Social and cultural drivers of incentive effectiveness in infrastructure projects

Formal incentives systems aim to encourage improved performance by offering a reward for the achievement of project-specific goals. Despite argued benefits of incentive systems on project delivery outcomes, there remains debate over how incentive systems can be designed to encourage the formation of strong project relationships within a complex social system such as an infrastructure project. This challenge is compounded by the increasing emphasis in construction management research on the important mediating influence of technical and organisational context on project performance. In light of this challenge, the research presented in this paper focuses on the design of incentive systems in four infrastructure projects: two road reconstructions in the Netherlands and two building constructions in Australia. Based on a motivational theory frame, a cross case analysis is conducted to examine differences and similarities across social and cultural drivers impacting on the effectiveness of the incentive systems in light of infrastructure project context. Despite significant differences in case project characteristics, results indicate the projects’ experience similar social drivers impacting on incentive effectiveness. Significant value across the projects was placed on: varied performance goals and multiple opportunities to across the project team to pursue incentive rewards; fair risk allocation across contract parties; value-driven tender selection; improved design-build integration; and promotion of future work opportunities. However, differences across the contexts were identified. Results suggest future work opportunities were a more powerful social driver in upholding reputation and establishing strong project relationships in the Australian context. On the other hand, the relationship initiatives in the Dutch context seemed to be more broadly embraced resulting in a greater willingness to collaboratively manage project risk. Although there are limitations with this research in drawing generalizations across two sets of case projects, the results provide a strong base to explore the social and cultural influences on incentive effectiveness across different geographical and contextual boundaries in future research.

Collaborative learning model of infrastructure construction: A capability perspective

Purpose Performance heterogeneity between collaborative infrastructure projects is typically examined by considering procurement systems and their governance mechanisms at static points in time. The literature neglects to consider the impact of dynamic learning capability, which is thought to reconfigure governance mechanisms over time in response to evolving market conditions. This conceptual paper proposes a new model to show how continuous joint learning of participant organisations improves project performance. Design/methodology/approach There are two stages of conceptual development. In the first stage, the management literature is analysed to explain the Standard Model of dynamic learning capability that emphasises three learning phases for organisations. This Standard Model is extended to derive a novel Circular Model of dynamic learning capability that shows a new feedback loop between performance and learning. In the second stage, the construction management literature is consulted, adding project lifecycle, stakeholder diversity and three organisational levels to the analysis, to arrive at the Collaborative Model of dynamic learning capability. Findings The Collaborative Model should enable construction organisations to successfully adapt and perform under changing market conditions. The complexity of learning cycles results in capabilities that are imperfectly imitable between organisations, explaining performance heterogeneity on projects. Originality/value The Collaborative Model provides a theoretically substantiated description of project performance, driven by the evolution of procurement systems and governance mechanisms. The Model’s empirical value will be tested in future research.

How do construction firms learn on collaborative infrastructure projects?

Construction firms that employ collaborative procurement approaches develop operating routines through joint learning so as to improve infrastructure project performance. This paper reports a study based on a survey sample of 320 construction practitioners which were involved in collaborative infrastructure delivery in Australia. The study developed valid and reliable scales for measuring collaborative learning capability (CLC), and used the scales to evaluate the CLC of contractor and consultant firms within the sample. The evaluation suggests that whilst these firms explore knowledge from both internal and external sources, transform both explicit and tacit knowledge, and apply and internalise new knowledge, they can improve the extent to which these routines are applied to optimise project performance.

Building infrastructure asset management : Australian practices

Generally, major public funding is invested in civil infrastructure assets. The efficiency and comfort level of expected and actual living standards is largely dependant on the management strategies of these assets. Buildings are one of the major & vital assets, which need to be maintained primarily to ensure their functionality by effective & efficient delivery of services and to optimise economic benefits. In Australia, billions of dollars are spent annually managing and maintaining built assets. These assets make up the social and economic infrastructure, which facilitate the essential services to public and business. Buildings are one of the prime & fundamental assets, which need to be managed effectively and efficiently to ensure that related services are delivered economically and sustainably

Examining the use of bid information in predicting the contractor’s performance

Purpose – The purpose of this paper is to examine the use of bid information, including both price and non-price factors in predicting the bidder’s performance. Design/methodology/approach – The practice of the industry was first reviewed. Data on bid evaluation and performance records of the successful bids were then obtained from the Hong Kong Housing Department, the largest housing provider in Hong Kong. This was followed by the development of a radial basis function (RBF) neural network based performance prediction model. Findings – It is found that public clients are more conscientious and include non-price factors in their bid evaluation equations. With the input variables used the information is available at the time of the bid and the output variable is the project performance score recorded during work in progress achieved by the successful bidder. It was found that past project performance score is the most sensitive input variable in predicting future performance. Research limitations/implications – The paper shows the inadequacy of using price alone for bid award criterion. The need for a systemic performance evaluation is also highlighted, as this information is highly instrumental for subsequent bid evaluations. The caveat for this study is that the prediction model was developed based on data obtained from one single source. Originality/value – The value of the paper is in the use of an RBF neural network as the prediction tool because it can model non-linear function. This capability avoids tedious ‘‘trial and error’’ in deciding the number of hidden layers to be used in the network model. Keywords Hong Kong, Construction industry, Neural nets, Modelling, Bid offer spreads Paper type Research paper

Inter- and intra- project knowledge transfer : analysis of knowledge transfer techniques

Many studies in the area of project management and social networks have identified the significance of project knowledge transfer within and between projects. However, only few studies have examined the intra- and inter-projects knowledge transfer activities. Knowledge in projects can be transferred via face-to-face interactions on the one hand, and via IT-based tools on the other. Although companies have allocated many resources to the IT tools, it has been found that they are not always effectively utilised, and people prefer to look for knowledge using social face-to-face interactions. This paper explores how to effectively leverage two alternative knowledge transfer techniques, face-to-face and IT-based tools to facilitate knowledge transfer and enhance knowledge creation for intra- and inter-project knowledge transfer. The paper extends the previous research on the relationships between and within teams by examining the project’s external and internal knowledge networks concurrently. Social network qualitative analysis, using a case study within a small-medium enterprise, was used to examine the knowledge transfer activities within and between projects, and to investigate knowledge transfer techniques. This paper demonstrates the significance of overlapping employees working simultaneously on two or more projects and their impact on facilitating knowledge transfer between projects within a small/medium organisation. This research is also crucial to gaining better understanding of different knowledge transfer techniques used for intra- and inter-project knowledge exchange. The research provides recommendations on how to achieve better knowledge transfer within and between projects in order to fully utilise a project’s knowledge and achieve better project performance.

The Silk Road project

The Silk Road Project was a practice-based research project investigating the potential of motion capture technology to inform perceptions of embodiment in dance performance. The project created a multi-disciplinary collaborative performance event using dance performance and real-time motion capture at Deakin University’s Deakin Motion Lab. Performances at Deakin University, December 2007.

Capability for infrastructure asset capacity management

Infrastructure capacity management is the process of ensuring optimal provision of infrastructure assets to support business operations. Effectiveness in this process will enable infrastructure asset owners and its stakeholders to receive full value on their investment. Management research has shown that an organisation can only achieve business value when it has the right capabilities. This paradigm can also be applied to infrastructure capacity management. With competing needs for limited organisation resources, the challenge for infrastructure organisations is to identify and invest their limited resources to develop the right capabilities in the management of their infrastructure capacity. Using a multiple case study approach, the challenges faced in the management of infrastructure asset capacity and the approaches that can be adopted to overcome these challenges were explored. Conceptualising the approaches adopted by the case participants, the findings suggest that infrastructure organisations must strengthen their stakeholder connectivity capability in order to effectively manage the capacity of their infrastructure assets.

Relational contracting and its efficacy of project outcomes in the Australian construction industry

The Australian construction industry is characterized as being a competitive and risky business environment due to lack of cooperation, insufficient trust, ineffective communication and adversarial relationships which are likely lead to poor project performance. Relational contracting (RC) is advocated by literature as an innovative approach to improve the procurement process in the construction industry. Various studies have collectively added to the current knowledge of known RC norms, but there seem to be little effort on investigating the determinants of RC and its efficacy on project outcomes. In such circumstances, there is a lack of evidence and explanation on the manner on how these issues lead to different performance. Simultaneously, the New Engineering Contract (NEC) that embraced the concept of RC is seen as a modern way of contracting and also considered as one of the best approaches to the perennial problem of improving adversarial relationships within the industry. The reality of practice of RC in Australia is investigated through the lens of the NEC. A synthesis of literature views on the concept, processes and tools of RC is first conducted to develop the framework of RC.

Project managers’ understanding of stakeholders’ satisfaction

Studies indicate project success should be viewed from the different perspectives of the individual stakeholders. Project managers are owner’s agents. In order to allow early corrective actions to take place in case a project is diverted from plan, to accurately report perceived success of the stakeholders by project managers is essential, though there has been little systematic research in this area. The aim of this paper is to report the fi ndings of an empirical study that compares the level of agreement between project managers and key stakeholders on a list of project performance indicators. A telephone survey involving 18 complex project managers and various key project stakeholder groups was conducted in this study. Krippendorff’s Kappa alpha reliability test was used to assess the agreement level between project managers and stakeholders. While the overall agreement level between project manager and stakeholders is medium, results have also identified 12 performance indicators that have significant level of agreement between project managers and stakeholders.

An integrated framework to assess financial reward systems in construction projects

Motivation is a major driver of project performance. Despite team member ability to deliver successful project outcomes if they are not positively motivated to pursue joint project goals, then performance will be constrained. One approach to improving the motivation of project organizations is by offering a financial reward for the achievement of set performance standards above a minimum required level. However, little investigation has been undertaken into the features of successful incentive systems as a part of an overall delivery strategy. With input from organizational management literature, and drawing on the literature covering psychological and economic theories of motivation, this paper presents an integrated framework that can be used by project organizations to assess the impact of financial reward systems on motivation in construction projects. The integrated framework offers four motivation indicators which reflect key theoretical concepts across both psychological and economic disciplines. The indicators are: (1) Goal Commitment, (2) Distributive Justice, (3) Procedural Justice, and (4) Reciprocity. The paper also interprets the integrated framework against the results of a successful Australian social infrastructure project case study and identifies key learning’s for project organizations to consider when designing financial reward systems. Case study results suggest that motivation directed towards the achievement of incentive goals is influenced not only by the value placed on the financial reward for commercial benefit, but also driven by the strength of the project initiatives that encourage just and fair dealings, supporting the establishment of trust and positive reciprocal behavior across a project team. The strength of the project relationships was found to be influenced by how attractive the achievement of the goal is to the incentive recipient and how likely they were to push for the achievement of the goal. Interestingly, findings also suggested that contractor motivation is also influenced by the fairness of the performance measurement process and their perception of the trustworthiness and transparency of their client. These findings provide the basis for future research on the impact of financial reward systems on motivation in construction projects. It is anticipated that such research will shed new light on this complex topic and further define how reward systems should be designed to promote project team motivation. Due to the unique nature of construction projects with high levels of task complexity and interdependence, results are expected to vary in comparison to previous studies based on individuals or single-entity organizations.

The relation between work motivation and project management success : an empirical investigation

The content and context of work significantly influences an employees’ satisfaction. While managers see work motivation as a tool to engage the employees so that they perform better, academicians value work motivation for its contribution to human behaviour. Though the relationship between employee motivation and project success has been extensively covered in the literature, more research focusing on the nature of job design on project success may have been wanting. We address this gap through this study. The present study contributes to the extant literature by suggesting an operational framework of work motivation for project—based organizations. We are also advancing the conceptual understanding of this variable by understanding how the different facets of work motivation have a differing impact of the various parameters of project performance. A survey instrument using standardized scales of work motivation and project success was used. 199 project workers from various industries completed the survey. We first ‘operationalized’ the definition of work motivation for the purpose of our study through a principal component analysis of work motivation items. We obtained a five factor structure that had items pertaining to employee development, work climate, goal clarity, and job security. We then performed a Pearson’s correlation analysis which revealed moderate to significant relationship between project outcomes ad work climate; project outcomes & employee development. In order to establish a causality between work motivation and project management success, we employed linear regression analysis. The results show that work climate is a significant predictor of client satisfaction, while it moderately influences the project quality. Further, bringing in objectivity to project work is important for a successful implementation.

Development of a data mining-based analysis framework for multi-attribute construction project information

Data mining techniques extract repeated and useful patterns from a large data set that in turn are utilized to predict the outcome of future events. The main purpose of the research presented in this paper is to investigate data mining strategies and develop an efficient framework for multi-attribute project information analysis to predict the performance of construction projects. The research team first reviewed existing data mining algorithms, applied them to systematically analyze a large project data set collected by the survey, and finally proposed a data-mining-based decision support framework for project performance prediction. To evaluate the potential of the framework, a case study was conducted using data collected from 139 capital projects and analyzed the relationship between use of information technology and project cost performance. The study results showed that the proposed framework has potential to promote fast, easy to use, interpretable, and accurate project data analysis.

Championing behaviour of a project manager : determinants and outcomes

The role of individuals in the innovation process is highlighted as system integrator and/or champion in literature, however, little is known about championing role of a project manager. Our contention is that the role of the project manager (PM) is essentially of a champion to enable innovation and achieve desired project performance in construction project environment. Hypothesizing that championing behaviour is determined by a number of individual and situational factors, which in turn effects on level of innovation and project performance, we used correlation and regression analysis to test the hypotheses. A survey was carried out with project managers and project team members in 32 building and civil engineering projects in Singapore to test the hypothesized relationships. The results corroborate the importance of championing behaviour to fostering innovation and achieve better project performance.

Delphi study for improving sustainable construction project management in universities

As sustainability becomes an important principle guiding various human activities around the globe, the higher education sector is being asked to take an active part in educating and promoting sustainability due to its moral responsibility, social obligation and its own needs to adapt to new circumstances. There is a global trend of higher education institutions embarking on responses to the sustainability challenge. On-campus building performance is one of the most important indicators for “sustainable universities”, because buildings carry substantially environmental burden such as considerable consumption of raw materials and energy as well as huge amount of waste generation and greenhouse gas emission. Plus, much research proves that building performance can impact on students and staff’s awareness about and behaviours related to sustainability. The past studies rarely discussed about sustainable construction projects in universities’ unique context. Universities are labeled with distinct characteristics such as complex governance, multiple cultures and juggling missions and so on. It is necessary and meaningful to examine the project management system in terms of universities’ organizational environment. Thus, this research project applies Delphi study to identify primary barriers to green technology application in on-campus buildings, critical factors for sustainable project success, key actions in project phases and strategies for project improvement. Through three rounds of questionnaires among panel experts, the authors obtain a profound understanding of project delivery system in universities. The research results are expected to provide sustainability practitioners with holistic understanding and generic information about sustainable construction project performance on campus as an assistance tool.