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Open Access
Book part
Publication date: 1 May 2019

Tina Karrbom Gustavsson, Anna Kadefors, Sofia Lingegård, Ola Laedre, Ole Jonny Klakegg, Nils Olsson and Johan Larsson

The purpose of the study is to map previous and current construction procurement research to further develop the research in the Nordic counties.

Abstract

Purpose

The purpose of the study is to map previous and current construction procurement research to further develop the research in the Nordic counties.

Design/Methodology/Approach

Mapping of previous and current research based on search in national database. The analysis is based on research perspectives, empirical contexts and research methods.

Findings

That the blind spots are partly overlapping, but that there is potential for knowledge transfer in some areas. There is also the potential for a Nordic research program on one or several of the blind spots.

Research Limitations/Implications

The study is limited to PhD and licentiate-thesis reports in Norway and Sweden. Further research should include the other Nordic countries and a more extensive literature review including journal articles to broaden the scope. Findings have implications on collaborative Nordic research initiatives, knowledge transfer and in a longer perspective on the level of procurement knowledge in industry and society.

Practical Implications

Findings provide a base for future research collaborations, initiatives and applications.

Originality/Value

Findings provide a comprehensive understanding of construction procurement research in the Nordic countries, starting with Norway and Sweden. This understanding is needed for developing research collaborations and applications.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Open Access
Book part
Publication date: 1 May 2019

Agnes Lindell and Stefan Olander

Social sustainability is of increasing importance in societal development, which will affect the implementation of construction projects. The social responsibilities for both…

Abstract

Purpose

Social sustainability is of increasing importance in societal development, which will affect the implementation of construction projects. The social responsibilities for both construction clients and suppliers will be an increasingly relevant part of their business processes. The objective of this study is to evaluate how the procurement process functions today with respect to social considerations.

Design/Methodology/Approach

The empirical data is based on interviews with procurement officials for each studied contract, together with official guidelines concerning social considerations and tender documents for each studied contract. Furthermore, the interviews addressed the level of knowledge that exists with procurement officials concerning social considerations in the procurement of road and railroad projects.

Findings

The results showed that there was a positive attitude towards social considerations in the procurement process and that there is a need in the construction sector to consider social issues to a higher degree.

Research Limitations/Implications

This study is based on six road and five railroad contracts within the Swedish Transport Administration as the client organization.

Practical Implications

It was evident that the level of knowledge with individual procurement officials concerning social issues is relatively low and needs to be increased. There is a perception that the management social considerations in construction procurement need to be clarified.

Originality/Value

Further research is needed to develop procedures, guidelines, routines and strategies for social considerations in procurement. Another important issue for further research is the development of routines to follow up social terms of contract during the implementation of the project.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Open Access
Book part
Publication date: 1 May 2019

Melissa Candel and Tina Karrbom Gustavsson

Previous research on clients’ procurement typically focuses on their procurement strategies. Research on local sustainability governance has, however, revealed that municipalities…

Abstract

Purpose:

Previous research on clients’ procurement typically focuses on their procurement strategies. Research on local sustainability governance has, however, revealed that municipalities also govern construction projects through land allocations. This paper aims to explore how housing developers are governed by municipal land allocations and the implications. The purpose is to problematize the governance of sustainability during the early phases of construction projects.

Design/Methodology/Approach:

A case study on an urban development project in Sweden was conducted. Empirical material consists of interviews with housing developers’ project managers, observations from seminars and meetings between the developers and municipality officials and the municipality’s policy for land allocations and sustainability program. This was analyzed using Bulkeley and Kern’s (2006) typology of modes of governing change at the local level as a framework.

Findings:

The results provide examples where the municipality governs the housing developers by authority, enabling and provision. The implications for the housing developers during the early phases of their construction projects are explored.

Research limitations/implications:

Findings have implications for research on clients’ procurement strategies because it illustrates how they can be governed during the early phases of certain construction projects, which might limit their flexibility during procurement. However, the study is only based on housing projects in one urban development project governed by one municipality.

Practical implications:

Findings provide support for clients when designing their procurement strategies.

Originality/value:

This paper contributes to the understanding of how sustainability is governed in construction projects and the implications for housing developers’ flexibility.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Open Access
Book part
Publication date: 1 May 2019

Leif D. Houck

For a public project leader charged with a construction project, it can be crucial to meet the budget, while maximizing the qualities within a construction project. A method to…

Abstract

Purpose

For a public project leader charged with a construction project, it can be crucial to meet the budget, while maximizing the qualities within a construction project. A method to achieve this is to use the “opposite design build” procurement method, in which the price is fixed and the contractors compete on adding a wide range of qualities to the project. However, such procurement approaches are rare, and it is difficult to find models on how to implement such an approach.

Design/Methodology/Approach

This study firstly looks at the literature on design-build, quality-only as the main selection criterion and to some degree on constructors’ bidding behaviour. Secondly, it explains a model for a design-build, quality-only procurement designed within the public tendering legislations. Thirdly, it investigates the outcome of the model applied to a specific case in Norway.

Findings

There seems to be a research gap within literature and cases on design-build, quality-only selection with a fixed price. The developed model allowed for negotiations, which led to more comparable and improved bids. In the investigated case, and the client was able to implement more qualities in the project than expected within the budget.

Research Limitations/Implications

The researcher was himself partly involved in the process as an advisor.

Practical Implications

The developed method is relatively simple and might readily be applied by any client to maximise a project’s qualities within a given fixed price.

Originality/Value

The long-term value should be to widen the range of useful procurement methods.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Open Access
Book part
Publication date: 1 May 2019

Pertti Lahdenperä

The paper aims to describe the evolution and use of project alliancing in Finland: how the model was discovered, and then, little by little, became an established practice.

Abstract

Purpose

The paper aims to describe the evolution and use of project alliancing in Finland: how the model was discovered, and then, little by little, became an established practice.

Design/Methodology/Approach

The paper is based on a long-term observation of the construction sector activities, involvement in their development and a review of related research and practice documents.

Findings

The paper illustrates how a major change may be laborious. It also reveals that the application of project alliancing seems to have been successful so far, but there are still threats on the horizon.

Research Limitations/Implications

The overview ignores many meaningful details and does not include a critical review of the positive experiences reported by the industry. There certainly is need for related research.

Practical Implications

The study offers a point of reference for evaluation of the smoothness of the progress of industry wide changes.

Originality/Value

This paper seems to be the first one providing a more comprehensive picture of the progress and use of alliancing in Finland, thus supplementing existing view- and project-specific examinations.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Open Access
Book part
Publication date: 1 May 2019

Abderisak Adam and Göran Lindahl

The purpose of this paper is to examine the Company Dynamic Response Map (CDRM) risk management model that uses the dynamic capabilities concept. The study examines risks…

Abstract

Purpose

The purpose of this paper is to examine the Company Dynamic Response Map (CDRM) risk management model that uses the dynamic capabilities concept. The study examines risks associated with strategic decision-making in construction projects and evaluates proposed methods that connect the dynamic capabilities of project-based organisations with risk management.

Design/Methodology/Approach

This preliminary study examines risks associated with strategic decision-making in construction projects and evaluates a proposed model that connects the dynamic capabilities of project-based organisations with risk management. Specifically, the CDRM model is evaluated, a risk management model developed by Arena et al. (2013) to better respond to risks and opportunities based on the concept of dynamic capabilities.

Findings

We argue that although the CDRM presents a promising development in that it uses dynamic capabilities prospectively in a risk management model to produce tangible results, there are, nonetheless, impediments to the CDRM being used by construction clients. The primary impediment relates to the issue of categorisation, the difficulty in assigning a specific identified risk to a particular category of dynamic capabilities.

Research Limitations/Implications

A conceptual argument is made and not an empirical one.

Practical Implications

The CDRM model was developed to be used in practice and this paper evaluates that model.

Originality/Value

Contributes to both the dynamic capabilities literature as well as risk management literature. The paper ends with a discussion on the possible merits of the CDRM, and an evaluation on potential impediments to its use by construction clients.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Open Access
Book part
Publication date: 1 May 2019

Søren Møller Kæseler, Hasse H. Neve and Søren Wandahl

User-driven innovation has been proven to successfully increase the value of products and services in companies with direct linkages to the end-user. The construction industry…

Abstract

Purpose

User-driven innovation has been proven to successfully increase the value of products and services in companies with direct linkages to the end-user. The construction industry demonstrates low productivity and innovation performance. In refurbishment the end-users are very visible and can either be seen as an innovation potential or burden. The purpose of this study was (1) examine the level of UDI in refurbishment, (2) develop UDI framework suitable for refurbishment and (3) mapping of UDI enablers.

Method

The research design is a case study of renovation within social housing associations, and where user involvement processes have been the primary scope of analysis. The data analysis consisted of the mapping of user-related activities regarding the level of involvement and the extent of power allocated to the end-user in influencing the end product. Additionally, a literature review on UDI has been carried out.

Findings

This research validated a possible theoretical implementation of UDI on refurbishment projects. In addition, the research identified present barriers related to the current form of procurement and incentive structures.

Limitations

The research was only based on Danish refurbishment projects.

Implications

This exploratory research has resulted in the development of a potential new paradigm of applying UDI in the construction industry. This research takes the initial steps towards creating a body of knowledge within UDI in the context of refurbishment projects.

Value

This research is pointing towards higher degree of user-driven innovation in refurbishment and in the construction industry in general.

Open Access
Book part
Publication date: 1 May 2019

Nicolaj Frederiksen, Lasse Fredslund and Stefan Christoffer Gottlieb

Strategic partnerships and construction supply chain management are claimed to improve productivity through their capabilities of managing internal and external relations between…

Abstract

Purpose

Strategic partnerships and construction supply chain management are claimed to improve productivity through their capabilities of managing internal and external relations between stakeholders. Thus, this study aims to present an analysis of a major Danish contractor group’s efforts to increase performances by building trust and long-term relationships across stakeholders of complex building projects with use of these managerial initiatives.

Design/Methodology/Approach

Scrutinising the social reality of the group, neo-institutional theory provides the analytical lens of an interpretivist case study drawing on empirical data (i.e. interviews and observations) collected through one year of enrolment in the group.

Findings

Findings reveals that internal organisational circumstances negatively influence the efforts to implement logics of strategic partnerships and construction supply chain management. Nevertheless, we propose organisational practitioners to obtain the perspectives of hybridisation as a fruitful concept for creating productive interactions between otherwise distinct managerial logics.

Research Limitations/Implications

The triangulation of the interpretivist data is limited to generalisations based on only one group operating in the Danish construction industry. However, the assumption is that critical implications of hybridity address generic issues across the industry.

Practical Implications

Organisational practitioners should experiment with hybridity of managerial mechanisms and dynamics, which potentially can influence the construction industry positively by innovating the operational performances in the entire value chain.

Originality/Value

The inquiry contributes to the puzzle of integrating strategic partnerships and construction supply chain management by rethinking dualism of logics generating alternatives of how hybridity can increase performance by combining various aspects of managerial initiatives.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

Open Access
Book part
Publication date: 1 May 2019

Abstract

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Open Access
Book part
Publication date: 1 May 2019

Khotso Dithebe, Clinton Aigbavboa and Didi Wellington Thwala

Targets set out by state institutions, with respect to supplying water to deprived communities, seem to be idealistic and not realistic. Study envisioned to assess challenges of…

Abstract

Purpose

Targets set out by state institutions, with respect to supplying water to deprived communities, seem to be idealistic and not realistic. Study envisioned to assess challenges of financing water infrastructure projects, and determines the role of the state towards infrastructure development by holistically planning and engaging with the private sector.

Design/Methodology/Approach

The study adopted a quantitative approach, whereby a questionnaire survey was conducted among different stakeholders involved in water infrastructure projects in South Africa. Data gathered were analysed using percentages, mean item score and standard deviation.

Findings

The study revealed that most challenges affecting the success of the financing of water infrastructure projects in South Africa are corruption, hostility towards private participation, cost recovery constraints, high fiscal deficits by state government, unreliable planning and procurement processes, and a rapid increasing number of municipalities that lack technical and administrative capacity to plan implement, operate and maintain water assets.

Research Limitations/Implications

This research paper investigates projects’ financing challenges with a broad inspection on the role of the public sector. The apparent role of the international structures such as OECD, IMF and World Bank had no influence in the study. From the findings, it is clear that the central government and state institutions lack the necessary resources to accelerate infrastructure development, water infrastructure in particular. The study, thus, recommends a complete expansion and development of state capacity as well as improved collaborations with the private sector to drive the success delivery of services to the public.

Originality/Value

Improved and flexible regulations and legislative guidelines are required to ensure that both sectors fulfil their side of the bargain, with an ultimate goal of meeting the predetermined targets of supplying adequate water to the deprived communities.

Details

10th Nordic Conference on Construction Economics and Organization
Type: Book
ISBN: 978-1-83867-051-1

Keywords

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