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Article
Publication date: 12 February 2024

Udara Willhelm Abeydeera Lebunu Hewage, Jayantha Wadu Mesthrige and Eric G. Too

This study explores the current status of risk management (RM) in Sri Lanka and the obstacles in implementing RM in Sri Lankan small construction projects.

Abstract

Purpose

This study explores the current status of risk management (RM) in Sri Lanka and the obstacles in implementing RM in Sri Lankan small construction projects.

Design/methodology/approach

The current research study adopted a quantitative research method. Using a purposeful sampling strategy, 100 construction companies engaged in small construction projects in Sri Lanka were selected and a questionnaire was distributed among top managerial employees of these companies. Employees belonging to 47 companies responded to the survey which provided information relating to 812 construction projects. The collected data were analyzed using the RM implementation index (RMII) and other quantitative measures such as mean, median and percentages.

Findings

The research findings indicated that RM incorporation was at a lower degree in small construction projects in Sri Lanka. The findings further indicated that RM incorporation was relatively high in the public construction projects compared to the private construction projects. The main obstacles identified through the survey for RM implementation were: “lack of funding”, “lack of time”, “low profit margin”, “not economical” and “lack of knowledge”.

Research limitations/implications

The study was limited to exploring RM implementation in small construction projects in Sri Lanka. The study was limited to the building construction companies under the 150-million-rupee (approx. below 450,000 USD) financial limit registered with the construction industry development authority in Sri Lanka.

Originality/value

RM in small construction projects in developing countries is a relatively less explored domain. Sri Lankan construction industry is another relatively less explored domain in terms of new management technique implementation such as RM and value management. The quantitative approach used for the study revealed that RM implementation is at a lower degree in the small construction projects. Moreover, several obstacles pertaining to RM implementation were recognized through this study. These findings will be useful for the construction stakeholders to overcome the recognized barriers and effectively use RM in their respective construction projects.

Details

Built Environment Project and Asset Management, vol. 14 no. 2
Type: Research Article
ISSN: 2044-124X

Keywords

Article
Publication date: 4 October 2017

Ayirebi Dansoh, Daniel Oteng and Samuel Frimpong

The purpose of this research is to identify the conditions under which the internal environment of small construction firms makes them either develop or adopt an innovation.

Abstract

Purpose

The purpose of this research is to identify the conditions under which the internal environment of small construction firms makes them either develop or adopt an innovation.

Design/methodology/approach

The research described in this paper adopted a qualitative case study approach. The data were obtained from multiple sources such as face-to-face semi-structured interviews with company representatives and from project reports.

Findings

The study identified that firms’ decision to either adopt or develop an innovation is determined by a complex interaction between their internal environment and 12 different conditions. Some of the findings contrast widespread perceptions in broader literature on innovation development and adoption in small construction firms.

Research limitations/implications

The study focused only on firms from two regions in Ghana. Additionally, adopting a purely qualitative approach meant that the quantitative impacts of the different factors were not presented.

Practical implications

The results can inform the decisions of agencies and persons wishing to invest their resources in innovation activities of small construction firms. It can also inform the policy debate and directions of government and industry associations looking to create innovation-friendly environments in the small business sector.

Originality/value

This research provides a better understanding of innovation development and adoption by small construction firms. Given that there is little previous research on innovation by small construction firms, especially in developing economies, the paper complements existing studies that generally focus on much larger firms and developed economies.

Details

Construction Innovation, vol. 17 no. 4
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 10 December 2019

Christopher Amoah and Leon Pretorius

Risk management has become an integral part in businesses around the world. In the construction industry, risk management has also been introduced and has been mainly entrusted in…

1672

Abstract

Purpose

Risk management has become an integral part in businesses around the world. In the construction industry, risk management has also been introduced and has been mainly entrusted in the hands of the project team to go through a laid down risk management processes to identify possible risk events, which may occur during the project execution and the impact they may have on the project deliverables should they occur. It is, however, believed that small construction firms do not take risk management as a serious exercise even though most of the project risks are transferred to them as subcontractors. The purpose of this study was, therefore, to investigate risk management processes in the small construction companies and the impact of risk management on their project deliverables.

Design/methodology/approach

A case study of a single construction company was used for this study. Data were collected through structured questionnaire to 16 respondents who are involved in the project execution in the case study company. Two managing directors of the case study company were also interviewed. In total, 11 project site meetings were also attended to observe meeting proceedings and to record issues discussed. In total, 15 monthly project reports and project close-out reports were also studied. In total, One hundred and five completed projects of which 58 per cent were renovation projects, 27 per cent were new projects and 15 per cent were civil/structural works were also examined. The data were then analysed using excel analytical tool and the content analysis method.

Findings

The findings indicate that small construction companies with respect to the case study company do not have a specific laid down risk management processes that project team are made to go through before and during the execution of their projects. There is, however, no conclusive evidence regarding the impact of risk management on project performance as a significant number of projects done were able to meet a successful project performance indicators even though risk management exercises were not done. Some of the identified risk events that caused project failures are payment delays, labour related issues, subcontractor/main contractor related issues, insufficient contingency reserves/plan, etc.

Research limitations/implications

Only one construction company was used as a case study for this research and all sources of data were related to a single company. The results may, therefore, be not generalisable.

Practical implications

The research has discovered that projects outcome could have improved tremendously if proper risk management exercises were implemented before project execution as most of the causes of project failures could have been identified through the risk management processes. This study, hence, gives an insight as to why small construction firms like the case study company should take risk management seriously in their projects execution to improve on the performance of their projects.

Originality/value

The research has discovered that projects outcome could have improved tremendously if proper risk management exercises were implemented before project execution as most of the causes of project failures could have been identified through the risk management processes. This study, hence, gives an insight as to why small construction firms like the case study company should take risk management seriously in their projects execution to improve on the performance of their projects.

Details

Journal of Engineering, Design and Technology , vol. 18 no. 3
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 13 March 2019

Ruth Dowsett, Martin Green, Martin Sexton and Chris Harty

This paper aims to provide insights into how supply chain integration may occur for small housebuilders adopting modern methods of construction (MMCs). The process of creating an…

Abstract

Purpose

This paper aims to provide insights into how supply chain integration may occur for small housebuilders adopting modern methods of construction (MMCs). The process of creating an empirically informed road map is described, whereby the practical day-to-day challenges of adopting a timber-frame solution on a small housing development in Southeast England were fed into a road map of future supply chain integration scenarios. The intention is to better position small housebuilders to contribute in addressing the shortfall in housing that continues to face the UK.

Design/methodology/approach

Interviews with supply chain members along with on-site observations captured key aspects of integration. Findings were used within two collaborative forums to guide discussion in a dual approach; discussing the challenges of timber-frame on the project and what would be needed on future projects for the firms analysed.

Findings

Empirically informed malleable roadmaps, of the kind developed within this study, provide feasible options for small housebuilders and suppliers of MMCs to collectively collaborate when transitioning towards fully integrated supply chains. Practically, the roadmapping approach, and the roadmap itself, would help small housebuilders and suppliers of MMCs transition towards full integration. Opening up avenues of integration that are spread across yet connected through numerous phases, firms and technologies helps construction professionals use more sophisticated modular and volumetric off-site solutions.

Research limitations/implications

Data collection took place over the course of a year. Future research could expand this relatively short duration to analyse the potential for construction professionals within the supply chain to integrate further over a longer period of time.

Originality/value

The novelty and contribution of this paper lie in the development and application of an alternative approach to roadmapping that departs from the normative linear examples of roadmaps found within the technology-roadmapping literature. The authors present a structured yet flexible approach to roadmapping that is both representative of the strategic planning and innovation activities that occur within small housebuilding firms and open to adaption to account for firm-level characteristics and contingencies. Positioned alongside firm-level dynamics (e.g. business cases and approaches to design), the roadmapping approach also reinforces the potential of incremental rather than whole-scale transitions.

Details

Construction Innovation, vol. 19 no. 2
Type: Research Article
ISSN: 1471-4175

Keywords

Article
Publication date: 28 February 2023

Nilupulee Liyanagamage and Mario Fernando

Socially responsible firms are known to improve competitive advantage and create workplaces that protect employees and the society in the long-term. Yet, the transitionary and…

Abstract

Purpose

Socially responsible firms are known to improve competitive advantage and create workplaces that protect employees and the society in the long-term. Yet, the transitionary and project-based nature of the construction industry makes it difficult to espouse socially responsible practices. This study aims to adopt a person-centric conceptualisation of social responsibility by drawing on processes of individual sensemaking to gain a deeper understanding of small-business social responsibility (SBSR).

Design/methodology/approach

The authors conducted semi-structured interviews with 11 people from the construction industry in Sri Lanka to develop retrospective narratives.

Findings

The findings suggest that individuals in small-business construction firms rely on intraindividual, organisational and wider societal considerations to make sense of SBSR. What drives these interviewees to be responsible is determined not so much by profitability or reputation but by their own SBSR sensemaking process.

Originality/value

This study examines how individuals make sense of social responsibility in transitionary project-based small businesses in the construction industry.

Details

Social Responsibility Journal, vol. 19 no. 9
Type: Research Article
ISSN: 1747-1117

Keywords

Article
Publication date: 10 August 2010

Mary Hardie

The purpose of this paper is to identify the major influences on innovation delivery in the context of small Australian construction businesses.

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Abstract

Purpose

The purpose of this paper is to identify the major influences on innovation delivery in the context of small Australian construction businesses.

Design/methodology/approach

An analysis was undertaken of peer‐reviewed journal articles published between 1998 and 2008. Historical background to the current circumstances was included by reference to influential government reports and to literature on the economic theory underpinning the concept of innovation.

Findings

The findings suggest that despite the recent trend to more cooperative business arrangements, the ingrained culture of aggressively competitive relations on a building project remains in place. This is particularly evident at the small and sub‐contractor level. Such companies tend to operate with little spare capacity and can be restricted from participation in the benefits of the innovation strategies unless they receive outside assistance.

Research limitations/implications

The need for an attitudinal change is described and critical factors which restrict the involvement of small businesses in innovative practice are identified. The potential for industry bodies and government organizations to foster innovative capacity is identified as an area for future research.

Practical implications

A focus on lifting technical innovation rates for the efficient delivery of projects is described and the case for a renewed research effort on the needs of small construction businesses is made.

Originality/value

The need for the translation of innovation theory to an industry which tends to see itself as a special case and has traditionally avoided the adoption of economic theory from other sectors.

Details

Journal of Small Business and Enterprise Development, vol. 17 no. 3
Type: Research Article
ISSN: 1462-6004

Keywords

Article
Publication date: 18 October 2021

Simon Adamtey and James Ogechi Kereri

Residential projects frequently suffer from low-risk management (RM) implementation and, consequently, are more likely to fail to meet performance objectives. With RM becoming an…

Abstract

Purpose

Residential projects frequently suffer from low-risk management (RM) implementation and, consequently, are more likely to fail to meet performance objectives. With RM becoming an essential requirement, the purpose of this study is to investigate RM implementation in terms of status, risk analysis techniques, barriers and impact of RM on residential projects across the USA.

Design/methodology/approach

Data were collected from 105 general contractors who had completed 3,265 residential projects in the past five years. Data collection was through a US national survey sent out through emails between August and November 2019 to residential general contractor firms. The firms were randomly selected from national organizations, such as the National Association of Home Builders, Associated General Contractors of America and Associated Builders and Contractors.

Findings

The analysis indicated that RM implementation is still extremely low at 22.27%. However, there was an increase in RM implementation as the cost and duration of projects increased. Direct judgment is the most used technique. Also, the one-sample t-test indicated that the barriers have a significant impact on RM implementation. Multinomial logistic regression results indicated that the impact of lack of management support, lack of money or budget, the complexity of analytical tools and lack of time to perform analysis predict the impact on the overall performance of construction projects. Overall, the results provide empirical evidence, which can influence management’s decision-making regarding RM and improve implementation in residential projects.

Originality/value

There is a lack of empirical evidence on the impact of barriers to RM implementation on the performance of construction projects. This research contributes to the body of knowledge by bridging this gap through a robust analysis of data collected from real residential projects.

Details

Journal of Engineering, Design and Technology , vol. 21 no. 5
Type: Research Article
ISSN: 1726-0531

Keywords

Article
Publication date: 22 February 2021

Berenger Yembi Renault, Justus Ngala Agumba and Nazeem Ansary

Demographics are perceived to influence risk management practices (RMPs) in construction. However, empirical evidence supporting this perception is lacking in the South African…

Abstract

Purpose

Demographics are perceived to influence risk management practices (RMPs) in construction. However, empirical evidence supporting this perception is lacking in the South African Construction Industry (SACI), especially within small and medium enterprises (SMEs). This study, therefore, aims to investigate the influence of demographic characteristics on RMPs.

Design/methodology/approach

This study followed a positivist research philosophy, using a questionnaire survey for data collection. In total, 225 questionnaires were distributed, of which 187 were returned from conveniently sampled respondents, which included owners and senior managers of construction SMEs organizations in Gauteng province in South Africa (SA). In total, 181 questionnaires were usable, yielding a response rate of 80.44%. Data from the survey were analyzed using descriptive and inferential statistics i.e. multiple regression analysis (MRA). The outputs were represented using percent and regression coefficients values, respectively.

Findings

In total, 42 practices were established from the literature review and grouped into 9 major RMPs. The data analysis suggested that understanding the organizational environment, defining objectives, resource requirements, risk measurement, risk identification, risk assessment, risk response and action planning, communication and monitoring and review are reliable and valid practices. Findings from MRA established that demographic characteristics i.e. experience in the construction industry (CI), education level and the number of employees in the organization are not good predictors to determine the use of RMPs.

Research limitations/implications

The study was limited to the data acquired from the SACI and to a lesser extent, construction SMEs in Gauteng. Therefore, the findings cannot be generalized to all SMEs in SA. Though neighboring and developing countries can use the RMPs identified in this study, the results cannot be directly used in developed countries without adequate substantiation.

Practical implications

The current study provides useful information to assist construction organizations to pay more attention to risk management implementation. The RMPs established in this paper are reliable and valid in projects undertaken by SMEs, and therefore, may be used by top management and/or the risk task team of these enterprises for effective project risk management.

Originality/value

The study presents findings of an investigation of the influence of demographics on RMPs from the perspectives of construction SMEs, an area less explored. This work advances knowledge of RMPs in the SME sector. It, therefore, adds value to researchers and industry practitioners on the theme where no agreement has been attained relating to key factors and practices that should constitute a risk management model.

Details

Journal of Engineering, Design and Technology , vol. 19 no. 6
Type: Research Article
ISSN: 1726-0531

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: 31 May 2019

Maria Christina Georgiadou

This paper aims to present a state-of-the-art review of building information modelling (BIM) in the UK construction practice. In particular, the aim is to examine the scope, value…

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Abstract

Purpose

This paper aims to present a state-of-the-art review of building information modelling (BIM) in the UK construction practice. In particular, the aim is to examine the scope, value and practical implications of BIM implementation in residential projects by evaluating practitioners’ perspectives working in the Greater London Area (GLA).

Design/methodology/approach

The paper outlines the general status quo of BIM adoption and maturity in the UK. It then discusses the feasibility of BIM use in residential projects drawing on an online survey and complementary semi-structured interviews with building professionals. The cross-comparison between the evidence base and literature review uncovers the specific benefits, challenges and risks to BIM implementation in the house building sector.

Findings

BIM is an evaluation methodology that helps the management of digital information throughout the project lifecycle. At a conceptual level, a BIM-enabled project offers quality assurance and on-time delivery, collaboration and communication improvement, visual representation and clash detection and whole lifecycle value. The findings, however, suggest that the most frequently reported benefits are related to collaboration and the blend of product (software) and process innovation, whilst lifecycle thinking and waste reduction are often overlooked. At present, there is widespread awareness on BIM but with a financial barrier to invest in developing digital capabilities, particularly for small- and medium-sized enterprises.

Practical implications

The paper concludes with a critical commentary on the lack of strategic leadership in both the supply and demand side. The role of policy to streamline commercial drivers for whole lifecycle costing in procurement is endorsed to drive the change management required to address the short-term mind-set of senior management and wider fragmentation of the construction industry, also serving as a research question for further research and development in the field.

Originality/value

There are relatively few studies evaluating BIM perspectives in UK residential projects. This paper explores the feasibility and “real-life” value of BIM in housing practice, drawing on views and experiences of building professionals in GLA. In particular, the research findings provide an evidence base evaluating the extent to which the house building industry has the expertise and capability to operate in a BIM environment and to comply with the Level 2 mandate and explore which of the generic barriers and drivers of BIM-readiness are more relevant to the design and construction of housing projects.

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