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Article
Publication date: 27 June 2019

Jingxin Gao, Hong Ren and Weiguang Cai

High risk is one of the most prominent characteristics of the Chinese construction industry, and it poses a significant threat to construction projects. Owing to initiatives aimed…

Abstract

Purpose

High risk is one of the most prominent characteristics of the Chinese construction industry, and it poses a significant threat to construction projects. Owing to initiatives aimed at achieving high efficiency, low carbon emissions, etc., industrialization of the construction industry has become an inevitable trend in China. However, it remains to be discussed whether industrialization of construction can reduce the risks entailed in construction projects compared with traditional construction. The paper aims to discuss these issues.

Design/methodology/approach

Based on the theory of risk life cycle, this paper proposes a practical risk assessment technique to assess the risk life cycle, including the risk occurrence time and potential financial losses. This technique is then applied to assess the differences between the risks involved in an engineering, procurement and construction (EPC) project executed via traditional and industrial production modes.

Findings

The results show that the total duration of risks in the industrial construction project is half of that in the traditional project. In addition, the expected financial loss entailed in the industrial construction project is 29 percent lower than that in the traditional construction project. Therefore, industrial construction has the potential to optimize risk performance.

Originality/value

There is no significant difference between the traditional and industrial construction models in terms of probability of risk. The maximum total loss might occur in the procurement stage in the case of industrial production, and in the construction stage in the case of traditional production. Moreover, the total expected loss from risk in the EPC project in the industrial production mode is only half of that in the traditional production route. This study is expected to provide a new risk evaluation technique and promote an understanding of the life cycle of risk management in the construction industry.

Details

Engineering, Construction and Architectural Management, vol. 26 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 January 1966

August 9, 1966 Harrogate, Yorkshire Assessment to levy‐reduction in scope of trade of appellants ‐number of employees reduced — calculation of levy — whether fact that appellants…

36

Abstract

August 9, 1966 Harrogate, Yorkshire Assessment to levy‐reduction in scope of trade of appellants ‐number of employees reduced — calculation of levy — whether fact that appellants will not benefit from scheme valid ground for resisting assessment — Industrial Training Levy (Wool) Order 1965.

Details

Managerial Law, vol. 1 no. 1
Type: Research Article
ISSN: 0309-0558

Article
Publication date: 1 March 2007

AMR A G Hassanein and Waleed El Nemr

The term claim has become of paramount significance in construction projects worldwide. This research is targeted at providing a deeper insight of the status of claims management…

Abstract

The term claim has become of paramount significance in construction projects worldwide. This research is targeted at providing a deeper insight of the status of claims management in general and change order claims in particular with respect to the Egyptian industrial construction sector, as change orders have proven to be the main cause of claims in this sector. A questionnaire focusing on persistent issues noted in construction management literature within the past fifteen years was addressed to a selected sample of Egyptian construction industrial projects. The results furnished by the sampled projects demonstrated clearly that claims management in the Egyptian industrial construction sector has been suffering from a variety of impediments, including lack of proper notification procedures in public contracts and poor documentation management. The results indicated that oral change orders were present in nearly 76% of the sample projects and that half of these oral changes resulted in loss of rights due to improper documentation, which could be attributed to the lack of the contract awareness of the site team and to the “fear of consultant” phenomenon. The main cause of change orders was categorised by approximately 67% of the respondents as the additional scope of work, which was largely attributed to the fast track nature of the industrial sector. The research also identified several factors associated with time and cost increases of the sampled projects, among which were: private ownership and unit rate contracts. Finally, several recommendations for improving claims management are put forward. They included: the formation of a unified form of general contract condition for all the Egyptian industrial sector; the use of information technology systems in lieu of traditional filing procedures and the inclusion of a float‐sharing provision in contracts.

Details

Journal of Financial Management of Property and Construction, vol. 12 no. 1
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 6 May 2020

Edison Jolly Cyril and Harish Kumar Singla

This study aims to identify the most profitable segment of construction firms amongst real estate, industrial construction and infrastructure. This paper also examines the…

Abstract

Purpose

This study aims to identify the most profitable segment of construction firms amongst real estate, industrial construction and infrastructure. This paper also examines the determinants of profitability of real estate, industrial construction and infrastructure firms.

Design/methodology/approach

The data of 67 firms (20 real estate, 21 industrial construction and 26 infrastructure) is collected for a 15-year period (2003–2017). Two models are created using total return on assets (ROA) and return on invested capital (ROIC) as dependent variables.. Leverage, liquidity, age, growth, size and efficiency of the firm are identified as firm-specific independent variables. Two economic variables, i.e. growth in GDP and inflation, are also used as independent variables. Initially, the models are tested for stationarity, multicollinearity and heteroscedasticity, and finally, the coefficients are estimated using Arellano–Bond dynamic panel data estimation to account for heteroscedasticity and endogeneity.

Findings

The results suggest that industrial construction is the most profitable segment of construction, followed by real estate and infrastructure. Their profitability is positively driven by liquidity, efficiency and leverage. The real estate firms are somewhat less profitable compared to industrial construction firms, and their profitability is positively driven by liquidity. The infrastructure firms have low ROA and ROIC.

Originality/value

The real estate, infrastructure and industrial construction drastically differ from each other. The challenges involved in real estate, infrastructure and industrial construction are altogether different. Therefore, authors present a comparative analysis of the profitability of real estate, infrastructure and industrial construction segments of the construction and compare their determinants of profitability. The results provided in the study are robust and reliable because of the use of a superior econometric model, i.e. Arellano–Bond dynamic panel data estimation with robust estimates, which accounts for heteroscedasticity and endogeneity in the model.

Details

Journal of Financial Management of Property and Construction , vol. 25 no. 2
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 25 February 2021

Vineeth Dharmapalan, William J. O’Brien, Douglas Morrice and Minhyuk Jung

Stakeholders of construction projects exhibit different perceptions regarding the visibility of materials in the supply chain, which affects the timely delivery and installation…

Abstract

Purpose

Stakeholders of construction projects exhibit different perceptions regarding the visibility of materials in the supply chain, which affects the timely delivery and installation of materials. This study aims to quantitatively investigate the differences in viewpoints of owners, contractors, designers and suppliers about the visibility of materials at supply chain locations and different material types during the construction of industrial projects.

Design/methodology/approach

Survey data about visibility at nine typical supply chain locations and three common material types were collected from owner, contractor, designer and supplier groups and analyzed using frequency statistics, relative importance index and tests for equality of odds.

Findings

Offsite Tier-2 supplier, ports and kitting site shows the lowest visibility level for the owner, contractor, supplier and designer groups. Also, the supplier group tends to have adequate to extreme visibility at the Tier-2 supplier, kitting site and during transportation compared to owner, contractor and designer groups. An example finding concerning the visibility of material types is that owners and contractors perceive prefabricated material requires higher visibility than all other material types.

Research limitations/implications

The findings are limited to construction projects in the industrial sector. Further, the survey participants were based in North America at the time of participation.

Practical implications

The study’s findings indicate how visibility is spread across supply chain locations and for material types for the owners, contractors, suppliers and designers of industrial projects. As such, academia and industry’s research and investment efforts can be more focused on locations and material types that need improvement.

Social implications

Industrial projects play an essential part in improving society’s daily lives, and this study’s findings contribute to improving the efficiency of the supply chain during construction of industrial projects.

Originality/value

Although previous studies mentioned the need and importance of visibility improvement, none have sought to understand the perception of leading supply chain stakeholders about visibility at supply chain locations and of material types. This study’s findings provide specific insights and directions for advancing in these areas with regard to supply chain visibility.

Article
Publication date: 1 September 2017

Liming Xiao, Bin Han, Sainan Yang and Shuai Liu

The construction of industrial park in the current development model of circular economy has been widely regarded as one of the important modes of macroeconomic exploration all…

Abstract

The construction of industrial park in the current development model of circular economy has been widely regarded as one of the important modes of macroeconomic exploration all over the world. Therefore, the research on the application of multi-project management theory based on circular economy in the construction of industrial park was proposed in this paper. First, the circular economy and multi-project management theory were expounded in detail. Then, the geographical location of multi project management in Qingyuan recycled plastic industrial park in Guangdong Province and the distribution of each building community were explained. And on this basis, the construction of the park's production, plant areas, residential areas and the planning objectives after completion were analyzed in detail. On the basis of analysis, the multi project management model used in the park was explained. It is pointed out that the construction of the park should be based on its own planning and practical needs, and the appropriate multi project management model should be chosen.

Details

Open House International, vol. 42 no. 3
Type: Research Article
ISSN: 0168-2601

Keywords

Book part
Publication date: 6 February 2023

Begum Sertyesilisik

Production-related industrial zones, super structures and infrastructures are constructed by the construction industry. Nearly all industries and their environmental emissions are…

Abstract

Production-related industrial zones, super structures and infrastructures are constructed by the construction industry. Nearly all industries and their environmental emissions are influenced by the construction industry including its sub-industries, companies and their supply chains. Furthermore, cities play an important role in economic growth. Cities are hubs for productivity, production, supply and demand, and innovation with the help of their human capital and built environment (e.g. offices, factories, industrial zones, infrastructures, etc.).

Industrial growth fosters urbanisation which is vital for the supply side in the economy to reach to the human resources. Urbanisation which supports industrial growth obstacles industries’ efficiency due to urbanisation problems (e.g. traffic, air and water pollution, health problems).

Construction industry and its sub-industries affect total factor productivity growth in nearly all industries. Construction industry can be a facilitator industry for economic growth and industrial growth considering total factor productivity growth and environment aspects. All industries’ green and sustainable total factor productivity growth can be supported by rethinking construction industry, its sub-industries and their outputs (e.g. construction materials, built environment, cities) as well as construction project management processes.

This chapter aims to introduce carbon capturing smart construction industry model to foster green and sustainable total factor productivity growth of industries. This chapter emphasises current and potential roles of construction industry, its sub-industries and their outputs in fostering other industries’ growth through green and sustainable total factor productivity growth. It focusses on carbon capturing technologies and design at different levels. Furthermore, this chapter emphasises cities’ role in green and sustainable total factor productivity growth. This chapter provides recommendations for construction industry policies and carbon capturing cities/built environment model to solve urbanisation problems and to foster industrial growth and green and sustainable total factor productivity growth. This chapter is expected to be useful to all stakeholders of the construction industry, policy makers, and researchers in the relevant field.

Details

The Impact of Environmental Emissions and Aggregate Economic Activity on Industry: Theoretical and Empirical Perspectives
Type: Book
ISBN: 978-1-80382-577-9

Keywords

Article
Publication date: 5 September 2008

Amr A.G. Hassanein and Waleed El Nemr

This research aims at providing a better insight of the status of claims management in general, and change order claims in particular, from the contractor's perspective with…

1534

Abstract

Purpose

This research aims at providing a better insight of the status of claims management in general, and change order claims in particular, from the contractor's perspective with respect to the Egyptian industrial construction sector, as they proved to be the main cause of claims in this sector.

Design/methodology/approach

A questionnaire survey discussing the most persistent issues of claims management in general, and change order claims in particular, was conducted on a selected sample of construction industrial companies.

Findings

The results demonstrated that claims management in the Egyptian industrial sector has been suffering from a variety of obstacles, including lack of proper notification procedures in public contracts and poor documentation management. Change orders had been actually lost due to poor documentation. Oral change orders were present in approximately 76 per cent of the projects; half of which resulted in loss of rights due to improper documentation, which was largely attributed to the lack of contract awareness of the site team, and to the “fear of consultant phenomenon”.

Practical implications

The paper presented several recommendations for improving claims management including: the formation of a standard form of contract general conditions for the Egyptian industrial sector, and applying a methodological approach for change orders quantification.

Originality/value

The increasing number of international companies contemplating construction projects in Egypt, and the significant problems with regards to claims propagation and management, addressed the need to conduct such study that targets one of the most challenging areas in the Egyptian construction industry.

Details

Engineering, Construction and Architectural Management, vol. 15 no. 5
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 2 May 2008

Amr A.G. Hassanein and Waleed El Nemr

This research aims to provide a better insight into the status of claims management in general, and change order claims in particular, from the contractor's perspective with…

1684

Abstract

Purpose

This research aims to provide a better insight into the status of claims management in general, and change order claims in particular, from the contractor's perspective with respect to the Egyptian industrial construction sector, as they proved to be the main cause of claims in this sector.

Design/methodology/approach

A questionnaire survey discussing the most persistent issues of claims management in general, and change order claims in particular, was conducted on a selected sample of construction industrial companies.

Findings

The results demonstrated that claims management in the Egyptian industrial sector has been suffering from a variety of obstacles, including lack of proper notification procedures in public contracts and poor documentation management. Change orders had been actually lost due to poor documentation. Oral change orders were present in approximately 76 percent of the projects; half of which resulted in loss of rights due to improper documentation, which was largely attributed to the lack of contract awareness of the site team, and to the “fear of consultant phenomenon”.

Practical implications

The paper presents several recommendations for improving claims management including: the formation of a standard form of contract general conditions for the Egyptian industrial sector, and applying a methodological approach for change orders quantification.

Originality/value

The increasing number of international companies contemplating construction projects in Egypt, and the significant problems with regards to claims propagation and management, addressed the need to conduct such a study, which targets one of the most challenging areas in the Egyptian construction industry.

Details

Engineering, Construction and Architectural Management, vol. 15 no. 3
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 January 2021

Wei Pan, Le Chen and Wenting Zhan

This paper explores the vocational training of construction workers in Guangdong Province of China and identifies its position in the global political-economic spectrum of skill…

419

Abstract

Purpose

This paper explores the vocational training of construction workers in Guangdong Province of China and identifies its position in the global political-economic spectrum of skill formation.

Design/methodology/approach

The paper reviews construction vocational education and training (VET) of major political economies to develop a theoretical framework that guides an in-depth case study of Guangdong. Document analysis, field trip observations, meetings and semi-structured interviews were combined to explore the political-economic environment, political stakeholders and quality assurance mechanisms of industrial training in Guangdong's construction sector. The findings were compared with construction VET of other economies reported in the literature.

Findings

Construction training in Guangdong is deeply rooted in the local history and culture, under strong dominance of the state, while continually evolves to respond to the fluid market and therefore can be conceptualised as “market-in-state”. The political stakeholders are embedded within the state to ensure that skills policies are implemented in-line with industry policies. The differences between the training of Guangdong and its foreign counterparts are attributed to their divergent political-economic models.

Research limitations/implications

As the case study was undertaken only with Guangdong, the generalisability of its findings can be improved through future research within a broader context of multiple provinces of China through both qualitative and quantitative research approaches.

Practical implications

Plausible foreign VET approaches are likely adaptable to the Chinese context only when conducive political-economic environment could be enabled. The findings are useful for developing countries to learn from the VET experience of industrialised economies. Construction workers' training in Guangdong can be improved by strengthening labour regulation at lower subcontracting levels and ensuring the presence of industrial associations and unions for collective training supervision.

Originality/value

The paper contributes to the field of construction engineering and management with a theoretical framework that guides empirical studies on the influence of the political-economic environment upon the ways political stakeholders develop and participate in construction VET. The exploration based on this framework revealed the position of the vocational training of construction workers in Guangdong in the global political-economic spectrum of skill formation.

Details

Engineering, Construction and Architectural Management, vol. 28 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

1 – 10 of over 61000