Search results
1 – 10 of over 7000GARY D. HOLT, PAUL O. OLOMOLAIYE and FRANK C. HARRIS
The procedural and administrative aspects of UK tendering have remained largely unaltered for decades but this may soon change in light of the recent review of the construction…
Abstract
The procedural and administrative aspects of UK tendering have remained largely unaltered for decades but this may soon change in light of the recent review of the construction sector, headed by Sir Michael Latham. This paper presents findings of a nationwide survey of UK construction contractors assessing their opinion of the Latham procurement recommendations, along with their opinion of the authors' proposals for alternative selection procedure. Contractor usage/opinion of current tendering methods, tendering documentation and contractual arrangements are also identified. Analysis techniques primarily involve the derivation of contractor preference, agreement and importance indices (Pri, Agi and Imi respectively). Results show that clients are attempting to cut costs by increased use of open tendering coupled with plan and specification tender documentation, but that savings are offset by clients ultimately paying for contractors' costs associated with their achieving contract award for only 1 in 5 bids. Generally, contractors are in tune with the ideals of the Latham review and characteristics pertaining to the HOLT (Highlight Optimum Legitimate Tender) selection technique.
Details
Keywords
Adnan Enshassi, Sherif Mohamed and Ala'a El Karriri
The purpose of this paper is to identify and rank the factors that affect the bid/no bid decision according to their relative importance from the perspective of the contracting…
Abstract
Purpose
The purpose of this paper is to identify and rank the factors that affect the bid/no bid decision according to their relative importance from the perspective of the contracting parties operating in the Gaza Strip, Palestine.
Design/methodology/approach
The objectives of this research were investigated through a postal questionnaire, which covered a randomly selected sample of 63 contractors, 29 clients and 13 consultants operating in the construction industry in the Gaza strip. The questionnaire was structured based on related literature, the pilot study and actual factors affecting bidders' decisions to bid or not that arise from special conditions in the Gaza Strip. A total of 78 factors that affect the bid/no bid decision were identified. These factors were then ranked according to their relative importance to contracting parties operating in the Gaza Strip, Palestine.
Findings
The results illustrate that the financial capability of the contractors, the financial capability of the clients, the financial values of the project, the due date of the payments, the availability of construction raw materials in local markets, and the stability of the construction industry were the most critical factors affecting the bid/no bid decision, as agreed by all respondents.
Originality/value
The paper provides supportive practical solutions for contractors, clients and consultants to enhance and improve bidding decisions. It is recommended that clients and consultants consider the financial capabilities, technical capabilities and staff competencies of the contractors during the awarding stage, and not simply focus on the lowest bid.
Details
Keywords
Akintola Akintoye and Jamie Main
The purpose of this paper is to describe UK contractors' perceptions of collaborative relationships in construction.
Abstract
Purpose
The purpose of this paper is to describe UK contractors' perceptions of collaborative relationships in construction.
Design/methodology/approach
Based on a UK wide postal questionnaire survey, the opinions of contractors were assessed on reasons for collaborative relationships and the factors that are responsible for the success and failure of collaborative relationships in construction development. The respondents were split into two groups (SME's and large) based on their number of employees, to determine whether their responses varied with size as part of the analysis. Statistical analyses, based on Analysis of Variance (ANOVA) and factor analysis technique were used to investigate the cluster of relationships.
Findings
The research shows that UK contractors are positive about collaboration and are engaged in collaborative relationships for construction developments. Factor analysis shows that the principal reasons why contractors are involved in collaborative relationships are for risk sharing, access to innovation and technology, response to market, resource efficiency and client requirements. The principal success factors are commitment of adequate resources from the partners, equity of relationship, recognition of the importance of non‐financial benefits and clarity of objectives while the principal failure factors are lack of trust and consolation and lack of experience and business fit.
Practical implications
Drawing from the findings, the study confirms that construction collaborative relationships are customer driven with very little consideration for competitors, suppliers and subcontractors although a a true collaborative relationship should take into account all the parties involved in construction development supply and demand chains to reap the full benefits.
Originality/value
The paper makes an original contribution of exploring the area of relationships in construction in the UK from the contractors point‐of‐view. The contents within the paper will be of interest to those working within the field.
Details
Keywords
Hesham S. Ahmad, Maha D. Ayoush and Majed S. Al-Alwan
The purpose of this paper is to investigate the main causes of delay in public construction projects. This is motivated by feedback from public construction experts concerning…
Abstract
Purpose
The purpose of this paper is to investigate the main causes of delay in public construction projects. This is motivated by feedback from public construction experts concerning substantive delays during the last decade. The study thus seeks to help decision makers in Jordan and elsewhere identify problems and develop mitigating strategies.
Design/methodology/approach
Causes of delay were identified from previous related studies and then augmented after consultation with experts. This resulted in 56 delay factors classified into eight groups. The sampling frame for the study was defined in terms of public construction projects (mostly related to roads) owned by the Ministry of Public Works and Housing in Jordan. A survey was conducted with engineers working as representatives of the owner, contractors or consultants to elicit and evaluate the importance of the 56 delay factors.
Findings
Overall, 113 completed questionnaire responses were returned and analyzed to rank the causes of delay using the relative importance index method. Owners and consultants showed more interest in factors related to themselves, while contractors showed highest interest in an external factor related to the owner of services. Four recommendations are put forward for decision makers to mitigate against delays.
Originality/value
This research investigates a relatively large number of delay factors compared to other studies and these are categorized into groups to facilitate thematic understanding. Further, compared to previous related research, this research fills a gap by exploring the opinions of different contract parties.
Details
Keywords
This paper aims to present the outcome of a study conducted on the impact that cost-based contractor selection (CBCS) might have on construction project performance. Several…
Abstract
Purpose
This paper aims to present the outcome of a study conducted on the impact that cost-based contractor selection (CBCS) might have on construction project performance. Several criteria are normally used to select construction contractors, competitiveness of the quoted prices of the prospective contractors is one such important criterion. However, choosing contractors solely on the basis of the quoted price may cause poor performance in the construction project.
Design/methodology/approach
A quantitative approach was adopted. A critical review of the literature was conducted to develop 50 survey questions relating to the problems that CBCS might have on construction project performance.
Findings
Analysis of close data obtained from the survey of construction experts showed the nature of project performance problems associated with the CBCS to be project time delays and non-compliance with construction standards. The major reason they occurred was found to be the reduced profit margin for contractors.
Research limitations/implications
The research sample size is small and restricted to construction professionals in Brunei.
Practical implications
The study findings present updated information to construction professionals about the inherent impacts of choosing contractors based on cost. Furthermore, this study enhances the approach of selecting contractors within the construction industry.
Originality/value
The study made strong and unique arguments about the problems associated with choosing construction contractors based on cost. This study contributes to the body of knowledge relevant to the management of construction projects.
Details
Keywords
Hanh Tran and David G. Carmichael
A common distraction to contractors is that of cash management, and particularly incoming payments. In the extreme, a failure to manage a project's cash flows may bring about…
Abstract
Purpose
A common distraction to contractors is that of cash management, and particularly incoming payments. In the extreme, a failure to manage a project's cash flows may bring about business failure. A contractor's financial viability rests on how actual payments from an owner are received. The purpose of this paper is to present a method for contractors to evaluate the punctuality and fullness of owner payments based on historical behaviour.
Design/methodology/approach
Owners are classified according to their late and incomplete payment practices. The payment profile of an owner, in the form of aging payments received based on claims, is used as a basis for the method's development. Regression trees are constructed based on three predictor variables, namely, the average time to payment following a claim, the total amount ending up being paid within a certain period and the level of variability in claim response times.
Findings
The method will be of interest to contractors concerned with managing their cash positions, as well as those persons looking at contractor‐owner relationships.
Practical implications
The method is intended to be used internally within a contractor's organisation to assist in decision making. The method can also be used by subcontractors, suppliers, and consultants. Owners may use the method reflectively to improve their own practices, to save time and cost by reducing disputes, and to develop better owner‐contractor relationships.
Originality/value
This paper represents an original approach, and an original contribution to contractor pre‐tendering risk analysis practices, and an extension to contractor claim‐payment analysis.
Details
Keywords
Brant Mock and James T. O’Connor
The purpose of this study is to discover which solution strategies to common industrial commissioning and startup (CSU) problems (Hot Spots) owner and contractor organizations…
Abstract
Purpose
The purpose of this study is to discover which solution strategies to common industrial commissioning and startup (CSU) problems (Hot Spots) owner and contractor organizations identify as most effective and to identify which strategies are identified by one or both organization types.
Design/methodology/approach
Ratings for the relative value provided by strategies, and the effort required to implement strategies were solicited from CSU industry experts employed by owner or contractor organizations via a survey. Quantitative modelling using the Possible, Implement, Challenge, Kill (PICK) chart method distinguished high-value, low-effort strategies from other strategies.
Findings
Owners and contractors identify distinct sets of CSU solution strategies as high value and low effort, with some overlap. Of 178 total strategies, 40 (22.5 per cent) were identified by owners and 34 (19.1 per cent) by contractors, with 19 (10.7 per cent) of those strategies in common. Strategies with the greatest differences in opinions between owners and contractors are also identified.
Research limitations/implications
Research findings are limited to industrial-type, operational systems-intensive facilities. Similarities may exist with other systems-intensive project types, such as some commercial or infrastructure projects. The survey sample size is relatively small (n = 35), but close to that of other CSU-related surveys. The majority of survey participants were based in North America at the time of participation. Further, the number of contractor and owner participants differed slightly.
Practical implications
CSU managers and personnel should consider using high-value, low-effort strategies before resorting to other less effective strategies, as applicable on their projects. Depending on which organization is executing CSU, or if both organization types share CSU responsibilities, different solution strategies may be most effective.
Originality/value
Differences in owner and contractor perspectives and opinions have been noted in other aspects of the project lifecycle but never for CSU solution strategies. Use of the strategies identified will support more effective CSU execution.
Details
Keywords
CHEE H. WONG, GARY D. HOLT and PHIL HARRIS
The ‘lowest‐price wins’ philosophy has been a consistent theme of contractor selection over the years. To comprehensively elucidate this selection preference and compare it with…
Abstract
The ‘lowest‐price wins’ philosophy has been a consistent theme of contractor selection over the years. To comprehensively elucidate this selection preference and compare it with the use of a multi‐criteria selection (MCS) approach in the tenderer evaluation process, this paper investigates MCS tender price selection preferences. That is, project‐specific criteria (PSC) and lowest‐price wins selection practices of UK construction clients, in both building and civil engineering works at in detail via results of the empirical survey. The investigation provides further insight into the evaluation of contractors' attributes (i.e. PSC). Levels of importance assigned (LIA) for each criterion were analysed (i.e. quantitative analysis of the differences in opinions and, variance amongst the respondents) in a multivariate statistical method. Importance attached by construction clients to the ‘lowest‐price wins’ philosophy is also presented. Contrast was made between the MCS approach and the ‘lowest‐price wins’ option amongst the surveyed construction clients. It was found that increased awareness of the use of PSC prevailed amongst the survey construction clients. This indicated that cost has to be tempered with the evaluation of PSC and the attempt of construction clients searching for a new evaluation paradigm (i.e. adoption of MCS approach rather than basing on the lowest‐price wins alone).
Details
Keywords
Yongtao Tan, Li‐Yin Shen and Craig Langston
Proper assessment of contractors' competitiveness is important for assisting contractors in taking internal analysis and for assisting clients in selecting suitable contractors…
Abstract
Purpose
Proper assessment of contractors' competitiveness is important for assisting contractors in taking internal analysis and for assisting clients in selecting suitable contractors. This paper seeks to address this issue.
Design/methodology/approach
With previously identified contractor key competitiveness indicators (KCIs), this study presents a fuzzy competitiveness rating (FCR) method for measuring contractor competitiveness with reference to the Hong Kong construction industry. A set of linguistic terms is used for facilitating the assessment process.
Findings
For illustration, an example is used to show the application of the FCR method. The results provide valuable information for helping contractors in the local construction industry to understand their competitive advantages and weaknesses, and to formulate effective competition strategies to improve their competitiveness.
Research limitations/implications
The model used in this study is not validated by real cases. In a future paper, the model will be further demonstrated by conducting real case studies, and the linguistic terms and corresponding fuzzy numbers will also be re‐defined based on the collected data.
Originality/value
As the competitiveness assessment process involves complexity and uncertainty, a fuzzy competitiveness rating method is considered suitable for reflecting the reality and the assessment panel can easily give their opinions by using the linguistic language.
Details
Keywords
Zayyana Shehu, Intan R. Endut and Akintola Akintoye
The delivery of construction projects in Malaysia is plagued by time overruns, which turns what should have been successful projects into those incurring additional costs, or…
Abstract
Purpose
The delivery of construction projects in Malaysia is plagued by time overruns, which turns what should have been successful projects into those incurring additional costs, or money-losing ventures; as well as leading to various other unexpected negative effects and faute de mieux situations. The purpose of this research is to assess those factors leading to time overrun in Malaysian construction projects. The perceptions of public and private sectors, contractors, clients, and consultants are compared relative to a list of factors derived from the review of extant literature in project delay.
Design/methodology/approach
The research data were collected through an industry-wide questionnaire survey circulated across the Malaysian construction industry. The research develops a list of 84 time overrun factors. Responses were collected from 49 clients, 51 contractors, and 105 consultants, to explore and analyse the major factors that are responsible for causing time overrun based on sectors (public and private), organisations (clients, contractors and consultants) and professional roles.
Findings
Project delays beyond contract dates are predominantly caused by contractors and are usually associated with financial factors. “Cash flow problems faced by the contractors” was found the major factor, which contributed to project delays, whereas “storage on site” was seen as the least significant factor.
Practical implications
It is noteworthy that the findings in this research have a regional focus; it is, therefore, suggested that readers from other sections of the world exercise caution in applying the findings. As it is believed that every construction industry has its nature, culture and regulations, these factors can change as a result of such differences.
Originality/value
This research provides stakeholders with information on factors, which, if properly understood, can make project delays less likely.
Details