A decision support system specification for outturn cost and cost escalation in the heavy engineering industryDAWOOD, NASHWAN N.; BATES, WILLIAM
2000 Engineering Construction & Architectural Management
doi: 10.1108/eb021157
The heavy civil engineering industry railways, sewage treatment, chemical and pharmaceutical facilities, oil and gas facilities, etc. is one of the major contributors to the British economy and generally involves a high level of investment. Clients in this industry are demanding accurate cost estimate, proper analysis of outturn cost and cost escalation and a high quality risk analysis throughout the construction processes. Current practice in the industry has suggested that there is a lack of structured methodologies and systematic cost escalation approach to achieve an appropriate cost analysis at the outset of projects and throughout the construction processes. In this context the prime objective of this research work is to develop a structured cost escalation methodology for improving estimating management and control in the heavy engineering industry construction processes. The methodology is composed of a forecasting model to predict cost indices of major items in industry and a risk knowledge base model for identifying and quantifying causes of cost escalations. This paper, as part of the research, reviews and discusses a knowledgebased model for applying a cost escalation factor. The cost escalation factor is made up of market variation, a risk element and a component for bias. A knowledge elicitation strategy was employed to obtain the required knowledge for the model. The strategy included questionnaires, interviews and workshops and deliverables came in the form of influences and their effect on project cost escalation. From these deliverables, the concepts of a decision support model and system specification for applying cost escalation to base estimates is proposed.
Identification of optimal size resources for a repetitive housing constructionDHANASEKAR, M.
2000 Engineering Construction & Architectural Management
doi: 10.1108/eb021158
Deployment of optimal size of resources is a key issue in repetitive construction projects. This paper describes a simulation model based on queuing theory for the resource scheduling of a real repetitive housing project involving 320 dwelling units constructed in East Delhi, India. The optimal size of resources, defined as the minimum size required to keep the project duration a minimum, has been identified from the results of a series of sensitivity analyses in which the size of the resources was varied one at a time. The duration of the project, the period of utilization of the resources, and the queue length of activities waiting for service are also reported in this paper. It has been shown that reduction in size of resources is achievable without increasing the duration of the project and queue length of activities. Increase in the size of some specialised crews is also proved advantageous.
Human dimensions in modelling prices of building projectsFELLOWS, RICHARD; LIU, ANITA M.M.
2000 Engineering Construction & Architectural Management
doi: 10.1108/eb021159
This paper supplements and extends consideration of quantitative models with application to building costs and prices by examining human elements inherent in modelling. In considering the concepts of modelling, attention is focused on the recently developed sociology of science, which questions the traditional perspective of total separation of a reality from the observerthe objective basis of scientific positivism. It is argued that human activities are fundamental in, and inseparable from, reality and so, they are integral in modelling. The aim of modelling should be to enhance understanding and knowledge rather than to secure inert objectivity. Application to modelling of prices of building projects investigates how prices are formulated, which prices are commonly modelled and the impact of the decisionmakers involved. It is concluded that new models are required, perhaps developed through methodological pluralism, which identify peopleoriented variables and assumptions explicitly. Further, the models should be stochastic and with sound bases in theories of economics and human behaviour to ensure that users are aware of the major variabilities in the processes modelled and so, by realistically informing, promote better decision making.
Importance of design consultants' soft skills in designbuild projectsYEANYNG LING, FLORENCE; OFORI &SUI PHENG LOW, GEORGE
2000 Engineering Construction & Architectural Management
doi: 10.1108/eb021161
Architects and engineers AE need to possess both hard and soft skills. Soft skills are important because AE interact in organizational settings instead of working by themselves. Soft skills may be grouped under conscientiousness, initiative, social skills, controllability and commitment. As part of a larger study on the selection of consultants by designbuild DB contractors in Singapore, a survey was conducted to gauge whether contractors felt that soft skills are important for consultants to carry out their design tasks in DB projects. From the literature, attributes relating to these skills were identified. Data were collected via mailed questionnaire. The questionnaire requested respondents to indicate on a fivepoint scale the importance of various soft skills. It was found that all the soft skills, which were operationalized into 14 attributes, are important factors that contractors look for when selecting consultants. It is, therefore, concluded that contextual performance is important and relevant.
Improving the performance of Earned Value Analysis as a construction project management toolHOWES, RODNEY
2000 Engineering Construction & Architectural Management
doi: 10.1108/eb021162
Earned Value Analysis EVA is an accepted theoretical technique advocated for the control of projects. This paper attempts to refine and improve the performance of traditional EVA by the introduction of a hybrid methodology based on work packages and logical time analysis entitled Work Package Methodology WPM. The proposed WPM provides the means to periodically update project cost and time performance by restricting EVA calculations to individual work packages. These are then subjected to a logical time analysis to determine the predicted project cost and time to completion. A comparative analysis between WPM and EVA is then undertaken using adapted test data derived from knowledge of previous projects to identify the reasons for variation in the results obtained from both methods. The evaluation of the test results indicates that when the Cost Performance Index CPI and the Schedule Performance Index SPI are well above or below unity then, especially in the early stages of the project, traditionally applied EVA predictions can be unrealiable and require further investigation and evaluation. WPM provides a vehicle for judging the performance of EVA by applying an alternative logical time and cost utilizing work sequence and construction methods. The predictive performance of EVA is refined by these means.
Measuring the costs and benefits of information technology in constructionFLANAGAN, ROGER; MARSH, LAURENCE
2000 Engineering Construction & Architectural Management
doi: 10.1108/eb021164
Information technology IT has been widely applied across many economic sectors in order to increase competitiveness and reduce costs. This paper identifies that uptake of IT within construction is low. It is argued that significant barriers preventing construction organizations from investing in IT include uncertainty concerning the identification and measurement of benefits associated with applications. In particular, it is argued that difficulties in quantifying benefits associated with improved information availability and decision making prevent effective IT costbenefit analysis. Existing approaches to evaluating IT within construction are reviewed. A framework is presented which identifies metrics by which IT impacts both management and operational processes within construction in order to deliver value. An evaluation methodology tailored to one specific IT application, highdensity bar coding in maintenance management, is presented to illustrate the quantification of both the costs and benefits of applying IT.