Literature Review Value Alignment Process for Project Delivery

The objective of the project “Value Alignment Process for Project Delivery” is to provide a catalyst and tools for reform in the building and construction industry to transform business-as-usual performance into exceptional performance. The outcomes of this project will be beneficial to not only the construction industry, but to the community as a whole because a more sophisticated industry can deliver more effective use of assets, financing, operating and maintenance of facilities to suit the community’s needs. The research project consists of a study into best practice project delivery and the development of a suite of products, resources and services to guide project teams towards the best approach for a specific project. These resources will be focused on promoting the principles that underlie best practice project delivery, rather than on identifying a particular delivery system. The need for such tools and resources becomes more and more acute as the environment within which the construction industry operates becomes more and more complex, and as business and political imperatives shift to encompass or represent diverse stakeholder interests. To this end, this literature review looks at why it is essential to achieve transformation in the Australian construction industry in the context of its importance to the Australian economy. It seeks to investigate the concepts of ‘alignment’ and value’ as they pertain to construction industry processes and relationships. It comprehensively reviews drivers of project excellence and best practice project delivery principles and looks at how clients approach selection of project delivery systems. It critiques existing project delivery strategies and gives an overview of recent best practice initiatives. The literature review represents a milestone against the Project Agreement and forms a foundation document for this research project

Re-valuing construction through project delivery

In moving from lowest cost adversarial based traditional procurement towards value driven methodologies the challenges range from re-engineering the process, to metrics and team alignment. This paper describes research into methodologies which encourage alignment of project partners towards achieving mutually beneficial goals. The research identifies nine variables which influence the achievement of successful projects delivering value. Results from case studies illustrate that not all parties can achieve value for themselves which directs attention to the balance between deliverables and the interests of team members. Re- valuing construction demands refocusing towards the delivery of operational assets and their place in the value system whilst recognising the need to manage the delivery process and the team to align the value to the parties. The objective of the project was to develop tools and recommendations for reform of project delivery in the building and construction industry to transform business-as-usual performance into exceptional performance. Benefits flow not only to the construction industry, but to the community as a whole because a more sophisticated industry can deliver more effective use of assets, financing, operating and maintenance of facilities to suit the community’s needs. This research was funded by the Australian Cooperative Research Centre for Construction Innovation.

Achieving value alignment in project delivery

A study into best practice project delivery and the development of a suite of products, resources and services to help guide clients and project teams towards the best approach for specific projects.

Construction project delivery and industry skills : crafting a better fit

The construction industry should be a priority to all governments because it impacts economically and socially on all citizens. Sector turnover in industrialised economies typically averages 8-12% of GDP. Further, construction is critical to economic growth. Recent Australian studies estimate that a 10% gain in efficiency in construction translates to a 2.5% increase in GDP ----- ----- Inefficiencies in the Australian construction industry have been identified by a number of recent studies modelling the building process. They have identified potential savings in time of between 25% and 40% by reducing non-value added steps in the process. A culture of reform is now emerging in the industry – one in which alternate forms of project delivery are being trial. ----- ----- Government and industry have identified Alliance Contracting as a means to increase efficiency in the construction industry as part of a new innovative procurement environment. Alliance contracting requires parties to form relationships and work cooperatively to provide a more complete service. This is a significant cultural change for the construction industry, with its well-known adversarial record in traditional contracting. Alliance contracts offer enormous potential benefits, but the Australian construction industry needs to develop new skills to effectively participate in the new relationship environment. ----- ----- This paper describes a collaborative project identifying skill needs for clients and construction professionals to more effectively participate in an increasingly sophisticated international procurement environment. The aim of identifying these skill needs is to assist industry, government, and skill developers to prepare the Australian construction workforce for the future. The collaborating Australian team has been fortunate to secure the Australian National Museum in Canberra as its live case study. The Acton Peninsula Development is the first major building development in the world awarded on the basis of a joint alliance contract.

Implementing design build project delivery system in Indonesian road infrastructure projects

Design-Build (DB) project delivery systems have increasingly been adopted by many private and public sector organizations worldwide due to its many advantages. However, many Indonesian road infrastructure projects are still delivered using the traditional design-bid-build (DBB) project delivery system. This paper reviews the existing literature to explore factors that can influence the successful implementation of DB project delivery system in Indonesian road infrastructure projects. It founds the lack of clarification in existing legislations as well as the lack of experiences, knowledge and skill as the main obstacles in implementing DB systems in Indonesia. To overcome these obstacles, this paper proposes (1) A relook at existing legislation in term of providing more guidance on determining projects appropriate for the DB, procedures for implementing DB, and the structure of builder entity; (2) To develop the skills and knowledge of DB to all stakeholders through communications, knowledge sharing and training. The outcome of this review can serve as a guide to development a framework for the implementation of the design-build project delivery system in Indonesian road infrastructure projects.

Enhancing Sustainability Deliverables for Infrastructure Project Delivery

Despite an increasing highlight on the sustainability agenda by the construction industry, sustainable development is often treated with different philosophy, interpretation, and responsibility at various stages of project development by various stakeholders involved. The actual sustainability deliverables from the industry is not substantially tangible, especially at project levels. For infrastructure projects which typically span over long periods of time, achieving consistent sustainability outcomes during various stages of development remains as a formidable task. The absence of common understanding among stakeholders and the lack of appropriate sustainability reporting mechanism are possible causes. Many policies dealing with these issues tend to be too generic and broad-based for practical adaptation. While there had been a plenty of research initiatives on sustainability assessment, there is often a gap between sustainability deliverables during project implementation and the grandeur of promises during project conception. This paper reviews the historical context of sustainable development and its principles, and past studies on sustainable construction, focusing on infrastructure projects. It goes on to introduce a QUT research project aimed at identifying and integrating the different perceptions and priority needs of the stakeholders, along with identifying issues that impact on the gap between sustainability foci and its actual realization at project end level, in order to generate a framework of enhancing sustainable deliverables. It is expected that the research will help promote more integrated approaches to decision-making on the implementation of sustainability strategies and foci during the construction project delivery processes.

Factors contributing to design-build (DB) project delivery system implementation in road infrastructure projects in Indonesia

Design-build (DB) project delivery systems have increasingly been adopted by many private and public sector organizations worldwide due to the many advantages offered on projects by such systems. However, many Indonesian road infrastructure projects are still delivered using the traditional design-bid-build (DBB) project delivery system. In order to provide evidence of the benefits of DB, it is essential to identify the factors that can contribute to successful DB implementation and this paper aims to provide evidence of such factors that can promote the successful implementation of DB project delivery systems on Indonesian road infrastructure projects. Four main factors and 28 indicators were identified from an extensive literature review, and a Delphi questionnaire survey was conducted amongst 20 experts drawn from the Indonesian road infrastructure construction sector. The first round Delphi study found that regulation, competency of clients, ability to manage DB projects and external conditions were the major factors that can promote successful DB implementation.

Applying quality management to project delivery in Hong Kong : A field study of management perceptions

The concept of market-driven rather than product-driven quality management has been given prominence through the report of a recent inquiry into the performance of the Hong Kong construction industry. The report submitted to the Government of Hong Kong in 2001 establishes a new vision of ‘an integrated industry that is capable of continuous improvement towards excellence in the market-driven environment’. Given the current economic downturn, major contractors are facing many challenges to realize this new quality oriented vision. This paper addresses the critical and timely issue of applying quality management to the project delivery process in Hong Kong. The paper attempts to capture and critically examine management perceptions of quality management aspects as applied to a local large-scale road construction project. Based on the analysis of questionnaire feedback and face-to-face interviews, the paper reveals key attributes of a successful application of quality management approaches, and identifies a mechanism for facilitating such implementation.

Framework for implementing design build project delivery system in road infrastructure in Indonesia

The thesis provides a framework for potential implementation of the design-build (DB) project delivery system in road infrastructure projects in Indonesia. This framework proposed a structure of the hierarchy of factors promoting the potential implementation of the DB project delivery system and introduced ways to implement the DB project delivery system through level of hierarchical factors. These findings not only give benefit to the academic knowledge but also to the public officials in guiding them with regard to the priority of promoting factors in the process to implement the DB system.

Digital Modeling, Integrated Project Delivery and Industry Transformation: An Australian Case Study

This research is focused on realizing productivity benefits for the delivery of transport infrastructure in the Australian construction industry through the use of building information modeling (BIM), virtual design and construction (VDC) and integrated project delivery (IPD). Specific objectives include: (I) building an understanding of the institutional environment, business systems and support mechanisms (e.g., training and skilling) which impact on the uptake of BIM/VDC; (II) gathering data to undertake a cross-country analysis of these environments; and (III) providing strategic and practical outcomes to guide the uptake of such processes in Australia. Activities which will inform this research include a review of academic literature and industry documentation, semi-formal interviews in Australia and Sweden, and a cross-country comparative analysis to determine factors affecting uptake and associated productivity improvements. These activities will seek to highlight the gaps between current-practice and best-practice which are impacting on widespread adoption of BIM/VDC and IPD. Early findings will be discussed with intended outcomes of this research being used to: inform a national public procurement strategy; provide guidelines for new contractual frameworks; and contribute to closing skill gaps. Keywords: building information modeling (BIM); virtual design and construction (VDC); integrated project delivery (IPD); transport infrastructure; Australia; procurement

A model for assessing and correcting construction project health

Abstract Maintaining the health of a construction project can help to achieve the desired outcomes of the project. An analogy is drawn to the medical process of a human health check where it is possible to broadly diagnose health in terms of a number of key areas such as blood pressure or cholesterol level. Similarly it appears possible to diagnose the current health of a construction project in terms of a number of Critical Success Factors (CSFs) and key performance indicators (KPIs). The medical analogy continues into the detailed investigation phase where a number of contributing factors are evaluated to identify possible causes of ill health and through the identification of potential remedies to return the project to the desired level of health. This paper presents the development of a model that diagnoses the immediate health of a construction project, investigates the factors which appear to be causing the ill health and proposes a remedy to return the project to good health. The proposed model uses the well-established continuous improvement management model (Deming, 1986) to adapt the process of human physical health checking to construction project health.

Project diagnostics : assessing the condition of projects and identifying poor health combing forces

In many cases, construction projects do not achieve the objectives that the project participants set for them. If participants could better understand how their project is performing overall, at various stages of its delivery, then the opportunities to achieve project success would almost certainly be greater. This paper documents a method of assessing the status of a project, at a point in its design or construction phase, or after completion. The status is assessed in terms of up to seven (7) key success factors. Any evidence of less than adequate performance in these performance areas is scrutinised to seek out the root causes of why this situation is happening. Using these identified root causes of under performance, general suggestions can then be made as to how to return the project to good health. A software package that assists in assessing the status of the project has been developed. The package is currently being calibrated before commercial release.

Project Diagnostics : Providing Successful Project Outcomes

Project Diagnostics is a tool for construction industry stakeholders wishing to improve project delivery and outcomes. This software identifies areas of poor project health, then establishes probable root causes and provides suggested remedial measures. Its focus is to act as an advanced warning system for construction projects that are failing to meet predetermined objectives based on the critical success factors (CSFs) of cost, time, quality, safety, relationships, environment and stakeholder value.