The factors that affect the cost estimation activities in the tender preparation process in the Malaysian construction industry

The possibility of winning the tender is subject to the cost estimation proposed by the contractors compared to the cost estimation prepared by the client’s representative. Studies indicated that one of the construction company failures in the tendering process is due to the uncertain, incorrect, and unrealistic cost estimation. Failure to provide a competitive cost estimation on time is the main reason the contractor is not successful in winning the tender, and will not be considered for the tender evaluation stage. The aim of this paper is to validate the key factors that affect the cost estimation activities in the tender preparation process. This paper describes the results of a pilot study, from a questionnaire survey on the factors that affect the cost estimation activities in the tender preparation process. The study shows the importance of all the factors in the cost estimation activities in the tender preparation process in terms of human factors, working culture, and information technology.

Research of the construction industry efficiency in China-based on DEA panel data approach

The efficiency of the construction industry is analyzed based on provinces panel data in China in this paper. The Mean Number of Employee and the Mean Completed Investment are used as inputs. The Mean Actual Sales of Commercial Houses and the Mean Net Profit are used as outputs. Data Envelopment Analysis (DEA) model is used to measure the efficiency of the construction industry. Shanghai and Zhejiang are found technically efficient. Shandong is scale efficient but technology efficiency is lower. There are two provinces are decreasing returns to scale and other provinces are increasing returns to scale. On the whole, the technology efficiency of the construction industry of China is lower. Based on the conclusions, the paper proposes some suggestions to improve the efficiency of the construction industry in China.

Factors affecting commitment and satisfaction of project managers in the construction industry

Construction project managers normally need develop their professional knowledge and practical skills in construction technologies and management on the basis of long term work experience. Their organizational commitment and job satisfaction level significantly influence their performance attitudes and job achievements. Keeping construction project managers highly committed to and satisfied with the employed companies is extremely vital to employed construction companies but is really difficulty due to the non-attractive job circumstances. This research investigates the major demographic variables that affect the organizational commitment and job satisfaction of project managers in the construction industry. Based on an empirical study, the statistical results indicate that some demographical variables play a substantial role in construction project managers' organizational commitment and job satisfaction. With this knowledge, construction organizations can draw up operational strategies to retain their project managers.

Lessons learned practices in the UAE construction industry

The failure of learning from our mistakes or those of others, has generated unnecessary waste of time and costs, in the construction industry, due to its project based, fragmented and unstable nature. Lessons Learned, as an important way of improving projects performance, is analyzed in this study, with the aim to explore the current practice of Lessons Learned in the UAE construction industry. A literature review has revealed what “Lessons Learned” is under different contexts, and focused on various factors influencing a Lessons Learned Programme. The research method of a series of structured interviews, followed by an on line questionnaire, is adopted in this study. It was found that although the concept of Lessons Learned is quite familiar by most of professionals in the project management in the UAE construction industry, Lessons Learned practice is mainly performed in an informal way (individually or ad hoc). As for barriers for Lessons Learned practice, Culture factors, such as “Afraid to be blamed for mistakes” and “lack of learning culture” (1st and 2nd rank) influence significantly in Lessons Learned practice. It is also found that a formal lessons learned programme does exist in some organizations. However, with the lack of a dedicated Lessons Learned repository and Lessons Learnt system, Lessons Learned has yet a long way to reach its potential.

Improving the practice of subcontract nomination in the UAE construction industry

Subcontracting is a common aspect of procurement strategy in construction. The practice of subcontract nomination has produced many problems to the construction industry in the UAE. Examining the nature of associated challenges and investigating new approaches to improve the nomination practice become more critical and demanding. An initial research on the relevant literature was conducted to establish a better understanding of the problems and possible solutions. Then, a series of semi structured interviews were carried out with senior construction professionals in the UAE to examine how the findings of the initial research apply and relate to the UAE construction industry. The analysis and findings of the interviews formed the basis of a closed questions questionnaire. The respondents of the questionnaire were mainly asked to rate the nomination challenges and the approaches to improve the nomination practice. The research concluded that despite the significant reasons and benefits of nomination, the associated risks and challenges don’t encourage adopting it. The full involvement of the MC in the nomination process from the outset and the better detailed provisions of the contract nomination clauses were found the best possible approaches to improve the practice of subcontract nomination in the UAE.

Study of the road construction industry in Sri Lanka: emphasis on improving performance of the industry

Outcome of the research is to identify significant factors influencing the productivity and performance of the road construction industry in Sri Lanka and to compare the identified factors with the Australian construction industry. Also to recommend strategies to improve productivity and performance of the Sri Lankan Industry.

Energy productivity and total-factor productivity in the Australian construction industry

There is urgent need to consider energy consumption when measuring total-factor productivity in the construction industry. This paper adopts the Malmquist index method to investigate the factors affecting the energy productivity of the Australian construction industry and compares them with those decomposed from the total-factor productivity. An input-oriented distance function and a contemporaneous benchmark technology are employed to develop the data envelopment analysis models. The Malmquist productivity index is decomposed into the technological change, pure technical efficiency change and activity effect to gain comprehensive insights into changes of construction productivity in the Australian states and territories over the past two decades. Research results show that both energy productivity and total-factor productivity improved in Australia, particularly related to technological development. The pure technical efficiency and activity indices changed slightly over time or across regions. This study demonstrates that there exists a linkage between energy productivity and total-factor productivity through their technological and technical efficiency changes. The Australian construction industry could enhance these two productivities by introducing advanced technologies and implementing them efficiently.

The impact of a suicide prevention strategy on reducing the economic cost of suicide in the New South Wales construction industry

BACKGROUND: Little research has been conducted into the cost and prevention of self-harm in the workplace. AIMS: To quantify the economic cost of self-harm and suicide among New South Wales (NSW) construction industry (CI) workers and to examine the potential economic impact of implementing Mates in Construction (MIC). METHOD: Direct and indirect costs were estimated. Effectiveness was measured using the relative risk ratio (RRR). In Queensland (QLD), relative suicide risks were estimated for 5-year periods before and after the commencement of MIC. For NSW, the difference between the expected (i.e., using NSW pre-MIC [2008-2012] suicide risk) and counterfactual suicide cases (i.e., applying QLD RRR) provided an estimate of potential suicide cases averted in the post-MIC period (2013-2017). Results were adjusted using the average uptake (i.e., 9.4%) of MIC activities in QLD. Economic savings from averted cases were compared with the cost of implementing MIC. RESULTS: The cost of self-harm and suicide in the NSW CI was AU $527 million in 2010. MIC could potentially avert 0.4 suicides, 1.01 full incapacity cases, and 4.92 short absences, generating annual savings of AU $3.66 million. For every AU $1 invested, the economic return is approximately AU $4.6. CONCLUSION: MIC represents a positive economic investment in workplace safety.

Competition, oligopoly and technological change in the construction industry: the Argentine case

Includes bibliography

Cost Management Practices and Strategic Perspectives: a study in the construction industry of the State of Parana

The purpose of this paper is to investigate the cost management practices of building industry companies of Parana that follow the typology of Porter's strategies. The sample comprises member companies of the Association of Construction Industries of the State of Parana (PR-SINDUSCON) operating in the segment of residential buildings. The data were collected by means of questionnaires sent to 317 SINDUSCON members. 69 were returned and 54 used for our research. Exploratory Factorial Analysis of the data allowed us to identify two groups of cost management practices. Analyses suggest equality between the adopted cost management practices and the Cost Control Planning (CCP) practices among the companies of the Group 1, regardless of the generic strategy adopted. The companies of the Group 2 that adopted the differentiation strategy seem to use mainly the ACR cost management practice. Our findings differ from those obtained by Chenhall insofar as companies that adopt low cost strategies tend to use managerial controls focused on cost control and rigid budgetary controls.