Building information modelling project decision support framework

Building Information Modelling (BIM) is an information technology [IT] enabled approach to managing design data in the AEC/FM (Architecture, Engineering and Construction/ Facilities Management) industry. BIM enables improved interdisciplinary collaboration across distributed teams, intelligent documentation and information retrieval, greater consistency in building data, better conflict detection and enhanced facilities management. Despite the apparent benefits the adoption of BIM in practice has been slow. Workshops with industry focus groups were conducted to identify the industry needs, concerns and expectations from participants who had implemented BIM or were BIM “ready”. Factors inhibiting BIM adoption include lack of training, low business incentives, perception of lack of rewards, technological concerns, industry fragmentation related to uneven ICT adoption practices, contractual matters and resistance to changing current work practice. Successful BIM usage depends on collective adoption of BIM across the different disciplines and support by the client. The relationship of current work practices to future BIM scenarios was identified as an important strategy as the participants believed that BIM cannot be efficiently used with traditional practices and methods. The key to successful implementation is to explore the extent to which current work practices must change. Currently there is a perception that all work practices and processes must adopt and change for effective usage of BIM. It is acknowledged that new roles and responsibilities are emerging and that different parties will lead BIM on different projects. A contingency based approach to the problem of implementation was taken which relies upon integration of BIM project champion, procurement strategy, team capability analysis, commercial software availability/applicability and phase decision making and event analysis. Organizations need to understand: (a) their own work processes and requirements; (b) the range of BIM applications available in the market and their capabilities (c) the potential benefits of different BIM applications and their roles in different phases of the project lifecycle, and (d) collective supply chain adoption capabilities. A framework is proposed to support organizations selection of BIM usage strategies that meet their project requirements. Case studies are being conducted to develop the framework. The results of the preliminary design management case study is presented for contractor led BIM specific to the design and construct procurement strategy.

An industrial organisation economic supply chain approach for the construction industry : a review

Understanding industries in terms of the concepts of chains, clusters and networks is becoming increasingly important in economies around the world. Supply chain management for an individual organization is an
emerging field of research in the construction management discipline, but less attention has been devoted to investigating the nature of the construction supply chains and their industrial organizational economic environment. This selected review of construction and mainstream management supply chain literature is organized around four themes; distribution, production, strategic procurement management and industrial
organization economics, and highlights the need to develop an industrial organization economic supply chain framework for construction. The merging of the supply chain concept with the industrial organization model
as a methodology for understanding firm conduct and industry structure and performance is an important contribution to both construction supply chain and construction economic theory. Much of the industrial organization supply chain literature has tended to focus upon manufacturing industries, where typically firms are permanent organizations. This raises issues as to the differences between industries founded upon temporary compared with permanent organizations. There is potential for the development of an industrial organization methodology applicable to the project based industry. Ultimately industrial organization research seeks to have direct implications for industry performance and government policies.

Decision making to support an integrated infrastructure supply chain industrial ecological approach within public private partnerships

Supply chains are complex adaptive systems for which final performance depends upon numerous interdependent decisions made by numerous firms which synthesise inputs from various resources systems.  The dynamic interdependent behaviour of social, economic, material and informational resource systems within eco-industrial settings that support the built environment life cycle supply chains can be studied at the supply chain level.  The impact of megaprojects is significant and holds promise to explore the impact of decisions on various systems as it combines project and system boundaries.  Megaoprojects considered as major events within systems can produce critical revolutionary impacts on the systems within which they are embedded.  The decisions that are made on megaprojects are central to risk management.  typically major infrastructure projects are procured through a form of public private partnership (PPP).  The core principle of PPP is value for money which refers to the best available outcome attempting to take account of all benefits, costs and risks over the whole life of the procurement.  In this paper the focus is on Australia where there has been considerable acitivity in the use of PPPs.  With recent national infrastucture packages proposed to stimulate the economy due to the global financial crisis, decision modelling on risks is a revelant and critical matter not only in practice but also in the research community.  PPPs encourage the whole-of-lifecycle approach in the procurement and management of public sector assets by transparently recognising the costs and risks associated with the whole life of the required service or facility, thus integrated whole of life supply chains can be considered.  By creating a single point of responsibility for an entire project from inception through operation, a strong incentive is created for thinking about the effects that a design or construction decision will have on the effectiveness and efficiency of managing and maintaining a facility during its operational life.  The decision to procure holistic supply chains becomes a much more viable commercial reality in the PPP environment than previously considered in the usual commercial construction spot transactional approach.  These types of decisions tend to be imprecise, approximate and complex requireing justification and reasoning logic rather than the classical 'truth' logic.  The purpose of this paper is to develop a theoretical decision framework which combines interdependency and multi-values logic for supply chain procurement modelling.

An explorative study of construction partnering in China

This paper aims to explore the feasibility of implementing formal partnering in China's construction industry. After a literature review and synthesis, a self-administered industry-wide postal questionnaire survey was conducted to examine practice, detect problems and find solutions. Professionals involved in China's construction industry found having very limited knowledge and experience in formal partnering, which indicates that formal partnering is undeveloped in China. However, most companies are found maintaining close and cooperative business relationship with other parties, which suggests that informal partnering has been implemented as an alternative because trust is deeply rooted in the Chinese culture. The feasibility of implementing partnering in China is revealed. It is recommended that international architectural, engineering and construction (AEC) firms and clients enter China's construction industry by adopting partnering methods to collaborate harmoniously with local Chinese parties. The perceived outcome has been found promising. This paper makes an original contribution to the general body of knowledge on partnering procurement route, in particular in China's construction industry, on which previous research has barley focused. Current situation of partnering implementation in China is examined and problems investigated. Underlying reasons are also explored and feasible initiatives recommended.

The role of cultural capital towards the development of a sustainable business model for design firm internationalization

This paper reports the results of three case studies of firms involved with design for the built environment who have been working in international markets for more than two decades. The first two firms are architectural practices and the third is a construction firm which designs and constructs. Their markets are diverse and their strategies have evolved over the two decades. There are numerous differences between countries including cultural, social, project governance structures, regulatory, procurement strategies, terminology, codes, etc. What is it that makes these firms able to develop sustainable business models in internationalisation? A grounded theory approach was used to examine the three case studies and develop a reflexive capability model drawing from the sociological theory of reflexivity to interpret the characteristics of the firms' ability to be able to adapt different international conditions. Twenty-two interviews were conducted across the three firms. Results indicated that sustainable business models rely upon the management of social, cultural and intellectual capital. The strategic management of capital leads to the development of increasing reflexive capability within the processes related to internationalisation. Reflexive capability is a characteristic of the three successful case study firms internationalising and working within global models of practice. This paper focuses on the role of cultural capital in a reflexive capability model for sustainable internationalisation.

Allocating risks in public-private partnership projects using a transaction cost economics approach - a case study

Public-private partnership (PPP) projects are often characterised by increased complexity and uncertainty due to their idiosyncrasy in the management and delivery processes such as long-term lifecycle, incomplete contracting, and the multitude of stakeholders. An appropriate risk allocation is particularly crucial to achieving project success. This paper focuses on the risk allocation in PPP projects and argues that the transaction cost economics (TCE) theory can integrate the economics part, which is currently missing, into the risk management research. A TCE-based approach is proposed as a logical framework for allocating risks between public and private sectors in PPP projects. A case study of the Southern Cross Station redevelopment project in Australia is presented to illustrate the approach. The allocation of important risks is put under scrutiny. Lessons learnt are discussed and alternative management approaches drawing on TCE theory are proposed.

Exploring critical factors for achieving successful risk allocation in public-private partnership projects

Public Private Partnerships (PPP) as a procurement mechanism for infrastructure projects is becoming increasingly common. This is principally due to the value for money opportunities it offers the public sector sponsors. This value for money is primarily achieved through the optimisation of the allocation of risk inherent in the project being transferred from the public sector sponsors onto private sector bidders. This paper analyses the influence that these factors have on successful risk allocation with the aim of providing clearer parameters for optimal risk allocation in PPP projects. Through an extensive review of existing literature, the critical success factors for optimal risk allocation in PPP projects are identified. It is found that the optimisation of risk allocation in PPP projects is critically influenced by the identified factors, which will undoubtedly aid in the successful outcome for future PPP projects.

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.

The client's complex decision-making environment on international mega projects

More than ever before, architectural, engineering and construction (AEC) firms are working on international mega projects. The mega project environment offers a range of opportunities for firms but is but is characterised by a high level of risk and uncertainty. International mega projects bring together networks of people with differing backgrounds and cultures to work in unfamiliar locations to integrate the social, economic, technical and political components of design and construction. Within such an intense environment there is a process of rapid relationship development at an unprecedented level. The interests and power relations on such projects are often very strong given the vast amount of money, jobs, environmental impacts, publicity and national prestige involved. Therefore in a field as costly or consequential as mega project design and construction there is an increased need to effectively manage these projects given the associated high risks of failure. Internationalisation is a relatively new field of research in the AEC sector and past research has tended to focus on explaining the attitudes and behaviour of the industry itself towards improving performance on such projects. To date there has been little research investigating the sophistication of the international client in terms of their regular business environment which is characterised by a set of social, economic and political responsibilities. The values that clients ascribe to their everyday practices and experiences inevitably condition how they act economically, which in turn impacts upon project decision-making. Clients establish the structural organisation of project teams through the procurement strategy and establish the context for effective decision-making. To a large extent they establish a unique culture that project team members need to work within and make decisions. Since clients establish the context within which firms operate the findings of past studies on the industry’s position and attitudes are more indicative than enlightening. Clients occupy a distinctly different position in the construction supply chain and therefore experience and respond to project matters based upon their environment and not the construction industry environment. Clients are confronted with uncertainties and need support to help them understand the critical role that they play in creating good decision-making environments. This theoretical paper seeks to develop a rationale for studying the client’s complex decision-making environment on international mega projects. Specifically it charts the quest for improved industry performance through client leadership as documented in various industry and government publications since the 1940s and highlights that there has been considerable attention to address industry problems through client leadership, however, with little evidence that the issues have been resolved. This paper is positioned within a PhD study, which seeks to move beyond the aspirations of policymakers and idealistic descriptions of how clients ought to behave to explain the reality of what really happens on mega project client decision-making based upon a critique of cultural political economy.

Client leadership capacity on international projects : exploring the client's complex decision-making environment through a critical cultural political economy lens

The global construction environment offers stakeholders a range of opportunities but is characterised by a high level of risks and uncertainty. Internationalisation is a relatively new field of research in the AEC sector and past research has largely focused on explaining the behaviour of the industry itself. To date there has been little research investigating the client's leadership role. Much effort has been placed on positioning clients towards overall industry performance improvement, however, with little emphasis on the client's capacity to undertake their role. Clients establish the decision-making environment through key early critical decisions including procurement strategy and team membership. To a large extent they establish a unique culture that project team members need to work within and make decisions, which is the social and cultural embedding of the economic activities on projects. This theoretical paper is positioned within a PhD study which undertakes a cultural political economy perspective to investigate the client's central role in setting the boundaries within which decisions affecting budgets, quality, design, project organisational structure and team membership throughout the project lifecycle come to be made. A conceptual model for client leadership on international projects is developed based upon two contextual indicators which seeks to describe and explain the economic decisions clients make, which are deeply embedded in social relationships, shared meanings and cultural norms and the associated power and influence clients have on the political economy of international design and construction practice. This paper also seeks to develop a research question for future empirical testing.

Ten years of environmental university building

The authors have been involved in over ten years of environmental consulting and research on university buildings. Numerous simulations and measurement studies have occurred over this period of time. The intentions have always been to improve and optimise the environmental performing aspects of a building. This paper is a reporting of the implemented strategies, their pre-building research investigation as well as their operational outcomes. Their successes and failures are discussed here. This research is intended as a feedback loop to future design specification, commissioning and maintenance improvements. In hindsight many of the environmental concepts, when executed as planned, were successful. However, often those requiring extensive control, such as lighting, ventilation and mechanical air-conditioning were a failure. The observations between simulation and actual performance are also noted. The paper includes discussion about some of the obstacles in building procurement which can hinder the result of a good environmental performing building.

Towards the development of a project decision support framework for adoption of an integrated building information model using a model server

This chapter discusses an action research study towards the development of a decision framework to support a fully integrated multi disciplinary Building Information Model (BIM) using a Model Server. The framework was proposed to facilitate multi disciplinary collaborative BIM adoption through, informed selection of a project specific BIM approach and tools contingent upon project collaborators’ readiness, tool capabilities and workflow dependencies. The aim of the research was to explore the technical concerns in relation to Model Servers to support multi disciplinary model integration and collaboration; however it became clear that there were both technical and non technical issues that needed consideration. The evidence also suggests that there are varying levels of adoption which impacts upon further diffusion of the technologies. Therefore the need for a decision framework was identified based on the findings from an exploratory study conducted to investigate industry expectations. The study revealed that even the market leaders who are early technology adopters in the Australian industry in many cases have varying degrees of practical experiential knowledge of BIM and hence at times low levels of confidence of the future diffusion of BIM technology throughout the industry. The study did not focus on the benefits of BIM implementation as this was not the intention, as the industry partners involved are market leaders and early adopters of the technology and did not need convincing of the benefits. Coupled with this there are various other past studies that have contributed to the ‘benefits’ debate. There were numerous factors affecting BIM adoption which were grouped in to two main areas; technical tool functional requirements and needs, and non technical strategic issues. The need for guidance on where to start, what tools were available and how to work through the legal, procurement and cultural challenges was evidenced in the exploratory study. Therefore a BIM decision framework was initiated, based upon these industry concerns. Eight case studies informed the development of the framework and a summary of the key findings is presented. Primary and secondary case studies from firms that have adopted a structured approach to technology adoption are presented. The Framework consists of four interrelated key elements including a strategic purpose and scoping matrix, work process mapping, technical requirements for BIM tools and Model Servers, and framework implementation guide. The BIM framework was presented in draft format again to key industry stakeholders and considered in comparison with current best practice BIM adoption to further validate the framework. There was no request to change any part of the Framework. However, it is an ongoing process and it will be presented again to industry through the various project partners. The Framework may be refined within the boundaries of the action research process as an ongoing activity as more experiential knowledge can be incorporated.

Research framework and empirical evidence of sustainable supply chain

The aim of this research is to conduct a review on the approaches used to assess different criteria on sustainability used by supply chains and to suggest a framework for a methodical approach that would be easy and practical in making complex sustainable assessments. A review was conducted on the present models that are used to examine sustainability within supply chains. A sample of 332 companies mainly from the manufacturing area was examined to determine what criteria they require for assessing sustainable issues amongst their supply chains. A quantitative study using factor analysis and multiple regression were used to analyse the data to determine the statistical significance of the attempted prediction. It was identified that corporate commitment to sustainability, corporate reporting and management systems are significant predictors for green procurement in supply chain management. This framework can be beneficial in implementing environmental sustainable assessments for supply chains. Much of the empirical research on supply chains has focused on business performance, while there is very little empirical work undertaken in the literature on sustainable supply chains, Sustainability within supply chains implies that businesses need to consider the economic, environmental and social impacts of their activities.

Implementation of enterprise resource planning (ERP) software in a major construction contracting organization in Hong Kong

Purpose – The purpose of this paper is to summarize the scope, methodology and main findings of a doctoral thesis about the implementation of enterprise resource planning (ERP) software in a major construction contracting organization in Hong Kong. This research is taken from a leadership and power and project management (PM) perspective.

Design/methodology/approach – The project adopted a case study approach in which the candidate was an employee/observer, who was embedded as a member of the business transformation team taking an action learning approach to study the ERP adoption. The research used the soft system methodology to identify gaps in the observed maturity level which exists in the organization. Data was gathered using public and private documentation, semi-structured interviews, observation and was validated through review of evidence with participants.

Findings – The results identified the importance of leadership and cultural issues in implementation of the business strategy. This research includes a contribution in two spheres: PM and construction procurement. The first implication for PM theory was to illustrate how knowledge has been efficiently managed within a construction organization by using information communication technology (ICT). It can be represented by the ladder of ICT>ERP>KM>PM. The second implication was to pave the way for the use of partnering strategies in PM practice. It can be represented by the ladder of National Culture>Organizational Culture>Leadership>Partnering Strategy>PM.

Practical implications – This model could be adapted to other large and complex organisational contexts. The research project also has implications as opening up a PM perspective on business transformation.

Originality/value – The contribution of this research is proving the success of adopting KM in a construction company by using an ERP system. The importance of culture in the traditionally collectivistic construction industry, and the issues senior management should take into account when formulating business strategies.

A systematic approach to risk management for construction

Systematic risk management is expecting the unexpected – it is a tool which helps control risks in construction projects. Its objective is to introduce a simple, practical method of identifying, assessing, monitoring and managing risk in an informed and structured way. It provides guidance for implementing a risk control strategy that is appropriate to control construction projects at all levels. This paper will review systematic management approaches to risk. It discusses the allocation of risk and suggests that risk needs to be identified and managed early in the procurement process. In addition, a case study of a small project that was affected by difficult economic circumstances is included to demonstrate the effectiveness of systematic risk management.