A framework for material management in the building demolition industry

Conventional mechanical building demolition produces numerous solid wastes, most of which are sent to landfill directly and severely degrade the living environment. Just-in-time building demolition has been developed recently with a management strategy to facilitate waste reuse. Procurement management plays a significant role in just-in-time building demolition. In particular, the demolition tendering selection needs to consider contractors' environmental performance in addition to project costs. Moreover, the flow of building materials in a demolition project may be regarded as a supply chain involving the building owner, demolition contractor and material demanders. This paper develops a framework for salvaged materials management in the emerging demolition industry. The research is to promote the recycling and reuse of building demolition materials in order to achieve better environmental and financial performance for building demolition projects.

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.

Procurement of construction facilities: a case study of design management within a design and construct organisation

Presents a case study of design management within an Australian design-construct organization on a large residential apartment project, with the purpose of identifying and analysing issues associated with the organization, responsibilities and stages of development in a typical design-construct project. Discusses the nature of introspection in the Australian construction industry, the shift in procurement methods, the design and build approach, whole life issues, the need for a design manager, and the role of the facilities manager. Profiles the case study organization and its contracts and procurement methods, before focusing on weaknesses in the company, the role of the project design development manager in leading the design team, managing the design consultants, and interacting and advising the developer in relation to design decisions. Suggests from the exercise that: the project manager should remain the overall project leader, manager and interface between design, cost, programme, buildability, construction and user requirements; the design manager should be responsible for issuing all documentation; and the design cost manager should be responsible for verifying that the design developed accords with project budgets, project brief and quality requirements in conjunction with the design manager.

Knowledge management in a major construction firm in Tawian: a case study-examining the impacts of KM initiatives within the firm.

This paper addresses knowledge management (KM) in a project management organisation through a case study. The case study organisation is a small- edium sized Taiwanese-owned construction company (staff size of approximately 50) with an annual turnover of approximately TWD50 (AUD$1.85) billion. Approximately one half of the company comprised project-related staff (e.g. construction project management, project documentation, estimation, procurement, and design), while the other comprised administrative and business-related staff (e.g. office administration and management, business development, and finance and accounting). The researcher undertook a series of surveys and one-on-one interviews whilst ‘embedded’ for several months with the organisation. As part of a larger research project, this case study was one of four case studies conducted in major construction organisations in Singapore, Taiwan, and Australia. The study revealed the recognition, importance and commitment of organisational culture to KM, and the effects the knowledge management initiatives have on the organisation’s ability to manage knowledge across its projects and deliver the projects at various ‘levels’ of the organisation (individual, project, departmental, and corporate). It concludes that a technologically and functionally sound KM infrastructure does not necessarily assure an organisation with a capability to manage knowledge. Organisations need to ensure that the KM repository is made up of quality and relevant contents (not just quantity), and that corporate culture (especially the willingness of individuals to share what they know) is a critical determining factor to the organisation’s ability to share, apply and create knowledge (i.e. low sharing capability leads to low application and creation capabilities).

Are knowledge management infrastructructures capable of managing knowledge?: Case study of a major construction firm in Taiwan

This paper addresses knowledge management (KM) in a project management organisation through a case study.

The case study organisation is a small-medium sized Taiwanese-owned construction company (staff size of approximately 50) with an annual turnover of approximately TWD50 (AUD$1.85) billion. Approximately one half of the company comprised project-related staff (e.g. construction project management, project documentation, estimation, procurement, and design), while the other comprised administrative and business-related staff (e.g. office administration and management, business development, and finance and accounting).

The researcher undertook a series of surveys and one-on-one interviews whilst ‘embedded’ for several months with the organisation. This study is part of an on-going international comparison involving major construction organisations in Singapore, Australia, and Taiwan.

This study examines the recognition, importance and commitment of organisational culture to KM, and the effects the knowledge management initiatives have on the organisation’s ability to manage knowledge across its projects and deliver the projects at various ‘levels’ of the organisation (individual, project, departmental, and corporate).

It concludes that a technologically and functionally sound KM infrastructure did not necessarily assure that an organisation had a capability to manage knowledge. Organisations need to ensure that their KM repository is made up of relevant and quality contents (not just quantity), and that corporate culture (especially the willingness of individuals to share what they know) is a critical determining factor to the organisation’s ability to share, apply and create knowledge (i.e. low sharing capability leads to low application and creation capabilities).

Design management in a design-construct organization

As clients have become more aware and demanding of the construction industry, they are also less tolerant of the management of its problems and the risks involved in the delivery of major projects. Identification and allocation of risk is one of the most critical processes in the early stages of project development. Often it is the deciding factor in the selection of the building process and of the type of procurement method adopted to manage the various project risks. The emergence of different forms of procurement, and in particular, design-construct and novation, requires the design construct contractor to not only accept the risks associated with the construction of the works, but also of the design management during the design development of the project. With the increasing requirement for design-construct contractors to balance the cost management issues and design development through the various stages, the role of the design manager as information manager has evolved and expanded in importance. This paper presents a case study of design management within a design-construct organization on a large residential apartment project. It identifies and analyses issues concerned with the organization, responsibilities, relationships and stages of development in a typical design-construct project.

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.

Factor analysis of partners' commitment to risk management in public-private partnership projects

Purpose – The purpose of this paper is to investigate and uncover key determinants that could explain partners' commitment to risk management in public-private partnership projects so that partners' risk management commitment is taken into the consideration of optimal risk allocation strategies.

Design/methodology/approach – Based on an extensive literature review and an examination of the purchasing power parity (PPP) market, an industry-wide questionnaire survey was conducted to collect the data for a confirmatory factor analysis. Necessary statistical tests are conducted to ensure the validity of the analysis results.

Findings – The factor analysis results show that the procedure of confirmatory factor analysis is statistically appropriate and satisfactory. As a result, partners' organizational commitment to risk management in public-private partnerships can now be determined by a set of components, namely general attitude to a risk, perceived one's own ability to manage a risk, and the perceived reward for bearing a risk.

Practical implications – It is recommended, based on the empirical results shown in this paper, that, in addition to partners' risk management capability, decision-makers, both from public and private sectors, should also seriously consider partners' risk management commitment. Both factors influence the formation of optimal risk allocation strategies, either by their individual or interacting effects. Future research may therefore explore how to form optimal risk allocation strategies by integrating organizational capability and commitment, the determinants and measurement of which have been established in this study.

Originality/value – This paper makes an original contribution to the general body of knowledge on risk allocation in large-scale infrastructure projects in Australia adopting the procurement method of public-private partnership. In particular, this paper has innovatively established a measurement model of organisational commitment to risk management, which is crucial to determining optimal risk allocation strategies and in turn achieving project success. The score coefficients of all obtained components can be used to construct components by linear combination so that commitment to risk management can be measured. Previous research has barely focused on this topic.

Value chain supply procurement strategies in international construction: cases of foreign constructors in China

Purpose – Firms compete using a variety of strategies. Typically they aim to provide something different, to be better, or simply cheaper. In the construction industry, the performance characteristics, quality and cost of the final delivered project will be the outcome of the interplay of capabilities of all the firms involved in the project. Consequently, in order to improve competitiveness, firms must pay attention to not only their own competitive advantage but to those of the firms, both up-stream and down-stream, on whom they depend in delivering their projects. For foreign constructors in China, those competitive considerations will be informed by circumstances different from home. How then do foreign constructors adapt themselves to the problem of sourcing competitively when located within a China-based supply chain? The paper aims to discuss these issues.

Design/methodology/approach – In this study 60 foreign enterprises operating within the Chinese construction sector were investigated by using a comparative case study approach.

Findings – Four generic procurement strategies were identified. First, firms adapt themselves in the search for optimal supply sources by replicating home-based suppliers, controlling local suppliers, or by remaining agile and non-aligned. Second, firms develop niche supply monopolies through market dominance, uniquely differentiated offerings, or by integration with down-stream providers. Third, firms find opportunities to bring in off-shore technology intensive procurements, where that technology is either protected, improved upon, or sold. Finally, firms also seek to transit to China as a procurement base in order to reduce local supply cost, service world-wide operations, or as part of a total strategy of China relocation.

Originality/value – The identification of this rich range of procurement approaches will be of interest to internationalization strategists, as well as to industry practitioners looking to find appropriate business models for off-shore operations.