Risk perception and propensity in bid/no-bid decision-making of construction projectsChen, Yong Qiang ; Zhang, Su Juan ; Liu, Li Sha ; Hu, Jia
2015 Engineering Construction & Architectural Management
doi: 10.1108/ECAM-01-2013-0011
Purpose – Making the right bid/no-bid decision is critical to the success and development of construction contracting enterprises. Decision makers’ personal characteristics, such as risk perception and propensity, have great impact on bid/no-bid decisions, which is the major concern of this research. The purpose of this paper is to explore the relationship among decision makers’ risk perception, risk propensity, and their bid/no-bid decision making of construction projects, as well as the factors influencing the risk perception and propensity. Design/methodology/approach – In total, four hypotheses were proposed based on an extensive literature review. Experimental questionnaires were distributed to employees working in Chinese construction contracting enterprises with knowledge of construction bidding, and 134 valid questionnaires were obtained. Multivariate statistical analysis through SPSS 19.0 was used to analyze the acquired data. Findings – Data analysis shows that in the context of international construction contracting: risk perception has a negative influence on bid/no-bid decision making; while risk propensity produces a positive influence and the probability and magnitude of potential gain or loss both have significant impacts on risk perception, and the probability plays a more important role. Originality/value – This research studied the bid/no-bid decision making of construction projects from the new perspectives of risk perception and risk propensity of the decision makers.
Linking employee empowerment with productivity in off-site constructionAlazzaz, Faisal ; Whyte, Andrew
2015 Engineering Construction & Architectural Management
doi: 10.1108/ECAM-09-2013-0083
Purpose – The purpose of this paper is to address current knowledge gaps in off-site sub-element fabrication efficiency factors, by identifying an explicit relationship between productivity and employee empowerment. Design/methodology/approach – The research is based on two engineering fabrication-yard case studies that investigate both qualitatively (via analysis of semi-structured interviews that incorporate a five-point Likert scale, with fabrication-product stakeholders), and also quantitatively (via assessment using SPSS statistical analyses to determine significance and trends in the data-set) the relationship between empowerment and productivity. Findings – The results reveal a positive linear relationship in off-site construction between “employee empowerment factors” and, explicitly fabrication-yard “productivity-levels”. An especially strong and significant positive correlation is found to exist in resource development, worker involvement, process improvement, and task recognition as they refer to off-site construction productivity. Practical implications – Most academic studies of off-site construction remain largely anecdotal and lack an empirical objective study; as a result, this (fabrication-yard) case-study research provides a useful approach to measure empirically the link between employee empowerment and productivity of off-site construction. Originality/value – Employee empowerment in the construction industry has long been a focus of analyses; however, there remains a lack of consensus and very few studies into the direct relationship between employee empowerment on the one-hand, and productivity in off-site construction on the other-hand. It is argued here that the on-going new research undertaken in the present study will go beyond subjective opinion towards objective measurement of actual performance in off-site construction.
Valuing innovation in construction and infrastructureLoosemore, Martin ; Richard, Justin
2015 Engineering Construction & Architectural Management
doi: 10.1108/ECAM-02-2014-0031
Purpose – The purpose of this paper is to continue the discussion about the actual and potential role of clients in driving more innovation in the construction sector through interviews with some of the Australian construction industry’s leading clients, contractors and consultants. Design/methodology/approach – This paper synthesises previously disconnected literature reports interviews with 46 of Australia’s leading clients, contractors and consultants. Findings – The findings confirm the importance of client leadership, yet also shows that lowest price remains the dominant selection criterion in tenders. Many clients lack the insight and tools to play a leadership role and are unwilling and unable to employ strategies to foster better performance and more innovation because of internal governance constraints, a poor understanding of how built assets contribute to core business objectives and a narrow understanding of their central role in driving innovation. The authors conclude that in reality, the potential for investment in innovation is restricted to the relatively few large companies who are lucky enough to deal with sophisticated clients which procure buildings on a frequent basis. The vast majority of the industry are left to work with clients who procure buildings very rarely, who want the lowest possible price for their investment and who do not see them as a key long-term asset in the success of their core business. Research limitations/implications – The research is based on 46 interviews. It represents and external perspective on client leadership. Further research is needed with clients to validate the results and provide a counterpoint. Practical implications – The practical implications of this research are that clients need to be more wary of equating low price with good value. While the merits of competition are widely lauded, the research shows that clients can extract more value from the construction industry by an integrated project strategy that does not lock-in solutions too early, that provides scope and time for innovation to happen, which encourages collaboration, early involvement and which distributes risk and opportunity fairly and openly. According to the research, many clients are unwilling and unable to do this because of internal governance constraints, a lack of tools to value innovation in bids, a poor understanding of how built assets contribute to core business objectives and a narrow understanding of their central role in driving innovation. Social implications – Given the planned infrastructure programme in Australia and many other countries, the potential productivity and efficiency benefits to be derived from this research are significant. These saved resources would then be available for further investments in social and economic infrastructure. Originality/value – This paper’s originality lied in the synthesis of previously disconnected literature on construction innovation, efficiency and productivity.
Statutory adjudication in Western Australia: adjudicators’ viewsYung, Ping ; Rafferty, Kieran
2015 Engineering Construction & Architectural Management
doi: 10.1108/ECAM-03-2014-0033
Purpose – The purpose of this paper is to evaluate the effectiveness of the statutory adjudication legislation in Western Australia against its stated aims. Design/methodology/approach – The four objectives of the Western Australia Construction Contracts Act 2004 were identified. For each objective a number of criteria has been devised. In total, 22 registered adjudicators were interviewed, representing 28 per cent of all adjudicators in Western Australia. The interviewees were divided into two groups, one with legal background (being both lawyer and adjudicator), the other without (construction professionals). They were asked to evaluate the criteria against a five-point Likert scale in addition to open ended comments. Mann-Whitney U tests were used to examine whether there were significant differences between the two groups. Annual reports of Building Commissioner, database of the WA State Administrative Tribunal and some law cases were also referred to. Findings – It is found that the West Coast Model is fair to both parties, the adjudications are generally completed speedily according to the prescribed timeframe, and they have been conducted in various levels of formalities. Adjudications are very cost effective for larger claims. However, they are not so for smaller claims. The increasing uptake rate shows that adjudication is getting more popular, while the low appeal rate shows that decisions on dismissal are fair. Research limitations/implications – The adjudicators’ opinions are only part of the overall picture and that more research on this topic needs to be done. Originality/value – There have been two distinct legislative models in Australia, commonly known as East Coast Model and West Coast Model. A number of authors have called for a national dual model incorporating both current models. However, it might be too early to discuss the national dual model when there have been very few evaluations on the West Coast Model and among the few there have been problems in the research design. This paper seeks to bridge the gap by evaluating the West Coast Model against its stated aims.
Strategies for improving energy saving behaviour in commercial buildings in MalaysiaMokhtar Azizi, Nurul Sakina ; Wilkinson, Suzanne ; Fassman, Elizabeth
2015 Engineering, Construction and Architectural Management
doi: 10.1108/ECAM-04-2014-0054
Purpose – The purpose of this paper is to investigate the level of energy saving behaviour between green and conventional office buildings in Malaysia to determine if people in green buildings perform better energy saving behaviour than people in conventional buildings. The paper specifically focused on use of technology, computer usage and potential energy savings from that use. The paper then examines what strategies are used to encourage energy saving behaviour for building occupants. Design/methodology/approach – Questionnaires were distributed to occupants in the buildings to evaluate the extent of energy saving behaviour practiced, and identify potential strategies to encourage energy saving behaviour. Findings – The findings show better energy saving behaviour practice in green buildings and the paper show why this is the case. The recommended strategies to encourage energy saving behaviour are discussed, and include means of raising education awareness on energy efficiency among the occupants. This can be done through distribution of guidelines, posters, pamphlets and e-mails. Occupants can also be given live updates on the energy usage of the building. Briefing on the objectives and goals of the organisation’s commitment to energy efficiency can be given to newly employed staff. As seen in this paper, these multiple strategies have shown to be successful in encouraging energy saving behaviours. Originality/value – To date, energy saving behaviour has been given less focus in improving green building performance. There is limited research that compares energy saving behaviour between green and conventional commercial buildings in Malaysia. The findings provide a better understanding on occupants’ behaviour in energy conservation and suggest strategies for future recommendation.
Risk management implementation in small and medium enterprises in the UK construction industryRostami, Ali ; Sommerville, James ; Wong, Ing Liang ; Lee, Cynthia
2015 Engineering Construction & Architectural Management
doi: 10.1108/ECAM-04-2014-0057
Purpose – The competition and challenges facing construction firms during the recent recession have brought risk management (RM) to the fore in people’s minds. Examination of the difficulties of implementing RM in small and medium enterprises (SMEs) in the UK construction industry has been relatively untouched. The paper aims to discuss these issues. Design/methodology/approach – As part of on-going research to facilitate RM processing aimed at improving the competitiveness of SMEs, the difficulties in RM implementation were identified through a literature review of RM implementation in SMEs. Postal questionnaire were sent to SMEs who have experience of construction management. Findings – Of the 153 of SMEs responding, most highlighted that the main difficulty experienced is how to scale RM process to meet their requirements. None of the available standards explain the fundamental principle of applying RM to the situations that SMEs find themselves in. This difficulty is further exacerbated by a lack of management skills and knowledge in the adoption of RM tools or techniques to identify and analyse the business’ risks. Originality/value – The identified difficulties can be considered to develop a process to facilitate RM process within SMEs.
The relationship between pre-construction decision-making and the effectiveness of risk controlLingard, Helen ; Saunders, Lance ; Pirzadeh, Payam ; Blismas, Nick ; Kleiner, Brian ; Wakefield, Ron
2015 Engineering Construction & Architectural Management
doi: 10.1108/ECAM-08-2013-0074
Purpose – The purpose of this paper is to explore the relationship between the timing with which decisions are made about how to control work health and safety (WHS) risks in construction project (i.e. either pre- or post-construction) and the quality of risk control outcomes. Design/methodology/approach – Data were collected from 23 construction projects in Australia and the USA. Totally, 43 features of work were identified for analysis and decision making in relation to these features of work was mapped across the life of the projects. The quality of risk control outcomes was assessed using a classification system based on the “hierarchy of control”. Within this hierarchy, technological forms of control are preferable to behavioural forms of controls. Findings – The results indicate that risk control outcomes were significantly better in the Australian compared with the US cases. The results also reveal a significant relationship between the quality of risk controls and the timing of risk control selection decisions. The greater the proportion of risk controls selected during the pre-construction stages of a project, the better the risk control outcomes. Research limitations/implications – The results provide preliminary evidence that technological risk controls are more likely to be implemented if WHS risks are considered and controls are selected in the planning and design stages of construction projects. Practical implications – The research highlights the need for WHS risk to be integrated into decision making early in the life of construction projects. Originality/value – Previous research has linked accidents to design. However, the retrospective nature of these studies has not permitted an analysis of the effectiveness of integrating WHS into pre-construction decision making. Prospective studies have been lacking. This research provides empirical evidence in support of the relationship between early consideration of WHS and risk control effectiveness.