The impact of contractor selection method on transaction costs: a review

The basic premise of transaction-cost theory is that the decision to outsource, rather than to undertake work in-house, is determined by the relative costs incurred in each of these forms of economic organization. In construction the "make or buy" decision invariably leads to a contract. Reducing the costs of entering into a contractual relationship (transaction costs) raises the value of production and is therefore desirable. Commonly applied methods of contractor selection may not minimise the costs of contracting. Research evidence suggests that although competitive tendering typically results in the lowest bidder winning the contract this may not represent the lowest project cost after completion. Multi-parameter and quantitative models for contractor selection have been developed to identify the best (or least risky) among bidders. A major area in which research is still needed is in investigating the impact of different methods of contractor selection on the costs of entering into a contract and the decision to outsource

Assessing Value for Money in PFI Projects: A Comparative Study of Practices in the UK and Italy

The Value for Money assessment is a critical process in procuring a Private Finance Initiative and it requires accurate ex-ante performance measurement methodologies. The British Government has set new requirements for evaluating VFM through a new assessment model composed of three main stages, namely: programme level assessment, project level assessment, and procurement level assessment. The objective of the new model for VFM assessment is to change the costly, inflexible and opaque side of PFIs in order to deliver cost-effective and improve the quality of public service provision. A theoretical analysis of the implementation of PFI shows the UK as the leading user of this procurement in Europe and Italy is the second. However, there is a disparity in the manner PFI is actually implemented in these two countries and especially how VFM is assessed. Aiming at underlying the best practices of this evaluation process for the most achievable VFM, this paper presents the new VFM assessment model of the UK and a suggestion for its potential application to the Italian PFI procurement process to improve outcomes therei

Control influence on trust and relational governance in the client-contractor dyad

The construction industry has in recent years witnessed a paradigm shift towards the use of more collaborative contracting relationships and integrated processes in an attempt to improve construction project delivery. Trust is central to the success of these contracting approaches and although efforts are usually aimed at improving trust relations in client-contractor relationships, there has so far been mixed findings on how trust is influenced by formal control mechanisms discharged via formal contracts. In construction contracting, there is therefore the need to investigate how different governance modes and control mechanisms deployed on construction projects are perceived by those being controlled and how this in turn influences trust. Through a critique of the extant literature on trust and control in construction, this study reveals that the trust-control relationship which can be both complimentary and supplementary has far reaching implications on the measurement/assessment of trust in the construction project context. The orientation of governance and control mechanisms selected by clients and the behavioural consequences of these from contractors can thus be used as a measure of the degree of trust that exists in the dyad

Cultural cues and behavioural patterns in stress dynamics: a case of the construction industry

CIB W099 and TG59 Conference: Coping with the Complexity of Safety, Health, and Wellbeing in ConstructionCritical factors underpinning stress development in the Construction Industry were investigated in an ethnographic study. Data were collected from three construction organizations in the UK and analysed by content analysis. The results show the pivotal importance of interpersonal relationships to coping with the uncertainty of working conditions, coordination of activities involving teamwork and managing responsibilities and power interactions. The study underlines the importance of dedicated services for stress management and specific trainingrelated abilities devoted to reinforcing positive dynamics between persons and organizations. In particular, these related to managing the impacts of stress on physical status, interpersonal relationships, work performance, and emotional well-being. Communication systems, tools and software and their application were also claimed to have been carefully implemented as effective stress deterrents in the management of daily routine activities.CI

A case study of joint procurement and provision of legal services to a group of a universities in the midlands

A Group of 5 UK Universities in the Midlands undertook a joint procurement process for the provision of Legal Services. The objective was to put in place common Framework Agreements. The Legal Services procured were divided into six lots and one of these was 'Property and Construction'. The lots were assembled into three packages and the contract for each package was awarded to one or more Service Providers. Albeit a service provider is to work for all the collaborating Universities. A competitive 'restricted' two-stage tender process was administered in accordance with the Public Contracts Regulations 2006, SI 2006/5. The Framework Agreements were awarded in 2012 to the most economically advantageous Solicitors' Practices. The participating Universities are being interviewed about the reasons for the joint procurement exercise, any challenges faced in its implementation and lessons learnt so far. Two interviews have been conducted so far and evaluated via content analysis to reveal that advantages to be gained from 'economy of scale' were the main impetus for the collaborative procurement. The negotiations between the Universities which led to the establishment of the collaboration and its subsequent sustenance have been friendly. The challenge identified so far concerns how to distribute work more fairly to legal services providers

Framing stress and associated behaviours at work: an ethnography study in the United Kingdom

Aim: The purpose is to understand more precisely the culture and interpersonal behaviours associated with stress. Methods: The research was conducted using a qualitative approach through an ethnographic methodology in relation to three companies. The greater part of the data collection period was structured into observations that ranged between 2 and 4 hours per day, 1 to 3 days per week, for a period of 6 months. A total of 10 sites were explored; and on each site, the observations involved activities by 5 to 20 people. Findings: The results showed the pivotal importance of interpersonal relationships in coping with the uncertainty of working conditions, the coordination of team-work, and managing responsibilities and power interactions. It was found that the impact of stress is multifaceted, affecting the physical status, interpersonal relationships, work performance, and emotional wellbeing of construction workers. The workers who were studied emphasised five sources of support that help moderate work-related stress: additional tools such as communication systems and software, a facilitated access to professional help (e.g. psychological services), organisational changes in leadership, provision of resources for the wellbeing of personnel (e.g. job training) and better teamwork. Practical implications: The study underlines the importance of dedicated services for stress management and specific training-related abilities devoted to reinforcing positive person-organization dynamics. In particular, the abilities should relate to managing the impact of stress in terms of physique, interpersonal relationships, work performance, and emotional well-being. Originality/value: This is one of the first studies to adopt a psychological perspective for understanding construction scenarios and phenomena and was conducted by a qualified psychologist.EU Horizon 2020/ Marie Curie. INSTINCT Project (EU Individual Fellowship

Functional consequences of trust in the construction supply chain: a multi-dimensional view

Trust is often linked to the emergence of cooperative behaviours that contribute to successful project outcomes. However, some have questioned the functional relevance of trust in contractual relations, arguing that control-induced cooperation can emerge from enforcement of contracts. These mixed views are further complicated by the multi-dimensional nature of trust, as different trust dimensions could have varying functional consequences. The aim of this study was to provide some clarity on the functional consequence of trust in the project supply chain. Data was gathered through passive observations, document reviews and semi-structured interviews with supply chain parties on two case study projects in the UK. A thematic data analysis approach was used to uncover multiple perspectives on the functional consequences of trust in the supply chain. Findings revealed that the weaker dimensions of trust, which are impersonal (cognition-based and systems-based) and the stronger (relational-based) dimension of trust, all fostered beneficial behaviours in the supply chain (effective knowledge sharing and self-organising behaviours). However, additional behavioural consequences (relational flexibility and extra commitment) emerged when trust was relational in nature, implying that different trust dimensions and their associated behavioural consequences can be prioritized in the supply chain based on perceived work package risks

The impact of compensation on public construction workers' retention in Jigawa state of Nigeria

Compensation is the remuneration workers receive for their services or contributions to an organisation. Extant literature points to the fact that compensation packages have relationships with job retention. A study established a theoretical framework based on the equity theory and used it to examine how compensation influences workers’ retention. The aim of this research was to investigate the impacts of compensation on retention among public sector construction workers in Jigawa state of Nigeria. The Positivist paradigm guided this empirical research. A questionnaire was developed, pilot-tested and administered to gather data on workers’ retention regarding four compensable aspects, namely: salary, allowances, gratuity and pension. A total of 265 questionnaires were administered and 260 were collected, representing a response rate of 98%. The respondents were selected using the stratified random sampling technique. The data collected was analysed using both descriptive statistics and Structural Equation Modelling SEM. The Structural Equation Modelling established that pension and gratuity do positively and significantly influence public construction workers’ retention in Jigawa state, Nigeria. The study focused on the public construction sector of Jigawa State, Nigeria. Therefore, the findings cannot be extended to the whole country

Cognition, heuristics, and biases behind environmental related behaviours

© 2018 The Authors. Published by Elsevier. This is an open access article available under a Creative Commons licence. The published version can be accessed at the following link on the publisher’s website: https://doi.org/10.1016/S2542-5196(17)30179-1We read with great interest Matthieu Guitton and Julien Poitras published in The Lancet Planetary Health, and we would like to reinforce the importance of environmental education for health professionals