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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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Created

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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Initial implementation of organizational change development of a methodology to minimize tactical barriers and maximize strategic focus

Description

As global competition continues to grow more disruptive, organizational change is an ever-present reality that affects companies in all industries at both the operational and strategic level. Organizational change capabilities have become a necessary aspect of existence for organizations in

As global competition continues to grow more disruptive, organizational change is an ever-present reality that affects companies in all industries at both the operational and strategic level. Organizational change capabilities have become a necessary aspect of existence for organizations in all industries worldwide. Research suggests that more than half of all organizational change efforts fail to achieve their original intended results, with some studies quoting failure rates as high as 70 percent. Exasperating this problem is the fact that no single change methodology has been universally accepted. This thesis examines two aspect of organizational change: the implementation of tactical and strategic initiatives, primarily focusing on successful tactical implementation techniques. This research proposed that tactical issues typically dominate the focus of change agents and recipients alike, often to the detriment of strategic level initiatives that are vital to the overall value and success of the organizational change effort. The Delphi method was employed to develop a tool to facilitate the initial implementation of organizational change such that tactical barriers were minimized and available resources for strategic initiatives were maximized. Feedback from two expert groups of change agents and change facilitators was solicited to develop the tool and evaluate its impact. Preliminary pilot testing of the tool confirmed the proposal and successfully served to minimize tactical barriers to organizational change.

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Date Created
2011

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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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Created

Date Created
2011

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Preparing for the talent drought: case study on succession planning methodology in the construction industry

Description

The workforce demographics are changing as a large portion of the population is approaching retirement and thus leaving vacancies in the construction industry. Succession planning is an aspect of talent management which aims to mitigate instability faced by a company

The workforce demographics are changing as a large portion of the population is approaching retirement and thus leaving vacancies in the construction industry. Succession planning is an aspect of talent management which aims to mitigate instability faced by a company when a new successor fills a vacancy. Research shows that in addition to a diminishing pool of available talent, the industry does not have widespread, empirically tested and implemented models that lead to effective successions. The objective of this research was to create a baseline profile for succession planning in the construction industry by identifying currently implemented best practices. The author interviewed six companies of varying sizes and demographics within the construction industry and compared their succession planning methodologies to identify any common challenges and practices. Little consensus between the companies was found. The results of the interviews were then compared to current research literature, but even here, little consensus was found. In addition, companies lacked quantitative performance metrics demonstrating the effectiveness, or ineffectiveness, of their current succession planning methodologies. The authors recommended that additional research is carried out to focus on empirical evidence and measurement of industry practices surrounding talent identification, development, and transition leading to succession.

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Created

Date Created
2015

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Assessment and Development of Contractors’ Mitigation Practices Towards Risks out of Contractors’ Control in the Saudi Construction Industry

Description

Recent studies have identified that contractors in the Saudi construction industry are not the main party that cause risks as owners and other parties have the major share of causing risks. However, with the identification that risks out of contractors’

Recent studies have identified that contractors in the Saudi construction industry are not the main party that cause risks as owners and other parties have the major share of causing risks. However, with the identification that risks out of contractors’ control are a leading cause of low performance, there is a lack of efficient risk mitigation practices in Saudi to manage these risks. The main aim of this dissertation is to assess the current practices applied by contractors to minimize risk out of their control and develop a risk mitigation model to manage these risks. The main objectives of the study are: investigating the risks that are out of contractors’ control, assessing the contractors’ current risk mitigation and performance measurement practices, and finally developing and validating a risk mitigation model to minimize risks out of contractors’ control and measure performance of involved project parties. To achieve the study aim, a mixed methodological approach was adopted. Theoretical approaches were utilized to review previous research and to develop a conceptual risk mitigation framework followed by a practical approach that is considered with collecting data from contractors. The quantitative method was mainly used to meet the study objectives through distributing a survey in the form of a questionnaire. As a consolidation of the study findings, the top ranked risks that are out of contractors’ control were identified. Furthermore, the results identified that the contractors’ current risk management and performance measurement practices are not effective in minimizing projects risks caused by other parties and ineffective in measuring performance of all parties. The developed model focuses on increasing accountability of project parties through mitigating project parties’ activities and risks with measuring the deviations and identifying sources of deviations. Transparency is utilized in the model through sharing weekly updates of the activities and risks combined with updated information of performance measurements of all project parties. The study results showed that project risks can be minimized and projects’ performance can be increased if contractors shift their focus using the developed model from only managing their own activities and risks to managing all project parties’ activities and risks.

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Date Created
2018