Developing a system for assessing the costs associated with different procurement routes in the construction industry

In developing techniques for monitoring the costs associated with different procurement routes, the central task is disentangling the various project costs incurred by organizations taking part in construction projects. While all firms are familiar with the need to analyse their own costs, it is unusual to apply the same kind of analysis to projects. The purpose of this research is to examine the claims that new ways of working such as strategic alliancing and partnering bring positive business benefits. This requires that costs associated with marketing, estimating, pricing, negotiation of terms, monitoring of performance and enforcement of contract are collected for a cross-section of projects under differing arrangements, and from those in the supply chain from clients to consultants, contractors, sub-contractors and suppliers. Collaboration with industrial partners forms the basis for developing a research instrument, based on time sheets, which will be relevant for all those taking part in the work. The signs are that costs associated with tendering are highly variable, 1-15%, depending upon what precisely is taken into account. The research to date reveals that there are mechanisms for measuring the costs of transactions and these will generate useful data for subsequent analysis

Be vicarious: the challenge for project management in the service economy

Purpose. The paper aims to answer to the following questions: which are the critical dynamic capabilities to survive in the rubber landscape of service economy? Does it exist in service economy a dynamic capabilities provider? Methodology. The paper combines the literature review on dynamic capability perspective and that on vicariance to the Project Management professional services. Findings. Firstly, the paper identifies vicariance as an intriguing dynamic capability, crucial to survive in the rubber landscape of service economy. Secondly, the paper sheds light on Project Management (PM) as a vicarious that provides vicariance. Practical implications. For each critical organizational dimension, the paper identifies the links among the service economy challenges and the vicariance typology required to the project manager to face those challenge. Originality/value.The approach to conceive the PM as a vicarious that provides vicariance is original and leads to new insights on the professional services management. In fact, on one hand, dynamic capabilities cannot easily be bought through a market transaction; on the other hand, they must be built. This building can be achieved internally, by the organization itself (i.e. hierarchy), or through a partnership (i.e. hybrid form among hierarchy and market). PM professional services enrich organizations with additional information variety according to a hybrid (i.e. non- market) coordination model

An approach for selecting cost estimation techniques for innovative high value manufacturing products

This paper presents an approach for determining the most appropriate technique for cost estimation of innovative high value manufacturing products depending on the amount of prior data available. Case study data from the United States Scheduled Annual Summary Reports for the Joint Strike Fighter (1997-2010) is used to exemplify how, depending on the attributes of a priori data certain techniques for cost estimation are more suitable than others. The data attribute focused on is the computational complexity involved in identifying whether or not there are patterns suited for propagation. Computational complexity is calculated based upon established mathematical principles for pattern recognition which argue that at least 42 data sets are required for the application of standard regression analysis techniques. The paper proposes that below this threshold a generic dependency model and starting conditions should be used and iteratively adapted to the context. In the special case of having less than four datasets available it is suggested that no contemporary cost estimating techniques other than analogy or expert opinion are currently applicable and alternate techniques must be explored if more quantitative results are desired. By applying the mathematical principles of complexity groups the paper argues that when less than four consecutive datasets are available the principles of topological data analysis should be applied. The preconditions being that the cost variance of at least three cost variance types for one to three time discrete continuous intervals is available so that it can be quantified based upon its geometrical attributes, visualised as an n-dimensional point cloud and then evaluated based upon the symmetrical properties of the evolving shape. Further work is suggested to validate the provided decision-trees in cost estimation practice

Critical success factors for e-tendering implementation in construction collaborative environments : people and process issues

The construction industry is increasingly engulfed by globalisation where clients, business partners and customers are found in virtually every corner of the world. Communicating, reaching and supporting them are no longer optional but are imperative for continued business growth and success. A key component of enterprise communication reach is collaborative environments (for the construction industry) which allows customers, suppliers, partners and other project team members secure access to project information, products or services they need at any given moment. Implementation of the stated critical success factors of the project is essential to ensure optimal performance and benefits from the system to all parties involved. This paper presents critical success factors for the implementation of e-tendering in collaborative environments with particular considerations given to the people issues and process factors

Strategic I/O Psychology and the Role of Utility Analysis Models

In the 1990’s, the significance of human capital in organizations has been increasing,and measurement issues in human resource management have achieved significant prominence. Yet, I/O psychology research on utility analysis and measurement has actually declined. In this chapter we propose a decision-based framework to review developments in utility analysis research since 1991, and show that through lens of this framework there are many fertile avenues for research. We then show that both I/O psychology and strategic HRM research and practice can be enhanced by greater collaboration and integration, particularly regarding the link between human capital and organizational success. We present an integrative framework as the basis for that integration, and illustrate its implications for future research

Short interval control for the cost estimate baseline of novel high value manufacturing products – a complexity based approach

Novel high value manufacturing products by default lack the minimum a priori data needed for forecasting cost variance over of time using regression based techniques. Forecasts which attempt to achieve this therefore suffer from significant variance which in turn places significant strain on budgetary assumptions and financial planning. The authors argue that for novel high value manufacturing products short interval control through continuous revision is necessary until the context of the baseline estimate stabilises sufficiently for extending the time intervals for revision. Case study data from the United States Department of Defence Scheduled Annual Summary Reports (1986-2013) is used to exemplify the approach. In this respect it must be remembered that the context of a baseline cost estimate is subject to a large number of assumptions regarding future plausible scenarios, the probability of such scenarios, and various requirements related to such. These assumptions change over time and the degree of their change is indicated by the extent that cost variance follows a forecast propagation curve that has been defined in advance. The presented approach determines the stability of this context by calculating the effort required to identify a propagation pattern for cost variance using the principles of Kolmogorov complexity. Only when that effort remains stable over a sufficient period of time can the revision periods for the cost estimate baseline be changed from continuous to discrete time intervals. The practical implication of the presented approach for novel high value manufacturing products is that attention is shifted from the bottom up or parametric estimation activity to the continuous management of the context for that cost estimate itself. This in turn enables a faster and more sustainable stabilisation of the estimating context which then creates the conditions for reducing cost estimate uncertainty in an actionable and timely manner

Valuing service design: Lessons from SROI

This paper describes lessons learned through the use of a Social Return On Investment (SROI) approach to evaluate a completed Service Design project with a large vocational training company. It is written by the Service Design team that led the original project and who subsequently used SROI to evaluate its impact. Experiencing the SROI evaluation process first-hand, in a live setting, is the approach by which the authors develop a discussion about its potential fit with Service Design processes. The SROI method enabled both the design team and the case-study organisation to acknowledge and measure additional social/stakeholder benefits created through the design work. These elements would not have been visible in a traditional ROI evaluation. There is the promise of a useful fit between SROI and Service Design in larger projects. The approach could be used as a framework for forecasting and evolving indicators for likely social impacts (and their financial proxies) throughout a Service Design project, to guide decisions at each stage. Its usefulness depends, however, on there being a will at Design Management level to rehearse the approach and develop tailored approaches towards it. In the current study, the method was found to be time-intensive for the Service Design team as lay-users and also for some key project stakeholders, but that could be better managed with experience. SROI will not suit every project, however may fit very well with those projects that already count a full business plan amongst their deliverables. One of the main limitations encountered in using the SROI process was difficulty identifying appropriate proxies for the calculations. It is proposed that social benefit might be expressed to multidisciplinary co-design teams through visual and emotive means rather than in quantitative, financial terms. Such ‘visual proxies’ would better fit with the semantic mode of design