Major quantitative techniques for risk analysis in the construction industry : a comparative analysis

Risk analysis is one of the critical functions of the risk management process. It relies on a detailed understanding of risks and their possible implications. Construction projects, because of their large and complex nature, are plagued by a variety of risks which must be considered and responded to in order to ensure project success. This study conducts an extensive comparative analysis of major quantitative risk analysis techniques in the construction industry. The techniques discussed and comparatively analyzed in this report include: Programme Evaluation and Review Technique (PERT), Judgmental Risk Analysis Process (JRAP), Estimating Using Risk Analysis (ERA), Monte Carlo Simulation technique, Computer Aided Simulation for Project Appraisal and Review (CASPAR), Failure Modes and Effects Analysis technique (FMEA) and Advanced Programmatic Risk Analysis and Management model (APRAM). The findings highlight the fact that each risk analysis technique addresses risks in any or all of the following areas – schedule risks, budget risks or technical risks. Through comparative analysis, it has been revealed that a majority of risk analysis techniques focus on schedule or budget risks. Very little has been documented in terms of technical risk analysis techniques. In an era where clients are demanding and expecting higher quality projects and finishes, project managers must endeavor to invest time and resources to ensure that the few existing technical risk analysis techniques are developed and further refined, and that new technical risk analysis techniques are developed to suit the current construction industries requirements.

Australian construction SME : management implication of TQM implementation

SME play a major role in the economies and TQM is important in construction industry. The aim of this paper is to investigate, via extensive literature reviews, the management implication of Australian construction SME implementing TQM. In summary, there are four management perspectives: construction management, knowledge management, supply chain management and marketing management to enhance competitive advantage that may favour commercial viability. One can reasonably conclude that the quality improvements will greatly help to create long term commercial advantages.

Contemporary service theories integrated into construction project management

Project management plays an important role in successful completion of construction projects. One trend in the construction sector is a growing emphasis on project management. Ineffective integration of project management of project-based enterprises and operational processes of project owners, contractors and consultants prevents synergistic effects and causes resource waste and management inefficiency. Contemporary service theories, specifically service science and service-dominant logic, elucidate the involvement of clients in the creation of value and reinforce the nested relationship between project management service providers and clients. This study expands understanding of service theories by complementing service systems from project management and proposes a new framework for project management service systems, embedding service exchange and value co-creation in the construction processes. Research outcomes represent the importance of project management embedded with service theories in the construction industry and suggestions of research questions for future work.

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.

Economic aspects of safety in the Greek construction industry

The thesis addresses the economic impacts of construction safety in Greece. The research involved the development of a methodology for determining the overall costs of safety, namely the sum of the costs of accidents and the costs of safety management failures (with or without accident) including image cost. Hitherto, very little work has been published on the cost of accidents in practical case studies. Moreover, to the author’s belief, no research has been published that seeks to determine in real cases the costs of prevention. The methodology developed is new, transparent, and capable of being replicated and adapted to other employment sectors and to other countries. The methodology was applied to three construction projects in Greece to test the safety costing methodology and to offer some preliminary evidence on the business case for safety. The survey work took place between 1999 and 2001 and involved 27 months of costing work on site. The study focuses on the overall costs of safety that apply to the main (principal) contractor. The methodology is supported by 120 discrete cost categories, and systematic criteria for determining which costs are included (counted) in the overall cost of safety. A quality system (in compliance with ISO9000 series) was developed to support the work and ensure accuracy of data gathering. The results of the study offer some support for the business case for safety. Though they offer good support for the economics of safety as they demonstrate need for cost effectiveness. Subject to important caveats, those projects that appeared to manage safety more cost-effectively achieved the lowest overall safety cost. Nevertheless, results are significantly lower than of other published works for two main reasons; first costs due to damages with no potential to injury were not included and second only costs to main constructor were considered. Study’s results are discussed and compared with other publish works.

Making the construction industry resilient to extreme weather:lessons from construction in hot weather conditions

The construction industry is susceptible to extreme weather events (EWEs) due to most of its activities being conducted by manual workers outdoors. Although research has been conducted on the effects of EWEs, such as flooding and snowfall, limited research has been conducted on the effects of heatwaves and hot weather conditions. Heatwaves present a somewhat different risk profile to construction, unlike EWEs such as flooding and heavy snowfall that present physical obstacles to work onsite. However, heatwaves have affected the construction industry in the UK, and construction claims have been made due to adverse weather conditions. With heatwaves being expected to occur more frequently in the coming years, the construction industry may suffer unlike any other industry during the summer months. This creates the need to investigate methods that would allow construction activities to progress during hot summer months with minimal effect on construction projects. Hence, the purpose of this paper. Regions such as the Middle East and the UAE in particular flourish with mega projects, although temperatures soar to above 40̊C in the summer months. Lessons could be learnt from such countries and adapted in the UK. Interviews have been conducted with a lead representative of a client, a consultant and a contractor, all of which currently operate on UAE projects. The key findings include one of the preliminary steps taken by international construction companies operating in the UAE. This involves restructuring their entire regional team by employing management staff from countries such as Lebanon, Palestine, Iraq, and their labour force from the sub-continent such as India and Pakistan. This is not only due to the cheap wage rate but also to the ability to cope and work in such extreme hot weather conditions. The experience of individuals working in the region allows for future planning, where the difference in labour productivity during the extreme hot weather conditions is known, allowing precautionary measures to be put in place.

Achieving zero accidents—A strategic framework for continuous safety improvement in the construction industry

In the U.S., construction accidents remain a significant economic and social problem. Despite recent improvement, the Construction industry, generally, has lagged behind other industries in implementing safety as a total management process for achieving zero accidents and developing a high-performance safety culture. One aspect of this total approach to safety that has frustrated the construction industry the most has been “measurement”, which involves identifying and quantifying the factors that critically influence safe work behaviors. The basic problem attributed is the difficulty in assessing what to measure and how to measure it—particularly the intangible aspects of safety. Without measurement, the notion of continuous improvement is hard to follow. This research was undertaken to develop a strategic framework for the measurement and continuous improvement of total safety in order to achieve and sustain the goal of zero accidents, while improving the quality, productivity and the competitiveness of the construction industry as it moves forward. The research based itself on an integral model of total safety that allowed decomposition of safety into interior and exterior characteristics using a multiattribute analysis technique. Statistical relationships between total safety dimensions and safety performance (measured by safe work behavior) were revealed through a series of latent variables (factors) that describe the total safety environment of a construction organization. A structural equation model (SEM) was estimated for the latent variables to quantify relationships among them and between these total safety determinants and safety performance of a construction organization. The developed SEM constituted a strategic framework for identifying, measuring, and continuously improving safety as a total concern for achieving and sustaining the goal of zero accidents.

Reverse logistics in the construction industry

Reverse logistics in construction refers to the movement of products and materials from salvaged buildings to a new construction site. While there is a plethora of studies looking at various aspects of the reverse logistics chain, there is no systematic review of literature on this important subject as applied to the construction industry. Therefore, the objective of this study is to integrate the fragmented body of knowledge on reverse logistics in construction, with the aim of promoting the concept among industry stakeholders and the wider construction community. Through a qualitative meta-analysis, the study synthesises the findings of previous studies and presents some actions needed by industry stakeholders to promote this concept within the real-life context. First, the trend of research and terminology related with reverse logistics is introduced. Second, it unearths the main advantages and barriers of reverse logistics in construction while providing some suggestions to harness the advantages and mitigate these barriers. Finally, it provides a future research direction based on the review.

Drivers for adopting reverse logistics in the construction industry : a qualitative study

Purpose - The purpose of this paper is to investigate and analyse the perceptions of South Australian construction practitioners on drivers affecting the implementation of reverse logistics (RL). In this context, RL is defined as the process of moving goods from their typical final destination for the purpose of capturing value or ensuring proper disposal.

Design/methodology/approach - Semi-structured interviews were conducted with eight practitioners to collect data and the interview transcripts were analysed using the NVivo (version 10) package. Cluster analysis was used to cross-validate the findings and provide an in-depth insight into the findings.

Findings - The findings indicate that most of the drivers identified in earlier research are relevant for the construction industry. In addition, the study identified some new drivers that are categorised as "targeted demands by an exclusive clientele". These drivers were found to be complementary to the economic, environmental and social drivers as previously conceptualised. In addition, a set of factors affecting the strength of drivers that had been overlooked in previous studies emanated from the interview analysis. These include the type of project and the attributes of clients, both of which strongly affect the drivers of RL implementation in construction.

Research limitations/implications - The major limitations are the relatively small size of the sample of interviewees and having interviewees from one geographic area with specific socio-economic characteristics.

Practical implications - The identified drivers and the clustering of RL themes could be used by practitioners as a "road map" for the development of appropriate solutions to successfully promote RL within the construction industry. Organisational energies could thus be channelled towards the drivers that need the most improvement.

Originality/value - The study contributes to this research sphere by employing cluster analysis to customise and contextualise the drivers that were previously identified. The study goes beyond the extant literature by discovering the prominent effects of these drivers on the impact of targeted demands by an exclusive clientele. This could be of great value in terms of creating avenues for future investigations on the topic.

The digital practice ecosystem : supporting change in the construction industry through digital practice

The Digital Practice Ecosystem is a network of professional architectural, engineering and contracting firms, government agencies and professional bodies, academic, educational, and research institutions that have the shared goal of fostering changes in the construction industry through applications of digital practice. Changing the process of designing and constructing buildings using digital models will improve quality and efficiency and reduce costs allowing completion on time and on budget.

Competitiveness of the Indonesian construction industry

Indonesia’s construction industry is important to the national economy. However, its competitiveness is considered low due to the lack of success of its development strategy and policy. A new approach known as the cluster approach is being used to make strategy and policy in order to develop a stronger, and more competitive industry. This paper discusses the layout of the Indonesian construction cluster and its competitiveness. The archival analysis research approach was used to identify the construction cluster. The analysis was based on the input-output (I/O) tables of the years 1995 and 2000, which were published by the Indonesian Central Bureau of Statistics. The results suggest that the Indonesian construction cluster consists of the industries directly involved in construction as the core, with the other related and supporting industries as the balance. The anatomy of the Indonesian construction cluster permits structural changes to happen within it. These changes depend on policies that regulate the cluster’s constituents

Adoption in the construction industry

This report draws together the key findings from six case studies on the subject of ebusiness Adoption in Construction conducted in Australia by the University of Newcastle (UON) and Royal Melbourne Institute of Technology (RMIT) from 2005 through to mid-2006 under the auspices of the Cooperative Research Centre for Construction Innovation (CRC_CI). Reference to this timing is important because one of the key themes to emerge from the study is that the take-up of e-business is a dynamic phenomenon within the construction industry.

Innovate now : Improving performance in the building and construction industry

Trying to innovate or wanting to? Making a start is the most difficult step on any journey. Whether trying to innovate for the first time, or seeking improvements on current performance, organisations are confronted with a plethora of options. Innovate now! makes action easier by presenting some of the key considerations for improving innovation performance. This guide has been based on the outcomes of a survey and case studies conducted between 2003 and 2005 in the Australian property and construction industry and therefore contains unique and up-to-date information, examples and suggestions tailored specifically to your industry needs. The large-scale industry survey and 12 innovation case studies on which this guide are based were carried out by The BRITE (Building Research, Innovation, Technology and Environment) Project as part of research for the Cooperative Research Centre for Construction Innovation. The stakeholders volunteering to take part in BRITE research included over 400 businesses, 14 government organisations, 8 industry associations and 4 universities.