New Zealand Building Project Cost and Its Influential Factors: A Structural Equation Modelling Approach

Construction industry significantly contributes to New Zealand's economic development. However, the delivery of construction projects is usually plagued by cost overruns, which turn potentially successful projects into money-losing ventures, resulting in various other unexpected negative impacts. The objectives of the study were to identify, classify, and assess the impacts of the factors affecting project cost in New Zealand. The proposed research model was examined with structural equation modelling. Recognising the lack of a systematic approach for assessing the influencing factors associated with project cost, this study identified 30 influencing factors from various sources and quantified their relative impacts. The research data were gathered through a questionnaire survey circulated across New Zealand construction industry. A total of 283 responses were received, with a 37% response rate. A model was developed for testing the relationship between project cost and the influential factors. The proposed research model was examined with structural equation modelling (SEM). According to the results of the analysis, market and industry conditions factor has the most significant effect on project cost, while regulatory regime is the second-most significant influencing factor, followed by key stakeholders' perspectives. The findings can improve project cost performance through the identification and evaluation of the cost-influencing factors. The results of such analysis enable industry professionals to better understand cost-related risks in the complex environment

VR-PMS: a new approach for performance measurement and management of industrial systems

A new performance measurement and management framework based on value and risk is proposed. The proposed framework is applied to the modelling and evaluation of the a priori performance evaluation of manufacturing processes and to deciding on their alternatives. For this reason, it consistently integrates concepts relevant to objectives, activity, and risk in a single framework comprising a conceptual value/risk model, and it conceptualises the idea of value- and risk based performance management in a process context. In addition, a methodological framework is developed to provide guidelines for the decision-makers or performance evaluators of the processes. To facilitate the performance measurement and management process, this latter framework is organized in four phases: context establishment, performance modelling, performance assessment, and decision-making. Each phase of the framework is then instrumented with state of-the-art quantitative analysis tools and methods. For process design and evaluation, the deliverable of the value- and risk-based performance measurement and management system (VR-PMS) is a set of ranked solutions (i.e. alternative business processes) evaluated against the developed value and risk indicators. The proposed VR-PMS is illustrated with a case study from discrete parts manufacturing but is indeed applicable to a wide range of processes or systems

Using the partial least squares (PLS) method to establish critical success factor interdependence in ERP implementation projects

This technical research report proposes the usage of a statistical approach named Partial Least squares (PLS) to define the relationships between critical success factors for ERP implementation projects. In previous research work, we developed a unified model of critical success factors for ERP implementation projects. Some researchers have evidenced the relationships between these critical success factors, however no one has defined in a formal way these relationships. PLS is one of the techniques of structural equation modeling approach. Therefore, in this report is presented an overview of this approach. We provide an example of PLS method modelling application; in this case we use two critical success factors. However, our project will be extended to all the critical success factors of our unified model. To compute the data, we are going to use PLS-graph developed by Wynne Chin.Postprint (published version

Supporting 'design for reuse' with modular design

Engineering design reuse refers to the utilization of any knowledge gained from the design activity to support future design. As such, engineering design reuse approaches are concerned with the support, exploration, and enhancement of design knowledge prior, during, and after a design activity. Modular design is a product structuring principle whereby products are developed with distinct modules for rapid product development, efficient upgrades, and possible reuse (of the physical modules). The benefits of modular design center on a greater capacity for structuring component parts to better manage the relation between market requirements and the designed product. This study explores the capabilities of modular design principles to provide improved support for the engineering design reuse concept. The correlations between modular design and 'reuse' are highlighted, with the aim of identifying its potential to aid the little-supported process of design for reuse. In fulfilment of this objective the authors not only identify the requirements of design for reuse, but also propose how modular design principles can be extended to support design for reuse

Forecasting Construction Tender Price Index in Ghana using Autoregressive Integrated Moving Average with Exogenous Variables Model

Prices of construction resources keep on fluctuating due to unstable economic situations that have been experienced over the years. Clients knowledge of their financial commitments toward their intended project remains the basis for their final decision. The use of construction tender price index provides a realistic estimate at the early stage of the project. Tender price index (TPI) is influenced by various economic factors, hence there are several statistical techniques that have been employed in forecasting. Some of these include regression, time series, vector error correction among others. However, in recent times the integrated modelling approach is gaining popularity due to its ability to give powerful predictive accuracy. Thus, in line with this assumption, the aim of this study is to apply autoregressive integrated moving average with exogenous variables (ARIMAX) in modelling TPI. The results showed that ARIMAX model has a better predictive ability than the use of the single approach. The study further confirms the earlier position of previous research of the need to use the integrated model technique in forecasting TPI. This model will assist practitioners to forecast the future values of tender price index. Although the study focuses on the Ghanaian economy, the findings can be broadly applicable to other developing countries which share similar economic characteristics

Building development cost drivers in the New Zealand construction industry : a multilevel analysis of the causal relationships : a thesis submitted in fulfilment of the requirements for the degree of Doctor of Philosophy (PhD) in Construction, School of Engineering & Advanced Technology, Massey University, Albany, New Zealand

Building development cost is influenced by a raft of complex factors which range from project characteristics to the operating environment and external dynamics. It is not yet clearly understood how these factors interact with each other and individually to influence building cost. This gap in knowledge has resulted in inaccuracies in estimates, improper cost management and control, and poor project cost performance. This study aims to bridge the knowledge gap by developing and validating a multilevel model of the key drivers of building development cost (BDC) and their causal relationships. Based on literature insights and feedback from a survey of industry practitioners, some hypotheses were put forward in regards to the causal relationships between the BDC and the following key drivers as latent constructs: project component costs factor, project characteristics factor, project stakeholders’ influences factor, property market and construction industry factor, statutory and regulatory factor, national and global dynamics, and socio-economic factor. Observed indicators of the model's latent constructs were identified and measured using a mixed methods research design. Results showed that property market and construction industry factor was the most significant predictor of building development cost in New Zealand, while project component cost factor has the least impact. The model’s fit to the empirical dataset, and its predictive reliability, was validated using structural equation modelling. Results of an additional model validation test by a panel of experts further confirmed its efficacy. Overall, the results suggest that sole reliance on the immediate project component costs without due consideration of the wider and more influencing effects of the external factors could result in inaccurate estimates of building development cost. Key recommendations included addressing the priority observed indicators of the most significant latent variables in cost studies and analysis. Keywords: Building development cost, cost drivers, cost modelling, cost predictio

Report : review of the literature : maintenance and rehabilitation costs for roads (Risk-based Analysis)

Realistic estimates of short- and long-term (strategic) budgets for maintenance and rehabilitation of road assessment management should consider the stochastic characteristics of asset conditions of the road networks so that the overall variability of road asset data conditions is taken into account. The probability theory has been used for assessing life-cycle costs for bridge infrastructures by Kong and Frangopol (2003), Zayed et.al. (2002), Kong and Frangopol (2003), Liu and Frangopol (2004), Noortwijk and Frangopol (2004), Novick (1993). Salem 2003 cited the importance of the collection and analysis of existing data on total costs for all life-cycle phases of existing infrastructure, including bridges, road etc., and the use of realistic methods for calculating the probable useful life of these infrastructures (Salem et. al. 2003). Zayed et. al. (2002) reported conflicting results in life-cycle cost analysis using deterministic and stochastic methods. Frangopol et. al. 2001 suggested that additional research was required to develop better life-cycle models and tools to quantify risks, and benefits associated with infrastructures. It is evident from the review of the literature that there is very limited information on the methodology that uses the stochastic characteristics of asset condition data for assessing budgets/costs for road maintenance and rehabilitation (Abaza 2002, Salem et. al. 2003, Zhao, et. al. 2004). Due to this limited information in the research literature, this report will describe and summarise the methodologies presented by each publication and also suggest a methodology for the current research project funded under the Cooperative Research Centre for Construction Innovation CRC CI project no 2003-029-C

Expert Finding by Capturing Organisational Knowledge from Legacy Documents

Organisations capitalise on their best knowledge through the improvement of shared expertise which leads to a higher level of productivity and competency. The recognition of the need to foster the sharing of expertise has led to the development of expert finder systems that hold pointers to experts who posses specific knowledge in organisations. This paper discusses an approach to locating an expert through the application of information retrieval and analysis processes to an organization’s existing information resources, with specific reference to the engineering design domain. The approach taken was realised through an expert finder system framework. It enables the relationships of heterogeneous information sources with experts to be factored in modelling individuals’ expertise. These valuable relationships are typically ignored by existing expert finder systems, which only focus on how documents relate to their content. The developed framework also provides an architecture that can be easily adapted to different organisational environments. In addition, it also allows users to access the expertise recognition logic, giving them greater trust in the systems implemented using this framework. The framework were applied to real world application and evaluated within a major engineering company