Developing a research method to test a new first-order decision making model for the procurement of public sector major infrastructure

Given global demand for new infrastructure, governments face substantial challenges in funding new infrastructure and simultaneously delivering Value for Money (VfM). The paper begins with an update on a key development in a new early/first-order procurement decision making model that deploys production cost/benefit theory and theories concerning transaction costs from the New Institutional Economics, in order to identify a procurement mode that is likely to deliver the best ratio of production costs and transaction costs to production benefits, and therefore deliver superior VfM relative to alternative procurement modes. In doing so, the new procurement model is also able to address the uncertainty concerning the relative merits of Public-Private Partnerships (PPP) and non-PPP procurement approaches. The main aim of the paper is to develop competition as a dependent variable/proxy for VfM and a hypothesis (overarching proposition), as well as developing a research method to test the new procurement model. Competition reflects both production costs and benefits (absolute level of competition) and transaction costs (level of realised competition) and is a key proxy for VfM. Using competition as a proxy for VfM, the overarching proposition is given as: When the actual procurement mode matches the predicted (theoretical) procurement mode (informed by the new procurement model), then actual competition is expected to match potential competition (based on actual capacity). To collect data to test this proposition, the research method that is developed in this paper combines a survey and case study approach. More specifically, data collection instruments for the surveys to collect data on actual procurement, actual competition and potential competition are outlined. Finally, plans for analysing this survey data are briefly mentioned, along with noting the planned use of analytical pattern matching in deploying the new procurement model and in order to develop the predicted (theoretical) procurement mode

The IT performance evaluation in the construction industry

To date there has been limited published work in the construction management and engineering literature that has provided empirical evidence to demonstrate that IT can improve organizational performance. Without an explicit understanding about how IT can be effectively used to improve organizational performance, its justification will remain to be weak for managers. To ensure the continuous increase in IT based applications in the construction industry, sufficient evidence has to be provided for management in various professions of the construction industry to evaluate, allocate and utilize appropriate IT systems. In an attempt to explore the relationship between IT and productivity, an empirical investigation of 60 Professional Consulting Firms (PCF) from the Hong Kong construction industry was undertaken. A model for determining the organizational productivity of IT is proposed, and the methodology used to test the model is described. The findings are analyzed and a cross-profession comparison of the results indicated the differences in the use of IT. The research findings are discussed with similarities being drawn. The limitations of the research are then presented and discussed. The implications of the findings and conclusions then fully presented

Visor

A visor is a piece of plastic object that can protect or cover the eyes area. Visor is designed transparent to protect the face and eyes. Therefore, the visors can disguise as a mask. For example, some of helmet in suit of the armour can protect our eyes and in automobile, the driver or front passenger can lower the part of windshield to block the sun. In the year 1924, Hathway has invented the car visor. Originally, he calls it as the glare shield because its function to block out the harmful sun’s x-ray. Therefore, Henry Ford from the creator of the Ford company patented the Hathway’s invention in 1938 that led many innovations to Ford Corp. The main of this purpose is to reduce the direct sunlight to driver’s eyes

An analysis of the change in financial position of the construction industry in Hong Kong

The purpose of this report is to find out the relationship between Hong Kong construction industry and the market condition of Hong Kong in the past 5 years (1993-97). Prior research showed that construction industry is an important contributor to the economic development of Singapore by helping to establish the infrastructure required for sustaining socioeconomic development (Ofori 1988). Although a number of researches were on the prediction of solvency, none was related to the construction industry in Hong Kong. Recently, Hong Kong has been facing economy difficulty, concern is aroused in the healthiness of Hong Kong business. Construction industry, being an important industry, deserves to study. To determine the relationship between market condition and the industry, we use the Capital Asset Pricing Model (CAPM). The results of CAPM showed that the financial performance of construction companies follow the movement of the market. We determine the change of financial position of Hong Kong construction companies by using the industrial average of the construction sector in Hong Kong and applying financial statement analysis techniques. We found from the financial statement analysis that most construction companies were not profitable and most of them had high gearing ratios. Questionnaires are sent to 22 listed construction companies to identify the possible factors that affect the their performance. According to the view of these construction companies, their performance was much affected by the economic condition. These results are consistent in the way that the construction companies are not profitable during the periods. Long Debtor’s Day and high gearing position are norms in construction industry. Most sample companies in our study follow these norms. The result shows that most sample companies follow the market to grow but the growth rate is not as rapid as the market. We recommend that the construction companies should better control their debt and expenses with great care so as to improve profitability and financial leverage. Through value management to achieve an effective management of change

Negotiation Games: Acquiring Skills by Playing

This paper shows the research done at the School of Industrial Engineers (ETSII) of the Technical University of Madrid (UPM), in two consecutive academic courses. In this negotiation game each team is formed by three students playing different roles, with a different degree of complexity. The game is played three different times changing the conditions and doing the Zones of Possible Agreement (ZOPA) smaller so the negotiation is going “harder” and it was more difficult for the team to achieve an agreement. Roles were distributed according to the student’s experience, since it was understood that difficulty of the roles was different, especially when there was set a time limit for negotiation. The combination of playing and training has shown that students without particularly good negotiating skills at the beginning of the experiment attained better final results than those who have natural negotiating skills, but no benefit of training

Some results from a system dynamics model of construction sector competitiveness

Despite government-led good practice initiatives aimed to improve competitiveness in the U.K. construction sector, fluctuations in growth-driven demand, investment and constant regulatory revisions make it very difficult for an enterprise to plan strategically and remain competitive over a timescale exceeding 2 to 3 years. Research has been carried out to understand the historical evolution and changing face of the construction sector and the dynamic capabilities needed for an enterprise to secure a more sustainable competitive future. A dynamic model of a typical contracting firm has been created based upon extensive knowledge capture arising from fieldwork in collaborating firms together with a detailed review of the literature. A construct called the competitive index is used to model contract allocation in a stylised market. The simulations presented enable contracting enterprises to reflect strategically with a view to remaining competitive over a much longer time horizon of between 15 and 20 years. The rehearsal of strategy through simulated scenarios helps to minimise unexpected behaviour and offers insights about how endogenous behaviour can shape the future of the enterprise. To date, work on construction competitiveness has been either of a static nature or set predominantly at the level of the project. This study offers a new perspective by providing a dynamic tool to analyse competitiveness. It creates a new paradigm to support enhanced construction sector performance

Internet Entrepreneurship: Networks and Performance of Internet Ventures In China

This article examines the contingent value of entrepreneurs' networks to survival likelihood of Internet ventures, and the dynamics of entrepreneurs' networks over time. The empirical data are composed of the longitudinal surveys of 94 Internet ventures in Beijing, China. The study found the positive and the negative contingent effects of structural holes on the survival likelihood of new firms. The study found that networking skills of entrepreneurs are associated positively with the changes in networks over time. Improved social skills lead to greater firm legitimacy.http://deepblue.lib.umich.edu/bitstream/2027.42/40139/3/wp753.pd