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1 – 10 of 266Shaoyan Wu, Mengxiao Liu, Duo Zhao and Tingting Cao
Although trust is generally taken as a fundamental factor in influencing relational behavior in contractor–subcontractor collaboration, the determination of an optimal level of…
Abstract
Purpose
Although trust is generally taken as a fundamental factor in influencing relational behavior in contractor–subcontractor collaboration, the determination of an optimal level of trust is still lacking. Trust with an optimal tipping point that matches dependence best is considered the optimal trust to improve relational behavior between general contractors and subcontractors. To fill the knowledge gap, this study explores how combinations of trust and dependence trigger relational behavior between general contractors and subcontractors through a configurational approach.
Design/methodology/approach
Questionnaires were administered to 228 middle management and technical staff members of the general contractor. The data were analyzed using fuzzy-set qualitative comparative analysis (fsQCA), and the inductive analytic method allowed researchers to explore configurations of different dimensions and levels of dependence and trust.
Findings
Necessity analysis results indicated that neither dependence nor trust was a necessary condition for facilitating relational behavior. Through sufficiency analysis, four configurations of optimal trust matched with dependence were identified in contractor–subcontractor collaboration. Even if contractors rely only on subcontractors for resources, the optimal trust between contractors and subcontractors should include both institution- and cognition-based trust. In the event that contractor–subcontractor collaboration involves relational dependence, both affect- and cognition-based trust are necessary for the optimal trust.
Originality/value
This study enhances existing research by delving deeper into a nuanced understanding of optimal trust in dependence scenarios, and enriches project governance theory by uncovering the internal transmission of relational governance. Practically, this study offers general contractors guidance on how to establish optimal trust strategies based on the dual dependence level with subcontractors, which can facilitate subcontractors' relational behavior, and ultimately improve contractor–subcontractor collaboration performance.
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Mohammad Mayouf and Ciaran Gilligan
In construction projects, underpayments can be recognised as one of the significant drawbacks that impact the success of a project. Research into underpayments is considered…
Abstract
Purpose
In construction projects, underpayments can be recognised as one of the significant drawbacks that impact the success of a project. Research into underpayments is considered ambiguous and provides a limited reflection of the issue, which makes it complicated to trace how it originates in the first place. This study aims to examine the causes that lead to underpayments and develop a holistic synthesis of underpayments for subcontractors in the lifecycle of a construction project.
Design/methodology/approach
An open-ended and closed-ended questionnaire was used to collect the data using purposeful sampling with 28 construction stakeholders who ranged from main contractors, subcontractors and others (Small medium enterprises SMEs, Consultancies, Clients etc.). Data collected was analysed to trace drivers and the impact of underpayment and suggested mitigation strategies to be identified whilst viewing the perspectives of a main contractor and subcontractor.
Findings
The findings show that the most prominent driver for underpayments is variation disputes followed by cash flow. The research also suggests mitigation strategies such as collaborative working, more robust budget control and early identification of risks as potential remedies to overcome the underpayment issue. The research concludes with a framework that elicits the complexity underlying underpayments for subcontractors in construction projects.
Originality/value
The research evolves the understanding that underpayment is a complex phenomenon, relying heavily on the data/information exchange mechanism between the main contractor and subcontractors. This research provokes the need to understand underpayment further so it can be mitigated.
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Shumank Deep, Thayaparan Gajendran, Marcus Jefferies, Venkata Suresh Uggina and Sanjay Patil
Research on strategic procurement was mostly focussed on the clients' and main contractors' perspectives, while limited work had been done from a subcontractor's perspective. The…
Abstract
Purpose
Research on strategic procurement was mostly focussed on the clients' and main contractors' perspectives, while limited work had been done from a subcontractor's perspective. The paper hypothesises that “strategic capability” influences the latent constructs of power, dependence and collaboration in the main contractor–subcontractor relationship. Therefore, the purpose of this study is to investigate the influence of a subcontractor's strategic capabilities on power, dependence and collaboration.
Design/methodology/approach
A survey questionnaire was developed and distributed amongst the subcontractors in Australia, and 212 complete responses were received. Then second order confirmatory factor analysis and partial least square structure equation modelling (PLS-SEM) analysis were performed to test the hypothesised relationships.
Findings
The findings support “strategic capabilities” as a construct expressive of a subcontractor's unique market position and good business reputation. The findings also suggest that strategically capable subcontractors enhance their potential for forming partnerships with main contractors through dependence (StratC. → Dep., β = 0.84; Effect Size (ES) = 0.713; p < 0.01), collaboration (StratC. → Collab., β = 0.84; ES = 0.697; p < 0.01) and bargaining power (StratC. → Pow., β = 0.83; ES = 0.672; p < 0.01).
Originality/value
The study is one of its kind to explore the impact of a subcontractor's strategic capability on their bargaining power, dependability and ability to form collaborations. Furthermore, results indicate that the “strategic capabilities” of subcontractors can strongly influence their ability to create “dependence”, foster “collaboration” and exert “power” over a main contractor. The findings can help improve the strategic procurement decision-making processes of both subcontractors and main contractors to build better business relationships.
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Richard Kadan, Temitope Seun Omotayo, Prince Boateng, Gabriel Nani and Mark Wilson
This study aimed to address a gap in subcontractor management by focusing on previously unexplored complexities surrounding subcontractor management in developing countries. While…
Abstract
Purpose
This study aimed to address a gap in subcontractor management by focusing on previously unexplored complexities surrounding subcontractor management in developing countries. While past studies concentrated on selection and relationships, this study delved into how effective subcontractor management impacts project success.
Design/methodology/approach
This study used the Bayesian Network analysis approach, through a meticulously developed questionnaire survey refined through a piloting stage involving experienced industry professionals. The survey was ultimately distributed among participants based in Accra, Ghana, resulting in a response rate of approximately 63%.
Findings
The research identified diverse components contributing to subcontractor disruptions, highlighted the necessity of a clear regulatory framework, emphasized the impact of financial and leadership assessments on performance, and underscored the crucial role of main contractors in Integrated Project and Labour Cost Management with Subcontractor Oversight and Coordination.
Originality/value
Previous studies have not considered the challenges subcontractors face in projects. This investigation bridges this gap from multiple perspectives, using Bayesian network analysis to enhance subcontractor management, thereby contributing to the successful completion of construction projects.
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Ayodeji E. Oke and Seyi S. Stephen
Today, sustainability is considered a high priority; and it is on the agenda for major corporations. It has experienced an increase due to the demands of the customers, thereby…
Abstract
Today, sustainability is considered a high priority; and it is on the agenda for major corporations. It has experienced an increase due to the demands of the customers, thereby pressuring corporations to act in more sustainable ways to stay relevant and competitive. One industry that is experiencing an increased request to act sustainably is the construction industry. The construction industry differs quite a lot from other industries since it is project-based and built on temporary relationships. Subcontractors are temporarily engaged in the projects, often by a main contractor, to perform tasks in which they are specialised. The subcontractors additionally engage their respective subcontractors. This makes it harder to control and ensure that all involved actors are acting sustainably due to the multiple tiers of contractors and the complex nature of the projects. A technology that recently has had the attention of construction professionals is blockchain technology, which is built on smart contracts. It can be described as a shared, distributed ledger technology, which was created as an enabler for the cryptocurrency Bitcoin. The technology has, in recent years, been widely discussed as a potential business enhancer. It can, for example, provide immutable record-keeping, enables the usage of smart contracts and enhance transparency within the network, which is deemed valuable to the construction industry's push towards sustainability. The smart contracts technology has the potential to disrupt current business practices and decrease the required amounts of trust needed in business relationships.
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Construction project stakeholders can have a major effect on delivering projects on time. However, little attempt has been made to address the influence of internal stakeholders…
Abstract
Purpose
Construction project stakeholders can have a major effect on delivering projects on time. However, little attempt has been made to address the influence of internal stakeholders on delaying project delivery. This research aims to propose the internal stakeholders' influence as a solution to improving project delivery performance (PDP) in order to boost the value of investment in the construction industry's projects.
Design/methodology/approach
In Yemen, a structured questionnaire was distributed to owners, consultants and contractors, 283 of which were found usable after the data screening. A purposeful sampling technique was used and structural equation modelling (SEM) was adopted for analysis. The structural model was drawn up, based on seven categories of influencing factors: labour, supplier, designer, contractor, consultant, sub-contractor and owner.
Findings
The results of the structural model suggest that of these seven categories, designers, owners, suppliers and subcontractors have a significant p-value and impact on PDP, while the labour and consultant's impact was not substantiated. The findings support the proposal that internal stakeholders' influence contributes directly to construction PDP.
Originality/value
The influence of stakeholders on PDP is important. Nonetheless, few studies have focussed on their effectiveness, especially in developing countries. This paper's contribution is evaluating the cause–effect relationship between stakeholders' influence and construction PDP through analysis of moment structures (AMOS) analysis. The policy implications of the research are to encourage governments in general and construction companies in particular to take responsibility for improving PDP, as slow execution of construction projects leads to increased costs, failure and abandoning projects.
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Denis Scott, Ling Ma and Tim Broyd
Poor cash flow management and lack of profitability have plagued the construction industry for decades. In response, the UK Government published the project bank account (PBA…
Abstract
Purpose
Poor cash flow management and lack of profitability have plagued the construction industry for decades. In response, the UK Government published the project bank account (PBA) payment strategy in 2012 to mitigate main contractors unfairly withholding liabilities. However, PBAs suffer from adoption challenges, such as systems fragmentation and a lack of incentives for main contractors to adopt them effectively. This study aims to investigate how to reduce systems fragmentation in construction by integrating PBA procedures with existing management workflows to increase payment automation, resulting in improved cash liquidity and better incentives for using PBAs.
Design/methodology/approach
A PBA blockchain decentralised application is developed, presented and critically evaluated. Blockchain is the technology used because of its permissionless, license-free, open-source and immutability properties. It is a suitable general-purpose technology layer for building and testing applications without the limitations associated with centralised technologies, such as high proprietary fees, vendor lock and intellectual property restrictions.
Findings
The research demonstrates how a blockchain application can integrate siloed construction workflows such as cash flow scheduling, supply chain management and payment executions, reducing the management workload for implementing PBAs in construction projects. Furthermore, the proposed application is open-source and replicable, and its user interface is available for external testing here: https://console.atra.io/app/bf26f846-7f16-4f80-90a0-c5488ab6edd3.
Originality/value
PBA is a suitable test case because it enforces an auditable, transparent and neutral account, which are inbuilt properties of blockchains; thus, both systems are harmonious to integrate. PBA is mandated in UK public sector construction projects; therefore, the research has a solid practical foundation.
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Liupengfei Wu, Weisheng Lu and Chen Chen
This research aims to develop a blockchain smart contract–enabled framework to resolve power imbalance problems in construction payment.
Abstract
Purpose
This research aims to develop a blockchain smart contract–enabled framework to resolve power imbalance problems in construction payment.
Design/methodology/approach
This research adopts a design science research method to develop the blockchain smart contract–enabled framework. The authors then develop a prototype system. Finally, the authors evaluate its performance in solving power imbalance-induced payment problems.
Findings
The results show that the prototype system can resolve power imbalance problems in construction payment by allowing project participants to make transparent and decentralized decisions that are self-enforceable by blockchain smart contracts.
Research limitations/implications
This study provides theoretical explanations for how blockchain smart contracts can resolve power imbalances in construction payment; based on that, it proposes a novel blockchain smart contract–enabled method to rebalance the power of stakeholders in construction payment. Thus, it contributes to the body of knowledge on blockchain technology and construction payment.
Practical implications
This study moves beyond a conceptual framework and develops a practical blockchain smart contract system for resolving power imbalances in construction payment, strengthening construction project members' confidence in using blockchain technology.
Social implications
The proposed blockchain smart contract–enabled solution helps mitigate negative social impacts associated with late payment and non-payment. Furthermore, the research maximizes trust among participants in payment processes to inspire collaborative culture in the construction industry.
Originality/value
This paper introduces a novel blockchain smart contract integrated method, allowing project stakeholders to resolve power imbalance problems in construction payment through decentralized decision-making.
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Minh Ngoc Le and Hoang Long Chu
The authors investigate the impact of standards compliance on the participation in the global value chain and labour value-added of Vietnam’s small and medium-sized enterprises…
Abstract
Purpose
The authors investigate the impact of standards compliance on the participation in the global value chain and labour value-added of Vietnam’s small and medium-sized enterprises (SMEs).
Design/methodology/approach
The authors use a three-period panel dataset of SMEs combined with Vietnam’s Provincial Competitiveness Index. The authors also use multiple econometric models; and with each model, the authors include all independent variables that are available from the study's data and that are suggested by the literature.
Findings
The authors find that standards compliance by Vietnam’s SMEs improved their participation in the global value chain via subcontracts with FDI multinational firms. The authors also find that standards compliance improved the value-added of labour in Vietnam’s SMEs, which is robust to the choice of econometric models.
Practical implications
The study's results suggest that better outcomes for firms and society will be possible if standards are recognised and respected.
Originality/value
This paper complements scant literature on the impact of standards compliance on global value chain participation via subcontracting work and labour value-added, especially in developing countries.
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Haitham Alajmani, Salma Ahmed and Sameh Monir El-Sayegh
This paper aims to measure the severity, frequency and importance of the factors causing delays in the United Arab Emirates (UAE) construction industry following the Covid-19…
Abstract
Purpose
This paper aims to measure the severity, frequency and importance of the factors causing delays in the United Arab Emirates (UAE) construction industry following the Covid-19 pandemic onset. The study also measures the likelihood of the effects caused by these delays.
Design/methodology/approach
A mixed approach of both qualitative and quantitative. Literature review was conducted to extract 40 factors of delays and 10 effects of delays. A survey was then administered to construction professionals in the UAE to collect the perceptions on the severity and frequency of factors of the causes of delays using a Likert Scale of 1–5 where 1 represented very low and 5 represented very high. Similarly, the respondents were also asked to rate the likelihood of the occurrence of the effects of the delays based on a Likert scale of 1–5 as well. Furthermore, Spearman’s rank correlation was also conducted to compute the level of agreement between the different parties; owner, consultants and contractors.
Findings
The results revealed that the top five factors of delays include: award the project for the lowest bidder, delay in progress payment, change orders by the owner, poor subcontractor performance and inadequate planning and scheduling by the contractor. The findings of this study emphasize the financial challenges and economic crisis brought upon the construction industry due to the pandemic. Furthermore, the pandemic also shifted the perceptions of construction professionals, who are now more aware of the delays caused by awarding the project to the lowest bidder who would not have the required qualifications to conduct efficient planning and scheduling that are relevant in the case of extraordinary events such as Covid-19. Moreover, a high level of agreement between the consultants and contractors was observed, with a Spearman’s rank correlation of 0.804. Additionally, the most likely effects of delays concluded from this study were time overrun/extension and poor quality of work.
Originality/value
Literature review is very rich in the field of construction projects delays. However, there is very limited research on the impact of Covid-19 in the context of construction projects delays, and insights from construction professionals regarding this matter are particularly lacking in literature. Therefore, this paper bridges the gap in literature by providing perceptions of construction professionals on the impact of Covid-19 on the factors causing delays in the UAE construction industry. The findings of this research are expected to be an invaluable resource for future to help the construction industry heal faster when encountering similar epidemics or extraordinary events.
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