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1 – 10 of 33Mohd Azizi Ibrahim, Alias Mat Nor and Raja Rizal Iskandar Raja Hisham
This research aims to investigate the factors that can influence Bumiputera contractors’ acceptance of the Contractor’s All Risks (CAR) takāful (Islamic insurance) product using…
Abstract
Purpose
This research aims to investigate the factors that can influence Bumiputera contractors’ acceptance of the Contractor’s All Risks (CAR) takāful (Islamic insurance) product using the theory of reasoned action (TRA).
Design/methodology/approach
Using the method of quantitative surveys, 414 questionnaires were collected from targeted Bumiputera contractors in Malaysia (grade G1 to grade G7), except in Sabah and Sarawak, that are registered with the Construction Industry Development Board (CIDB) and are also members of Persatuan Kontraktor Melayu Malaysia (PKMM). The data was analysed using the partial least squares structural equation modeling (PLS-SEM) technique.
Findings
The findings from the PLS-SEM analysis show that attitude, subjective norm, religiosity and awareness have a positive relationship with Bumiputera contractors’ acceptance of the CAR takāful product. Religiosity appeared to be the most significant factor influencing Bumiputera contractors’ acceptance of the CAR takāful product.
Research limitations/implications
The respondents in this study only comprised Bumiputera contractors in Peninsular Malaysia, excluding those from Sabah and Sarawak. Therefore, it is not possible to generalise the findings to a broader population.
Practical implications
Takāful operators and their sales and marketing departments need to act proactively in promoting the benefits of investing in CAR takāful that follows Sharīʾah (Islamic law) rules and principles. They should create mechanisms to market CAR takāful better, thus accelerating its acceptance rate among contractors.
Originality/value
The paper uses the proposed extended TRA model, which includes the variables of religiosity and awareness in the TRA model. These variables were successfully integrated in the model, and the findings show that they have significantly contributed to the acceptance of the CAR takāful product among Bumiputera contractors.
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Rouzbeh Shabani, Tobias Onshuus Malvik, Agnar Johansen and Olav Torp
Uncertainty management (UM) in projects has been a point of attention for researchers for many years. Research on UM has mainly been aimed at uncertainty analyses in the front-end…
Abstract
Purpose
Uncertainty management (UM) in projects has been a point of attention for researchers for many years. Research on UM has mainly been aimed at uncertainty analyses in the front-end and managing uncertainty in the construction phase. In contrast, UM components in the design phase have received less attention. This research aims to improve knowledge about the key components of UM in the design phase of large road projects.
Design/methodology/approach
This study adopted a literature review and case study. The literature review was used to identify relevant criteria for UM. These criteria helped to design the interview guide. Multiple case study research was conducted, and data were collected through document study and interviews with project stakeholders in two road projects. Each case's owners, contractors and consultants were interviewed individually.
Findings
The data analysis obtained helpful information on the involved parties, process and exploit tools and techniques during the design phase. Johansen's (2015) framework [(a) human and organisation, (b) process and (c) tools and techniques)] was completed and developed by identifying relevant criteria (such as risk averse or risk-taker, culture and documentation level) for each component. These criteria help to measure UM performance. The authors found that owners and contractors are major formal UM actors, not consultants. Empirical data showed the effectiveness of Web-based tools in UM.
Research limitations/implications
The studied cases were Norwegian, and this study focussed on uncertainties in the project's design phase. Relevant criteria did not cover all the criteria for evaluating the performance of UM. Qualitative evaluation of criteria allows further quantitative analysis in the future.
Practical implications
This paper gave project owners and managers a better understanding of relevant criteria for measuring UM in the owners and managers' projects. The paper provides policy-makers with a deeper understanding of creating rigorous project criteria for UM during the design phase. This paper also provides a guideline for UM in road projects.
Originality/value
This research gives a holistic evaluation of UM by noticing relevant criteria and criteria's interconnection in the design phase.
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Jeroen van Strien, Cees Johannes Gelderman and Janjaap Semeijn
Performance-based contracting (PBC) plays an increasingly important role in the defense industry. This paper aims to investigate factors that influence service provider’s…
Abstract
Purpose
Performance-based contracting (PBC) plays an increasingly important role in the defense industry. This paper aims to investigate factors that influence service provider’s willingness to accept PBC-induced risks. It also shows how these risks could be managed in a military service supply chain.
Design/methodology/approach
The case study focused on the relationship between a service provider and a customer that acted on behalf of other users in the defense sector. The contract involved the sustainment of a military engine in a complex supply chain.
Findings
The service provider’s performance attributability appeared to have a strong impact on its willingness to take PBC-induced risks. For the parts where the service provider did not have full control over the service performance, exclusions and Service Level Agreements (SLAs) were used to manage and mitigate the risks associated with uncontrolled performance. The service provider’s willingness to accept PBC-induced risks was also affected by its ability to make accurate forecasts, the applied growth path and the length of the contract.
Research limitations/implications
This case has specific characteristics, unique by time (maturity of the technical system and supply chain) and place (market). It is recommended that results are tested in other research settings.
Practical implications
Organizations should be aware of the factors that influence a service provider’s willingness to bear PBC-induced risks. Customers should limit PBC to those parts of a contract where risks are of an acceptable level. Also, it is recommended to follow a phased growth path when it is not possible to make accurate forecasts in a PBC context.
Originality/value
This study is the first to address critical issues concerning the identification and management of risks under PBC in the defense industry.
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Murat Gunduz and Hesham Ahmed Elsherbeny
This paper covers the development of a multidimensional contract administration performance model (CAPM) for construction projects. The proposed CAPM is intended to be used by the…
Abstract
Purpose
This paper covers the development of a multidimensional contract administration performance model (CAPM) for construction projects. The proposed CAPM is intended to be used by the industry stakeholders to measure the construction contract administration (CCA) performance and identify the strengths and weaknesses of the CCA system for running or completed projects.
Design/methodology/approach
The research design follows a sequential mixed methodology of qualitative and quantitative data collection and analysis. In the first phase, contract administration indicators were collected from relevant literature. In the second phase, an online questionnaire was prepared, and data were collected and analyzed using the crisp value of fuzzy membership function, and structural equation modeling (SEM). The fuzzy set was chosen for this study due to the presence of uncertainty and fuzziness associated with the importance of several key indicators affecting the CCA performance. Finally, SEM was used to test and analyze interrelationships among constructs of CCA performance.
Findings
The data collected from 336 construction professionals worldwide through an online survey was utilized to develop the fuzzy structural equation model. The goodness-of-fit and reliability tests validated the model. The study concluded a significant correlation between CCA performance, CCA operational indicators, and the process groups.
Originality/value
The contribution of this paper to the existing knowledge is the development of a fuzzy structural equation model that serves as a measurement tool for the contract administration performance. This is the first quantitative structural equation model to capture contract administration performance. The model consists of 93 Construction Contract Administration(CCA) performance indicators categorized into 11 project management process groups namely: project governance and start-up; team management; communication and relationship management; quality and acceptance management; performance monitoring and reporting management; document and record management; financial management; changes and control management; claims and dispute resolution management; contract risk management and contract closeout management.
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Hongjuan Wu, Queena K. Qian, Ad Straub and Henk J. Visscher
The recent promotion of prefabricated housing (PH) in China has resulted in a prosperous period for its implementation. However, transaction costs (TCs) cause low economic…
Abstract
Purpose
The recent promotion of prefabricated housing (PH) in China has resulted in a prosperous period for its implementation. However, transaction costs (TCs) cause low economic efficiency to stakeholders and hinder the further promotion of PH. No relevant study has yet been made to investigate the TCs and their causes in the PH field. This paper identifies critical TCs and explores the influencing factors from the developers' perspective.
Design/methodology/approach
Semi-structured interviews and a questionnaire survey were used to collect data about TCs and influencing factors. The most influential factors are identified with their impacts on particular TCs, yielded from correlation analysis and logistic regression.
Findings
From the developers' perspective in China's PH market, this study identified that the most concerning sources of TCs are: hidden costs arising from disputes, extra workloads from design changes, learning costs, intensive communication and coordination in assembly and unexpected information costs in decision-making. The use of an ordered logistic regression approach indicates that the four most influential factors are: qualification of the general contractor, mandatory local policies, owner type and competitiveness of the developer.
Practical implications
To reduce the TCs, experiencing learning and ensuring the design scheme's complicity are recommended to save information searching and exchanging costs. The implications for the PH developers are for them to: (1) professionalize their own organization and (2) procure high-qualified general contractors. For the policymakers, this means they should improve the clarity of the mandatory local policies for PH step-by-step.
Originality/value
By applying the TCs economic theory, this study explores factors that influence TCs in the PH industry. It sheds light on the influencing mechanism behind the TCs in the context of prefabricated housing.
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Paulos A. Wondimu, Ole Jonny Klakegg and Ola Lædre
Early contractor involvement (ECI) faces many barriers because it differs from traditional business practices. Public owners, especially, face a major challenge because they must…
Abstract
Purpose
Early contractor involvement (ECI) faces many barriers because it differs from traditional business practices. Public owners, especially, face a major challenge because they must comply with international and national legislation. The purpose of this paper is to develop a framework that illustrates the various approaches that public project owners can take to implement ECI.
Design/methodology/approach
In addition to a literature review, three groups of case studies were carried out. The case studies were based on 54 semi-structured in-depth interviews with key personnel from 21 Norwegian public projects and document study.
Findings
In all, 25 approaches to ECI were identified during the research. Twelve of these were used in the cases studied.
Social implications
There are several approaches to ECI that are suitable for public owners. However, the contractor’s contribution depends on which approach is implemented and how it is implemented.
Originality/value
As original contribution, this study presents a novel framework that defines options for implementing ECI in public projects. Furthermore, this paper provides insights on how ECI can be implemented in public projects based on Norwegian experiences. Although the empirical data of the study is limited to Norwegian public projects, this study contributes to knowledge about how to implement ECI internationally.
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Petter Haglund and Martin Rudberg
Contingency studies within logistics and supply chain management have shown a need for longitudinal studies on fit. The purpose of this paper is to investigate the logistics…
Abstract
Purpose
Contingency studies within logistics and supply chain management have shown a need for longitudinal studies on fit. The purpose of this paper is to investigate the logistics strategy from a process of establishing fit perspective.
Design/methodology/approach
A large Swedish building contractor's logistics strategy process was analysed using a longitudinal single-case study for a period of 11 years (2008–2019).
Findings
The case study reveals three main constraints to logistics strategy implementation: a dominant purchasing organisation, a lack of incentives and diverging top-management priorities. This suggests that logistics strategy fit is not a conscious choice determined by contextual factors.
Research limitations/implications
Establishing fit is a continuous cycle of regaining fit between the logistics context and logistics strategy components. Fit can be achieved by a change to the logistics context or to logistics strategy components.
Practical implications
Logistics managers may need to opt for satisfactory fit in view of the costs incurred by changing strategy versus the benefits to be gained from a higher degree of fit.
Originality/value
This paper adopts a longitudinal case design to study the fit between the logistics context and strategy, adding to the body of knowledge on organisational design and strategy in logistics and supply chain management.
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Salman Ashkanani and Robert Franzoi
There is a large amount of published literature on project management. However, there exists a gap between the existing literature and current…
Abstract
Purpose
There is a large amount of published literature on project management. However, there exists a gap between the existing literature and current practices in the industry for the development and execution of megaprojects. Existing literature generally focuses on individual elements applicable to project management in general. This article aims to provide an overview of the project management system components used in industrial megaprojects and identify the gaps between theory and practice, which can be used as input for further research on the topic.
Design/methodology/approach
The topic of megaproject management is reviewed based on available literature sources on megaproject management systems to identify the main gaps in the literature between theory and practice. Based on the findings, an analysis is provided to discuss the improvements required in distinct project management areas and phases.
Findings
There are multiple gaps associated with issues, failures, successes and challenges in industrial megaprojects. Improvements are needed in distinct management areas and over the entire project lifetime. Further guidelines are required for achieving improved megaproject management systems. Such concepts could benefit researchers and practitioners in streamlining their research toward the most relevant and critical areas of improvement of megaproject management systems.
Originality/value
This study addresses the literature gaps between theory and practices on megaproject management systems with an overview that provides helpful guidance for industrial applications and future research. A holistic analysis identifies gaps and critical drives in the body of knowledge, revealing avenues for future research focused on quality as the central pillar that affects the entire megaproject management system.
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Monique Rieger Rodrigues and Søren Munch Lindhard
The traditional construction delivery method is challenged by low trust and collaboration issues, resulting in increased project costs. The integrated project delivery (IPD…
Abstract
Purpose
The traditional construction delivery method is challenged by low trust and collaboration issues, resulting in increased project costs. The integrated project delivery (IPD) method is developed, through a contractual agreement, to overcome these challenges by creating a common set of terms, expectations and project goals.
Design/methodology/approach
A singular construction case was followed during a four-month period. Data collection consisted of contract documents and a series of semi-structured interviews with representatives from the owner, design-group and contractors.
Findings
The IPD contract was found to have a number of positive effects; it improved project behavior (e.g. trust, collaboration and communication), increased ownership among project participants and improved buildability of the design, leading to fewer surprises and interruptions in the construction phase. The study also revealed a number of challenges including contractual and legal challenges and involving too many participants in the early phases. Moreover, co-location was identified as a particular important supporting element, to build relations and improve collaboration.
Originality/value
This research identified lessons learned from the application, as well as initial barriers and persistent barriers for implementing IPD. To improve IPD application the top three lessons were as follows: 1) the contractual documents should be adapted and signed at an early stage as this increases financial transparency, 2) cost estimates should be carried as an iterative process and project main concept be freezed at an early stage to increase understanding and minimize risks, 3) only the most important project developers should be involved in the early phases, to avoid going into detailed design issues before the main concept is completed.
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Emmanuel Dele Omopariola, Abimbola Olukemi Windapo, David John Edwards, Clinton Ohis Aigbavboa, Sunday Ukwe-Nya Yakubu and Onimisi Obari
Previous studies have postulated that an advance payment system (APS) positively impacts the contractor's working capital and is paramount to ensuring an efficient and effective…
Abstract
Purpose
Previous studies have postulated that an advance payment system (APS) positively impacts the contractor's working capital and is paramount to ensuring an efficient and effective project cash flow process. However, scant research has been undertaken to empirically establish the cash flow performance and domino effect of APS on project and organisational performance.
Design/methodology/approach
The epistemological design adopted a positivist philosophical stance augmented by deductive reasoning to explore the phenomena under investigation. Primary quantitative data were collected from 504 Construction Industry Development Board (CIDB) registered contractors (within the grade bandings 1–9) in South Africa. A five-point Likert scale was utilised, and subsequent data accrued were analysed using structural equation modelling (SEM).
Findings
Emergent findings reveal that the mandatory use of an APS does not guarantee a positive project cash flow, an improvement in organisational performance or an improvement in project performance.
Practical implications
The ensuing discussion reveals the contributory influence of APS on positive cash flow and organisational performance, although APS implementation alone will not achieve these objectives. Practically, the research accentuates the need for various measures to be concurrently adopted (including APS) towards ensuring a positive project cash flow and improved organisational and project performance.
Originality/value
There is limited empirical research on cash flow performance and the domino effect of APS on project and organisational performance in South Africa, nor indeed, the wider geographical location of Africa as a continent. This study addresses this gap in the prevailing body of knowledge.
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