The impact of market and supply configurations on the costs of tendering in the construction industry

The cost of tendering in the construction industry is widely suspected to be excessive, but there is little robust empirical evidence to demonstrate this. It also seems that innovative working practices may reduce the costs of undertaking construction projects and the consequent improvement in relationships should increase overall value for money. The aim of this proposed research project is to develop mechanisms for measuring the true costs of tendering based upon extensive in-house data collection undertaken in a range of different construction firms. The output from this research will enable all participants in the construction process to make better decisions about how to select members of the team and identify the price and scope of their obligations.

Developing a system for assessing the costs associated with different procurement routes in the construction industry

In developing techniques for monitoring the costs associated with different procurement routes, the central task is disentangling the various project costs incurred by organizations taking part in construction projects. While all firms are familiar with the need to analyse their own costs, it is unusual to apply the same kind of analysis to projects. The purpose of this research is to examine the claims that new ways of working such as strategic alliancing and partnering bring positive business benefits. This requires that costs associated with marketing, estimating, pricing, negotiation of terms, monitoring of performance and enforcement of contract are collected for a cross-section of projects under differing arrangements, and from those in the supply chain from clients to consultants, contractors, sub-contractors and suppliers. Collaboration with industrial partners forms the basis for developing a research instrument, based on time sheets, which will be relevant for all those taking part in the work. The signs are that costs associated with tendering are highly variable, 1-15%, depending upon what precisely is taken into account. The research to date reveals that there are mechanisms for measuring the costs of transactions and these will generate useful data for subsequent analysis.

Autopoietic organization of firm: an illustration for the construction industry

Generally poor productivity, delays, low profitability and exceeded budgets are Common problems in modern construction management, however it seems that a basic obstacle lies far deeper in the understanding of a firm's fundamental mission, its existence. The main objective of this paper therefore is to examine the operational living of a construction firm and by doing that to reveal the key problem or the solution for a construction firm - its organization. A firm as a social system in which interactions between its constitutive components (employees) are surordinated to its maintenance (keeping a system alive) is an autopoietic social system. Two domains of external perturbations are uncovered to which a construction firm has to adapt (market driven and project driven perturbations). Constructed conceptual model of an autopoietic organization is based upon two necessary and sufficient operational domains that a firm has to create in order to become an autopoietic, adaptive social system. The first one is a domain of interactions between employees and other operationally external systems, which is representing an idea-generating domain of interactions. The second is employee's autonomous operational domain, which embodies employee's autonomy and individuality and represents a necessary condition for the establishment of an idea-generating domain. Finally, it is recognized that interactions within these four domains keep a construction firm alive.

Executive project management structure and the challenges acing its adoption in the Nigerian construction industry

Project management (PM) is a globally recognized discipline and has been widely adopted within the construction industry. Despite advancements in the PM discipline, the ineffective traditional management system, typical of the non-executive PM structure, is still widely used in the Nigerian construction industry. The aim of this paper is thus to explore the challenges facing the adoption of the executive PM structure in Nigeria. The paper first assesses the level of growth of PM in Nigeria using UK best practices as a benchmark and identifies the key PM characteristics in the two countries. Focus group interviews were used to collect the primary data for the study and content analysis was used to present the results in a thematic format. The study revealed the key barriers to the adoption of an executive PM structure in Nigeria as a lack of proper awareness, unfavorable policies, skill shortages, the traditional culture of stakeholders and the absence of a regulatory body. It is recommended that the government, as a major player/client in the Nigerian construction industry, should lead the campaign to change the traditional industry approach to project management. This is necessary if construction stakeholders in Nigeria are to be educated and encouraged towards adopting and putting into practice effective PM.

Investigating the level of awareness of building assessment tools in the construction industry of Botswana

Environmental building assessment tools have been developed to measure how well or poorly a building is performing, or likely to perform, against a declared set of criteria, or environmental considerations, in order to achieve sustainability principles. Knowledge of environmental building assessment tools is therefore important for successful design and construction of environmentally friendly buildings for countries. The purpose of the research is to investigate the knowledge and level of awareness of environmental building assessment tools among industry practitioners in Botswana. One hundred and seven paper-based questionnaires were delivered to industry practitioners, including architects, engineers, quantity surveyors, real estate developers and academics. Users were asked what they know about building assessment, whether they have used any building assessment tool in the past, and what they perceive as possible barriers to the implementation of environmental building assessment tools in Botswana. Sixty five were returned and statistical analysis, using IBM SPSS V19 software, was used for analysis. Almost 85 per cent of respondents indicate that they are extremely or moderately aware of environmental design. Furthermore, the results indicate that 32 per cent of respondents have gone through formal training, which suggests ‘reasonable knowledge’. This however does not correspond with the use of the tools on the ground as 69 per cent of practitioners report never to have used any environmental building assessment tool in any project. The study highlights the need to develop an assessment tool for Botswana to enhance knowledge and further improve the level of awareness of environmental issues relating to building design and construction.

Building a symbiotic relationship between academia and industry: expectations and observations of construction management graduates

Construction management graduates are employed in job functions such as building and civil engineering contracting, construction and project management consulting, client organisations (public and private) and developer organisations. Considering the diversity of employment opportunities for construction management graduates, they increasingly need to have a portfolio of skills to work effectively and efficiently with other professions in the industry. In exploring this, the objective of the research presented in this paper is to determine if construction management graduates are meeting the expectations of their employers. In considering the competitive forces impacting the construction industry, the authors of this paper sought to establish whether construction managers are able to identify those key skills needed for the future success of the industry. In turn, this information is considered critical for the successful formulation of curricula. Therefore, to establish whether construction management graduates are meeting the expectations of contractors, a survey was distributed to managers to establish their expectations and observations of recent graduates. The survey results indicate that managers are generally satisfied with the skill level of graduate students. The survey also highlighted several important skills that were considered to be lacking in graduates. cknowledging that there is always a need to improve the skill level of graduates, the authors propose a number of recommendations that are considered to improve the content construction management curricula.

An overview of previous studies in stakeholder management and its implications for construction industry

Purpose – The purpose of this paper is to provide an overview of previous studies in the field of stakeholder management, and propose implications for the construction industry.

Design/methodology/approach – Three major databases are searched: ABI, EI CompendexWeb, and ISI web of knowledge. Papers are searched on topic by using the keywords of “stakeholder management”, “management of stakeholders” and “management of stakeholder”. A brief review of the abstracts and conclusions of these papers is conducted to filter out the irrelevant and/or duplicate papers. After filtering, 159 articles with content relevant to stakeholder management are selected for analysis.

Findings – An overview of previous studies reveals that research interest in stakeholder management has turned to the descriptive approach. Through a critical review of stakeholder management process, three main problems of previous studies are identified: very few methods and tools are available to identify all stakeholders and their interests; limited studies involve the change management about the stakeholders' influence and relationship; and few studies are capable of reflecting the influence of the entire relationship network in practice.

Research limitations/implications – Two implications for the construction industry are suggested: establish a practical framework for managing stakeholders; and apply social network theory (SNT) in developing a stakeholder relationship model.

Originality/value – The overview and implications lead to new knowledge and an improved understanding of the management of multiple stakeholders in construction projects. The perspective of SNT avoids the deficiency of Freeman's dyadic ties model, and the project managers can make decisions in response to the stakeholder behaviours according to the entire relationship.

A critical analysis of techniques for risk mitigation in the construction industry

Risks exist in every form of construction project. The risks associated with construction projects are often diverse and varied and the management of these risks is nowadays considered compulsory in order to achieve project success. This paper analyses the diverse strategies of risk mitigation that have been employed in construction projects. These strategies are classified into analysed categories of procurement strategies. contingency and co-operative approach along with the utilisation of a designated risk manager. The analysis showed that in order to improve risk mitigation within the construction industry, there is a requirement tor an industry based standard. This standard will improve the efficiency and effectiveness of the risk mitigation response technique to risk management.

Benchmarking the implementation of continuing professional development in the Victorian construction industry

In the state of Victoria, the state government has taken a leadership position on the potential benefit of introducing voluntary continuing professional development (CPD) for registered building practitioners (RBPs) in the construction industry. Benefits are believed to accrue to the Victorian community through a more highly skilled and managed SME construction sector, improved quality buildings with fewer defects and greater efficiencies gained by a reduction in industry internal and external operating costs. This research has identified appropriate industry and community benchmarks to enable a quantification of the costs and benefits that result from this policy. These benchmarks will enable the policymaking body of Victoria, the Building Commission (BC) to evaluate the effects of the implementation of its policy and contribute to informing the debate about the merits and possible drawbacks of such a policy in the construction industry in Victoria.

The proposed Victorian CPD policy will affect a whole industry sector. This pioneering policy approach is already being viewed as a touchstone for other jurisdictions in Australia and abroad. Consequently, this research project is considered by our industry partner to be pivotal in the leadership position that they are taking in Victoria. This investigation is being conducted by the research team under the auspices, guidance and with the cooperation of the Building Commission (BC) and the Building Practitioners Board (BPB) of Victoria. This policy research evaluation is necessary to assess the proposed implementation of CPD in the Victorian construction industry. The identification and creation of agreed and significant industry benchmarks are crucial to evaluating this policy initiative. These benchmarks will serve as independent yardsticks for assessing the impact of the new policy and are described and discussed in this paper.

A review of the cost estimation issues in the tender preparation process in construction industry

Cost estimation process is undertaken to predict the total cost of the project. Studies indicate that one of the construction company failures in contracting is because of the uncertain, incorrect, and unrealistic cost estimation. Cost estimation process are heavily influenced by the complexity of the project, scale and scope of construction, market conditions, method of construction, site constraints, client’s financial position, buildability and the location of the project. However, there are other combinations factors that have not been studied thus far. Hence, this paper focuses on the review of other researchers’ findings in relation to cost estimation issues in the construction industry. Among the findings, it has been revealed that the cost estimation issues are related to accuracy, human factors, practical knowledge and insufficient cost data/information. The aim of this paper is to investigate these factors and determining other potential factors that may influence cost estimation process in the construction industry.

Analysis of the restructuring of the Russian defence industry (by the example of aviation industry and knaapo) and the creation of United Aviation Construction Corporation

The present study is focused on the analysis of the three main governmental measures occurred in 2000-2006 in Russian defense industry: the creation of the holding structures, the establishing of the state monopoly in arms export, and creation of the United Aviation Construction Corporation (Ob¿edinennaya Aviastroitel¿naya Corporatziya), which was initiated by the President and Government of Russian Federation in 2006. The last project assumes the consolidation and joining of all producers of civil and military aviation into one united corporation in order to save the technological and productive potential of the sector after serious crisis in 1990-s. On the other hand, this project can be considered as one of the measures to establish state control and hierarchy in the defense industry. The current project tries to analyze the necessity and the possible impacts of restructuring processes. In order to perform such analysis, I need to observe the evolution of the sector, which involves the description of the restructuring and reforming of the industry since the disintegration of the Soviet Union. The current situation in aviation sector was shaped by number of reforms performed by Government of Russian Federation, which I describe in phases: conversion, privatization, decentralization, followed by evident desire of the state to establish control over some companies. Later on, I am trying to understand the reasons lying behind all reforms of 2000-2006 and the integration of the industry. I also try to predict which impacts on the companies it will have. The last part presents the main conclusions of the paper.