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Article
Publication date: 1 December 2007

AMR A G Hassanein and Halaa M F Afify

This research aimed at identifying the most significant risks relevant to construction contracts of two power station projects in Egypt. These were large scale, fast‐track…

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1471

Abstract

This research aimed at identifying the most significant risks relevant to construction contracts of two power station projects in Egypt. These were large scale, fast‐track projects where a multi‐package contracting plan was utilized. Further, the study investigated how risks were perceived and managed by a large sample of Egyptian and international contractors who participated in the execution of these two major projects. A checklist of risk categories was developed to aid contractors in their risk identification effort. The compilation of this checklist identified the following risk categories: 1) owner’s obligations; 2) interface with other contractors; 3) liability risks; 4) financial risks; 5) risks related to changes; 6) technical risks and 7) consortium risks. Research results identified a marked lack of consistency in the contractors’ risk identification effort. Contractors possessing past experience in Egypt were far better able to identify the relevant risks. On the other hand, local Egyptian contractors with vast experience in Egypt but limited project management experience were shown to lack the necessary expertise to properly identify risks and to take the appropriate exceptions. Furthermore, the results revealed that bidders do not include in their proposals their “true” lists of exceptions which represent genuine risks to them.

Details

Journal of Financial Management of Property and Construction, vol. 12 no. 3
Type: Research Article
ISSN: 1366-4387

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Article
Publication date: 1 March 2007

AMR A G Hassanein and Waleed El Nemr

The term claim has become of paramount significance in construction projects worldwide. This research is targeted at providing a deeper insight of the status of claims…

Abstract

The term claim has become of paramount significance in construction projects worldwide. This research is targeted at providing a deeper insight of the status of claims management in general and change order claims in particular with respect to the Egyptian industrial construction sector, as change orders have proven to be the main cause of claims in this sector. A questionnaire focusing on persistent issues noted in construction management literature within the past fifteen years was addressed to a selected sample of Egyptian construction industrial projects. The results furnished by the sampled projects demonstrated clearly that claims management in the Egyptian industrial construction sector has been suffering from a variety of impediments, including lack of proper notification procedures in public contracts and poor documentation management. The results indicated that oral change orders were present in nearly 76% of the sample projects and that half of these oral changes resulted in loss of rights due to improper documentation, which could be attributed to the lack of the contract awareness of the site team and to the “fear of consultant” phenomenon. The main cause of change orders was categorised by approximately 67% of the respondents as the additional scope of work, which was largely attributed to the fast track nature of the industrial sector. The research also identified several factors associated with time and cost increases of the sampled projects, among which were: private ownership and unit rate contracts. Finally, several recommendations for improving claims management are put forward. They included: the formation of a unified form of general contract condition for all the Egyptian industrial sector; the use of information technology systems in lieu of traditional filing procedures and the inclusion of a float‐sharing provision in contracts.

Details

Journal of Financial Management of Property and Construction, vol. 12 no. 1
Type: Research Article
ISSN: 1366-4387

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Article
Publication date: 1 December 2006

AMR A G Hassanein and Bahaee N L Khalil

The main objective of this study is to initiate general building cost indicators to serve as cost indicators for the construction industry in Egypt. The two models (Egypt…

Abstract

The main objective of this study is to initiate general building cost indicators to serve as cost indicators for the construction industry in Egypt. The two models (Egypt 1 and Egypt 2 Indices) developed for building the indices in this paper have been derived based on the “Engineering News Record” (ENR) Indices model with modifications to better suit the Egyptian market. Egypt 1 Indices is comprised of three indices which serve as a general cost indicator for the construction industry price movement in Egypt. Egypt 2 Indices is comprised of two indices which serve as a construction cost indicator for the reinforced concrete structures price movement in Egypt. The period analyzed in this research is 11 years (1988 through to 1998). The validation of index numbers produced showed that each index does indeed represent the respective type of building for which it was computed. Further, the analysis of Egypt Indices compared to the ENR Indices revealed that both indices exhibited trends that are generally similar from the year 1992 up to 1998.

Details

Journal of Financial Management of Property and Construction, vol. 11 no. 3
Type: Research Article
ISSN: 1366-4387

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Article
Publication date: 4 April 2008

Amr A.G. Hassanein and Mohamed M.G. El‐Barkouky

The purpose of this paper is to evaluate the current mortgage system in Egypt.

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1004

Abstract

Purpose

The purpose of this paper is to evaluate the current mortgage system in Egypt.

Design/methodology/approach

The institutional and regulatory structures of two international mortgage systems, namely: the USA and the Malaysian were examined through an extensive literature survey. On the other hand, data on the Egyptian mortgage system were collected, analyzed, then compared to both practices.

Findings

The results identified several limitations in the Egyptian mortgage practice such as: inefficient procedures of property registration; absence of an efficient mortgage secondary market; relatively high‐mortgage lending rates; non‐existence of various types of mortgage instruments and lack of credit enhancement tools.

Research limitations/implications

The study presented several recommendations for improving the existing mortgage practice, among which were: realizing a proper secondary market and lowering mortgage lending rates.

Practical implications

By 2002, a sharp decline was experienced in the sales of housing units due to the various credit restrictions adopted by banks, coupled with high‐interest rates in relatively short amortizing periods. Accordingly, home finance process was held up, as the purchasing power of low‐ and middle‐income homebuyers was not sufficient to buy homes with such provisions. This situation imposed the need for a long‐term housing financing mechanism that would directly retrieve the residential construction sector.

Originality/value

This research was innovative in the sense that it directed the Egyptian Government's attention to the existence of Cagamas in Malaysia and accordingly, the first liquidity facility company in Egypt was established in June 2006.

Details

International Journal of Managing Projects in Business, vol. 1 no. 2
Type: Research Article
ISSN: 1753-8378

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Article
Publication date: 1 September 2006

Amr A.G. Hassanein and Bahaee N.L. Khalil

The aim of this article is to develop a cost index to serve as a price indicator for the Egyptian construction industry.

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1371

Abstract

Purpose

The aim of this article is to develop a cost index to serve as a price indicator for the Egyptian construction industry.

Design/methodology/approach

The model (Egypt 1 indices) developed for building the indices in this paper has been derived based on the “Engineering News Record” (ENR) indices model with modifications to better suit the Egyptian market. Egypt 1 indices are comprised of three indices, which serve as a general construction price indicator for the construction industry price movement in Egypt. The period analyzed in this research is 11 years (1988 through 1998).

Findings

Validation of Egypt 1 indices numbers produced in this paper showed that each index does indeed represent the respective type of building for which it was computed. Further, the analysis of Egypt 1 indices compared to the ENR indices revealed that both indices exhibited trends that are generally similar from the year 1992 up to 1998 (the last year included in this study).

Originality/value

This research has the potential to introduce the use of construction cost indices and to put these into practice. This should help aid contractors and other construction parties operating in Egypt with an adequate tool for pricing and estimation of projects.

Details

Engineering, Construction and Architectural Management, vol. 13 no. 5
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 5 September 2008

Amr A.G. Hassanein and Waleed El Nemr

This research aims at providing a better insight of the status of claims management in general, and change order claims in particular, from the contractor's perspective…

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1472

Abstract

Purpose

This research aims at providing a better insight of the status of claims management in general, and change order claims in particular, from the contractor's perspective with respect to the Egyptian industrial construction sector, as they proved to be the main cause of claims in this sector.

Design/methodology/approach

A questionnaire survey discussing the most persistent issues of claims management in general, and change order claims in particular, was conducted on a selected sample of construction industrial companies.

Findings

The results demonstrated that claims management in the Egyptian industrial sector has been suffering from a variety of obstacles, including lack of proper notification procedures in public contracts and poor documentation management. Change orders had been actually lost due to poor documentation. Oral change orders were present in approximately 76 per cent of the projects; half of which resulted in loss of rights due to improper documentation, which was largely attributed to the lack of contract awareness of the site team, and to the “fear of consultant phenomenon”.

Practical implications

The paper presented several recommendations for improving claims management including: the formation of a standard form of contract general conditions for the Egyptian industrial sector, and applying a methodological approach for change orders quantification.

Originality/value

The increasing number of international companies contemplating construction projects in Egypt, and the significant problems with regards to claims propagation and management, addressed the need to conduct such study that targets one of the most challenging areas in the Egyptian construction industry.

Details

Engineering, Construction and Architectural Management, vol. 15 no. 5
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 11 September 2007

Amr A.G. Hassanein and Reham A. Khalifa

The paper seeks to assess the performance of 234 public and private water and wastewater utilities from industrialized and developing countries.

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1903

Abstract

Purpose

The paper seeks to assess the performance of 234 public and private water and wastewater utilities from industrialized and developing countries.

Design/methodology/approach

A group of financial and operational indicators was calculated for the sample utilities.

Findings

Some indicators calculated for the private sector, represented by US and UK water and wastewater utilities, demonstrated better values compared with public utilities, such as staff number per 1,000 connections and return on equity ratio and tariffs charged. On the other hand, the percentage of unaccounted‐for water and the debt to equity ratio evidenced no advantage in private over public utilities. Further, the performance of water and wastewater utilities of developing countries and Egypt does need improvement.

Originality/value

A key problem in most of water and wastewater utilities is the absence of performance assessment tools. To this end, this research utilized indicators as a means of performance assessment of water/wastewater utilities.

Details

Engineering, Construction and Architectural Management, vol. 14 no. 5
Type: Research Article
ISSN: 0969-9988

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Article
Publication date: 2 May 2008

Amr A.G. Hassanein and Waleed El Nemr

This research aims to provide a better insight into the status of claims management in general, and change order claims in particular, from the contractor's perspective…

Downloads
1579

Abstract

Purpose

This research aims to provide a better insight into the status of claims management in general, and change order claims in particular, from the contractor's perspective with respect to the Egyptian industrial construction sector, as they proved to be the main cause of claims in this sector.

Design/methodology/approach

A questionnaire survey discussing the most persistent issues of claims management in general, and change order claims in particular, was conducted on a selected sample of construction industrial companies.

Findings

The results demonstrated that claims management in the Egyptian industrial sector has been suffering from a variety of obstacles, including lack of proper notification procedures in public contracts and poor documentation management. Change orders had been actually lost due to poor documentation. Oral change orders were present in approximately 76 percent of the projects; half of which resulted in loss of rights due to improper documentation, which was largely attributed to the lack of contract awareness of the site team, and to the “fear of consultant phenomenon”.

Practical implications

The paper presents several recommendations for improving claims management including: the formation of a standard form of contract general conditions for the Egyptian industrial sector, and applying a methodological approach for change orders quantification.

Originality/value

The increasing number of international companies contemplating construction projects in Egypt, and the significant problems with regards to claims propagation and management, addressed the need to conduct such a study, which targets one of the most challenging areas in the Egyptian construction industry.

Details

Engineering, Construction and Architectural Management, vol. 15 no. 3
Type: Research Article
ISSN: 0969-9988

Keywords

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Article
Publication date: 5 May 2015

Adwoa Boadua Yirenkyi-Fianko and Nicholas Chileshe

The purpose of this paper is to report the findings of research into the levels of awareness, usage and benefits of risk assessment and management practices (RAMP) within…

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1516

Abstract

Purpose

The purpose of this paper is to report the findings of research into the levels of awareness, usage and benefits of risk assessment and management practices (RAMP) within the construction industry in Ghana.

Design/methodology/approach

The study was conducted through a structured questionnaire administered to 103 construction professionals practising with construction client (private and public), consultant and contractor organisations within the Ghanaian construction industry. The results were analysed to establish the current levels of awareness, usage and perceived benefits of risk management practices. Survey response data were subjected to descriptive statistics; subsequently, ANOVA and other non-parametric tests were used to examine the differences in the levels of agreement of the perceived benefits.

Findings

This study illustrates that although the majority of the respondents are aware of RAMP, some professionals found the process not to be formal. Relative to the benefits, there was a disparity in the ranking of agreement scores on two of the eight benefits among the respondents in relation to “product to the required quality” and “reduction in contract claims”. However, they all agreed on “improved team morale” as the most important benefits.

Research limitations/implications

The research limitation of the study is that the cross-sectional data made it difficult to generalise the findings. Geographically, only respondents from construction organisations in the Greater Accra Region were considered. However, it is recommended that future work on RAMP be extended to cover all the regions of the country.

Practical implications

The findings of the study provide practical for organisations to measure the benefits and capture the awareness of risk management practices through the provision of a framework based on an index and scoring method. This can be used by senior management in assessing the current benefit levels within projects “internal benchmarking” and has potential for external benchmarking purposes. Furthermore, through education and training, both formal and informal process including more information and provision of expertise within RAMP could enhance the levels of awareness.

Originality/value

Little is known about the current levels of awareness, usage and benefits of risk management among Ghanaian construction organisations, and this study provides some insights and deepening our understanding on the uptake and perceived benefits of RAMP among construction professions in Ghana. These findings may help construction practitioners in having an increased awareness of risk management practices, and this can further lead to a higher uptake and usage resulting in reaping the advocated benefits of the implementing risk management practices such as achievement of project objectives of time, cost and quality, as well as enhanced decision-making processes.

Details

Journal of Engineering, Design and Technology, vol. 13 no. 2
Type: Research Article
ISSN: 1726-0531

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Article
Publication date: 1 December 2020

Ahmed Yousry Akal and Amr Metwally El-Kholy

This work affords a practical checklist that specifies the civil engineering trades-related hazards and offers a safety indicator to identify the safety level of a

Abstract

Purpose

This work affords a practical checklist that specifies the civil engineering trades-related hazards and offers a safety indicator to identify the safety level of a construction project concerning the hazards of the civil engineering trades.

Design/methodology/approach

The methodology depends on reviewing the archival works, visiting the construction sites, utilizing the direct observation and preliminary hazard analysis methods and conducting semistructured interviews to pinpoint and validate the checklist of the civil engineering trades-related hazards. Additionally, a questionnaire-based survey with the rank sum weight technique has been employed to assemble and analyze the data required to build the safety indicator.

Findings

Relying upon the used methodology, 70 hazards under the trades of general environment, earth, demolition, excavation, concrete, dewatering, waterproofing insulation and scaffolding have been pinpointed and validated. This is in addition to the safety level indicator of the civil engineering trades-related hazards (SLICETH), which indicates high viability during its validation in five national and international projects.

Originality/value

The value of this work lies in its ability to tackle the gap existing in the safety management knowledge regarding the notion of the hazards of the civil engineering trades and their influences on the safety performance of the construction projects. As a result, it offers a complete knowledge to the academics and the practitioners for confronting the negative impacts of the civil engineering trades-related hazards. Consequently, it helps in enhancing the safety performance level in the sites of the construction projects.

Details

Journal of Advances in Management Research, vol. 18 no. 3
Type: Research Article
ISSN: 0972-7981

Keywords

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