Project Management and Green Buildings: Lessons from the Rating Systems

Building sector is the largest source of greenhouse gas emissions around the globe. Being green, or sustainable, is one pressing issue coming from both internal and external drivers for construction and engineering companies. Green building has experienced rapid growth in the past several years. To assess how green, or sustainable, the building is, several green rating systems have been developed. Among these rating systems, more similarities exist than differences. One noteworthy difference—project management—serves as the motivation behind this investigation. To identify the role of project management that is less related to technology and engineering in developing green building rating systems, this research centers on a comparison between the LEED, the Green Globes, and the BCA Green Mark to obtain an understanding of current practices, and more importantly, to address the significance of project management in achieving green or sustainable construction. The findings suggest that project management adopted in green building construction involves both the practice and the process. Although the practice—mainly represented through the project management body of knowledge—is currently the focus of green building construction, the importance of the process, such as managing people, organizational structure, building commissioning, performance documentation, and so on, cannot be neglected, as can be seen from the evolution of the green rating systems. It is recommended that the construction and engineering companies take project management in terms of both the process and the practice into consideration when fulfilling requirements of being green.     

Continuous Value Enhancement Process

The demand for sustainable buildings is an important emerging trend in the building industry. However, the task of delivering these facilities is more difficult than for traditional projects and existing project management techniques struggle to handle the high levels of complexity present. A process-based model, called the continuous value enhancement process (CVEP), was developed to systematically generate and evaluate project alternatives leading to high performance solutions that improve project performance and increase levels of sustainability. Developed specifically to address the challenges facing the Pentagon renovation—which will become the world’s largest green office renovation—CVEP is tested to research its ability to support project management decision making in ways that elevate sustainability and project performance. The key contributions of this model include the integration of sustainable objectives into project management practices, and the development of a metric for measuring the quality and focus of project team decisions.     

Lean Processes for Sustainable Project Delivery

Facility owners and project teams often struggle to engage “green” or “sustainable” requirements on building projects and can incur additional project costs as a result. Although “investments” in high performance building features can be paid back through operational savings, the project delivery methods currently adopted by most teams are laden with process waste. Lean production principles have been proven to reduce waste and improve process performance in highly complex development and production environments. Adopting these lean principles, this paper reports a study that identified the presence of value and waste in a sustainable building project. Through an empirical investigation of the Real Estate and Facilities Division of Toyota Motor Sales, Toyota’s capital facility delivery process was mapped to identify both the steps in project delivery critical for success (value) and those that are waste. The investigation focused on the South Campus Facility, which received U.S. Green Building Council’s Leadership in Energy and Environmental Design Gold certification at a project cost equivalent to a conventional facility. Through post hoc process-based analysis, insight about what added value and waste in sustainable project delivery at Toyota was obtained. The results also identify further improvement opportunities to Toyota’s delivery process. For corporate facility owners and the Architecture Engineering Construction industry, the results unearth insights about how to successfully and economically deliver sustainable facilities.     

An Ontology for Relating Features with Activities to Calculate Costs

It is the cost estimator’s task to determine how the building design influences construction costs. Estimators must recognize the design conditions that effect construction costs and adjust the project’s activities, resources, and resource productivity rates accordingly to create a cost estimate for a particular design. Current tools and methodologies help estimators to establish relationships between product and cost information to calculate quantities automatically. However, they do not provide a common vocabulary to represent estimators’ rationale for relating product and cost information. This paper presents the ontology we formalized to represent estimators’ rationale for relating features of building product models to construction activities and associated construction resources to calculate construction costs. A software prototype that implements the ontology enables estimators to generate activities that know what feature requires their execution, what resources are being used and why, and how much the activities’ execution costs. Validation studies of use of the prototype system provide evidence that the ontology enabled estimators to generate and maintain construction cost estimates more completely, consistently, and expeditiously than traditional tools.     

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.     

Project Management Practices and Information Technology Research

Corporations of varying sizes and operations within the construction industry acclaim the contribution of project management applications that assist in business and operational practices. An integrated intelligent construction management application that enables process modeling and algorithmic analysis of construction process planning, interacts with a mainframe-based automated relational database system, and drives the project sequencing, scheduling, decision making and change management processes can introduce dramatic speed, simplicity, accuracy, and collaboration into existing project planning practices. Several research organizations and academic fraternities in concert with industry participation are focusing on the development of such futuristic tools as described above. However, evidence of such computing applications being used by the industry is minimal and a number of reasons have been cited by researchers for this. This study, through a review of the genesis, evolution, and future of computing applications in construction followed by an industry-wide survey, aims to study whether or not concurrent research agendas in construction information technology are truly sustainable from the industry’s perspective.     

Constructability Practices to Manage Sustainable Building Knowledge

Construction professionals have knowledge and competencies that can help improve the design and delivery of sustainable buildings. The introduction of construction knowledge during design using constructability practices has been shown to improve design and project performance. From a process perspective, this paper examines specific constructability techniques that can help manage sustainable building knowledge throughout the design process. Through scientific research, four constructability practices employed at the Pentagon renovation are assessed for their capability at managing sustainability input from contractors. The four practices are: (1) the use of an integrated organizational team to champion the effort; (2) physical and computer building models (mock-ups); (3) on-board reviews; and (4) lessons learned workshops. Twenty-one specific principles are then identified to provide further guidance to industry practitioners. These practices and principles pinpoint methods to help manage sustainable building knowledge, especially that made available by construction professionals during design and construction.     

Optimal Allocation of Construction Planning Resources

Efficient allocation of resources for construction planning activities requires construction planning resource requirements to be determined on a cost-effective and value-adding basis. However, although some research studies have indicated that increasing resource allocations to construction planning activities will lead to improved project performance, other research studies have indicated that investing in construction planning beyond an optimum point will lead to a deterioration in project performance. This study explored the concept of optimal planning of construction projects by examining 52 building projects undertaken in Australia. The relationships between planning input (ratio of planning costs to total project costs) and the probabilities of achieving poor performance and good performance were modeled using logistic, linear, and curvilinear regression analyses. A probable optimum planning input based on the sample studied was derived. It is suggested that any additional planning efforts beyond this optimum point would be essentially wasted because the additional planning costs would not achieve any savings in project cost but merely add to the overhead costs and therefore increase the overall project cost. A model for optimal planning is presented and discussed.     

Construction Engineering—Reinvigorating the Discipline

Construction engineering is all about production, and producing something useful is the very reason for projects to exist. How then to explain why construction engineering has progressively fallen out of focus in construction project management education and research? For an answer, the development of the discipline of construction management since the 1950s must be understood, a development that yielded a non-production-oriented approach to project management, one that provides the currently accepted operating system for managing the work in projects. This paper first traces the history of the development of the traditional operating system and related commercial terms and organizational practices. It argues that traditional practices rest on an assumption that careful development of a project schedule, managing the critical path, and maximizing productivity within each activity will optimize project delivery in terms of cost and duration. Subsequently, an alternative operating system, developed and proposed by the Lean Construction community, is described. In contrast to the traditional approach, lean defers detailed planning until closer to the point of action, involves those who are to do the work in designing the production system and planning how to do it, aims to maximize project performance (not the pieces), and exploits breakdowns as opportunities for learning. The history of this development will be traced in broad strokes.     

Cost-Effectiveness of Green Roofs

Life-cycle assessment was used to evaluate the widespread installation of green roofs in a typical urban mixed-use neighborhood. Market prices of materials, construction, energy conservation, storm-water management, and greenhouse gas (GHG) emission reductions were used to evaluate private and social costs and benefits. Results suggest green roofs are currently not cost effective on a private cost basis, but multifamily and commercial building green roofs are competitive when social benefits are included. Multifamily and commercial green roofs are also competitive alternatives for reducing greenhouse gases and storm-water runoff. However, green roofs are not the most competitive energy conservation techniques. GHG impacts are dominated by the material production and use phases. Energy impacts are dominated by the use phase, with urban heat island (UHI) impacts being an order of magnitude higher than direct building impacts. The quantification of private and social costs and benefits should help guide green roof policy. Results should encourage green roof enthusiasts to set appropriate life-cycle assessment boundaries, including construction material impacts and UHI effects.     

Communication Patterns in Construction at Construction Manager Level

The procurement process of construction projects has been affected by developments in the field of Information Technology, as well as by the need to cope with growing technological challenges stemming from the integration of multiple building systems into tall and complex buildings. Furthermore, since the procurement phases are undertaken simultaneously, project complexity is increased, and increased integration among them is therefore required. These constraints have made the management of complex construction projects less of an architectural and engineering issue and more of a managerial one. In turn, this has led to an increasing use of the “construction management” concept in the procurement process. This study focused on communications in construction management procurement of building and residential projects in Israel. Communications between the construction manager and the design team were found to be vital in ensuring adherence to project objectives. Communication means were classified as “formal”—written technical information, and as “informal”—verbal communications. Construction managers in Israel still use informal communications in 50% of their interactions with their project counterparts. The study concludes that design capabilities should be one of the essential qualifications required of a construction management firm. In addition to the more traditional responsibilities, such as planning, scheduling, and coordination, the scope of the construction manager’s professional duties should emphasize the aspect of quality management.     

Production System Loading–Cycle Time Relationship in Residential Construction

Production home building possesses characteristics similar to manufacturing processes, such as the construction of more or less similar houses repeatedly and a growing demand for mass customization of homes. As a result of these similarities, larger homebuilders often attempt to view their production system as an assembly line process. However, the management tools generally utilized by these home builders are those used in other sectors of the construction industry, such as critical path method scheduling, cost estimating, and earned value analysis. These management tools do not provide an explanation or control/prediction tools for many undesirable situations that arise during home building, such as increasing cycle time which slows delivery of product to consumers and increases project capital costs, and increasing amounts of work in process that increases capital investment and thereby decreases company financial performance. In order to bring better management tools to the residential construction industry, this study examines relationships between cycle time, work in process, system throughput, new construction starts, and the capacity of the production system using building permit data for new single family homes in Chandler, Ariz. The applicability of Little’s law, a basic equation used in factory production management models, to a residential production system is examined. This study shows a definite, predictable relationship between cycle time, work in process, and production system throughput. It provides a pathway for further study of production system characteristics that have historically not been included in construction management models, with the expectation of developing new construction management tools that will account for more of the characteristics of construction production systems that affect project performance and company financial performance.     

Influence of Project Type and Procurement Method on Rework Costs in Building Construction Projects

While it is widely recognized that additional costs due to rework can have an adverse effect on project performance, limited empirical research has been done to investigate the influencing factors. The research presented in this paper aims to determine the influence of different project types and procurement methods on rework costs in construction projects. Using a questionnaire survey, rework costs were obtained from 161 Australian construction projects. The direct and indirect consequences of rework are analyzed and discussed. It is shown that, contrary to expectation, rework costs do not differ relative to project type or procurement method. In addition, it was found rework contributed to 52% of a project’s cost growth and that 26% of the variance in cost growth was attributable to changes due to direct rework. To reduce rework costs and therefore improve project performance, it is posited that construction organizations begin to consider and measure them, so that an understanding of their magnitude can be captured, root causes identified, and effective prevention strategies implemented.     

Cost and Schedule Monitoring of Industrial Building Projects: Case Study

Performance measurement is a helpful tool for taking corrective actions and controlling a project as far as this enables accurate time and cost forecasts during the first stages of the construction effort when the management team still has opportunities to make adjustments. This paper overcomes the dilemma of practicability and predictability of traditional estimates at completion based on early progress measurement by presenting the empirical results from the construction project of an industrial facility. The case may be a reference practice for assessing time and cost performance measurement of any building, whose layout can be reasonably partitioned into repeatable portions. In such circumstances, an effectively-managed traditional earned value method and appropriate metrics for computing performance provide project managers with accurate forecasts as useful tools for successful project management and control.     

Relationship between Organizational Sizes and Contractors’ Risk Pricing Behaviors for Weather Risk under Different Project Values and Durations

A problem that always annoys building employers and their consultants when drafting building contracts is whether it is more cost efficient to retain certain risks with themselves or to transfer the same to contractors, and it has long been a difficulty to accurately estimate the cost for transferring risks to the other contract party. It is a very common market practice to remove contractors’ entitlement to extension of time due to inclement weather, and in view of the significant impacts that inclement weather posed on construction progress, it would be helpful to assess the associated costs for such risk allocation exercises in order to ensure that it is a cost-effective transaction. The costs for these potential weather-caused delays are priced by contractors in their returned tenders. This risk-pricing behavior is affected by the contractor’s risk perception and risk attitude. However, merely working out contractors’ risk perception and risk attitude patterns is inadequate, as they may vary in accordance with different organizational sizes and project backgrounds. Therefore, further studies should be carried out on the implications of project information, such as project value and contract period, on different-sized contractors’ risk behaviors. In this research, a questionnaire survey was conducted to investigate the weather-risk-pricing behavioral patterns of various-sized contractors under different given project scenarios. The survey revealed that the impacts of project value and contract period (and, thus, the intensity of work and scale of exposure to weather risk) were significant on contractors’ risk behaviors, and these impacts varied in accordance with different organizational sizes. The medium-sized contractors’ pricing behaviors were rather constant under different project values and contract periods, while both small and large contractors behaved differently when the intensity of work and scale of risk exposure varied. Despite the fact that contractors of various sizes behaved differently in some given scenarios, the number of days of delaying cost allowed by them in returned tenders were generally less than the actual number of days of inclement weather affecting work.     

Construction Congestion Cost (CO3) Traffic Impact and Construction Cost

The Construction Congestion Cost System (CO3) is an integrated set of tools to estimate impact of traffic maintenance contract provisions on congestion, road user cost, and construction cost. Engineers use CO3 to produce realistic budgets and select practical contracting methods that provide an acceptable balance between construction cost and congestion. This paper demonstrates computation of impacts associated with alternative methods of maintaining traffic during construction. The Routes Sheet computes equivalent average vehicle routes for complex diversion routes. The Input Sheet provides for documentation of vehicle and route inputs and computes user cost for individual trips through the work zone, diversions, and cancellations. The Traffic Sheet computes daily traffic impacts and user costs for each construction method. The Construction Sheet computes impact of different construction methods on construction costs. The Impact Sheet summarizes daily impacts and computes total project traffic impacts, road user costs, and construction costs for all alternatives. These tools provide practical information with which engineers select construction methods whose impacts are acceptable.     

Cost Performance Comparison of Two Public Sector Project Procurement Techniques

Increased industry discussion of the potential benefits of alternative forms of construction project delivery often presents little cost analysis of options. This work presents the results of a cost comparison study of completed public sector municipal facilities design and construction projects—a portion of which delivered using a traditional design-bid-build procurement approach and a portion of which delivered using the procurement technique of a negotiated lump sum construction contracts with in-house construction forces. The study compares costs for all phases of all the projects (design, bid and award, construction, and total project cost) across both methods of project procurement. Conclusions examine the cost trade-offs of using negotiated contracts with in-house forces, outline key success factors identified through this study in order to optimize the use of this form of project procurement, and identify areas for future research.     

Impact of Green Building Design and Construction on Worker Safety and Health

Sustainable, or “green,” rating systems, such as the United States Green Building Council’s Leadership in Energy and Environmental Design (LEED), are leading to changes in the way owners, designers, and contractors approach the design, construction, and operation of buildings. The processes and features included in green design and construction may have positive and/or negative impacts on construction worker safety and health. This paper presents the findings of a research study of the impact of green building design and construction practices on construction worker safety and health. Occupational Safety and Health Administration (OSHA) recordable and lost time injury and illness data from green projects (as identified by LEED) and from nongreen projects was collected through a structured questionnaire survey. The data collected was analyzed to test for the presence of a difference in OSHA recordable incident rates (RIRs) and lost time case rates (LTCRs) between green and nongreen projects. It was found that there was suggestive, but inconclusive evidence of a statistically significant difference in the RIRs of the green and nongreen building projects included in the study. No statistically significant difference was found between the LTCRs for the green and nongreen projects included in the study. The study findings provide valuable information to the construction industry for the purposes of project safety planning and the assessment of safety and health on projects.