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Article
Publication date: 23 August 2022

Yixi Zhang, Bee Lan Oo and Benson Teck-Heng Lim

Contractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or…

Abstract

Purpose

Contractors of different scales, operating in different construction industries of varying institutional and economic settings, have different considerations when making bid or no-bid and mark-up decisions. Focusing on the large and medium-sized contractors in the Jilin province, China, the purpose of this study is to examine important factors affecting their decision to bid (d2b) and mark-up decisions and investigate differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.

Design/methodology/approach

This study used a survey design for timely data collection from a large population. Contractors’ bidding attitudes was collected using an online survey questionnaire with a list of 40 key factors. Statistical analytical methods were applied for comparing the two groups of contractors.

Findings

The results of this study indicate that factors related to client conditions are most critical for both large and medium-sized contractors in their d2b and mark-up decisions. The results also show statistically significant differences between the two groups of contractors on a subset of factors affecting their d2b and mark-up decisions. The large contractors have placed more emphasis on projects' potential financial and strategic benefits. Another notable finding is that both groups of contractors have placed great emphasise on “government legislations” in their d2b and mark-up decisions.

Research limitations/implications

These findings should be interpreted in consideration of several limitations. Firstly, the sample size is relatively small, and the focus was on a single province in the China construction industry. Next, this study only explores differences between large and medium-sized contractors in evaluating the importance of the various factors affecting their d2b and mark-up decisions.

Practical implications

Contractors could refer list of critical factors in competing for jobs in Jilin province or other provinces of similar institutional and economic settings. Construction clients, on the other hand, should consider the list of critical factors in the formulation of their competitive tendering procedures, thus enhancing the efficiency in their procurement of construction services.

Originality/value

Research on contractors’ bidding decision-making in the context of Chinese construction industry remains scarce; the research findings have implications for the industry stakeholders.

Details

Construction Innovation , vol. 23 no. 5
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 4 March 2022

Oluwole Alfred Olatunji, Chamil Dilhan Erik Ramanayaka, Funmilayo Ebun Rotimi and James Olabode Bamidele Rotimi

The normative literature suggests that there are more than seventy decision factors that contractors must consider if they intend to success in their bid and projects. In…

Abstract

Purpose

The normative literature suggests that there are more than seventy decision factors that contractors must consider if they intend to success in their bid and projects. In addition, such factors have been grouped in relation to project characteristics, client attributes, contractors' business administration and external factors. The extant literature suggests that the relationships between many of the bid decision factors are orthogonal and may not explain how bid-decisions shape project outcomes.

Design/methodology/approach

This knowledge gap has stagnated research in this area. Building on findings of recent studies, this study unbundles bid decision themes by analysing key factors amongst contractors' administrative characteristics. In addition, the study determines intrinsic predictive correlation between the sub-themes. A total of 17 variables were listed in a structured questionnaire survey and presented to participants recruited through purposive snowballing. In total, 50 responses were received and formed the basis of descriptive and inferential statistical analyses.

Findings

The study found that the 17 factors are significant in bid decisions and consequently in bid successes. However, the explanatory variables attached to the themes are most efficient if categorised into six sub-themes. These are contractor's administration depth, strategic direction, commercial intention and own market advantage, resources, experience as well as openness to technology imposed by new projects. Furthermore, four theoretical positions are significant. Contractors bid for projects strategically; they are less reliant on their resource capabilities in bid decisions; every bid decision aligns with a risk strategy, and financial stability enables them to establish appropriate risk mitigation arrangements that could ensure project success.

Originality/value

These findings provide some support for the conceptual premise that bid decisions need to be rational, considered and strategically contribute to project outcomes.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 6
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 6 June 2023

Oluwole Alfred Olatunji and Chamil Erik D. Ramanayaka

This study aims to investigate clients' attributes, their key decision variables and causal relationships between the decision variables. In addition, the purpose of the study is…

Abstract

Purpose

This study aims to investigate clients' attributes, their key decision variables and causal relationships between the decision variables. In addition, the purpose of the study is to map-out from these analyses, the attributes of project clients that motivate contractors' bid decision.

Design/methodology/approach

A total of 50 responses were obtained from a questionnaire survey. 50% of participants are contractors. 44% are claims consultants, whilst 6% are manufacturers and clients. Beyond measures of central tendencies, analysis focussed on causal relationships by way of correlation, analysis of variance and reductionism.

Findings

All 20 factors considered have significant correlations with at least one other factor. Findings also show the factors can be clustered into six: reputation, financial strength, relationship with the bidder, organisational attributes, history with project attributes and project organisation.

Practical implications

Evidence suggests stakeholders have often struggled to consider the many decision factors reported in normative literature, numbering hundreds. By clustering the factors into sub-themes, bid decisioning has been made more efficient. The study also explains how client attributes could determine project success and contractor participation. Different stakeholders can use findings of this study for training and further studies.

Originality/value

Previous studies have considered bid decisioning indexically – factors were long, analyses were largely inconclusive, and causal relationships are orthogonal. Findings in this study have shown depth: 20 originating client-specific factors were clustered into six sub-themes, and correlations were established. The methodology used for the study is confirmatory and conclusive.

Details

Built Environment Project and Asset Management, vol. 13 no. 6
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 13 June 2022

Bee Lan Oo, Benson Teck-Heng Lim and Goran Runeson

With the aim to provide a global view of factors affecting mark-up size on construction projects, this study performs a meta-analytical review of the relevant studies over the…

Abstract

Purpose

With the aim to provide a global view of factors affecting mark-up size on construction projects, this study performs a meta-analytical review of the relevant studies over the past 20 years.

Design/methodology/approach

The analytical process involved the identification and evaluation of the importance of critical factors affecting mark-up size on construction projects, and the assessment of the generalisability of findings of the meta-analysis. A random-effects model was adopted in the statistical meta-analysis.

Findings

The results show that there are 23 critical factors, and the top five factors are: (1) competitiveness of other bidders; (2) number of bidders; (3) relationship and past experience with client; (4) experience on similar project; and (5) project size. A heterogeneity test further shows that there is no statistically significant heterogeneity across the studies, reinforcing the generalisability of the findings to a global context.

Research limitations/implications

The list of critical factors from a global perspective should form a good basis for future efforts in bidding model development.

Practical implications

The research findings have practical implications to both construction clients and contractors in formulating their contracting practices and strategies.

Originality/value

This is the first meta-analysis of a sizeable collection of replicated studies on factors affecting mark-up size on construction projects in the literature.

Details

Engineering, Construction and Architectural Management, vol. 30 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 8 April 2024

Malik Lakshan Hasantha, Anuradha Samarajeewa Waidyasekara and Hasith Chathuranga Victar

Insufficient time allocation for the bidding period occurs, causing drawbacks to both parties, the client and the bidder. Hence, this study aims to evaluate the time allocated for…

Abstract

Purpose

Insufficient time allocation for the bidding period occurs, causing drawbacks to both parties, the client and the bidder. Hence, this study aims to evaluate the time allocated for preparing a bid proposal as per the National Competitive Bidding (NCB) in the Sri Lankan context.

Design/methodology/approach

The study has adopted a mixed method approach and expert interviews and document review to detect, analyse and validate the issues, and solutions based on NCB along with the adequacy of the allocated bidding period used as main data collection tools. Both qualitative and quantitative data were analysed through manual content analysis and inferential analysis respectively.

Findings

Overall, 24 local issues with the existing competitive bidding process and solutions for each were identified. Among the 24 local issues, it was unanimously agreed by all interviewees that three specific issues require attention and improvement. These issues are related to the standard and incompleteness of bidding documents, inaccurate BOQ quantities measured by the consultant or the main contractor, and the excessive number of bidding document amendments by the consultant. It was revealed that a maximum of 42 calendar days (6 weeks) is sufficient for the bidding process while a minimum of 21 calendar days (3 weeks) is insufficient.

Originality/value

The findings of this study would be recommended that Information and Communication Technology Agency (ICTA) understand the necessity of revising the NCB reference to the time allocated for the preparation of bids. By recognising the importance of sufficient time allocation for bid preparation, this research serves as a practical guide for authorities involved in policy formulation, aiding them in implementing revisions that align with the dynamic requirements of bidding procedures.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 22 March 2024

Qianmai Luo, Chengshuang Sun, Ying Li, Zhenqiang Qi and Guozong Zhang

With increasing complexity of construction projects and new construction processes and methods are adopted, more safety hazards are emerging at construction sites, requiring the…

Abstract

Purpose

With increasing complexity of construction projects and new construction processes and methods are adopted, more safety hazards are emerging at construction sites, requiring the application of the modern risk management methods. As an emerging technology, digital twin has already made valuable contributions to safety risk management in many fields. Therefore, exploring the application of digital twin technology in construction safety risk management is of great significance. The purpose of this study is to explore the current research status and application potential of digital twin technology in construction safety risk management.

Design/methodology/approach

This study followed a four-stage literature processing approach as outlined in the systematic literature review procedure guidelines. It then combined the quantitative analysis tools and qualitative analysis methods to organize and summarize the current research status of digital twin technology in the field of construction safety risk management, analyze the application of digital twin technology in construction safety risk management and identify future research trends.

Findings

The research findings indicate that the application of digital twin technology in the field of construction safety risk management is still in its early stages. Based on the results of the literature analysis, this paper summarizes five aspects of digital twin technology's application in construction safety risk management: real-time monitoring and early warning, safety risk prediction and assessment, accident simulation and emergency response, safety risk management decision support and safety training and education. It also proposes future research trends based on the current research challenges.

Originality/value

This study provides valuable references for the extended application of digital twin technology and offers a new perspective and approach for modern construction safety risk management. It contributes to the enhancement of the theoretical framework for construction safety risk management and the improvement of on-site construction safety.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 15 February 2024

Chau Ngoc Dang, Warit Wipulanusat, Peem Nuaklong and Boonsap Witchayangkoon

In developing countries, construction organizations are seeking to effectively implement green innovation strategies. Thus, this study aims to assess the importance of green…

Abstract

Purpose

In developing countries, construction organizations are seeking to effectively implement green innovation strategies. Thus, this study aims to assess the importance of green innovation practices and develop a measurement model for quantifying the green innovation degrees of construction firms.

Design/methodology/approach

A mixed-methods research approach is adopted. First, an extensive literature review is performed to identify potential green innovation items, which are then used to design a preliminary questionnaire. Next, expert interviews are conducted to pilot-test this questionnaire. Subsequently, by using a convenience non-probability sampling method, 88 valid responses are collected from construction firms in Vietnam. Then, one-sample and independent-samples t tests are employed to assess the importance of green innovation practices. Fuzzy synthetic evaluation (FSE) is also applied to quantitatively compare such practices. Finally, green innovation level (GIL) is proposed to measure the green innovation indexes and validated by a case study of seven construction firms.

Findings

This study identifies 13 green innovation variables, of which several key practices are highlighted for small/medium and large construction firms. The results of FSE analysis indicate that green process innovation is the most vital green category in construction firms, followed by green product and management innovations, respectively. As a quantitative measure, GIL could allow construction firms to frequently evaluate their green innovation indexes, thereby promoting green innovation practices comprehensively. Hence, construction firms would significantly enhance green competitive advantages and increasingly contribute to green and sustainable construction developments.

Originality/value

This research is one of the first attempts to integrate various green innovation practices into a comprehensive formulation. The established indexes offer detailed green innovation evaluations, which could be considered as valuable references for construction practitioners. Furthermore, a reliable and practical tool (i.e. GIL) is proposed to measure the GILs of construction firms in developing countries.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 2 February 2024

Israel Javier Juma Michilena, Maria Eugenia Ruiz Molina and Irene Gil-Saura

The purpose of this study is to identify groups of employees based on their motivations, detecting the main barriers that may influence their willingness to participate in the…

Abstract

Purpose

The purpose of this study is to identify groups of employees based on their motivations, detecting the main barriers that may influence their willingness to participate in the pro-environmental initiatives proposed by their employer.

Design/methodology/approach

To identify the different groups of employees, an online survey was conducted, and the Chi-square automatic interaction detection algorithm segmentation technique was used with a sample of 483 employees from 9 Latin American universities.

Findings

The results allowed us to identify various segments, in which the main obstacle linked to intrinsic motivation is the university culture and, to a lesser extent, the lack of equipment, while for extrinsic motivation, the lack of infrastructure is the most determining factor. Likewise, the results reflect that, compared to the less motivated employees, those who show greater motivation (both intrinsic and extrinsic) are the ones who encounter the greatest barriers, so that the perceptions of the most motivated, as expert observers, help to identify the main obstacles that organisations must remove to promote pro-environmental behaviours among staff members.

Practical implications

The results obtained help to guide the representatives or organisational leaders on the actions that generate the greatest impact in the mitigation of climate change from a motivational approach of behavioural prediction.

Social implications

This study contributes to a more sustainable society by developing an understanding of how employees react to issues related to climate change. Knowing the perceptions of employees can be a turning point so that other members of society can get involved in pro-environmental behaviours.

Originality/value

Many studies have analysed the intrinsic and extrinsic motivations of employees to engage in pro-environmental behaviours; however, as far as the authors are aware, this has not been analysed from the perspective of barriers to motivation.

Details

Sustainability Accounting, Management and Policy Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2040-8021

Keywords

Article
Publication date: 1 November 2023

Ricardo Vinícius Dias Jordão and Davidson Junio Costa

This paper aims to analyze the economic-financial performance (EFP) and value creation (VC) in the Brazilian construction industry.

Abstract

Purpose

This paper aims to analyze the economic-financial performance (EFP) and value creation (VC) in the Brazilian construction industry.

Design/methodology/approach

Based on the theories of strategy and finance, a quantitative-qualitative, descriptive and explanatory and applied study was carried out, contrasting the performance of the Direcional company and the civil construction industry – both listed on the Brazilian Stock Exchange and the Over-the-Counter Market (B3)

Findings

The analysis of the EFP in the Brazilian construction industry shows that EZTEC, Helbor, Trisul and Direcional were the companies with the best EFP in the period. The analysis of the Economic Value Added (EVA®, henceforth EVA), as a VC metric and basis for assessing the relative technical efficiency score by Data Envelopment Analysis (DEA®, henceforth DEA), revealed that the companies Direcional, EZTEC, MRV and CR2 were considered efficient throughout the period covered. The multicriteria methodology for empirical testing of the EFP and VC allowed not only contrasts Direcional's results with the other companies of the construction industry but also offered a complementary tool for comparative analysis of enterprises of different sizes, structures and realities.

Research limitations/implications

Regardless of any contextual limitations, from a theoretical point of view, the research not only helps fill the research gap aforementioned but also expands knowledge on the topic and demonstrates how this multi-criteria methodology (integrating DEA and EVA) can be used to assess EFP and VC in addition to traditional tools. However, this new approach evaluates, at the same time, corporate and sectorial effectiveness by contrasting the efficiency and efficacy (simultaneously) in the generation of performance and value of a company in relation to the industry.

Practical implications

Significant implications for managerial practice could be noted by offering a tool to improve company performance and creating a competitive benchmarking process for analysts, investors, managers, financing agencies, shareholders, policymakers and business owners, as well as organizations and sectors in similar situations – who need to assess the EFP and VC holistically and improve their decision-making processes.

Originality/value

The uniqueness and innovation of this research come from the original multi-criteria methodology developed, applied and validated for analysis of EFP and VC. This methodology was operationalized through DEA applied to the companies' EVA, making it possible to compare corporate results and those of the whole industry in a balanced way – an unexplored issue in the literature, especially in emerging economies, opening several avenues for future research.

Objetivo

Este artículo tiene como objetivo analizar el desempeño económico-financiero (DEF) y la creación de valor (CV) en la industria de la construcción brasileña.

Diseño/metodología/enfoque

Con base en las teorías de estrategia y finanzas, se realizó un estudio cuanti-cualitativo, descriptivo, explicativo y aplicado, contrastando el desempeño de la empresa Direcional y de la industria de la construcción civil, ambas cotizadas en la Bolsa y Mercado Extrabursátil Brasileña (B3).

Hallazgos

El análisis de la DEF en la industria de la construcción brasileña muestra que EZTEC, Helbor, Trisul y la Direcional fueron las empresas con el mejor desempeño en el período. El análisis del Valor Económico Agregado (en adelante EVA), como métrica de CV y base para evaluar el puntaje de eficiencia técnica relativa mediante Análisis Envolvente de Datos (en adelante DEA), reveló que las empresas Direcional, EZTEC, MRV y la CR2 se consideraron eficientes durante todo el período cubierto. La metodología multicriterio para pruebas empíricas de la DEF y CV permitió no sólo contrastar los resultados de la Direcional con los de otras empresas del sector de la construcción, sino que también ofreció una herramienta complementaria para el análisis comparativo de empresas de diferentes tamaños, estructuras y realidades.

Originalidad y valor

La singularidad y la innovación de esta investigación provienen de la metodología original multicriterio desarrollada, aplicada y validada para el análisis de DEF y CV. Esta metodología fue operacionalizada a través de DEA aplicado al EVA de las empresas, permitiendo comparar los resultados corporativos y los de toda la industria de manera equilibrada – un tema inexplorado en la literatura, especialmente en las economías emergentes, abriendo varias vías para futuras investigaciones.

Limitaciones/implicaciones de la investigación

Independientemente de las limitaciones contextuales, desde un punto de vista teórico, la investigación no solo ayuda a llenar el vacío mencionado anteriormente, sino que también amplía el conocimiento sobre el tema y demuestra cómo esta metodología multicriterio (integrando DEA y EVA) puede utilizarse para evaluar el DEF y CV además de las herramientas tradicionales. Sin embargo, este nuevo enfoque evalúa, al mismo tiempo, la efectividad corporativa y sectorial contrastando la eficiencia y eficacia (simultáneamente) en la generación de desempeño y valor de una empresa en relación con la industria.

Implicaciones prácticas/de gestión

Se podrían observar implicaciones significativas para la práctica gerencial al ofrecer una herramienta para mejorar el desempeño de la empresa y crear un proceso de evaluación comparativa competitivo para analistas, inversionistas, gerentes, agencias financieras, accionistas, formuladores de políticas y propietarios de negocios, así como organizaciones y sectores en situaciones similares, que necesitan evaluar el DEF y el CV de manera integral y mejorar sus procesos de toma de decisiones.

Article
Publication date: 21 August 2023

Alaeldin Abdalla, Xiaodong Li and Fan Yang

Besides ensuring traditional project objectives, expatriate construction professionals (EXCPs) working on international projects face challenges adapting to unfamiliar…

Abstract

Purpose

Besides ensuring traditional project objectives, expatriate construction professionals (EXCPs) working on international projects face challenges adapting to unfamiliar environments with varying construction standards, work practices and cultural values. This puts them at a high risk of job burnout. Thus, this study aims to investigate the antecedents and outcomes of EXCPs' job burnout in the international construction industry.

Design/methodology/approach

Based on the Job demands-resource model (JD-R), a theoretical framework was developed. Industry-specific stressors and expatriate management practices were identified using a literature review and interviews. The authors then used a questionnaire survey to collect data from Chinese EXCPs. Exploratory factor analysis, confirmatory factor analysis and structural equation modeling were then utilized to test hypotheses.

Findings

The findings indicate that early-career EXCPs experience the most severe levels of job burnout. The paths analysis proved the direct and indirect mitigating effects of expatriate management practices on job burnout, and EXCP's job burnout was associated with poor job performance and decreased intention to stay in the international assignment.

Originality/value

While prior research has explored job burnout among construction professionals working on domestic projects, little attention has been given to EXCPs and their unique challenges. This study aims to fill this critical gap in the literature by offering a unique perspective on the antecedents and outcomes of job burnout among EXCPs in international contexts and presents a significant contribution to understanding and addressing occupational health issues faced by EXCPs.

Details

Engineering, Construction and Architectural Management, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 0969-9988

Keywords

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