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The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.
Abstract
Purpose
The purpose of this study is to investigate how procurement strategies may be designed to facilitate exploration and exploitation in construction projects.
Design/methodology/approach
This paper is based on a literature review of organizational research and construction management literature together with a brief interview study of Swedish clients and contractors.
Findings
The theoretical and empirical findings propose that small and simple projects with low uncertainty and scarce resources may focus on exploitation to enhance short-term efficiency through traditional procurement strategies including delivery systems that separate the actors and their activities (i.e. pure design-build- or design-bid-build-contracts), fixed price payment and price focus in bid evaluation. Large complex projects with high uncertainty and customization benefit from combining exploration and exploitation to enhance sustainable performance. This requires collaborative procurement strategies including joint specification through early contractor involvement, cost reimbursement coupled with incentive-based payment, bid evaluation based on multiple criteria and collaborative tools and activities in partnering arrangements.
Research limitations/implications
This paper contributes to organizational learning literature by pinpointing the need for integrating procurement strategies that enhance combination of exploration and exploitation. The main contribution to the construction management literature involves the investigation of how procurement strategies may affect exploration and exploitation, as identified and articulated in the propositions developed in this paper.
Practical implications
From a practical perspective, the findings highlight the importance of tailoring procurement strategies to project characteristics to enhance a suitable balance between exploration and exploitation in construction projects.
Originality/value
The explicit focus on the operational project-level is uncommon but relevant in organizational learning literature.
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Keywords
Paulos A. Wondimu, Ole Jonny Klakegg and Ola Lædre
Early contractor involvement (ECI) faces many barriers because it differs from traditional business practices. Public owners, especially, face a major challenge because they must…
Abstract
Purpose
Early contractor involvement (ECI) faces many barriers because it differs from traditional business practices. Public owners, especially, face a major challenge because they must comply with international and national legislation. The purpose of this paper is to develop a framework that illustrates the various approaches that public project owners can take to implement ECI.
Design/methodology/approach
In addition to a literature review, three groups of case studies were carried out. The case studies were based on 54 semi-structured in-depth interviews with key personnel from 21 Norwegian public projects and document study.
Findings
In all, 25 approaches to ECI were identified during the research. Twelve of these were used in the cases studied.
Social implications
There are several approaches to ECI that are suitable for public owners. However, the contractor’s contribution depends on which approach is implemented and how it is implemented.
Originality/value
As original contribution, this study presents a novel framework that defines options for implementing ECI in public projects. Furthermore, this paper provides insights on how ECI can be implemented in public projects based on Norwegian experiences. Although the empirical data of the study is limited to Norwegian public projects, this study contributes to knowledge about how to implement ECI internationally.
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The paper aims to describe the evolution and use of project alliancing in Finland: how the model was discovered, and then, little by little, became an established practice.
Abstract
Purpose
The paper aims to describe the evolution and use of project alliancing in Finland: how the model was discovered, and then, little by little, became an established practice.
Design/Methodology/Approach
The paper is based on a long-term observation of the construction sector activities, involvement in their development and a review of related research and practice documents.
Findings
The paper illustrates how a major change may be laborious. It also reveals that the application of project alliancing seems to have been successful so far, but there are still threats on the horizon.
Research Limitations/Implications
The overview ignores many meaningful details and does not include a critical review of the positive experiences reported by the industry. There certainly is need for related research.
Practical Implications
The study offers a point of reference for evaluation of the smoothness of the progress of industry wide changes.
Originality/Value
This paper seems to be the first one providing a more comprehensive picture of the progress and use of alliancing in Finland, thus supplementing existing view- and project-specific examinations.
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Emmanuel Dele Omopariola, Abimbola Olukemi Windapo, David John Edwards, Clinton Ohis Aigbavboa, Sunday Ukwe-Nya Yakubu and Onimisi Obari
Previous studies have postulated that an advance payment system (APS) positively impacts the contractor's working capital and is paramount to ensuring an efficient and effective…
Abstract
Purpose
Previous studies have postulated that an advance payment system (APS) positively impacts the contractor's working capital and is paramount to ensuring an efficient and effective project cash flow process. However, scant research has been undertaken to empirically establish the cash flow performance and domino effect of APS on project and organisational performance.
Design/methodology/approach
The epistemological design adopted a positivist philosophical stance augmented by deductive reasoning to explore the phenomena under investigation. Primary quantitative data were collected from 504 Construction Industry Development Board (CIDB) registered contractors (within the grade bandings 1–9) in South Africa. A five-point Likert scale was utilised, and subsequent data accrued were analysed using structural equation modelling (SEM).
Findings
Emergent findings reveal that the mandatory use of an APS does not guarantee a positive project cash flow, an improvement in organisational performance or an improvement in project performance.
Practical implications
The ensuing discussion reveals the contributory influence of APS on positive cash flow and organisational performance, although APS implementation alone will not achieve these objectives. Practically, the research accentuates the need for various measures to be concurrently adopted (including APS) towards ensuring a positive project cash flow and improved organisational and project performance.
Originality/value
There is limited empirical research on cash flow performance and the domino effect of APS on project and organisational performance in South Africa, nor indeed, the wider geographical location of Africa as a continent. This study addresses this gap in the prevailing body of knowledge.
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Udayangani Kulatunga, Champika Liyanage and Dilanthi Amaratunga
Juliana Pacheco Barbosa, Joisa Dutra Saraiva and Julia Seixas
The purpose of this paper is to highlight the opportunity for the energy policy in Brazil to tackle the very high cost-effectiveness potencial of solar energy to the power system…
Abstract
Purpose
The purpose of this paper is to highlight the opportunity for the energy policy in Brazil to tackle the very high cost-effectiveness potencial of solar energy to the power system. Three mechanisms to achieve ambitious reductions in the greenhouse gas emissions from the power sector by 2030 and 2040 are assessed wherein treated as solar targets under ambitious reductions in the greenhouse gas emissions from the power sector. Then, three mechanisms to achieve these selected solar targets are suggested.
Design/methodology/approach
This paper reviews current and future incentive mechanisms to promote solar energy. An integrated energy system optimization model shows the most cost-efficient deployment level. Incentive mechanisms can promote renewable sources, aiming to tackle climate change and ensuring energy security, while taking advantage of endogenous energy resources potential. Based on a literature review, as well as on the specific characteristics of the Brazilian power system, under restrictions for the expansion of hydroelectricity and ambitious limitation in the emissions of greenhouse gases from the power sector.
Findings
The potential unexploited of solar energy is huge but it needs the appropriate incentive mechanism to be deployed. These mechanisms would be more effective if they have a specific technological and temporal focus. The solar energy deployment in large scale is important to the mitigation of climate change.
Originality/value
The value of the research is twofold: estimations of the cost-effective potential of solar technologies, generated from an integrated optimization energy model, fully calibrated for the Brazilian power system, while tacking the increasing electricity demand, the expected reduction of greenhouse gas emissions and the need to increase the access to clean and affordable energy, up to 2040; proposals of three mechanisms to deploy centralized PV, distributed PV and solar thermal power, taking the best experiences in several countries and the recent Brazilian cases.
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