Design and Build Project Success Factors: Multivariate Analysis

This study aimed to identify a set of project success factors for design and build (D&B) projects and examine the relative importance of these factors on project outcome. Six project success factors (project team commitment, contractor's competencies, risk and liability assessment, client's competencies, end-users' needs, and constraints imposed by end-users) were extracted from factor analysis of data provided by 53 participants of public-sector D&B projects through a questionnaire survey. Project team commitment, client's competencies, and contractor's competencies were found to be important to bring successful project outcome from the multiple regression findings. Contractor's competencies also contributed to project time performance. Project team members should also recognize that time and cost performance as well as quality of design and workmanship represent the key elements of overall success of D&B projects. Practitioners are advised to focus on teamwork and partnering for successful project completion. More research should be conducted to further explore the relationship between procurement method and project success factors.     

Design∕Build Methods for Electrical Contracting Industry

This paper reports on a project sponsored by the Electrical Contracting Foundation that examined the design∕build (D∕B) approach and the various dimensions of the decision process that electrical contractors consider before entering this emerging marketplace. Electrical contractors were surveyed regarding many different aspects of D∕B and how those factors impact their business. The survey revealed several important trends and preferences among electrical contractors. One area identified in the survey worthy of note is that many of the electrical contractors felt ill prepared to embark on D∕B with their current understanding of the issues.     

Management-Driven Integration

The fragmentation of the architecture∕engineering∕construction (A∕E∕C) industry creates increased demand for coordination and integration of project participants. This paper provides practitioners with an increased understanding of the importance of integration for project and company performance, and the integration mechanisms and barriers. The paper first provides a review of the literature on organizational theory, construction, and manufacturing, and identifies integration mechanisms and potential benefits. Then, the paper presents empirical evidence regarding the integration benefits that managers in construction firms identify, the mechanisms they use, and the reasons that prevent them from utilizing integration mechanisms. Finally, the paper identifies four managerial barriers to integration: need for front-end investments, difficulty to measure and distribute the benefits, reduced ability to utilize integration mechanisms across projects, and lack of skills and organizational culture that promote integration.     

One Company's Experience with Design∕Build: Labor Cost Risk and Profit Potential

This paper offers the data from one construction company's experiences with design∕build. Specifically, the paper presents an analysis of the company's labor cost risk based on a case study of two similar projects. One project was a typical design∕bid∕build job and the other was a design∕build job. The design∕build project experienced consistently greater fluctuations in the labor cost. These fluctuations seem to indicate that it is very difficult to accurately estimate labor costs for design∕build projects, thus adding to the risk of such projects. The second half of the paper presents an account of this same company's overall profit experience with design∕build work. Profit margins were analyzed using three categories—design∕build versus non-design∕build, client-specific design∕build, and design∕build construction types. The design∕build projects' average profit margin was 3.5 percentage points greater than that for the non-design∕build work.     

Demystifying Moderate Variables of the Interrelationships among Affective Commitment, Job Performance, and Job Satisfaction of Construction Professionals

Project goals expressed in terms of time, cost, and quality requirements are seldom disputed. However, it is not easy to ensure that the defined goals will be implemented by all parties involved in the implementation process as goal commitment is one of the key variables in project success and participant satisfaction in construction projects. In order to ensure professional commitment in the management process and optimize construction performance in the complex situation, it is necessary to identify the moderate variables and clarify the interactions among affective commitment, job performance, and job satisfaction of construction professionals. A questionnaire survey was conducted in Hong Kong. Both correlation analysis and hierarchical regression models were applied. The results revealed that both job acceptance/contribution and specificity/teamwork are moderate variables influencing the relationships between affective commitment and job performance and between job performance and job satisfaction. A series of conditional relationships is revealed in detail in this study and some suggestions, such as formal briefing sessions, regular formal meeting, and value engineering workshop, are recommended.     

Contractor Selection for Design∕Build Projects

As traditional construction procurement approaches are found to be inadequate in meeting the demands and challenges of recent times, alternative procurement routes such as through management contracting or build-operate-transfer are increasingly being adopted. Although design∕build is one of the more popular alternative procurement methods that also has a long history, it does not appear to have well-established contractor selection procedures. This paper focuses on developing a model for contractor prequalification and bid evaluation in design∕build projects. For this purpose, it presents a comparative overview of some international practices in the design∕build contractor selection process. The overall objective is to identify the core aspects of selecting a suitable bidder in order to achieve the best “value for money.” The strengths and weaknesses of current practices of contractor selection are highlighted while identifying some of the best practices followed in design∕build projects by various clients.     

Public-Sector Design∕Build Evolution and Performance

Design∕build project delivery is experiencing expansive growth in both the private and the public sectors. Owners are driving the change away from the traditional design∕bid∕build method. This change and changes in federal procurement laws necessitate investigation, formalization, and development of new design∕build guidelines and practices. Public-sector use of design∕build represents a fundamental departure from traditional competitive, low-bid procurement procedures. Understanding the evolution and current trends in public-sector design∕build provides a foundation for developing uniform guidelines and practices. This paper describes the rapid evolution of public-sector design∕build and analyzes results from 104 completed public-sector design∕build projects. The results provide insights for owners, designers, and builders into the changing public-sector procurement system. Items analyzed include owner experience, level of design completion, design∕builder selection, contract type, method of award, and design∕build process variations. The research conclusions provide a design∕build benchmark for public-sector agencies.     

Defining Cost/Schedule Performance Indices and Their Ranges for Design Projects

Cost/schedule performance indices (C∕SPIs) can indicate project performance, but they need to be operationally defined to be more adopted in practice. This paper defines C∕SPIs and their values for design projects. From observing design operations, the C∕SPIs were defined at project and milestone levels, and their characteristics were identified. The value ranges, representing different degrees of performance, were determined from related research and tested by real data. The results show that the values and scores derived from the defined ranges effectively differentiate performance, which means the C∕SPIs and ranges are well defined. The two-level C∕SPIs and value ranges can enhance the application of the earned value concept and evaluate design project performance more systematically and accurately.     

Web-Based Decision Support Systems: Case Study inProject Delivery

The decentralized nature of the construction industry contributes to difficulties in the implementation and dissemination of project management-based decision tools. The majority of decision support systems (DSS) are contained in-house with private developers and users, or on researchers stand-alone computers and academic journals. Current World Wide Web technologies provide the appropriate means for large-scale implementation and continued development of DSS for the architectural, engineering, and construction community. This paper documents a DSS developed specifically for design∕build project selection among United States public sector agencies. The system, the Design∕Build Selector (DBS), is Web enabled, allowing for easy access and large-scale dissemination. Design∕build project procurement is rapidly expanding throughout public sector agencies in the United States construction industry. As public agencies turn to design∕build, appropriate project selection is a primary consideration affecting successful delivery. Prior to the implementation of DBS, there was no systematic or formalized method for selecting projects appropriate for design∕build. Since 1997, the Web site that houses the DBS has been visited by over 4,000 people, and the DBS tool has been used on 102 projects representing over $4.8 billion in construction. This paper reports on the application and potential for Web-based DSS in civil engineering. The architecture of the program, data collection, model weighting, and output interface are explained.     

Effect of Delivery Systems on Collaborative Negotiations for Large-Scale Infrastructure Projects

In large-scale projects, collaboration is an essential key for the success of projects. Since different participants from different organizations try to work together in projects, competitive stresses exist in their relationships and as a result, disputes or conflicts may inevitably occur. This paper builds on Pea-Mora and Wang's collaborative negotiation methodology for facilitating∕mediating the negotiation process of conflicts. In order for that collaborative negotiation methodology to be more detailed for its implementation, it needs to account for the effect of project structures and delivery methods on the negotiation processes in large-scale projects. Because contracts define the temporary formal and informal relationships among the different parties in a project and subsequently, they define the framework of the negotiations of conflicts within that project, different delivery systems may be more or less effective in terms of conflict resolution. In this research, to study the effect of delivery system on negotiation of conflicts, first, several different project structures and delivery systems are studied in order to identify participants' roles, responsibilities, and relationships. Second, potential conflicts in relationships among project participants are examined to show that each delivery system has typical or pattern behavior that may affect the interrelationship among groups on negotiations. These patterns or characteristics of the groups and their relationship make possible to evaluate quantitatively and qualitatively the advantage or disadvantage of each delivery system in terms of conflict avoidance or dispute resolution. Then, indexes of negotiation effectiveness for each delivery system are developed in order to quantify the advantage of implementing the collaborative negotiation methodology in a large-scale project within a particular delivery system.     

Risk/Reward Compensation Model for Civil Engineering Infrastructure Alliance Projects

A risk/reward model is described as that which aligns project participants’ behaviors toward the achievement of a project’s performance objectives through the use of incentives. A risk/reward model typically includes the following mechanisms: risk/reward shared percentages among nonowner participants, project cost risk/reward, noncost risk/reward, risk cap, and achievability of performance targets. This paper examines the influence of a risk/reward model on the behavior of project participants. Twenty-nine industry practitioners from eight civil infrastructure project alliances were interviewed. The interviews revealed that individual features of a risk/reward model identified had merits, but the achievability of performance targets model appeared to be the most appropriate for promoting positive behaviors within the project team. Additionally, it was found that all incentive aspects of the model examined led to positive and constructive behaviors occurring due to their perceived fairness and equity of payment structure. Participants indicated that having a commercial interest in an alliance’s performance outcomes ensured collaboration and engagement throughout the project’s life cycle. It is concluded that risk/reward sharing is pivotal to obtaining a successful project outcome for the procurement of civil engineering infrastructure projects when using an alliance.     

Information Technology Planning Framework for Large-Scale Projects

New information technology developments continue to have a significant impact on large-scale architectural∕engineering∕construction (A∕E∕C) projects. However, the issue of whether A∕E∕C organizations are receiving adequate returns from their information technology (IT) investments remains an important managerial concern. Earlier work on financial models has concentrated on firm-wide strategies for maximizing the return of investments. Traditional financial models for measuring the value of information technology investments typically work well for static business strategies and single business scenarios. These models are inappropriate for large-scale A∕E∕C projects, which typically have multiple firms participating over a fixed project life cycle and proportionately splitting the cumulative benefits accrued over the project life cycle after their involvement on the project. To resolve these issues, the paper proposes a strategic planning framework based on IT diffusion for maximizing the value of investments in strategic capabilities. The essential steps in the strategic planning framework include environmental scan, internal scrutiny, IT diffusion analysis, and IT investment modeling. To demonstrate the framework and an integrated approach to IT investment planning, the paper presents a case study based on a large-scale A∕E∕C project.     

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.     

Toward a New Paradigm: Simultaneous Use of Multiple Project Delivery Methods

Since World War II, the American Strategy for infrastructure procurement has evolved to rely primarily upon a single delivery method, design∕bid∕build. While this strategy was used to implement massive federal investment in highways, transit systems, and wastewater treatment, it has restricted state and local flexibility in aligning the procurement process to achieve best value for locally funded projects. The engineering, procurement, and construction community in the United States has now recognized the limitations of a procurement process designed to support a single delivery method. Change is coming, and the transition to a new process will challenge public owners in novel, but meaningful ways. This paper focuses upon shifting from the current paradigm toward a new model that supports simultaneous use of multiple project delivery methods. The discussion and frameworks provided are the result of a variety of research efforts by the Infrastructure Systems Development Research team at the Massachusetts Institute of Technology. Studies of the history of American Infrastructure, analyses of case studies across the country, development of decision support models for capital programming, and real applications to municipal infrastructure planning provide the underpinnings for the results and conclusions presented.     

A∕E∕C Teamwork: A Collaborative Design and Learning Space

This paper describes an ongoing effort focused on combined research and curriculum development for multidisciplinary, geographically distributed architecture∕engineering∕construction (A∕E∕C) teamwork. It presents a model for a distributed A∕E∕C learning environment and an Internet-based Web-mediated collaboration tool kit. The distributed learning environment includes six universities from Europe, Japan, and the United States. The tool kit is aimed to assist team members and owners (1) capture and share knowledge and information related to a specific project; (2) navigate through the archived knowledge and information; and (3) evaluate and explain the product's performance. The A∕E∕C course offered at Stanford University acts as a testbed for cutting-edge information technologies and a forum to teach new generations of professionals how to team up with practitioners from other disciplines and take advantage of information technology to produce a better, faster, more economical product. The paper presents new assessment metrics to monitor students' cross-disciplinary learning experience and track programmatic changes. The paper concludes with challenges and quandaries regarding the impact of information technologies on team performance and behavior.     

Improving Concessionaire Selection Protocols in Public∕Private Partnered Infrastructure Projects

A critical contributor to the success of a public∕private partnered (PPP) infrastructure project is the selection of the right private-sector partner, the concessionaire, who would provide the best overall deal throughout the build-operate-transfer (BOT)[build∕operate∕transfer] development process. This paper proposes a core concessionaire selection protocol that incorporates public procurement principles, best-value selection approach, competitive selection process, and multicriteria tender evaluation. Key pointers for an improved concessionaire selection protocol are discussed and analyzed by drawing experience and learning lessons from worldwide PPP practices. These include improved project brief and tender documents, formulation of a best-value selection methodology, determination of suitable criteria and methods for prequalification and tender evaluation, capital structure (equity-to-debt ratio), financial models, and potential improvements in different stages of the concessionaire selection process. Relevant results of a questionnaire survey of international PPP expert opinions on an enhanced concessionaire selection protocol are also presented.     

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

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

Age differences in choice satisfaction: A positivity effect in decision making.

The authors tested the possibility that older adults show a positivity effect in decision making, by giving younger and older adults the opportunity to choose 1 of 4 products and by examining the participants' satisfaction with their choice. The authors considered whether requiring participants to explicitly evaluate the options before making a choice has an effect on age differences in choice satisfaction. Older adults in the evaluation condition listed more positive and fewer negative attributes than did younger adults and were more satisfied with their decisions than were younger adults. There were no age differences among those who did not evaluate options. This evaluation-dependent elevation of satisfaction among older adults was still present when participants were contacted 2 weeks after the experiment. Age did not influence the accuracy with which participants predicted how their satisfaction would change over time. (PsycINFO Database Record (c) 2010 APA, all rights reserved)