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Article
Publication date: 18 April 2023

Iman Youssefi and Tolga Celik

Total risk score (TRS) is considered one of the main indicators for risk evaluation. Several studies attempted to employ different types of risk indices for the evaluation of cost…

Abstract

Purpose

Total risk score (TRS) is considered one of the main indicators for risk evaluation. Several studies attempted to employ different types of risk indices for the evaluation of cost overrun causes. Hence, this study aims at performing a comparative analysis to evaluate the efficiency of three different approaches for TRS calculation.

Design/methodology/approach

Thirty-eight unique causes of cost overrun in urban-related construction projects were identified and a survey was conducted among construction professionals in Iran. The TRS for each cost overrun cause is calculated using single-attribute (SA), double-attribute (DA), and multiple-attribute (MA) approaches, and eventually, causes were ranked. Furthermore, principal component analysis (PCA), logistic regression analysis (LRA), and K-means clustering are utilized to compare the differences in the generated TRS using different approaches.

Findings

The results revealed that the TRS generated through the MA approach demonstrated the highest efficiency in terms of generating correlation between causes and their identified latent constructs, prediction capability, and classification of the influential causes in the same group.

Originality/value

The originality of this study primarily stems from the adoption of statistical approaches in the evaluation of the recently introduced TRS calculation approach in comparison to traditional ones. Additionally, this study proposed a modified application of the relative importance index (RII) for risk prioritization. The results from this study are expected to fulfill the gap in previous literature toward exploring the most efficient TRS calculation approach for those researchers and practitioners who seek to utilize them as a measure to identify the influential cost overrun causes.

Details

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

Keywords

Article
Publication date: 3 January 2023

Simon Wyke, Søren Munch Lindhard and Jesper Kranker Larsen

Cost and time are two of the primary benchmarks in which construction projects are measured. A variety of factors, however, affect cost and time on construction projects, as…

Abstract

Purpose

Cost and time are two of the primary benchmarks in which construction projects are measured. A variety of factors, however, affect cost and time on construction projects, as identified in previous research. This has led to a need for better understanding how factors affecting cost and time overruns on public construction projects can be managed more efficiently. The purpose of this paper is to address these issues.

Design/methodology/approach

In this study 26 factors affecting cost and time overruns on construction projects were identified, through qualitative interviews with project managers from Danish governmental agencies and through a literature review. Through principal component analyses the 26 factors were subsequently narrowed down to four primary latent factors.

Findings

The identified four latent factors affecting cost and time overruns on public construction projects were lack of quality management, lack of project pre-planning, lack of user management and lack of project management.

Originality/value

Previous research has focussed on increasing knowledge by identifying and ranking factors affecting time and cost performance. This has led to the identification of an overwhelming number of factors to use for managing construction projects. The present research reduced the number of factors by clustering them into key latent factors responsible for most of the deviation in performance, narrowing the scope of construction cost and time management into a few tangible key focus areas. This supports and improves fast decision-making that is necessary in a changeable environment such as construction.

Details

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

Keywords

Open Access
Article
Publication date: 4 December 2023

Francesca Pagliara, Walid El-Ansari and Ilaria Henke

The objective of this paper is to propose a methodology to estimate the benefits and costs of stakeholder engagement (SE). Indeed, in the transport sector, it is consolidated that…

Abstract

Purpose

The objective of this paper is to propose a methodology to estimate the benefits and costs of stakeholder engagement (SE). Indeed, in the transport sector, it is consolidated that a good decision-making process foresees the involvement of the main stakeholders, but what are the benefits and costs of the SE? How to quantify these impacts and explicitly take them into account in a cost-benefit analysis? In this paper, an attempt to answer these questions is provided.

Design/methodology/approach

In this paper, a methodology is proposed to estimate the benefits and costs of SE. Moreover, the proposed methodology is applied to a case study with an attempt to identify direct and indirect cost and benefit drivers within the context.

Findings

A range of examples of the monetary costs and benefits of SE is provided through the case study of the high-speed rail corridor connecting Bari and Naples in Italy.

Research limitations/implications

Limits in quantifying all the aspects of engagement.

Practical implications

To be adopted by public administrations when deciding whether carrying out a project.

Social implications

Social inclusion is a must in any decision-making process concerning big projects affecting the community.

Originality/value

The original value of this paper is to provide a contribution to the current literature on the quantitative representation of the impacts of SE. Indeed, a methodology to quantify and monetize the costs and benefits of SE is proposed.

Details

Smart and Sustainable Built Environment, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2046-6099

Keywords

Article
Publication date: 8 June 2023

Jean C. Essila and Jaideep Motwani

This study aims to focus on the supply chain (SC) cost drivers of healthcare industries in the USA, as SC costs have increased 40% over the last decade. The second-most…

Abstract

Purpose

This study aims to focus on the supply chain (SC) cost drivers of healthcare industries in the USA, as SC costs have increased 40% over the last decade. The second-most significant expense, the SC, accounts for 38% of total expenses in a typical hospital, while most other industries can operate within 10% of their operating cost. This makes healthcare centers supply-chain-sensitive organizations with limited facilities for high-quality healthcare services. As the cost drivers of healthcare SC are almost unknown to managers, their jobs become more complex.

Design/methodology/approach

Guided by pragmatism and positivism paradigms, a cross-sectional study has been designed using quantitative and deductive approaches. Both primary and secondary data were used. Primary data were collected from health centers across the country, and secondary data were from healthcare-related databases. This study examined the attributes that explain the most significant variation in each contributing factor. With multiple regression analysis for predicting cost and Student's t-tests for the significance of contributing factors, the authors of this study examined different theories, including the market-based view and five-forces, network and transaction cost analysis.

Findings

This study revealed that supply, materials and services represent the most significant expenses in primary care. Supply-chain cost breakdown results in four critical factors: facility, inventory, information and transportation.

Research limitations/implications

This study examined the data from primary and secondary care institutions. Tertiary and quaternary care systems were not included. Although tertiary and quaternary care systems represent a small portion of the healthcare system, future research should address the supply chain costs of highly specialized organizations.

Practical implications

This study suggests methods that can help to improve supply chain operations in healthcare organizations worldwide.

Originality/value

This study presents an empirically proven methodology for testing the statistical significance of the primary factors contributing to healthcare supply chain costs. The results of this study may lead to positive policy changes to improve healthcare organizations' efficiency and increase access to high-quality healthcare.

Details

Benchmarking: An International Journal, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1463-5771

Keywords

Article
Publication date: 16 February 2024

Nandini Sharma and Boeing Laishram

Construction industry faces challenges in making objective decisions due to monetary value attached to quality. Among various quality management techniques available, cost of…

Abstract

Purpose

Construction industry faces challenges in making objective decisions due to monetary value attached to quality. Among various quality management techniques available, cost of quality (COQ) is one such method used to address the concern. However, the absence of measurable COQ factors to monitor quality costs hampers the implementation of COQ framework in the construction industry. Therefore, this study aims to identify COQ factors focused on visible factors (VF) and hidden factors (HF) and the current requirements to achieve it.

Design/methodology/approach

This study is based on Preferred Reporting Items for Systematic Review and Meta-Analyses protocol guidelines. The present study identified 57 articles published between 1992 and 2023 in peer-reviewed journals.

Findings

The findings reveal 22 factors, which are grouped into four categories based on COQ. Through systematic review, the authors observed limited methodological and theoretical diversity. In fact, there are no quantitative frameworks to calculate COQ. The study, therefore, developed a framework comprising four major routes/paths of COQ factors within the framework.

Practical implications

The COQ routes developed through this study will enable the practitioners to meticulously categorise VF and HF, facilitating quantifying of quality throughout the lifecycle of project, which is currently absent from the existing quality assurance/quality control (QA/QC) approach. In addition, these COQ routes stand as essential construction strategies, significantly enhancing outcomes related to time, cost, quality, sustainability and fostering closer relationships within project frameworks.

Originality/value

The current study contributes significantly to the existing body of knowledge by developing various COQ routes and proposing future research directions to address gaps in the literature.

Details

Construction Innovation , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 1 August 2023

Youxi Zhang, Yu Liu, Rui Yu, Jian Zuo and Na Dong

Prefabricated construction (PC) can benefit construction industry due to its high efficiency, energy saving, consumption reduction and safety. However, the high capital cost is a…

Abstract

Purpose

Prefabricated construction (PC) can benefit construction industry due to its high efficiency, energy saving, consumption reduction and safety. However, the high capital cost is a critical challenge hindering its development in China. The collaboration of PC stakeholders is conducive to improving cost management efficiency and optimizing resource allocation which has been ignored in previous studies. Therefore, this study aims to explore the collaboration paths of stakeholders in the process of solving critical cost influencing factors (CIFs) of PC to reduce costs.

Design/methodology/approach

Firstly, 25 CIFs and five main stakeholders that affect PC capital cost were identified through literature research and expert interviews. Then, questionnaires were used to investigate the relationship between stakeholders and CIFs from the perspectives of three stakeholder attributes of proximity, attitude and power, respectively. Finally, based on the survey data, three stakeholder-CIF networks from three attributes perspective and a comprehensive network were constructed and used for subsequent social network analysis.

Findings

(1) Stakeholders mainly show willingness and potential to collaborate on organization and management factors; (2) More stakeholders pay attention to incentive policies and the setting of prefabrication rates and assembly rates, while all stakeholders have the right to facilitate information and resource sharing in the PC supply chain; (3) The comprehensive network shows a core-periphery structure. As core stakeholders, contractor, designer and manufacturer are more likely to actively manage the 14 core CIFs.

Originality/value

This paper innovatively combined stakeholder and cost management in PC, and used two-mode network based on three stakeholder perspectives to reveal the collaboration potential and motivation of stakeholders in PC cost management. The findings not only provide guidance for stakeholders to find potential partners and optimize resource allocation in solving specific cost issues, but also facilitate stakeholders' sustainable collaboration to achieve PC's cost performance.

Details

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

Keywords

Article
Publication date: 23 January 2024

Rohit Raj, Vimal Kumar, Ankesh Mittal, Priyanka Verma, Kuei-Kuei Lai and Arpit Singh

This study aims to identify and prioritize the key practices and strategies for effective global sourcing and supply chain management (SCM).

Abstract

Purpose

This study aims to identify and prioritize the key practices and strategies for effective global sourcing and supply chain management (SCM).

Design/methodology/approach

The study uses a combination of Pareto analysis and multi-objective optimization based on ratio analysis research methodology to analyze and establish the relationships among the identified key practices and strategies. Pareto analysis enables organization to prioritize organizational efforts and resources by focusing on the most critical factors.

Findings

The study shows that the “eco-friendly sourcing strategy”, “lean manufacturing” and “tool cost analysis” are the top critical practices and strategy variables for global sourcing and SCM, whereas the “risk management”, “procurement strategy” and “leverage digital solutions” are the critical practices and strategy variables.

Research limitations/implications

The findings of this research can also assist organizations in making informed decisions to optimize their global sourcing and supply chain operations.

Originality/value

By using these methods, this research paper gives valuable insights into the critical practices and strategies that can enhance efficiency, mitigate risks and drive success in global sourcing and SCM. The subjects and elements this study identified will serve as a framework and suggestions for further theoretical investigation and real-world implementations.

Details

Journal of Global Operations and Strategic Sourcing, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2398-5364

Keywords

Article
Publication date: 16 June 2023

Sou-Sen Leu, Kuang-Jen Huang, Cathy Chang-Wei Hung and Pei-Lin Wu

In recent years, cost overrun becomes a common problem in steel building construction projects. The average percentage can vary widely depending on the project type, size…

Abstract

Purpose

In recent years, cost overrun becomes a common problem in steel building construction projects. The average percentage can vary widely depending on the project type, size, complexity and location. The steel structure change ratio in Taiwan is from 1 to 18% in statistics. The contractors always put every possible effort into preventing or mitigating project cost overruns, and one of the approaches is an accurate cost overrun risk estimate. Traditional project cost overrun risk assessment models mainly focus on macro-level evaluation and may not function well for the project-specific level (micro-level). This study creates a network-like connection model between the outcome (i.e. cost overrun risk) and the associated root causes in which the project status evaluation checklists of design, manufacturing, construction and interfaces are used to evaluate the checklists' influences through the Bayesian network (BN) composed by intermediate causes.

Design/methodology/approach

Due to the constraint of data availability, BN nodes, relationships and conditional probabilities are defined to establish a BN-based steel building project cost overrun assessment model following the knowledge of experts. Because of the complexity of the BN, the construction of the BN structure is first to build BN's fault tree (FT) hierarchy. And then, basic BN framework is constructed by the transformation of the FT hierarchy. Furthermore, some worthwhile additional arcs among BN nodes are inserted if necessary. Furthermore, conditional probability tables (CPTs) among BN nodes are explored by experts following the concept of the ranked node. Finally, the BN-based model was validated against the final cost analysis reports of 15 steel building projects done in Taiwan and both were highly consistent. The overall BN-based model construction process consists of three steps: (1) FT construction and BN framework transformation, (2) CPT computation and (3) model validation.

Findings

This study established a network-like bridge model between the outcome (i.e. cost overrun risk) and the root causes in a network of which cost influences are evaluated through the project-specific status evaluation checklists of design, manufacturing, construction and interfaces. This study overcame several limitations of the previous cost overrun risk assessment models: (1) few past research support assessment of cost overrun based on real-time project-owned data and (2) the traditional causal models inadequately depict interdependencies among influence factors of cost overrun at the network. The main influence factors of the cost overrun risk at the steel building projects in Taiwan were also examined using sensitivity analysis. The main root causes of cost overrun in steel building projects are design management and interface integration.

Originality/value

The proposed model belongs to the project-specific causal assessment model using real-time project-owned status checklist data as input. Such a model was seldom surveyed in the past due to the complicated interdependence among causes in the network. For practical use, a convenient and simple regression equation was also developed to forecast the cost overrun risk of the steel building project based on the root causes as input. Based on the analysis of cost overrun risk and significant influence factors, proper tailor-made preventive strategies are established to reduce the occurrence of cost overrun at the project.

Details

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

Keywords

Article
Publication date: 8 August 2023

Mengkai Liu and Meng Luo

The poor capacity of prefabricated construction cost estimation is the essential reason for the low profitability of the general contractor. Therefore, this study aims to focus on…

Abstract

Purpose

The poor capacity of prefabricated construction cost estimation is the essential reason for the low profitability of the general contractor. Therefore, this study aims to focus on the cost estimation of prefabricated construction as the research object. This research aims to enhance the accuracy of total project cost estimation for general contractors, ultimately leading to improved profitability.

Design/methodology/approach

This study used Vensim PLE software to establish a system dynamics model. In the modeling process, a systematic research review was used to identify cost-influencing factors; ABC classification and the analytic hierarchy process were used to score and determine the weights of influencing factors.

Findings

The total cost error obtained by the model is less than 2% compared with the actual value. It can be used to cost estimation and analysis. The analysis results indicate that there are 7 key factors, among which the prefabrication rate has the most significant impact. Furthermore, the model can provide the extreme range cost; the minimum cost can reduce by 13% from the value in the case. The factor's value can compose a cost control strategy for general contractors.

Practical implications

The cost of prefabricated buildings can be estimated well, and deciding the prefabrication rate is crucial. The cost can be declined by correct cost control strategies when bidding and subcontracting are in process. The strategies can follow the direction of the model.

Originality/value

A systemic, quantitative and qualitative analysis of cost estimation of prefabricated buildings for general contractors has been conducted. A mathematical model has been developed and validated to facilitate more effective cost-control measures.

Details

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

Keywords

Article
Publication date: 19 July 2023

Hasith Chathuranga Victar, B.A.K.S. Perera, Asha Dulanjalie Palihakkara and Kaveesha Gihani Dewagod

The construction industry is shifting towards becoming more circular by reducing waste, reusing building materials and embracing regenerative solutions for energy generation and…

Abstract

Purpose

The construction industry is shifting towards becoming more circular by reducing waste, reusing building materials and embracing regenerative solutions for energy generation and biodiversity conservation. Thus, construction professionals must perform diversified services to achieve a circular built environment (CBE). Implementing resource planning and waste management in CBE has already posed challenges to the quantity surveying profession; thus, quantity surveyors (QSs) should be equipped with new roles and competencies to tackle challenges in achieving a CBE. Hence, this study aimed to investigate the functions and competencies of QSs at the design and building material sourcing stages in achieving a CBE according to 3R principles.

Design/methodology/approach

The research apprehended a qualitative approach, including two expert interview rounds adhering to the Delphi technique with 14 and 11 experts per each round. Manual content analysis was incorporated to analyse the collected data.

Findings

The research findings revealed the important roles and competencies of QSs in achieving a CBE. In addition, essential functions and competencies were categorised according to the 3R principles (reduce, reuse, recycle) to successfully implement CBE during the Design and Building Material Sourcing stages. According to the 3R principles of CBE, cost control, cost planning, feasibility studies, measurement and quantification, risk management, value engineering and innovations and technologies were well-received by most interviewees as essential roles of QSs during the Design and Building Material Sourcing stages. Further, basic/mandatory competencies (personal, interpersonal, professional practice and business skills), economic analysis, BIM management, cost management and risk management are highly regarded by experts for QS as important competencies to achieve CBE.

Originality/value

With new construction trends, QSs must enhance their conventional roles and competencies and search for new skills and competencies. Those skills and competencies could be linked to the CE concept, either directly or indirectly. Since QS holds a prominent place in sustainable construction in CBE, adapting to changes in the construction industry such as CBE is timely for QSs. Further, there is a shortage of literature regarding QSs' roles and competencies in achieving a CBE; thus, this study will contribute by identifying new avenues for QSs in achieving a CBE in the practice and the research.

Details

Smart and Sustainable Built Environment, vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 2046-6099

Keywords

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