Suitability of procuring large public works by PPP in Hong Kong

Purpose : The Hong Kong Special Administrative Region (referred to as Hong Kong from here onwards) is an international leading commercial hub particularly in Asia. In order to keep up its reputation a number of large public works projects have been considered. Public Private Partnership (PPP) has increasingly been suggested for these projects, but the suitability of using this procurement method in Hong Kong is yet to be studied empirically. The findings presented in this paper will specifically consider whether PPPs should be used to procure public works projects in Hong Kong by studying the attractive and negative factors for adopting PPP. Design/methodology/approach : As part of this study a questionnaire survey was conducted with industrial practitioners. The respondents were requested to rank the importance of fifteen attractive factors and thirteen negative factors for adopting PPP. Findings : The results found that in general the top attractive factors ranked by respondents from Hong Kong were efficiency related, these included (1) ‘Provide an integrated solution (for public infrastructure / services)’; (2) ‘Facilitate creative and innovative approaches’; and (3) ‘Solve the problem of public sector budget restraint’. It was found that Australian respondents also shared similar findings to those in Hong Kong, but the United Kingdom respondents showed a higher priority to those economic driven attractive factors. Also, the ranking of the attractive and negative factors for adopting PPP showed that on average the attractive factors were scored higher than the negative factors. Originality/value : The results of this research have enabled a comparison of the attractive and negative factors for adopting PPP between three administrative systems. These findings have confirmed that PPP is a suitable means to procure large public projects which are believed to be useful and interesting to PPP researchers and practitioners.

Contracting for infrastructure projects as credence goods

Large infrastructure projects are a major responsibility of urban and regional governments, who usually lack expertise to fully specify the demanded projects. Contractors, typically experts on such projects due to experience with similar projects elsewhere, advise of the needed design in their bids. Producing the right design is nevertheless costly. We model such infrastructure projects taking into account their credence goods feature and the costly design effort they require and examine the performance of commonly used contracting methods. We show that when building costs are homogeneous and public information, multi-stage competitive bidding involving shortlisting of two contractors and contingent compensation of both contractors on design efforts outperforms sequential search and the traditional Design-and-Build approach. If building costs are private information of the contractors and are revealed to them after design cost is sunk, sequential search may be superior to the other two methods.

Regulatory compliance as a means to achieve environmental sustainability at some large coastal developments in Queensland

The growing public concern about the complexity, cost and uncertain efficacy of the statuary environmental impact assessment process applying to large-scale projects in Queensland is reviewed. This is based on field data gathered over the past six years sat large-scale marina developments that access major environmental reserves along the coast. An ecological design proposal to broaden the process consisted with both government aspirations and regional ecological parameters - termed Regional Landscape Strategies - would allow the existing Environmental Impact Asessment to be modified alone potentially more practicable and effective lines.

Contracting for infrastructure projects as credence goods

Large infrastructure projects are a major responsibility of urban and regional governments, who usually lack expertise to fully specify the demanded projects. Contractors, typically experts on such projects due to experience with similar projects,advise of the needed design as well as the cost of construction in their bids. Producing the right design is costly. We model such infrastructure projects taking into account their credence goods feature and the costly design effort they require and examine the performance of commonly used contracting methods. We show that when building costs are homogeneous and public information, simultaneous bidding involving shortlisting of two contractors and contingent compensation of both contractors on design efforts outperforms sequential search. If building costs are private information of the contractors and are revealed to them after design cost is sunk,sequential search may be superior to simultaneous bidding.

Content Based Integration of Construction Site Images in AEC/FM Model Based Systems

The Architecture, Engineering, Construction and Facilities Management (AEC/FM) industry is rapidly becoming a multidisciplinary, multinational and multi-billion dollar economy, involving large numbers of actors working concurrently at different locations and using heterogeneous software and hardware technologies. Since the beginning of the last decade, a great deal of effort has been spent within the field of construction IT in order to integrate data and information from most computer tools used to carry out engineering projects. For this purpose, a number of integration models have been developed, like web-centric systems and construction project modeling, a useful approach in representing construction projects and integrating data from various civil engineering applications. In the modern, distributed and dynamic construction environment it is important to retrieve and exchange information from different sources and in different data formats in order to improve the processes supported by these systems. Previous research demonstrated that a major hurdle in AEC/FM data integration in such systems is caused by its variety of data types and that a significant part of the data is stored in semi-structured or unstructured formats. Therefore, new integrative approaches are needed to handle non-structured data types like images and text files. This research is focused on the integration of construction site images. These images are a significant part of the construction documentation with thousands stored in site photographs logs of large scale projects. However, locating and identifying such data needed for the important decision making processes is a very hard and time-consuming task, while so far, there are no automated methods for associating them with other related objects. Therefore, automated methods for the integration of construction images are important for construction information management. During this research, processes for retrieval, classification, and integration of construction images in AEC/FM model based systems have been explored. Specifically, a combination of techniques from the areas of image and video processing, computer vision, information retrieval, statistics and content-based image and video retrieval have been deployed in order to develop a methodology for the retrieval of related construction site image data from components of a project model. This method has been tested on available construction site images from a variety of sources like past and current building construction and transportation projects and is able to automatically classify, store, integrate and retrieve image data files in inter-organizational systems so as to allow their usage in project management related tasks.

Análisis de la relación entre la accidentalidad y el incremento de trabajo en un proyecto de la construcción en Colombia durante los años 2012 y 2013

La construcción es una de las industrias que mayores accidentes laborales genera, en esta investigación se realizó un análisis retrospectivo para determinar si existe alguna relación entre la ocurrencia de accidentes y la fecha de entrega de una meta, debido al incremento en la cantidad de trabajo expresado por la cantidad de días y horas extras trabajados, se cuenta con información de la accidentalidad de cinco empresas constructoras de un gran proyecto vial en Colombia en los años de 2012 y 2013. Se analizó la información correspondiente a la nómina de las mismas empresas, con el valor de la nómina mensual, el valor de las incapacidades mensuales y la cantidad de trabajadores por cada empresa en cada periodo. El manejo de los datos se hizo con EXCEL y el análisis estadístico con STATA 11.1, se usó la correlación de Spearman para encontrar la relación entre la cantidad de accidentes acumulados y: la cantidad acumulada de días trabajados en cada mes, la cantidad acumulada de horas extras trabajadas mensualmente y el costo acumulado en porcentaje de la nómina mensual, encontrándose en todos los casos una relación lineal. Por otra parte, se realizó una prueba binomial para establecer la relación de la fecha de entrega de la meta con la accidentalidad 30 días antes y después, encontrando que la accidentalidad aumenta en la proximidad previa a la entrega de la meta

Large-scale land acquisitions in Peru: Land (re)-concentration, agrarian change and reactions from rural communities

More than 40 years after the agrarian reform, Peru is experiencing a renewed process of concentration of land ownership in the hands of large-scale investors, favoring the development of a sugar cane production cluster along the northern coast. The expansion of the agricultural frontier by means of large irrigation projects – originally developed to benefit medium- and small-scale farmers – is carried out today in order to be sold to large-scale investors for the production of export crops. In the region of Piura the increasing presence of large-scale biofuel investors puts substantial pressure on land and water resources, not only changing the use of and access to land for local communities, but also generating water shortages vis-à-vis the multiple water demands of local food producers. The changes in land relations and the agro-ecosystem, the altering food production regime as well as the increasing proletarization of smallholders, is driving many locals – even those which (initially) welcomed the investment – into resistance activities against the increasing control of land, water and other natural resources in the hands of agribusinesses. The aim of this presentation is to discuss the contemporary political, social and cultural dynamics of agrarian change along the northern Peruvian coast as well as the «reactions from below» emanating from campesino communities, landless laborers, brick producers, pastoralists as well as other marginalized groups. The different strategies, forms and practices of resistance with the goal of the «protection of the territory» shall be explored as well as the reasons for their rather scattered occurrence and the lack of alliances on the land issue. This input shall make a contribution to the on-going debate on individual and communal property rights and the question of what is best in terms of collective defense against land grabbing.

The analytic hierarchy process to support decision-making processes in infrastructure projects with social impact

There is an increasing awareness among all kinds of organisations (in business,government and civil society) about the benefits of jointly working with stakeholders to satisfy both their goals and the social demands placed upon them. This is particularly the case within corporate social responsibility (CSR) frameworks. In this regard, multi-criteria tools for decision-making like the analytic hierarchy process (AHP) described in the paper can be useful for the building relationships with stakeholders. Since these tools can reveal decision-maker’s preferences, the integration of opinions from various stakeholders in the decision-making process may result in better and more innovative solutions with significant shared value. This paper is based on ongoing research to assess the feasibility of an AHP-based model to support CSR decisions in large infrastructure projects carried out by Red Electrica de España, the sole transmission agent and operator of the Spanishelectricity system.

Multidisciplinary design in virtual worlds

Large design projects, such as those in the AEC domain, involve collaboration among a number of design disciplines, often in separate locations. With the increase in CAD usage in design offices, there has been an increase in the interest in collaboration using the electronic medium, both synchronously and asynchronously. The use of a single shared database representing a single model of a building has been widely put forward but this paper argues that this does not take into account the different representations required by each discipline. This paper puts forward an environment which provides real-time multi-user collaboration in a 3D virtual world for designers in different locations. Agent technology is used to manage the different views, creation and modifications of objects in the 3D virtual world and the necessary relationships with the database(s) belonging to each discipline.

AITPM Email Newsletter Volume 0905, June 2009 : President's Message

President’s Message Hello fellow AITPM members, Due to three colliding forces of nature I find myself writing this month’s message from home – today, I am still getting over a persistent virus that seemed to set in just after returning from Singapore a couple of weeks ago, which my diabetes won’t let me get away with too easily (no Kermit the Frog swine flu jokes please). Combine this with a very wet day in Brisbane – in fact the wettest for 20 years (how can we complain, except for flash flooding?). And in Queensland today is a state school teachers’ strike, so one half of our brood is over watching TV. Family snapshots aside, the biggest news for our industry of late is the $8.5 billion announced in the Federal Budget for transport infrastructure projects; many “shovel ready”, but some – and fortunate for our profession – desktop ready. This newsletter provides nationwide coverage on the transport infrastructure aspects of the Federal Budget. We’ll need a bit more time to carefully look at the ensuing State Budgets’ announcements. Regarding the federal budget announcements, I am pleased to see serious attention being paid to upgrading the M1 system – I hope to see a motorway standard facility connecting Adelaide to at least Rockhampton in my lifetime. But some other important roads are of course missing out in this particular budget. Various levels of commitment are being made to urban passenger rail – some project significant while others planning significant. Enhancement of suburban rail is important across the capitals and Australia’s medium sized cities such as the Gold Coast and Newcastle. Not much on road safety initiatives jumped out at me, but I believe it is implied in the large road projects and in some of the detail elsewhere. I do believe it’s about time a ‘Vision Zero’ style policy is adopted at the National level, since any death is unacceptable on the road, just as it is in any other workplace. So, overall some good news on building transport infrastructure to keep the economy purring during this recession, and strongly supporting it during future boom times. The other edge to the sword, of course, is that we tax payers will be paying a considerable amount for borrowings for these projects over a long period of time. I close again in reminding everyone again that AITPM’s flagship event, the 2009 AITPM National Conference, Traffic Beyond Tomorrow, is being held in Adelaide from 5 to 7 August. www.aitpm.com has all of the details about how to register, sponsor a booth, session, etc. Best regards all, Jon Bunker

Young Australians reading in a digital world

The realities of new technological and social conditions since the 1990s demand a new approach to literacy teaching. Looking onward from the original statement of aims of the multiliteracies movement in 1996, this volume brings together top-quality scholarship and research that has embraced the notion and features new contributions by many of the originators of this approach to literacy. Drawing on large research projects and empirical evidence, the authors explore practical and educational issues that relate to multiliteracies, such as assessment, pedagogy and curriculum. The viewpoint taken is that multiliteracies is a complementary socio-cultural approach to the new literacies that includes pedagogy and learning. The differences are addressed from a multiliteracies perspective – one that does not discount or undermine the new literacies, but shows new ways in which they are complementary. Computers and the Internet are transforming the way we work and communicate and the very notion of literacy itself. This volume offers frontline information and a vital update for those wishing to understand the evolution of multiliteracies and the current state of literacy theory in relation to it.

Stakeholder engagement by governance networks

Public awareness of large infrastructure projects, many of which are delivered through networked arrangements is high for several reasons. These projects often involve significant public investment; they may involve multiple and conflicting stakeholders and can potentially have significant environmental impacts (Lim and Yang, 2008). To produce positive outcomes from infrastructure delivery it is imperative that stakeholder “buy in” be obtained particularly about decisions relating to the scale and location of infrastructure. Given the likelihood that stakeholders will have different levels of interest and investment in project outcomes, failure to manage this dynamic could potentially jeopardise project delivery by delaying or halting the construction of essential infrastructure. Consequently, stakeholder engagement has come to constitute a critical activity in infrastructure development delivered through networks. This paper draws on stakeholder theory and governance network theory and provides insights into how three multi-level networks within the Roads Alliance in Queensland engage with stakeholders in the delivery of road infrastructure. New knowledge about stakeholders has been obtained by testing a model of Stakeholder Salience and Engagement which combines and extends the stakeholder identification and salience theory and the ladder of stakeholder management and engagement. By applying this model, the broad research question: “How do governance networks engage with stakeholders?” has been addressed. A multiple embedded case study design was selected as the overall approach to explore, describe, explain and evaluate how stakeholder engagement occurred in three governance networks delivering road infrastructure in Queensland. The outcomes of this research contribute to and extend stakeholder theory by showing how stakeholder salience impacts on decisions about the types of engagement processes implemented. Governance network theory is extended by showing how governance networks interact with stakeholders. From a practical perspective this research provides governance networks with an indication of how to more effectively undertake engagement with different types of stakeholders.

The investigation of design-build variants in the construction market of the People’s Republic of China

Design-Build (DB) system has been widely adopted overseas but it has not received the same popularity yet in the People’s Republic of China. The selection of design-build variant is regarded as one of the critical obstacles to the application of this alternative. This paper investigates categories of design-build variants in the construction market of China. The develop-and-construction, enhanced design-build, traditional-design-build and engineering procurement-construction (EPC) are the four current designbuild variants adopted by clients. Each of them is developed to meet a varying set of circumstances and has its own advantages and disadvantages. The develop-and-construction is mostly used in large, complex projects in housing industry and it will guarantee client’s great control over the project while still leave some design room for the contractor. The traditional-design-build and enhanced-design-build systems are mostly applied in projects that are comparatively simple, small-scale, and the DB contractors will have greater control of the projects. The EPC is the extension of pure design-build method and is widely adopted in the petrochemical, metallurgical and electronic fields because of the high-technique requirements and the necessity for one entity to control the design, construction, procurement and commissioning etc. Four corresponding design-build projects are also presented in this paper in order to better illustrate the operational process and provide the insight for understanding the design-build variants in Mainland China.

Organisational culture in airworthiness management programs : developing a measurement model

All civil and private aircraft are required to comply with the airworthiness standards set by their national airworthiness authority and throughout their operational life must be in a condition of safe operation. Aviation accident data shows that over twenty percent of all fatal accidents in aviation are due to airworthiness issues, specifically aircraft mechanical failures. Ultimately it is the responsibility of each registered operator to ensure that their aircraft remain in a condition of safe operation, and this is done through both effective management of airworthiness activities and the effective program governance of safety outcomes. Typically, the projects within these airworthiness management programs are focused on acquiring, modifying and maintaining the aircraft as a capability supporting the business. Program governance provides the structure through which the goals and objectives of airworthiness programs are set along with the means of attaining them. Whilst the principal causes of failures in many programs can be traced to inadequate program governance, many of the failures in large scale projects can have their root causes in the organisational culture and more specifically in the organisational processes related to decision-making. This paper examines the primary theme of project and program based enterprises, and introduces a model for measuring organisational culture in airworthiness management programs using measures drawn from 211 respondents in Australian airline programs. The paper describes the theoretical perspectives applied to modifying an original model to specifically focus it on measuring the organisational culture of programs for managing airworthiness; identifying the most important factors needed to explain the relationship between the measures collected, and providing a description of the nature of these factors. The paper concludes by identifying a model that best describes the organisational culture data collected from seven airworthiness management programs.

Querying a building information model for construction-specific spatial information

The design and construction community has shown increasing interest in adopting building information models (BIMs). The richness of information provided by BIMs has the potential to streamline the design and construction processes by enabling enhanced communication, coordination, automation and analysis. However, there are many challenges in extracting construction-specific information out of BIMs. In most cases, construction practitioners have to manually identify the required information, which is inefficient and prone to error, particularly for complex, large-scale projects. This paper describes the process and methods we have formalized to partially automate the extraction and querying of construction-specific information from a BIM. We describe methods for analyzing a BIM to query for spatial information that is relevant for construction practitioners, and that is typically represented implicitly in a BIM. Our approach integrates ifcXML data and other spatial data to develop a richer model for construction users. We employ custom 2D topological XQuery predicates to answer a variety of spatial queries. The validation results demonstrate that this approach provides a richer representation of construction-specific information compared to existing BIM tools.