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There has been a lack of research, particularly within the New Zealand (NZ) context, focusing on the identification and assessment of risk factors for construction projects, leading to a wide variation between design-phase elemental cost plans (ECPs) and the outturn tender sums (OTS). Still to be investigated is how risks interact to produce such variability. This study aims to determine the risk-influencing factors, identified through risk measurement, during design development.

This study adopted literature review and online questionnaire survey. The literature review was used to identify the factors affecting project budgetary performance, which was used to design the questionnaire survey culminating in data analysis. The questionnaire was administered to 64 practising project managers (PMs) in NZ. Their responses were analysed using descriptive statistics, mean ranking analysis, degree-of-risk measure and correlational analysis, to find the top-five risk factors impacting the variability observed, through ranking the mean and degree of risk values that produce such variability.

Significant risk factors were identified from the questionnaire survey analysis, such as changes in project owner/stakeholder requirements, experience of project team, site condition information, competency of consultants and information flow and quality. These provided some insights in explaining the variability between the design-phase ECPs and OTS based on risk impacts from PMs’ viewpoints.

Findings revealed a drift of 23.86% in budgeted costs (inflated risks), which seems significant. Prioritising top risk factors may provide handy information for researchers on the variables that could be relied upon for the development of a forecasting model for application in NZ.

The study findings have implications for PMs seeking to provide information on mitigation strategies by using risk management approach, considering the influence of development risks on building project delivery and, consequently the project owner’s financial position. To guard against wide variation between design-phase ECPs and OTS, the main contribution of this study is to raise consultants’ awareness of the important risk factors for their planning at the outset, thus assisting PMs in pro-actively managing their clients' budgets.

This study creates value by synthesising literature on construction project budgeting and highlighting areas for further research. By giving adequate attention to key risks associated with budget overruns in commercial projects, variability between ECPs and OTS, a common phenomenon in NZ, can be controlled to achieve cost savings. Based on this, further study suggests the development of a model that could assist the stakeholders in NZ to more reliably predict OTS from the design-phase ECP and pro-actively avoid unfortunate budget/cost overruns, disputes and even project abandonment.

The purpose of this paper is to identify how much particular variables influence the cost differences between order values and final accounts for certain trade subcontractors.

The methodology consists of a literature survey and a case study. A sample of 33 projects, undertaken by a contracting organisation, are analysed as a basis for testing their significance.

For highly asset specific transactions the research suggests that the level of variables which can affect their performance is greatest, suggesting integration within the contracting firm to mitigate the threat of opportunistic behaviour. Procurement route utilised on a project was strongly linked to outturn cost performance, as is inclusion in the tender bid, suggesting earlier subcontractor involvement through design and build and partnering arrangements is significantly better at managing subcontractor cost performance than traditional routes.

The market volatility of the construction industry has meant the procurement of subcontractors has long been established as an important part of the project coalition. Transaction cost economic theory has recently become popular within the construction research industry. Much of this research has examined the vertical boundaries to which a construction firm is subjected when considering integration of trades or continued use of subcontractors. Empirical data on the cost performance of subcontractors within a project environment are not widely available. For this reason, this research aids practitioners and researchers by identifying why particular variables influence the cost differences between order values and final accounts for certain trade subcontractors.

Early involvement of the construction team is increasingly utilized in demanding projects to incorporate versatile expertise in their planning. For public owners this is a challenge since they are obliged to use competitive, transparent team selection based on the ‘most economically advantageous’ criterion which ensures that both price and quality viewpoints are taken into account. In the case of early involvement, the price component naturally does not include the total price, but may consist only of the fee-percentages of competing service providers. This study examines such a selection situation in project alliancing in the European context and seeks to find a way to integrate the fee component in a multi-criteria selection system and determine reasonable fees for different levels of capabilities. The study builds on the performance difference between different capabilities, derived from a survey of practitioners, and determines an indifference curve arithmetically for the planning of a selection method. The influence of the owner‘s risk attitude and risk premiums are also considered exploratively based on the pricing methods of the theory of finance.

This paper supplements and extends consideration of quantitative models with application to building (costs and) prices by examining human elements inherent in modelling. In considering the concepts of modelling, attention is focused on the recently developed sociology of science, which questions the traditional perspective of total separation of a reality from the observer—the ‘objective’ basis of scientific positivism. It is argued that human activities are fundamental in, and inseparable from, reality and so, they are integral in modelling. The aim of modelling should be to enhance understanding and knowledge rather than to secure inert objectivity. Application to modelling of prices of building projects investigates how prices are formulated, which prices are commonly modelled and the impact of the decision‐makers involved. It is concluded that new models are required, perhaps developed through methodological pluralism, which identify people‐oriented variables and assumptions explicitly. Further, the models should be stochastic and with sound bases in theories of economics and human behaviour to ensure that users are aware of the major variabilities in the processes modelled and so, by realistically informing, promote better decision making.

The purpose of this paper is to explore whether opportunities for fraud and corruption might be reduced or increased by rules governing public procurement. The focus is on specific European legislation – Procurement Directive 2004/18 on the coordination of procedures for the award of contracts for public works, public supply and public services by public bodies within all EU Member States – however similar issues would arise in other jurisdictions.

The procurement process is examined in relation to three stages of procedure: preparation of specifications, selection of tenderers, and execution of contracts, within each of which some specific risks (red flags) are identified.

Particular risks that may not have been sufficiently addressed, in terms of research or legislation, arise at the first of these stages; accordingly this paper focuses there. Generally, risks are summarised in terms of insider‐driven specifications, low visibility of procurement processes, and ample opportunities for renegotiation of terms. Risks may be increased by innovative procurement practices that have the effect of extending the manoeuvring between tenderers and public bodies, such as competitive dialogue.

Fraud and corruption risk in public procurement is an area deserving detailed and comparative study, with special attention to the pre‐contracting stage. Research on this topic within EU Member States should go hand in hand with enquiry into international procurement, and into the EC's own rules as applied by its institutions and bodies.

Suggestions for risk‐reduction are put forward in relation to quality standards and pre‐award publicity.

After some time as the Cinderella of crime policies, large‐scale frauds attract greater interest. This paper gives grounds for asking whether, in relation to procurement fraud, a combination of traditional practices and modernisation may outpace anti‐fraud measures.

The purpose of this paper is to explore an interesting complex infrastructure construction case study project in which the initiation/design and delivery phases were managed differently, with diverse assumptions and workplace culture. It uses a recently developed collaboration and relationship-based procurement taxonomy to analyse the decision to commence a project and to deliver the project. The taxonomy tool reveals underlying assumptions and helps explain actions taken. The paper provides a window into the decision-making process. It also illustrates levels of innovation applied at the design and delivery phases.

A case study was undertaken, primarily using recorded and transcribed interviews, with five key senior participants in the project. This gathered a client, designer and contractor perspective that was subsequently analysed using a sense-making approach.

It is possible to start a project adopting a highly collaborative approach that maximises innovation, understanding complexity and developing a design that can then be delivered using a more traditional approach. The taxonomy used demonstrates that it is a useful visualisation tool for this purpose.

The research was limited to the perspectives of only five individuals even though they were key decision-makers and had a robust overview of the project as a whole. The delivery phase was chosen as a matter of policy without the ability to break loose from that policy. The implications for beginning the initiation and design process in a highly collaborative hands-on mode influenced the understanding of all parties involved in the project in a positive direction. The case study was based in Australia, which has extensive experience of collaborative project delivery approaches.

The taxonomy and its ability to provide visualisation of the experienced collaboration presents a powerful tool in helping us understand how it may be useful and what limitations to collaboration exists.

The paper illustrates the value of social interactions as alliance forms tend to consider triple bottom line issues and stakeholder engagement more highly than traditional, transnational approaches to project design and delivery.

The case study was unusual in its technical complexity; however, the main value of the paper is the application of the taxonomy and visualisation tool as a way to better understand how a project is being managed from a collaboration perspective.

The purpose of this paper is to review the use of various construction procurement systems in the past and present, specifically within the Australian construction industry and to overview the historical development of procurement both globally and in the Australian context through the existing literature.

The paper is an in-depth literature review of various construction procurement systems used in the past and present, both in general and within the context of Australian construction industry.

The findings suggest that even though relationship-based procurement (RBP) systems offer significant benefits to all project participants, they are unproved by many decision makers because of lack of robust theoretical concept and inability in demonstrating value for money (VfM) for public projects, which would be one of the factors causing move away from RBP in the future.

This review is one of its kind. There is no such review done before within the context of Australian construction industry in such a detail. This review is a part of a recently completed PhD study.

This study aims to answer the ‘what’ and ‘how’ questions about the key role players’ influence on the overall productivity outcomes in the lifecycle of residential buildings procured through the traditional route.

A mix of exploratory and descriptive research methods was used to obtain feedback from 179 role-players involved in various phases of the residential building lifecycle (RBLC) in New Zealand. Empirical data were analysed using content analysis, multi-attribute method and Friedman’s two-way analysis of variance.

Results showed that designers, building owners, main contractors and project managers were the greatest influencers of the productivity outcomes in the RBLC. The priority drivers of these key role-players’ influences on the RBLC productivity outcomes comprised poor brief interpretation, inclination to lowest tender, inadequate prior risk analysis and miscommunication of owner’s requirements and preferences to service providers, respectively. By taking proactive steps to redress their productivity inhibiting acts/omissions as identified in this study, the various role-players could contribute to significant improvement of productivity outcomes in the building lifecycle.

It was not possible to interview all participants that made up the representative random samples from each role-player group due largely to workload related excuses. As a result, the findings and the conclusions may not be generalised beyond the study scope. However, the study achieved its purpose, as the main intent was to provide hypothetical constructs that could guide further confirmatory/experimental studies for residential buildings as well as for other building types.

A succinct and easy-to-follow model was developed as implementation pathway for operationalising the key findings of the study in the industry. The model highlights the Owner-Architect-Contractor Influence Triangle (OACIT) as the 20 per cent of the solutions that could deliver 80 per cent of the productivity improvement in the RBLC.

This study re-examines productivity issues not only from a life-cycle perspective but also from the perspectives of the majority of the key role-players. In addition, the OACIT concept offers a novel productivity improvement tool; it stresses that productivity in the traditionally procured building lifecycle could be optimised if the architect could focus greater attention on brief articulation and the issuance and review of design and specification information. Also, the owner should adopt productivity-enhancing procurement and contract strategies and emphasise more on value-addition and less on lowest tender price.

The non-performance of construction projects in meeting the set objectives has continued to draw researchers worldwide. Despite this, little attention is accorded to public tertiary education building projects in Nigeria. Therefore, on this background, this study aims to assess the perceptions of stakeholders on the level of occurrence of risk factors in the public tertiary education building projects (TEBP) to enhance the performance of these projects.

The study adopted a quantitative method of data collection via a questionnaire survey. In total, 452 questionnaires were administered to the respondents comprising client representatives, consultants (quantity surveyors, architects, services and structural engineers and builders) and the contractor. The respondents were involved in the conception and execution of TEBP across five public tertiary education institutions in Ondo State, Nigeria. Of 452 questionnaires, 279 were retrieved and found suitable for analysis, indicating a 61.73% response rate. The reliability analysis for the research instrument was 0.965 via the Cronbach α test, indicating the high reliability of the instrument used for the data collection. Moreover, the clusters of risk factors also had reliability values that ranged between 0.719 and 0.875.

The study found inflation, delayed payments in contracts, high competition bids, delay in work progress and occurrence of variations are the most frequently occurring risk factors in public TEBP. By contrast, difficulty to access the site, environmental factors and pollution were found to be low-weighted risks with the least likelihood of occurrence. The results of this study indicated the existence of significant differences in some of the risk factors in terms of the level of risk occurrence in TEBP. The risk factors were eventually clustered into eight major groups for TEBP. The post hoc comparisons using the least significant difference test also indicated differences between the contractors and consultants in the ranking of risks occurrence in TEBP, but no significant differences between clients/contractors and clients/consultants.

The findings in this study are limited to the public TEBP procured via competitive tendering; therefore, the results might not be applicable when other procurement methods are being considered. Besides, the study classified the project participants based on organizations and not on the different ownership status of the projects, such as federal or state government-owned TEBP. However, the literature shows that likelihood of risk occurrence could vary due to the degree of project ownership.

The information provided with respect to the most frequently occurring risk factors would enhance the performance of public TEBP.

This study contributes to the existing body of knowledge on the subject within a previously unexplored context where insights were provided on the most frequently occurring risk factors on the public TEBP.

The purpose of the paper is to examine features and impact of recent reforms introduced by the Philippines government to deal with the longstanding shortcomings in its procurement system.

The research for the paper is based on reports by international organizations, official documents of the Philippines government, surveys by international and domestic organizations, interviews with relevant officials and media reports.

The findings show that the reforms have focused on fostering competition, increasing transparency, standardizing procedures, enhancing end‐product quality and contractor reliability, ensuring proper planning and budgeting, combatting corruption, and strengthening accountability. These reforms were intended to create a procurement system more in line with international best practices. However the paper shows that the impact has been less than promised. This is due to limitations of certain provisions of the reforms and weaknesses in both implementation and in the accountability of the procuring entities. A key factor in undermining the reforms is widespread corruption, which continues to affect many aspects of the procurement system. The article identifies two important and related reasons for such failings: elite capture of the government and bureaucracy by a powerful network of business leaders from well‐established landed families, who have close links with the political establishment; and second, a long‐established culture of informal influence in the Philippine state bureaucracy (what may be termed the informal bureaucracy), which has been used to maximum effect by the elite network of business leaders. As a result, this network has been able to influence the reforms to serve its own interests and ensure its continued dominance of the procurement market.

The value of the paper is to show how administrative reforms, no matter how well formulated they are, may be readily undermined in the process of implementation by elite groups able to influence government bureaucracy through an informal culture.