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Open Access
Article
Publication date: 23 December 2022

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…

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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.

Details

International Journal of Managing Projects in Business, vol. 16 no. 8
Type: Research Article
ISSN: 1753-8378

Keywords

Open Access
Book part
Publication date: 1 May 2019

Olav Torp, Ingemund Jordanger, Ole Jonny Klakegg and Yvonne C.B. Bjerke

The purpose of the paper is 1) to address the importance of contingency at the right level when defining project control baseline, including cost reserves / “room to manoeuvre”…

Abstract

Purpose

The purpose of the paper is 1) to address the importance of contingency at the right level when defining project control baseline, including cost reserves / “room to manoeuvre” and 2) present proactive uncertainty management as a regime to ensure cost effective management of project reserves and contribute to project success.

Design/Methodology/Approach

The paper is a combination of literature study and quantitative research on how contingency develops during the lifetime of a case project. The investigation into the case project includes document study into quantitative material from the case project. The combination of empirical material and theory makes the discussion robust.

Findings

Unrealistic low cost uncertainty will lead to unrealistic low contingency. The case study from a Norwegian mega project shows a contingency of 15 per cent in addition to expected costs. The case study shows that by continuous opportunity management and risk reduction, the needs for management reserves are systematically reduced and the contingency is controlled.

Research Limitations/Implications

This research is limited to one case study. A higher number of cases are necessary to generalise the findings. However, the authors would claim that the systematic mapping of need for management reserve towards the project contingency, and a continuous uncertainty management system will help to obtain cost effective management. The findings from the case study could be applied on similar cases.

Practical Implications

The case study shows a way of setting contingencies and managing contingencies through systematic uncertainty management.

Originality/Value

Improved management of project provisions will increase the value of future projects.

Details

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

Keywords

Article
Publication date: 21 March 2008

Nils O.E. Olsson, Agnar Johansen, Jan Alexander Langlo and Olav Torp

The purpose of this paper is to discuss measurement of project success in an ownership perspective.

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Abstract

Purpose

The purpose of this paper is to discuss measurement of project success in an ownership perspective.

Design/methodology/approach

The research is based on a case study of owner structures in 11 projects. For each case, an analysis was made of which stakeholder that held six different roles related to project ownership. Multiple sources of information are used, including archives, interviews and observations.

Findings

Results from the study indicate that owner responsibilities are not always concentrated to one individual stakeholder in a project. While a traditional owner can be identified for some projects, it is a more complex picture for many other projects.

Research implications/limitations

This paper has primarily analysed project ownership on a macro level, between organisations. Challenges related to identifying owners can to a certain extent also be found on a micro level, within the most involved organisations, but this has not been the aim of the research.

Practical implications

Measurement of project success in a project owner perspective needs to be adjusted to fit the projects in question. While the question “Who owns a project” is easy to answer in some cases, it requires a more differentiated answer in other cases.

Originality/value

Most literature on project ownership focuses on one owner who has all the characteristics of the owner. It is based on one stakeholder who takes the risk related to the cost and future value of the project. The study shows that owner responsibilities are not necessarily concentrated to one individual stakeholder in a project.

Details

Measuring Business Excellence, vol. 12 no. 1
Type: Research Article
ISSN: 1368-3047

Keywords

Article
Publication date: 22 June 2010

Ole Jonny Klakegg, Olav Torp and Kjell Austeng

The purpose of this paper is to describe the transfer of experiences to improve the basis for overcoming the dilemma of trying to achieve analyses and systems that are both good…

Abstract

Purpose

The purpose of this paper is to describe the transfer of experiences to improve the basis for overcoming the dilemma of trying to achieve analyses and systems that are both good and simple. The quality of decisions relating to projects depends on how well the assumed basis for the project actually fit the reality of the situation in which the consequences occur. Good value and cost estimations support good decisions about projects insofar as the assumptions on which they are based mirror the reality, and the decision makers can understand the analysis.

Design/methodology/approach

The paper uses a longitudinal case study and qualitative analysis. Data relating to a large number of cases have become available to the authors through many years of research and consulting activities. Through joint experience and discussion the patterns are analysed. This paper is descriptive with respect to the challenges and empirical examples. The analysis itself ends with a rather normative conclusion.

Findings

There is a dilemma embedded in the processes used to analyse uncertainty and risks associated with projects. On the one hand, an important task is to reduce the complexity of a given situation to render the issues sufficiently simple for them to be understood and assessed. On the other hand, the models and assumptions upon which an analysis is based have to be sufficiently precise and detailed in order to make sense. The same dilemma is found when considering actions to address risks and uncertainties, as well as in designing management systems. It is concluded that the dilemma is real. Solutions have to be found among both good and simple options.

Research limitations/implications

The paper does not answer questions on “how to” and does not dig deep into theoretical perspectives on the current dilemma. More research to understand all aspects of the issue is needed.

Practical implications

Uncertainty analysis and management systems have to be good (precise enough) and at the same time simple (practical). There is no value unless it is used. Practical examples in the paper are intended to help practitioners identify alternative options.

Originality/value

The dilemma of good and simple has not been explicitly addressed before in light of practical experience and theory. The value added is increased awareness of an important problem in analytical processes.

Details

International Journal of Managing Projects in Business, vol. 3 no. 3
Type: Research Article
ISSN: 1753-8378

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

Article
Publication date: 5 February 2020

Teresa Beste

The purpose of this paper is to analyze the effect of a systematic commissioning process on project management performance of construction projects, expressed as cost, time…

Abstract

Purpose

The purpose of this paper is to analyze the effect of a systematic commissioning process on project management performance of construction projects, expressed as cost, time, quality and customer satisfaction. The building commissioner in focus uses the term systematic completion (SC), defining it as a structured process, throughout the whole project assuring the fulfillment of functional requirements in the building.

Design/methodology/approach

A qualitative single case study was used to analyze the effect of a SC process by one Norwegian building commissioner in the public sector, exemplified with four projects. The analysis was conducted by studying project documents and conducting interviews.

Findings

SC has a positive effect on the performance of a construction project, enabling completion on cost, schedule and with fewer defects at handover. Involving facility management assures mutual learning, trained operations personnel and potentially lower costs of operations because of fewer corrections and optimized systems. Higher efforts and resource use in the early phases of the project and in testing are largely offset by the generated benefits.

Research limitations/implications

This case study is limited to the building commissioner’s perspective in four projects. The design team’s, the contractor’s and the client’s perspectives are not represented in the study. Only one of the projects is completed, which limits the ability to draw quantitative conclusions.

Originality/value

Existing studies focus on the technical aspect of SC. The present study provides valuable insights into the effect of SC on project management performance, especially on its implications for the takeover of the building by operations.

Article
Publication date: 4 January 2016

Bjorn Andersen, Knut Samset and Morten Welde

The purpose of this paper is to adopt an in-depth perspective on cost estimation, from the development of the initial idea until the budget is agreed, to obtain new insights into…

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Abstract

Purpose

The purpose of this paper is to adopt an in-depth perspective on cost estimation, from the development of the initial idea until the budget is agreed, to obtain new insights into issues of underestimation at the front-end.

Design/methodology/approach

The study uses a small sample of projects with exceptional increases in cost estimates during the front-end phase. The authors analyzed the magnitude of cost increases and possible reasons for them.

Findings

The paper concludes that underestimation in the front-end phase was significant in the sample and poses a serious problem in that suboptimal projects are approved. The causes of underestimation include underestimating risk, overestimating opportunities, inadequate estimation methods and skills, reliance on weak information, and strategic/deliberate scope creep and division of projects.

Research limitations/implications

The study builds on a small sample, and hence further studies should be undertaken to verify whether the findings are generalizable.

Practical implications

The sample shows that the projects with the most unrealistic early estimates have disputable relevance. The paper suggests a number of recommendations that might help to counter the problem of unrealistic early cost estimates, which in turn, might allow suboptimal projects to be funded.

Originality/value

The underestimation of costs at the front-end is grossly neglected in the literature compared with whether costs comply with the budget. While cost overruns are an indication of failure in terms of the project’s tactical performance, the contention is that the up-front underestimation of costs might result in an inferior project being selected and thus affect the strategic performance of the project.

Details

International Journal of Managing Projects in Business, vol. 9 no. 1
Type: Research Article
ISSN: 1753-8378

Keywords

Open Access
Article
Publication date: 14 June 2022

Thomas Dahl and Eirik J. Irgens

Is there a specific way of thinking about organisational learning in Nordic countries? Are concepts such as organisational learning and learning organisations imported, or do they…

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Abstract

Purpose

Is there a specific way of thinking about organisational learning in Nordic countries? Are concepts such as organisational learning and learning organisations imported, or do they emerge with specific meanings from more local discourses? Beyond that, are they supported by specific learning theories? The purpose of this paper is to trace the way that the concepts of organisational learning and learning organisations appear in research and policy documents in Norway and to identify what sort of learning theories pertain to those concepts. The authors discuss whether Norway’s case exemplifies a Nordic way of thinking about learning in organisations.

Design/methodology/approach

Through an archaeological investigation into the concepts of organisational learning and learning organisations, the authors explore the theoretical and cultural framing of the concepts in research and policy. The authors limit our work to large industrial field experiments conducted in the 1960s and to large education reform in the 2000s.

Findings

During the industrial field experiments in the 1960s, the concept of organisational learning evolved to form participatory learning processes in non-hierarchical organisations able to contribute to democracy at work. Education policy in the 2000s, by contrast, imported the concept of the learning organisation that primarily viewed learning as an instrumental process of knowledge production. That strategy is incommensurable to what we define as a Nordic way, one in which learning is also understood as a cultural and social process advanced by democratic participation.

Originality/value

The authors add to organisational learning theories by demonstrating the importance of cultural context for theories and showing that the understanding of learning is historically and culturally embedded.

Details

The Learning Organization, vol. 29 no. 3
Type: Research Article
ISSN: 0969-6474

Keywords

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