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Best value implementation program for contractors

Description

The price based marketplace has dominated the construction industry. The majority of owners use price based practices of management (expectation and decision making, control, direction, and inspection.) The price based/management and control paradigm has not worked. Clients

The price based marketplace has dominated the construction industry. The majority of owners use price based practices of management (expectation and decision making, control, direction, and inspection.) The price based/management and control paradigm has not worked. Clients have now been moving toward the best value environment (hire contractors who know what they are doing, who preplan, and manage and minimize risk and deviation.) Owners are trying to move from client direction and control to hiring an expert and allowing them to do the quality control/risk management. The movement of environments changes the paradigm for the contractors from a reactive to a proactive, from a bureaucratic
on-accountable to an accountable position, from a relationship based
on-measuring to a measuring entity, and to a contractor who manages and minimizes the risk that they do not control. Years of price based practices have caused poor quality and low performance in the construction industry. This research identifies what is a best value contractor or vendor, what factors make up a best value vendor, and the methodology to transform a vendor to a best value vendor. It will use deductive logic, a case study to confirm the logic and the proposed methodology.

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Date Created
2011

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Implementation of the best value approach in India

Description

The construction industry in India suffers from major time and cost overruns. Data from government and industry reports suggest that projects suffer from 20 to 25 percent time and cost overruns. Waste of resources has been identified as a major

The construction industry in India suffers from major time and cost overruns. Data from government and industry reports suggest that projects suffer from 20 to 25 percent time and cost overruns. Waste of resources has been identified as a major source of inefficiency. Despite a substantial increase in the past few years, demand for professionals and contractors still exceeds supply by a large margin. The traditional methods adopted in the Indian construction industry may not suffice the needs of this dynamic environment, as they have produced large inefficiencies. Innovative ways of procurement and project management can satisfy the needs aspired to as well as bring added value. The problems faced by the Indian construction industry are very similar to those faced by other developing countries. The objective of this paper is to discuss and analyze the economic concerns, inefficiencies and investigate a model that both explains the Indian construction industry structure and provides a framework to improve efficiencies. The Best Value (BV) model is examined as an approach to be adopted in lieu of the traditional approach. This could result in efficient construction projects by minimizing cost overruns and delays, which until now have been a rarity.

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Date Created
2013

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Post occupancy performance evaluation of "time of installation" factors-- a seven year study of SPF roofing

Description

Over the past couple of decades, quality has been an area of increased focus. Multiple models and approaches have been proposed to measure the quality in the construction industry. This paper focuses on determining the quality of one of the

Over the past couple of decades, quality has been an area of increased focus. Multiple models and approaches have been proposed to measure the quality in the construction industry. This paper focuses on determining the quality of one of the types of roofing systems used in the construction industry, i.e. Sprayed Polyurethane Foam Roofs (SPF roofs). Thirty seven urethane coated SPF roofs that were installed in 2005 / 2006 were visually inspected to measure the percentage of blisters and repairs three times over a period of 4 year, 6 year and 7 year marks. A repairing criteria was established after a 6 year mark based on the data that were reported to contractors as vulnerable roofs. Furthermore, the relation between four possible contributing time of installation factors i.e. contractor, demographics, season, and difficulty (number of penetrations and size of the roof in square feet) that could affect the quality of the roof was determined. Demographics and difficulty did not affect the quality of the roofs whereas the contractor and the season when the roof was installed did affect the quality of the roofs.

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Created

Date Created
2013

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Owners perspective of factors contributing to project delay: case studies of road and bridge projects in Saudi Arabia

Description

Delays are a major cause for concern in the construction industry both globally and locally in Saudi Arabia. This paper identifies the main causes of delay in infrastructure projects in the holy city of Makkah (Saudi Arabia) and compares these

Delays are a major cause for concern in the construction industry both globally and locally in Saudi Arabia. This paper identifies the main causes of delay in infrastructure projects in the holy city of Makkah (Saudi Arabia) and compares these with projects around the rest of the country and other Gulf countries as well. Data were obtained from 49 infrastructure projects that were undertaken by the owner and were analyzed quantitatively to understand the severity and causes of delay. 10 risk factors were identified in this study and these factors were grouped into four categories. The average delay in infrastructure projects in the city of Makkah was found to be 39%. The most severe cause of delay was found to be the land acquisition factor. This highlights the critical land ownership and acquisition issues that is prevailing in Makkah. In addition to this, other factors include contractors’ lack of expertise, haphazard underground utilities (line services), and re-designing. It is concluded that majority of delays were caused from the owner’s side as compared to contractors, consultants, and other project’s stakeholders. This finding was in line with the research findings of the Gulf Countries Construction (GCC) Industry’s literature as well. This study will fill an important practice and research gap for improving the efficiency in project delivery for infrastructure projects in the holy city of Makkah and the Gulf countries at large.

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Date Created
2015

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Causes of litigation in the Saudi Arabian construction Industry

Description

ABSTRACT

The problem of litigation and disputes in the construction sector is a major impediment to countries’ development goals. The purpose of this paper is to investigate the problem of high legal costs and long delays that arise due to

ABSTRACT

The problem of litigation and disputes in the construction sector is a major impediment to countries’ development goals. The purpose of this paper is to investigate the problem of high legal costs and long delays that arise due to litigation involving project owners, designers, contractors and other construction parties worldwide and in Saudi Arabia, as well as to give recommendation according to the outcomes of this research. The causes of litigious behavior in Saudi Arabia and other countries around the world were identified and documented, also the differences in litigation of the Saudi Arabian construction industry as compared to other countries were identified. Preliminary investigations revealed that there are some level of similarity in the nature of the causes. Thus, these causes were grouped into three main categories which are expectation factors, communications factors and documentation factors. Further research based on existing literature showed that the practices used to minimize litigation in the construction industry were investigated. The following delivery process were researched: design-build (DB) delivery method, Alliance Contracting, Construction Manager at Risk (CMAR), Best Value Approach, Integrated Project Delivery (IPD), and Public-Private Partnerships (PPPs), and the PIPS/PIRMS approach. These delivery methods were found to have issues, which means the methods by observation do not seem to be the ideal solution to minimize litigation in the construction industry. The only delivery method found to have no litigation issues was the PIPS/PIRMS approach.

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Created

Date Created
2015

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Use of customer satisfaction to minimize risks

Description

A roofing manufacturer wants to differentiate themselves from other roofing manufacturers based on performance information. However, construction industry has revealed poor performance documentation in the last couple of decades. With no current developed performance measurement model in the industry, two

A roofing manufacturer wants to differentiate themselves from other roofing manufacturers based on performance information. However, construction industry has revealed poor performance documentation in the last couple of decades. With no current developed performance measurement model in the industry, two roofing manufacturers approached the research group to implement a warranty program that measures the performance information of their systems and applicators. Moreover, the success of any project in the construction industry heavily relies upon the capability of the contractor(s) executing the project. Low-performing contractors are correlated with increased cost and delayed schedules, resulting in end-user dissatisfaction with the final product. Hence, the identification and differentiation of the high performing contractors from their competitors is also crucial. The purpose of this study is to identify and describe a new model for measuring manufacturer performance and differentiating contractor performance and capability for two roofing manufacturers (Manufacturer 1 and Manufacturer 2) in the roofing industry. The research uses multiple years of project data and customer satisfaction data collected for two roofing manufacturers for over 1,000 roofing contractors. The performance and end-user satisfaction was obtained for over 7,000 manufacturers' projects and each contractor associated with that project for cost, schedule, and quality metrics. The measurement process was successfully able to provide a performance measurement for the manufacturer based on the customer satisfaction and able to identify low performing contractors. This study presents the research method, the developed measurement model, and proposes a new performance measurement process that entities in the construction industry can use to measure performance.

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Created

Date Created
2016

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Leadership based structure improves performance

Description

The U.S. Army Medical Command has been testing a leadership based structure to increase the performance of delivering construction and facility services in its system of $600M of construction and 26 major hospital facilities in the U.S. The organizational

The U.S. Army Medical Command has been testing a leadership based structure to increase the performance of delivering construction and facility services in its system of $600M of construction and 26 major hospital facilities in the U.S. The organizational requirement was to minimize the management and oversight of contractors and simultaneously increase project performance. The research proposes that a leadership based structure can supplement the perception, preplanning, and risk minimization capability of a contractor's project manager, thus increasing the project performance (on time, within budget, and meeting expectations) and decreasing client management requirement. The projects were delivered in a best value and low price environment. The major impact of this research was that proactive management by contractors was more effective than traditional management such as direction, control, and inspection by client's professional representatives. The results based on data collection and date analyses validated that a leadership based structure can increase the performance of an organization and reduce its management requirement.

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Created

Date Created
2010

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Leadership based accountability for facilities management

Description

ABSTRACT Facility managers have an important job in today's competitive business world by caring for the backbone of the corporation's capital. Maintaining assets and the support efforts cause facility managers to fight an uphill battle to prove the worth of

ABSTRACT Facility managers have an important job in today's competitive business world by caring for the backbone of the corporation's capital. Maintaining assets and the support efforts cause facility managers to fight an uphill battle to prove the worth of their organizations. This thesis will discuss the important and flexible use of measurement and leadership reports and the benefits of justifying the work required to maintain or upgrade a facility. The task is streamlined by invoking accountability to subject experts. The facility manager must trust in the ability of his or her work force to get the job done. However, with accountability comes increased risk. Even though accountability may not alleviate total control or cease reactionary actions, facility managers can develop key leadership based reports to reassign accountability and measure subject matter experts while simultaneously reducing reactionary actions leading to increased cost. Identifying and reassigning risk that are not controlled to subject matter experts is imperative for effective facility management leadership and allows facility managers to create an accurate and solid facility management plan, supports the organization's succession plan, and allows the organization to focus on key competencies.

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Date Created
2011

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Feasibility of an open source repository for increasing the usage of best practices in the architecture-engineering-construction industry

Description

Effective collection and dissemination of project information, including best practices, help increase the likelihood of project performance and are vital to organizations in the architecture-engineering-construction (AEC) industry. Best practices can help improve project performance, yet these practices are not universally

Effective collection and dissemination of project information, including best practices, help increase the likelihood of project performance and are vital to organizations in the architecture-engineering-construction (AEC) industry. Best practices can help improve project performance, yet these practices are not universally implemented and used in the industry, due to the following: 1) not all practices are applicable to every project or organization, 2) knowledge lost in organizational turnover which leads to inconsistent collection and implementation of best practices and 3) the lack of standardized processes for best practice management in an organization.

This research, sponsored by National Academy of Construction, the Construction Industry Institute and Arizona State University, used structured interviews, a Delphi study and focus groups to explore: 1) potential benefit and industry interest in an open repository of best practices and 2) important elements of a framework/model that guides the creation, management and sustainment of an open repository of best practices.

This dissertation presents findings specifically exploring the term "Practices for Excellence", its definition, elements that hinder implementation, the potential value of an open online repository for such practices and a model to develop an open repository.

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Date Created
2014