Journal of Financial Management of Property and Construction

S Meeampol; S O Ogunlan

2006 Journal of Financial Management of Property and Construction

doi: 10.1108/13664380680001076

This study investigates the cost and time performance of highway projects from the viewpoint of the public owner. It differs from previous studies which focused on the contractor’s perspective on project performance. A total of 13 success factors were identified from literature and the opinions of experienced engineers. Data was collected from 99 projects handled by the Department of Highways (DOH) in Thailand Discriminant analysis was used in this study to build the cost and time predictive models, which were generated from samples of cases, which had already been grouped and known as successful and unsuccessful projects. The models were then applied to new cases with measurements for the predictor variables, to predict that the projects were either successful or unsuccessful. The results show that success in cost performance depends on the management of construction resources, budget management, construction method, and communication. By contrast, schedule management and human resource management inhibit cost performance. Success in time performance depends on choice of construction method, management of construction resources, schedule management, supervision and control, and communication. Quality management, budget management, human resource management, owner involvement, and team relationships impede time performance

David J Edwards; Gary D Holt

2006 Journal of Financial Management of Property and Construction

doi: 10.1108/13664380680001077

The Control of Vibration at Work Regulations (CVWR), quantify workplace vibration exposure using exposure action, and exposure limit values (EAV and ELV respectively). Hand‐arm vibration (HAV) risk can be objectively assessed using hand‐tool vibration magnitude data, for comparison to the EAV and ELV. When considering risk controls, one disadvantage of this ‘focus’ on vibration magnitude, is that it might deflect appreciation of the economic implications of such controls, resulting from for example: restrictions on tool usage time; the need for operator rotas where continuous tool use is required; and complications in estimating labour costs because of these types of condition. Based on a sample of hand‐tools’ performance data, this research developed ‘hybrid’ (performance/vibration) dimensions for quantifying tools’ efficacy; representing (interalia) units of work achievable to reach the EAV and ELV. These hybrid dimensions characterize an alternative performance‐based (and therefore financially related) way of considering a tool’s ‘suitability’ within CVWR parameters; over and above the (selection) criterion of tool vibration magnitude. Analyses are then presented that investigate the time and cost ramifications of using multiple operators, to sustain continuous tool usage while keeping exposure levels within CVWR limits.

D R Ogunsemi; I O Aje

2006 Journal of Financial Management of Property and Construction

doi: 10.1108/13664380680001078

Construction projects in Nigeria are generally characterized by cost and time overrun, substandard work, disputes and abandonment; emanating from several factors of which the wrong choice of contractors is a key factor. This study evaluated the criteria adopted by clients and consultants in contractors’ selection in Nigeria. Data were collected with the aid of questionnaire administered on clients and consultants within the Nigerian construction industry. Also prequalification/bid evaluation scores for eighty contractors were collected based on the criteria used in assessing them. The data collected were analysed with the aid of mean score and regression analysis. The result showed that past performance; contractors’ experience; workmanship quality; tender sum; and plant and equipment were the most important criteria for contractors’ prequalification/bid evaluation in Nigeria. A contractors’ selection model was eventually derived based on some of the identified factors. The goodness of fit of the model as defined by the value of r2 was found to be 99%. This therefore implies that only 1% is explained by other independent variables not included in the regression equation; hence the suitability of the model for contractors’ selection in Nigeria.

A B Ngowi; E Pienaar; O Akindele; D.S. Iwisi

2006 Journal of Financial Management of Property and Construction

doi: 10.1108/13664380680001079

The importance of reliable and well‐developed infrastructure for the development of any nation hardly needs to be emphasized. Efficient transport, reliable energy, safe drinking water and modern telecommunication systems are all critical to attracting foreign direct investment (FDI), expanding international trade, achieving long‐term investment and growth, and ultimately ensuring social development of the population. Although globalization was expected to ensure that global capital markets, which have the depth, maturity, size and sophistication to fund all viable investments would ease financing of infrastructure projects, this has not happened and demand for infrastructure, particularly in the developing countries has remained acute. This paper reviews the financing of infrastructure projects and based on historical trends it argues that construction industries need to take more active part in the financing of infrastructure projects as a strategy for their own development. It concludes by emphasizing the importance of putting infrastructure industries on commercial footing as a prerequisite to financing them.

João Da Rocha Lima Júnior; Claudio Tavares De Alencar

2006 Journal of Financial Management of Property and Construction

doi: 10.1108/13664380680001080

The office market in São Paulo has been in recession since the year 2000. This situation came up due to two main factors: (i) the very aggressive attitude of developers during the period that comprises the year 1999 until 2000. At that time there was a very strong perception among investors that a new expansion era for new office buildings in São Paulo was about to begin and, moreover the Brazilian economy had started its recovery; (ii) The intense retraction of the Brazilian economy along with the political transition in 2002, which was mainly caused by the deterioration of the expectations in relation to the economic policies that would be performed by the new government.The recovery of the economic activity in the office building market firstly depends on the macroeconomic growth in Brazil and within the São Paulo metropolitan area. On the other hand, the expansion of the activity in the office buildings sector relies not only on the developers’ expectations of how and when the current vacant units will be rented, but also on the potential risk‐return composition of new buildings to be developed in the next years. This paper describes the economic scenario in which investment decisions to build new office buildings for rent in our local market are made and we also simulated both the necessary period of time for investments in the São Paulo office market to recover attractiveness and the time interval for the increase in the occupation rate absorb the actual vacant spaces. These simulations have taken place based on projections for the Brazilian GNP increase and they showed that for an annual increment of 4.5%, in 3 years could be reached both, attractiveness for new investment and occupation of vacant areas. For a 2.0% annual growth, the absorption of vacant spaces will take 4 years from now and new investment would be attractive only in 2012. Besides, we discuss the market prices fluctuations on the inflexion point where the transition from one phase of the real estate cycle (recession‐non attractiveness) to another (recovery‐attractiveness) occurs.