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Article
Publication date: 23 November 2022

Suhair Alkilani and Martin Loosemore

This research uses contingency theory and Venkatraman’s concept of moderating fit to explore how key project stakeholders (clients, consultants and suppliers) influence project…

Abstract

Purpose

This research uses contingency theory and Venkatraman’s concept of moderating fit to explore how key project stakeholders (clients, consultants and suppliers) influence project performance from the perspective of small and medium contractors in the Jordanian construction industry.

Design/methodology/approach

An anonymous structured survey was performed comprising 200 key informants including senior project managers, construction managers, engineers and general managers working for small- and medium-sized contractors in the Jordanian construction industry. The Partial Least Squares Structural Equation Modelling (PLS-SEM) was used to analyse the data.

Findings

The results of this study show that consultant-related factors (quality of documentation produced, ability to communicate and technical competencies) are perceived to have the most significant direct effect on project performance, followed by client-related factors (payment promptness, decision certainty and documentation control) and supplier-related factors (supplier performance, defects control and logistics management).

Originality/value

The results contribute new theoretical, empirical and practical insights to existing construction project performance research by highlighting the key performance factors which need to be managed for each stakeholder group to ensure effective project performance from a small- and medium-sized contractor perspective.

Details

Engineering, Construction and Architectural Management, vol. 31 no. 3
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 8 May 2007

Thanapun Prasertrungruang and B.H.W. Hadikusumo

This study is intended to investigate the current practices and problems in heavy equipment management as well as to identify practices capable of alleviating equipment management…

1583

Abstract

Purpose

This study is intended to investigate the current practices and problems in heavy equipment management as well as to identify practices capable of alleviating equipment management problems for highway contractors in Thailand.

Design/methodology/approach

Equipment management practices were identified and analysed by SPSS using a questionnaire survey. ANOVA test was used to reveal significant differences in equipment management practices among different contractor sizes. Relationships between equipment management practices and problems were also revealed.

Findings

The equipment management practices vary, to some extent, among different contractor sizes. While practices of medium and small contractors tend to be similar, practices of large contractors are different from those of smaller contractors. Large contractors often put more emphasis on outsourcing strategy for equipment management. Moreover, large contractors frequently dispose of or replace equipment as soon as the equipment becomes inefficient before incurring high repair costs. Conversely, smaller contractors tend to mainly emphasise on the company finance and the budget availability as they often rely on purchasing strategy, especially buying used machines. Overall, equipment practices of large contractors were found to be more successful than smaller contractors in minimising equipment management problems, including long downtime duration and cost.

Originality/value

This research is of value for better understanding practices and problems relating to heavy equipment management among different contractor sizes. The study also highlights practices that are capable of reducing problems relating to heavy equipment management for highway contractors.

Details

Engineering, Construction and Architectural Management, vol. 14 no. 3
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 1 March 1997

EKENE I. EZULIKE, JOHN G. PERRY and KAMEL HAWWASH

This paper reports early results of a study of construction contractors and their experiences of the PFI market. Utilizing material from semi‐structured interviews with three…

Abstract

This paper reports early results of a study of construction contractors and their experiences of the PFI market. Utilizing material from semi‐structured interviews with three categories of construction contractor, small, medium and large, consideration is given to the barriers to entry which contractors face when approaching the PFI market. The paper highlights six barriers of entry: lack of appropriate skills; high participation costs; high project values; high risk; lack of credibility and contacts; and demands on management time. These barriers affect the three categories of construction contractor in different ways. The findings suggest that the larger the contractor, the more able it is to overcome these barriers and to compete in the PFI market. The findings also suggest that certain barriers to entry will decline as the industry matures, whilst others will remain.

Details

Engineering, Construction and Architectural Management, vol. 4 no. 3
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 19 November 2019

Guanghua Li, Chuan Chen, Guomin Zhang and Igor Martek

Factors affecting bid/no-bid decisions of international projects are more complex than those of domestic projects. The purpose of this paper is to identify and rank decision…

Abstract

Purpose

Factors affecting bid/no-bid decisions of international projects are more complex than those of domestic projects. The purpose of this paper is to identify and rank decision factors considered by variously sized Chinese international contractors (CICs) and categorize those groups of factors important to experienced practitioners.

Design/methodology/approach

The analysis of factors identified by a literature review is conducted based on data derived from questionnaire results received from 119 CIC project and bidding managers. The relative importance of factors is measured by mean value and standard deviation. The discrepancy in rank and importance value perceived by variously sized CICs are explored by ranking disparity analysis, non-parametric test and Spearman’s rank correlation coefficient test. Finally, factor analysis is used to categorize the underlying groups of factors considered by CICs.

Findings

In sum, 41 factors are identified through the literature review as having an impact on the bid decision. Significant disparities in ranking and importance are found in several factors, which partially affect the consistency of the ranking of factors perceived between large and small-medium CICs. Ultimately, nine major factors are identified as impacting the bidding decision, with “contractor’s capability” and “country risk of the host country,” being the most important.

Research limitations/implications

The weight of a factor considered in a decision varies across contractors as a function of contractor size. Whether using models or subjective judgment in making decisions, it is beneficial to fully understand the main groups of factors influencing the decision. Vulnerability to country risk emerges as the first criterion accessed in the bid decision.

Originality/value

A comprehensive set of factors is established for CICs, including both general factors common to domestic projects, and international factors unique to international projects. All factors are grouped by inferential analysis from the perspective of contractors, which reveals the underlying mechanism of the bid decision-making process. While the data were collected from CICs, the methodology in exploring factors, along with implications, is determined to be applicable internationally.

Details

Engineering, Construction and Architectural Management, vol. 27 no. 7
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 23 August 2021

Murat Gunduz and Ibrahim Al-Ajji

Bid/no-bid decision is a significant and strategic decision, which must be finalized at an early stage of the bidding process. Such decision-making may have significant impact on…

Abstract

Purpose

Bid/no-bid decision is a significant and strategic decision, which must be finalized at an early stage of the bidding process. Such decision-making may have significant impact on the performance of the contractors. Using Chi-square Automatic Interaction Detector (CHAID) and Classification and Regression (CRT) decision tree algorithms, this paper aims to develop bid/no-bid models for design-bid-build projects for contractors.

Design/methodology/approach

The models in this study have been developed using CHAID and CRT algorithms. Thirty-four bid/no-bid key factors were collected via extensive research. The bid/no-bid factors were listed based on their importance index as a result of a questionnaire distributed among the construction professionals. These factors were divided into five main risk categories – owner, project, bidding situation, contract and contractor – which were taken as inputs for the models. Split-sample validation was applied for testing and measuring the accuracy of the CHAID and CRT models. Moreover, Spearman's rank correlation and Analysis of Variance (ANOVA) tests were employed to identify the statistical features of the received 169 responses.

Findings

The key bid/no-bid factors in construction industry were categorized in five related groups and ranked based on the relative importance index. It was found that the top 6 ranked bid/no-bid factors were (1) current workload, (2) need for work, (3) previous experience with employer; (4) timely payment by the employer; (5) availability of other projects for bidding (6) reputation of employer in the industry. Matrix comparison between all bid/no-bid groups was performed using Spearman's correlation to measure the relationship between each of the two paired groups. It was concluded that all the relationships were positive.

Originality/value

Existing bidding models require many inputs and advanced understanding of mathematics and software to run the model. Contractors tend to use easy, fast and available support methods. Excluding a great number of the bid/no-bid factors may affect the final decision. This paper proposes a bid/no-bid decision tree models for contractors of different sizes. It is the first study in the literature, to the best of authors' knowledge, to study bid/no-bid decision with the proposed decision tree algorithm. The proposed models in this study overcome the shortfalls of most previous models such as avoiding the complexity and difficulties of applying the concept. The proposed model will provide the contractors with a bid/no-bid decision based on the input for the defined bid factor groups. The proposed models display the soft spots and hot spots between the independent and dependent variables, which leads to a better decision. The proposed models display the result effectively in visual terms, easy to understand and easy to apply. The proposed models are a form of multiple effect (or variable) analysis which allows the companies to explain, describe, predict or classify an outcome.

Details

Engineering, Construction and Architectural Management, vol. 29 no. 9
Type: Research Article
ISSN: 0969-9988

Keywords

Article
Publication date: 14 January 2019

Oluwaseyi Alabi Awodele, Douglas Omoregie Aghimien, Olutayo Gabriel Akinkunmi and Clinton Ohis Aigbavboa

Due to its cost savings nature and ability to ensure constant jobs for contractors, this study aims to assess the capability of the labour-only procurement system to serve as a…

Abstract

Purpose

Due to its cost savings nature and ability to ensure constant jobs for contractors, this study aims to assess the capability of the labour-only procurement system to serve as a surviving strategy for construction contractors in a challenging economy.

Design/methodology/approach

The study adopted a mixed-methods design. An interview and questionnaire were used to harness information from 98 construction participants who have been involved in labour-only procured projects. These respondents were identified through snowballing. Frequency, percentage, mean item score, Mann–Whitney u-test and content analysis were used in analysing the data gathered.

Findings

Result revealed that participants are willing to execute more projects through this system because it gives considerable cost savings for clients and provides reduction in contractor’s risk and allows them to maintain healthy cash flow. The main factors influencing its usage are the client’s decision to procure materials, need for job at hand for contractors and the need for referrals from clients for subsequent jobs.

Practical implications

Findings of this study will assist contractors to understand the potential of this procurement system as a surviving option in a harsh economy. Small and medium contractors can make use of this available opportunity of having projects at hand at reduced risk to ensure continuous cash flow to keep their organisations afloat.

Originality/value

The contribution of this study to the body of knowledge lies in its provision of a reasonable insight on the inherent nature of a procurement system as a surviving strategy for contractors unlike the usual assessment of the generic survival strategies adopted in other studies.

Details

Journal of Engineering, Design and Technology, vol. 17 no. 2
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 18 August 2020

Abimbola Olukemi Windapo, Oluseye Olugboyega and Sunday Odediran

This study aims to investigate the impacts of procurement strategies on the growing proportion of construction small- and medium-sized enterprises (SMEs) and whether the size of…

1333

Abstract

Purpose

This study aims to investigate the impacts of procurement strategies on the growing proportion of construction small- and medium-sized enterprises (SMEs) and whether the size of the construction company moderates the effect.

Design/methodology/approach

This study adopted a quantitative research approach and a cross-sectional questionnaire survey in achieving its objectives. The survey requires the respondent to identify both the most successful and most outstanding project that the respondent was involved in between 2010 and 2016.

Findings

The study found that only traditional and management-oriented procurement strategies ensure the achievement of all growth plans for construction SMEs in South Africa; and that medium-sized construction enterprises achieve social growth such as community empowerment, managerial skills and advancement on the cidb Register of Contractors.

Practical implications

The findings of the study imply that policymakers should base their decisions regarding macroeconomic issues and growth plans for construction SMEs on the internal and external factors such as differences in the sizes of construction SMEs and differences in the suitability of procurement strategies affecting the growth of construction SMEs.

Originality/value

In past studies, the diversity amongst SMEs is often overlooked and SMEs are erroneously assumed to share similar objectives, possess equal capabilities and face challenges of the same magnitude. The original contribution of this study is shown in the investigation of the moderating effect of SMEs’ diversity (in terms of company size) on their growth proportion as influenced by procurement strategies.

Details

Journal of Financial Management of Property and Construction , vol. 25 no. 3
Type: Research Article
ISSN: 1366-4387

Keywords

Article
Publication date: 16 August 2023

Oluseyi Julius Adebowale and Justus Ngala Agumba

Small and medium-sized contractors are critical to micro and macroeconomic performance. These contractors in South Africa have long been confronted with the problem of business…

Abstract

Purpose

Small and medium-sized contractors are critical to micro and macroeconomic performance. These contractors in South Africa have long been confronted with the problem of business failure because of a plethora of factors, including poor productivity. The purpose of this study is to investigate salient issues undermining the productivity of small and medium-sized contractors in South Africa. This study proposes alternative possibilities to engender productivity improvement.

Design/methodology/approach

Qualitative data were collected using semi-structured interviews with 15 contractors in Gauteng Province, South Africa. The research data were analysed using content and causal layered analyses.

Findings

Challenges to contractors’ productivity were associated with inadequately skilled workers, management competence and political factors. Skills development, construction business and political factors were dominant stakeholders’ perceptions. Metaphors for construction labour productivity are presented and reconstructed as alternative directions for productivity improvement.

Practical implications

Contractors lose a substantial amount of South African Rand to poor productivity. Alternative directions provided in this study can be leveraged to increase profitability in construction organizations, enhance the social well-being of South Africans and ultimately improve the contribution of contractors to the South African economy.

Originality/value

The causal layered analysis (CLA) applied in this study is novel to construction labour productivity research. The four connected layers of CLA, which make a greater depth of inquiry possible, were explored to investigate labour productivity in construction organizations.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 12 May 2023

Abraham Aboneh and Gangadhar Mahesh

Small and medium contractors (SMCs) play a significant role in socioeconomic development. Their strong links with other sectors of the economy have a multiplier effect on any…

Abstract

Purpose

Small and medium contractors (SMCs) play a significant role in socioeconomic development. Their strong links with other sectors of the economy have a multiplier effect on any country’s growth. However, the construction business, especially for SMCs, is not an easy business as several roadblocks affect their sustenance. This study aims to examine the factors affecting the sustainable competency of SMCs emerging from the business environment in which the Ethiopian construction industry (CI) operates.

Design/methodology/approach

A literature review was conducted to identify 39 factors arising from five core sources (i.e. government policies, regulatory frameworks, industry networks, competitive bidding culture and construction technology and innovation). A questionnaire survey was conducted to gather industry stakeholders’ perceptions of the identified factors, and the results were analyzed using descriptive statistics.

Findings

Findings indicate 37 significant factors affecting sustainable competency arising from five sources, and the top factors from their respective sources were unfavorable financial policy; unfavorable economic regulatory framework; lack of trust between parties in the industry; inability of SMCs to compete with bigger construction companies; and poor linkages between CI and research and development institutions. Furthermore, factor analysis identified 12 components, and the top ones were competition and uncertainties in the supply chain; unsuitable bidding environment; and ineffective industry networks.

Originality/value

The findings will contribute to the body of knowledge on the factors affecting the sustainable competency of SMCs in the Ethiopian CI. They also indicate priority areas of competitiveness improvement and have implications for decision-makers.

Details

Journal of Engineering, Design and Technology , vol. ahead-of-print no. ahead-of-print
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 12 April 2022

Ahmed Khouja, Nadia Lehoux and Yan Cimon

In highly competitive industries such as the construction sector, companies with limited capabilities struggle to maintain their current standing, let alone acquire more market…

Abstract

Purpose

In highly competitive industries such as the construction sector, companies with limited capabilities struggle to maintain their current standing, let alone acquire more market share. Before they are able to address their shortcomings, these companies need to pinpoint where their performance stands when it comes to market demand. Furthermore, competitiveness is strongly linked with companies' ability to win tenders and deliver the associated construction projects. Tenders are, therefore, a mechanism that reflects the strengths and weaknesses of construction firms and can be deemed an indicator of competitiveness. This paper aims to help small and medium-sized enterprises (SMEs) increase their presence in the construction sector by suggesting a systematic approach to evaluate their competitiveness.

Design/methodology/approach

Participation requirements were extracted from 11 calls for tenders and organized into categories using a qualitative content analysis. These requirements along with winning assets deduced from the literature constitute the basis of the tool. The qualitative evaluation of the difficulty in satisfying requirements or acquiring assets was transformed into unified, quantifiable scores by means of fuzzy numbers.

Findings

A total of 233 requirements were found and classified in 3 main categories. In addition, a list of 54 assets organized into five categories was compiled. The entire methodology led to a five-step assessment tool whose output can be depicted on the proposed competitiveness readiness matrix (CRM).

Research limitations/implications

This study contributes to the limited number of articles discussing the contractor's side in the tendering process. Furthermore, it combines three theoretical perspectives (i.e. resource-based view, relational view, and industry structure perspective), which are scarcely applied in the construction management field. Consideration of the calls for tenders when developing solutions is also a unique aspect of this research when compared to previous studies.

Practical implications

This tool may help practitioners navigate the rather elusive tendering process by outlining the necessary elements to participate in and win tenders. It may also allow construction firms to better position themselves in the market with respect to customers' requirements and competitors' performances.

Originality/value

This study provides an approach of both self-assessment and market benchmarking. It assists companies in formulating strategies to become more competitive in general and make better bidding decisions. This is especially interesting because of three aspects: the study is based on a fundamental element of the construction competitiveness concept, i.e. calls for tenders; it offers a mechanism to transform systematically qualitative attributes into quantifiable scores; and it provides a practical and reliable display of the assessment results.

Details

Benchmarking: An International Journal, vol. 30 no. 3
Type: Research Article
ISSN: 1463-5771

Keywords

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