attention to a wider array of characteristics (not just the initial price) involving contractor selection. Another key determinant is the project character with the most important variable being the percentage of repetitive elements.     

Effects of interpersonal relations on public sector construction contracts in Vietnam

Public owners and private contractors and consultants are expected to maintain arm’s length relationships with each other to avoid any accusation of corruption. In the context of public construction projects in Vietnam, this study examines: the relational contracting (RC) related behavioural patterns that lead to better interpersonal relations during the construction stage and at the end of the project among public project owners, and private contractors and consultants; and the extent to which better interpersonal relations affect project performance. Using a questionnaire survey, data were collected from public owners and private contractors and consultants in Vietnam. Correlation analysis shows that there exist several behavioural patterns that significantly affect interpersonal relations among project team members during the construction stage and at the end of the project, and the general harmony during the construction stage. It was also found that cost performance is significantly correlated with project harmony level. Schedule performance is significantly correlated with interpersonal relations between project team members during the construction stage, and at the end of the project. The findings indicate the important role that interpersonal relations play in project outcomes and vice versa. The behavioural patterns that are found to be significantly correlated with harmony during the construction stage and/or relationships among project team members suggest that concrete actions may be taken by owners, consultants and contractors to improve relationships, and thereby improve cost and schedule outcomes. It is recommended that owners, consultants and contractors adopt some of the behavioural patterns identified.     

Key determinants of performance of design-bid-build projects in Singapore

What are the factors affecting the performance of design-bid-build projects? Ten performance metrics and 60 factors are identified that project team members can use to measure and manage the success levels of construction projects in four broad categories: cost, time, quality and administrative burden. A survey and correlation analysis of 65 design-bid-build projects in Singapore is used to suggest the factors that affect each performance metric significantly. Contractor characteristics are the key determinants affecting the highest number of performance metrics. The most significant variable is the contractor's past record for completing projects on budget and to an acceptable level of quality. Based on this evidence, it is recommended that clients and consultants pay closer attention to a wider array of characteristics (not just the initial price) involving contractor selection. Another key determinant is the project character with the most important variable being the percentage of repetitive elements.     

Important causes of delay in public utility projects in Saudi Arabia

This study was conducted to determine the most important causes of delay in public utility projects, based on the frequency and severity of the causes. A survey of randomly selected samples of contractors, consultants, and owners was carried out to assess the frequency of occurrence and the severity of impact of sixty potential delay causes. A frequency index and a severity index were determined for each cause. An importance index for each cause was then computed as the product of the frequency and severity indices. The results showed that the three parties surveyed generally agree on the importance ranking of delay causes. The causes were grouped also into six major categories of delay. The analysis showed lack of agreement among the parties on the ranking of the major categories of delay.     

Effects of high prequalification requirements

When designing a set of prequalification requirements, the first objective is to select the basic factors that are deemed appropriate to scrutinize, and the second objective is to establish the threshold for each of these factors to evaluate the capability and capacity of the bidders on a given project; together, these factors and the limits imposed on each constitute the basis for qualifying or disqualifying each of the bidders. To obtain the desired prequalification results and the consequent quality delivery of a project, both selecting the factors and determining the limits for each factor are crucial and must be given careful attention with due consideration of the prevailing environment (including market conditions, deadlines, need for technology transfer, etc.). In this study it was found that an improper design of prequalification requirements seriously affected the progress and cost of projects, provided opportunities for collusion, and encouraged the obtaining of contracts through improper practices. Based on an analysis of data from 30 Taipei Mass Rapid Transit projects, together with information gleaned from numerous interviews with contractors, consultants, and clients, it is shown that a risk-taking attitude by the Government and the establishment of relatively low prequalification requirements would be more conducive to achieving a desirable balance among (a) satisfying the schedule and sequence of contracting, (b) obtaining lower prices by an increase in competition, (c) procuring the timely delivery of a quality project, and (d) fostering the growth of local contractors.     

Analysis of pre‐qualification criteria in contractor selection and their impacts on project success

While construction industry practices are reasonably well developed, construction projects still witness widespread failures of many contractors due to varied reasons such as financial problems, poor management, over‐commitment and or conflicts and disputes associated with construction activities. Pre‐qualification of contractors is a common practice across projects, yet the investigation on the ability of the selected contractors in successful delivery of projects is not widespread. In an attempt to understand these pre‐emptive qualification criteria and their links in contractors’ performance in projects, a total of 43 influencing technical attributes were identified through a systematic research approach. The relative significance and impacts of the attributes have been determined based on a structured questionnaire survey in selected construction projects. By performing the factor analysis, a total of seven factors significant to contractors’ performance were extracted, namely (1) soundness of business and workforce; (2) planning and control; (3) quality management; (4) past performance; (5) risk management; (6) organizational capability; and (7) commitment and dedication. Multiple linear regression models reveal that technical expertise, past success, time in business, work methods and working capital significantly impact on contractors’ performance across time, cost and quality success. With a clear understanding of a contractor’s performance, these findings could potentially contribute to development of a company’s procedures or enhance existing knowledge in relation to the pre‐qualification practices in contractor selection in projects.     

Structural equation model for investigating factors affecting delay in Indian construction projects

The rapid growth of the Indian construction sector over the last few decades and recurring failure in on-time delivery highlight the need for a systematic analysis of the factors influencing delay. A theoretical structural equation model representing the influence of four key latent variables on project delays in the Indian construction industry has been developed. Data collected from a questionnaire survey and personal interviews, with 77 valid responses from clients, contractors and designers or architects, were used to further formulate and analyse the model. The results of the structural equation model suggest that client’s influence is one of the most significant factors affecting time performance on Indian projects. Client’s influence is also found to be one of the key contributing factors resulting in lack of commitment and contractor’s inefficiency in the project. Lack of efficient construction planning plays the second key role in adverse time performance. While the effect of lack of commitment on contractor’s inefficiency is highly significant, neither of these two factors has any direct impact on time delay in projects. Contrary to the notion that the contractor is the only party responsible for delay in construction projects, the results clearly highlight the importance of the role of clients and technical expertise in planning in achieving satisfactory time performance on Indian projects. It is hoped that these research findings will contribute significantly to the Indian construction industry’s efforts in addressing the root causes of delay and enhancing the time performance on projects.     

Unified Frontiers: Reaching Out with BIM

Coren Sharples is a partner of SHoP Architects in New York where building information modelling (BIM) has become integral to the fluid promotion of communication between contractors, consultants and clients on a project. This is exemplified by two projects in the city: the reconstruction of Rector Bridge, where BIM enabled SHoP to work seamlessly with a firm of custom boat builders and other contractors, and the speculative development at 290 Mulberry Street, where it became a significant means of disseminating key data to the client for marketing and financial planning. Copyright © 2009 John Wiley & Sons, Ltd.     

Significant factors causing delay in the UAE construction industry

Construction delay is considered one of the most recurring problems in the construction industry. Delays have an adverse impact on project success in terms of time, cost, quality and safety. The effects of construction delays are not confined to the construction industry only, but influence the overall economy of a country like UAE, where construction plays a major role in its development and contributes 14% to the GDP. Thus, it is essential to define the most significant causes of delay in order to avoid or minimise their impact on construction projects. A detailed questionnaire was developed and used to get input from professionals associated with the UAE construction industry. The perspective of contractors and consultants has been analysed to rank the causes of delays based on their Relative Importance Index. Contractors and consultants were in agreement on the most significant causes of delays. The research revealed that 50% of the construction projects in UAE encounter delays and are not completed on time. The top 10 most significant causes of construction delays have been identified by this research. Approval of drawings, inadequate early planning and slowness of the owners' decision‐making process are the top causes of delay in the UAE construction industry.     

Applying cluster analysis to construction contractor classification

The essential task of prequalifying contractors most often involves a large number of firms, each being represented by many disparate dimensions. Therefore, to effectively perform prequalification normally requires an inordinate amount of resource commitment by the construction owner. The statistical technique of cluster analysis (CA) could aid this decision process by classifying contractors into groups of like nature or common characteristics/ability. Further, the technique can identify the most discriminating criteria involved in achieving such classification and, thereby, help avoid subjective rejection of “good” firms, when large numbers of contractors are being considered. Example applications of the CA method are presented, in a construction contractor prequalification scenario.     

Fire services installation related contributors of construction delays

Delay is a common problem in the construction industry and there are several reasons that can contribute to delaying a project. In Hong Kong, completion of fire services installation is prerequisite to completing/finishing a building construction work. The fire services installation must be completed for application of an occupation permit for a building. Fail to obtain the permit on time would lead to construction delay. Apparently, fire services contractors play an important role in obtaining the occupation permit for a project completion. The economic losses due to construction delay could be very significant. This research identified, from a list of 49 pre-determined factors in nine categories (shown in Appendix A), the principal factors contributed to construction delays in a fire services installation. In particular, a questionnaire survey of 52 fire services contractors and 32 consulting engineers was conducted in order to obtain their professional judgements about the relative importance of the contributors of construction delay related to the fire services installation. The result showed that the principal contributors were: (1) improper site co-ordination and management of the electrical and mechanical installations, (2) lack of timely decision making of the client, and (3) defects identified during the fire services inspection by local authorities. In addition differing views were found between the consulting engineers and contractors on the areas identified were: (1) site management and supervision, (2) workload of the project staff, (3) the procedures for equipment approval, and (4) working experience of the parties. A monitoring and quality assurance system would be required in these areas to minimize the risk of the probable construction delay.     

A study of professional perspectives on structural frame selection

The choice of an appropriate structural frame can contribute to effective short‐ and long‐term performance, and enhance client satisfaction but limited research indicates that the issues taken into account during structural frame selection are not very well understood. With this in mind, a major research programme, including interviews and an industry survey, examined the attitudes of project managers, cost consultants and construction clients in analysing the issues they typically consider when choosing the structural frame for a building, and to provide insights about how such decisions are made in practice. Ten key issues were identified as being the most important affecting structural frame selection, but the extent to which different parties considered these and at what stage was found to vary. Also, the variations, between what these parties themselves think of the issues and what others perceive their attitudes to be, were examined. In particular, the results showed that what clients perceive differs considerably from how clients’ views are perceived by others. For instance, according to cost consultants and project managers, their clients’ preference to regularly select a ‘preferred’ frame type or material is a far more widespread tendency than clients themselves actually acknowledged.     

Sustainable performance criteria for construction method selection in concrete buildings

The use of prefabrication offers significant advantages, yet appropriate criteria for applicability assessments to a given building have been found to be deficient. Decisions to use prefabrication are still largely based on anecdotal evidence or simply cost-based evaluation when comparing various construction methods. Holistic criteria are needed to assist with the selection of an appropriate construction method in concrete buildings during early project stages. Following a thorough literature review and comprehensive comparisons between prefabrication and on-site construction method, a total of 33 sustainable performance criteria (SPC) based on the triple bottom line and the requirements of different project stakeholders were identified. A survey of U.S. experienced practitioners including clients/developers, engineers, contractors, and precast concrete manufacturers was conducted to capture their perceptions on the importance of the criteria. The ranking analysis of survey results shows that social awareness and environmental concerns were considered as increasingly important in construction method selections. Factor analysis reveals that these SPCs can be grouped into seven dimensions, namely, economic factors: “long-term cost,” “constructability,” “quality,” and “first cost”; social factors: “impact on health and community,” “architectural impact”; and environmental factor: “environmental impact.” The resultant list of SPCs provides team members a new way to select a construction method, thereby facilitating the sustainable development of built environment.     

A survey of current cost estimating practices in the UK

The results are documented of an investigation into current cost estimating practices of contractors for construction projects. A questionnaire survey of contractors was undertaken, in which the respondents are classified into four groups based on their turnover namely: very small, small, medium and large firms. The survey indicates that contractors, irrespective of size, continue to undertake cost estimating predominantly for construction planning purposes, including the preparation of tenders and cost control of projects during the execution stage and, to a lesser extent, for construction project evaluation. Recent developments in cost estimating methods and tools that consider risks and variability in cost estimates, such as the use of range estimating and parametric estimating techniques, have not been adopted by contractors. The practice of cost estimating does not differ from conventional techniques based on the use of labour and material constants to obtain prices for bills of quantities items on an item by item basis. The study shows that the major causes of inaccuracy in cost estimating continue to be the lack of practical knowledge of the construction process by those responsible for the estimating function, insufficient time to prepare cost estimates, poor tender documentation and the wide variability of subcontractors' prices.     

Financial viability of school retrofit projects for clients and ESCOs

The energy performance contracting market is potentially substantial but very little work has been undertaken to understand the characteristics of successful projects. This study uses a probabilistic analysis of four hypothetical projects in the UK schools sector under the 2014 policy regime, combined with qualitative interviews with practitioners, to explore the conditions for a viable project. It finds that the proposed approach has the potential to allow more detailed exploration of project structures and scope for creating greater understanding of likely returns and the factors affecting them. Evidence is found that the use of deterministic risk screening techniques such as simple payback results in viable opportunities being overlooked. The risk profiles for clients and contractors (energy service companies – ESCOs) are not symmetrical and they will each find different projects more attractive. The results suggest that greater consideration needs to be given to the precise risk allocation between client and contractor to ensure that likely returns are properly understood. This study demonstrates a method for exploring project characteristics that can be used to understand their impacts on the financial returns for clients and contractors.