Immigration and Construction: Analysis of the Impact of Immigration on Construction Project Costs

There are an estimated 11 million illegal immigrants currently residing in the United States. Of this population, research shows that approximately 19% work in the construction industry, comprising around 14% of all construction workforces. The main objectives of this research are to (1) to predict possible effects of immigration and immigration reform legislation on worker wages and (2) to assess the likely wage increase due to decreased supply of immigrant labor. In the Washington, D.C. metropolitan region, the construction workforces for low-skilled trades such as concrete, masonry, drywall, painting, flooring, and roofing are comprised of approximately 55% illegal immigrant. Based on four factors evaluated in this research (1) prevailing wage provision in legislation; (2) forced tax compliance of the workforce; (3) market correction from currently depressed wages due to immigrant penetration into the workforce; and (4) a labor shortage resulting from a depleted supply of immigrant labor, proposed legislation could increase the cost of trade labor up to almost 70% in the Washington, D.C. metropolitan area. Overall labor costs for projects could increase by almost 18%, and total project costs could rise almost 12% in the Washington, D.C. metropolitan region.     

Legal Risks Faced by Foreign Architectural, Engineering, and Construction Firms in China

The extensive opportunities in China’s construction industry are expected to attract many foreign architectural, engineering, and construction (AEC) firms to her shores. However, these foreign firms may face many legal risks and obstacles, mainly because of the differences in culture and operating environment from their home countries. This study investigates the legal risks that foreign AEC firms encounter when operating in China, and how these risks are managed. Data were collected from 21 foreign (non-Chinese) AEC professionals who have extensive experience in China. Legal risks faced by foreign AEC firms in China include: difficulty in complying with the innumerable laws and regulations at the central, provincial, and local levels of the government; keeping up with new laws and regulations that are constantly being enacted; seeming reluctance of Chinese business associates to enter into binding contracts; and lack of sanctity of contracts and contractual obligations not being carried out fully, leading to disputes. Based on the research findings, a framework for managing legal risks is proposed for use by industry practitioners. The framework recommends to practitioners several measures to manage the legal risks. These include relationship-based strategies like establishing close relationships with the Chinese government officials and Chinese business associates and careful selection of Chinese business partners. It is recommended that foreign AEC professionals adopt the mindset that in China, the contact is to be continuously negotiated and reinterpreted. To achieve this, industry practitioners should provide a substantial contingency sum. It is also important to emplace permanent staff in China so that they can understand the local environment and monitor the changes taking place there.     

Legal Aspects of Information and Communication Technologies Implementation in the Turkish Construction Industry: Applicability of eLEGAL Framework

With increasing awareness of gains and importance of the strategic use of information and communication technologies (ICTs), the implementation rate of ICTs in the construction sector is increasing. However, these technologies have not been covered by legal and contractual practices. The industry needs to implement application frameworks and legal restructuring of the existing related laws and regulations to use ICT in a legal and contractually valid environment. The EU-funded eLEGAL project, which defined a legal framework for ICT uptake in construction, is selected as a model project to address legal and contractual issues regarding ICT use in the Turkish construction industry. The applicability of this project’s results are discussed by using real cases and defining the barriers, opportunities, methods, and tools to use ICT in a legally admissible manner in the Turkish construction industry.     

Lawyerization of the Engineering and Construction Industry

Lawyerization has become more and more prevalent in the engineering and construction industry. Some would argue the merits of firms’ retaining lawyers on staff as providing cost savings on projects through averting potential litigation. Others view lawyers as increasing project costs due to increased overhead. Therefore, it is important to understand the pros and cons of lawyerization as viewed by the contractor, designer, owner, manufacturer, and supplier. This paper discusses the current role of lawyers in the engineering and construction industry and examines the factors that contribute to the lawyerization of the industry.     

Adjudication: Temporary Binding and Tiered Dispute Resolution in Construction and Engineering: Hong Kong Experience

Hong Kong (under the “One Country Two Systems” Policy, Hong Kong, although an administrative region of the PRC operates a separate legal system, whose roots lie in the English common law system) has a justified reputation for being at the forefront of developments in techniques to avoid and resolve disputes in the construction industry. [This is illustrated by the adoption of the UNITRCAL Model Law by the Arbitration (Amendment) Ordinance 1996, specific powers given to Arbitral Tribunals under the Arbitration Ordinance (Cap. 341) including powers to consolidate, and the development of the dispute resolution adviser system. See the genesis, development and future use of the dispute resolution adviser system by Colin J Wall, Hong Kong Society of Construction Law dated November 17, 2004]. However, it has not, to date, seen the widespread adoption of adjudication as a means of resolving disputes. This article examines the history of the use of adjudication in Hong Kong, current trends, and offers some possible reasons for the limited adoption of adjudication.     

Damage to Treasury: Abnormally Low Tenders in Public Construction Works

The purpose of this paper is to determine the adverse effect of abnormally low tenders (ALTs) on public construction works in Turkey. A comprehensive literature review was performed to investigate the reasons of ALTs. This paper categorizes the reasons behind ALTs with the help of a questionnaire to which 430 construction companies responded. A detailed analysis of the submitted questionnaires revealed a number of reasons for ALTs and their adverse effect on the construction industry. Staying in the business, miscalculation of bid price, work experience document, and inaccuracy of the conceptual cost were found to be the main reasons behind ALTs. A better database system for contractors on market unit prices, a better quality control assessment in construction and postconstruction phases, full complete design documents in tender packages, and a better evaluation system on the assessment of ALTs are recommended by the study.     

Consistency and Reliability of Construction Arbitration Decisions: Empirical Study

While construction arbitration is analyzed in a plethora of information, there is a paucity of hard data about the consistency and reliability of the construction arbitration decision. The assumption that an industry familiar adjudicator will provide a reliable and consistent decision in comparison with the expectation of the industry as a whole has not been tested. This paper presents the results of a study on the reliability and consistency of construction arbitration through the examination of a variety of arbitrators’ decisions on the same construction dispute scenario. Data was collected from attorneys, owners, owner representatives, contractors, and subcontractors. Compilation of the survey results finds little consistency in the arbitrator’s awards, but with much thoughtful care in award consideration. The results suggest that the arbitrator’s industry background does not influence the arbitrator’s award. There is also no significant award bias due to the arbitrator’s education level or years spent in construction business. The results also indicate that previous arbitration experience does not predict the award outcome. This paper concludes that construction arbitration is wholly unpredictable. However, the result will be a well-reasoned and unbiased decision.     

Labor Productivity Drivers and Opportunities in the Construction Industry

The study of labor productivity in the construction industry is gaining increasing attention as the industry faces multiple problems related to its workforce. This paper presents the results of a survey instrument applied to determine the relative level of relevance of construction labor productivity drivers and opportunities. Owners, general contractors, electrical contractors, mechanical contractors, consultants, and others participated in this survey. Management skills and manpower issues were identified as the two areas with the greatest potential to affect productivity according to survey respondents. Surprisingly, external factors, which are often cited as a major cause for reduced productivity in the construction industry, were considered to be one of the least relevant productivity drivers. These results suggest that respondents consider the improvement of labor productivity within their reach and control rather than determined by external conditions.     

Work-Family Conflict in Construction: Case for a Finer-Grained Analysis

A multidimensional work-family conflict (WFC) scale was tested using a sample of 169 workers in the Australian construction industry. The construction sample showed higher mean scores for time-based, strain-based, and behavior-based work-interference with family (WIF) than scores reported in international studies that have used the multidimensional scale. Waged construction workers, who work on-site in direct construction activity, reported higher levels of time-based and strain-based WIF than salaried workers, who work predominantly in office-based roles. Mean levels of family-interference with work (FIW) in the construction sample were generally comparable to levels reported in previous research. A principal components analysis revealed four clear dimensions of WFC. These dimensions were significantly correlated with other variables of theoretical relevance indicating acceptable criterion validity. The experience of WIF varied by workers’ employment situation, sex, and work location, while the experience of FIW varied by workers’ age. The results suggest that the use of global measures of WFC might mask important differences in construction workers’ experiences at the work-family interface.     

Analysis of Observed Skill Affinity Patterns and Motivation for Multiskilling among Craft Workers in the U.S. Industrial Construction Sector

Previous research has shown that multiskilling strategies can increase productivity, quality, and continuity of work and can also help mitigate craft shortages through better utilization of the existing workforce. Using extensive craft certification and skills data, the writers apply correlation and cluster analyses to identify actual patterns of multiskilling among craft workers using two separate data sources. The results of the cluster analysis indicate that current craft skills aggregate into four groups: civil, mechanical, electrical, and general support. It is also observed that acquiring mutually supporting skill set pairs significantly drives multiskilling strategies in practice, thus diminishing the relative impact that duration on project has on driving multiskilling practice, despite its importance in previous literature. Still, comparing the observed multiskilling patterns obtained from the skill affinity analyses with multiskilling strategies proposed by previous studies generally reinforces the potential efficacy of those strategies.     

Cabin John Bridge: Role of Alfred L. Rives, C.E.

The Cabin John Bridge (CJB), located just outside Washington, D.C., is a masonry arch with a central angle of 110°, an intrados radius of 40.9 m (134 ft), and a span of 67 m (220 ft). Construction of the bridge began in 1857 but was not completed until late in 1863 because of suspensions due to lack of appropriations and the Civil War. The CJB is part of the Washington Aqueduct (WA) and is still the longest single-span masonry arch in the United States. The bridge was designated a National Historic Civil Engineering Landmark by the ASCE in 1972. The paper provides context for the bridge design and explains the construction technologies that were used. In the process, French and British influences on American masonry arch design practices at mid-19th century are revealed. The respective roles of Captain Montgomery C. Meigs, the chief engineer of the WA, and Alfred Landon Rives, his assistant engineer, are critically assessed. The paper provides, for the first time, relevant facts on Rives’ education and engineering career. The performance of the bridge over 145 years is reviewed and discussed.     

Developing Case-Based Communities of Practice for Teaching the Legal Aspects of Construction: Lessons Learned in Taiwan

To enhance the learning for graduate students to understand legal issues and dispute resolution in the construction industry, students can be provided with a learning platform for exchanging and sharing knowledge and experience among students and experienced instructors. With the assistance of the Internet, construction law related experiences acquired from previous projects can be discussed and shared with students. This study utilizes the case-based communities of practice approach to capture and manage engineer experiences. Via the case-based communities of practice approach, students and instructors can exchange and share discussions and comments related to selected topics and cases. The proposed case-based communities of practice learning (CCPL) system was developed and demonstrated to be effective when applied to teach students about construction law at a university in Taiwan. Construction law related experiences can be taught and shared among students, thus enhancing students’ abilities to resolve problems and disputes related to construction law. The combined results of various case studies demonstrate that the application of the CCPL system to the legal aspects of construction courses offers an effective means of sharing practical legal knowledge and experience, especially among graduate students who lack previous legal experience.     

How to Stop Engineers from Becoming “Bush Lawyers”: The Art of Teaching Law to Engineering and Construction Students

Law forms a core part of most engineering and construction programs. The way that law subjects are taught varies dramatically, and too often focuses on trying to teach students complex aspects of the law, such as contract, tort, and trade practices. This paper suggests that the aim of including law subjects in construction and engineering degrees needs to be clearly understood as this determines the content of the law subject. It is argued that the reason for including a law subject should be not to teach students the law, but rather to train them to recognize when legal issues arise in their work, and how to respond to such issues. With this aim in mind, a model curriculum is proposed and insight given into how to most effectively implement such a course.     

Effectiveness of Scenarios and the Socratic Method in Teaching Law to Construction Students

Is the use of scenarios combined with the Socratic method an effective method to teach legal subjects to nonlaw students on a building and construction program? The scenarios are intended to (1) enable students to understand the legal theories through the practical application of those theories to problems posed in a scenario and (2) stimulate reasoning, analysis, and critical thinking through the Socratic method among students accustomed to memorizing handouts of PowerPoint slides. Both qualitative and quantitative data were gathered and analyzed to determine the effectiveness of using scenarios and the Socratic method in a required, first-year, entry-level, law module. Preliminary data of this ongoing research appears to indicate that the former goal (of providing a practical application and understanding of theories) was generally achieved while the latter goal (of promoting analysis and critical thinking skills among the students) was achieved to a lesser degree. As a subgroup of the subject, students will be repeating the module, a rare opportunity presents itself to delve into this question in more detail in the future.     

Legal Framework for Alternative Dispute Resolution: Examination of the Singapore National Legal System for Arbitration

Effectiveness of any alternative dispute resolution (ADR) method depends on the national legal system to which it is subjected. In Singapore, the increasing growth in the use of ADR methods may be adduced to developments in the Singapore legal environment. This paper reviews the characteristics of the Singapore national legal system for arbitration. It examines how the legal system facilitates effective use of ADR. By its features, the Singapore national legal system ensures parties’ autonomy but deters parties from taking opportunistic advantage of the voluntary nature of ADR. It enables procedural flexibility, and confidentiality of arbitration proceedings. It insulates the arbitration process from intervention from the Singapore courts and from corruption; and it provides maximum judicial support in the arbitral process. Hence, it ensures that disputes can be brought to a conclusion within a reasonable amount of time, at a reasonable cost, as well as preserving business relationships. The Singapore legal system insures the integrity of arbitration and the independence of arbitrators and arbitral institutions by immunity provisions. In addition, the legal system enhances the use of mediation and conciliation in a sequential tier with arbitration by providing a time limit for mediation or conciliation to terminate should they fail to produce a mutually acceptable settlement. In Singapore, the court system is generally known to be efficient; hence, ADR faces the practical challenge of becoming lengthier than court proceedings. The continuing search for and use of expedited arbitration procedures by arbitral institutions such as the Singapore International Arbitration Centre should reduce this challenge. This paper provides useful information on how a national legal system may be designed to support the use of ADR methods and facilitate their effectiveness.     

Legal Issues Associated with Emergent Actor Roles in Innovative U.K. Procurement: Prime Contracting Case Study

Pressure for reform in U.K. construction procurement has led to a move toward relational contracting. Long-term partnerships between clients and construction service providers have enabled traditional construction roles to change radically and the reconfiguration of relationships between these emergent actors. Social network analysis was used to examine the new roles and relationships under an innovative procurement strategy known as prime contracting. This public sector procurement approach involved the introduction of the role of cluster leader combining the skills and knowledge traditionally provided by the architect, the chartered quantity surveyor, and the construction manager. The role of cluster leader was adopted by specialist contractors using existing staff and in the absence of dedicated training. The role was voluntary, however, those performing it were obliged to absorb liabilities relating to design information produced by other actors, financial management on behalf of the prime contractor, and responsibility for the management of the contract period, upon which the contract between the employer and the prime contractor was based. The additional responsibilities associated with the role of cluster leader were accepted without financial compensation, on the basis of maintaining goodwill with the prime contractor and employer. Liabilities arise for the firms and potentially individuals within those firms. There are also concerns about the likelihood of appropriate professional indemnity insurance coverage being available to cluster leaders.     

Legal Issues of Integrated Network for Construction and Real Estate Sector

In Singapore, one of the most important steps in the overall information technology strategy for the construction and real estate sector is the development of an integrated network for the sector to cover the entire life cycle of any development. It is the first of its kind in the world. The productivity and competitiveness of the construction and real estate sector have been greatly enhanced through the introduction and implementation of the adopted integrated network since 2002. Some of the legal issues related to the integrated network are global trading, contract enforceability, liability risks, security breaches, and intellectual properties protection, a lack of alignment in jurisdictions, confidentiality, legal liability, and service dependency risks. The paper addresses online security and legal issues related to the integrated network for the sector to establish trust and confidence among the end users of the system. Some of the legal issues encountered during the implementation and lessons learnt will also be briefly discussed.     

Causes of Variation in Construction Project Task Starting Times and Duration

In this research, variation is defined as the time difference between what was planned and what actually happened in terms of task starting times and duration. Variation in construction tasks is important as it can impact productivity performance. Construction projects consist of a large number of interdependent tasks. When the starting time and/or duration of one task varies, it can affect other downstream tasks and result in disruptions to the schedule and/or decreased productivity. The construction process is complex and involves numerous people with different levels of responsibility, which makes identifying the root causes of the variation difficult. A nationwide survey was administered to workers, foremen, and project managers to identify the most prevalent causes and magnitude of both starting time and task duration variation. Fifty individual causes of variation were divided into eight categories: prerequisite work, detailed design/working method, labor force, tools and equipment, material and components, work/job site conditions, management/supervision/information flow, and weather or external conditions. This research examined the similarities and differences in perceptions between craft workers, foremen, and project managers in terms of starting time and task duration variation. The top eight causes of starting time variation and top nine causes of task duration variation were identified. The research also quantitatively analyzed the underlying structure of the causes of variation using factor analysis. This was done by grouping the 50 individual causes into nine orthogonal factors that represent the underlying structure of the affecting causes. The findings will help construction project managers and field managers focus on the root causes of variation during planning in order to develop effective strategies to reduce variation and improve project productivity performance.     

Proceedings of the American Psychological Association, Incorporated, for the Year 1982. Minutes of the Annual Meeting of the Council of Representatives August 22 and 25, 1982, Washington, D.C., and January 21-23, 1983, Washington, D.C.

These minutes constitute the official record of actions of the Association taken during the year, by both the Board of Directors and the Council of Representatives. (PsycINFO Database Record (c) 2010 APA, all rights reserved)     

Potential of Total Cycle Time Compression in Construction: Focus on Program Development and Design

Time compression is a widely accepted approach to improving customer service levels while minimizing total costs. However, few applications within the construction sector exist, especially in relation to the early stages of program development and design. These stages are of paramount importance because of the resultant ramifications on the total cycle time of the entire construction project, in the form of changes, rework, waste, and risk. Most applications of time compression focus on quantifying and removing nonvalue adding time from business processes. This is difficult for program development and the design stages of construction because most information sources are qualitative. As a result, a methodology has been developed to identify the key areas of potential improvement during these early stages. Collection of opinion data via semistructured interviews, questionnaires, and a workshop with a cross section of supply chain members has made it possible to quantify the potential improvements. The action research findings have been summarized into a time-compression model for the program development stages in the format of two interlinked cause and effect diagrams. These further emphasize the need for effective program development to minimize the risks of project overrun.