Construction Procurement: Modelling Bidders’ Learning in Recurrent Bidding

Construction remains a significant area of public expenditure. An understanding of the process of changes in construction pricing, and how the process can be manipulated through the release of bidding feedback information is vital, in order to best design clients’ procurement policies. This paper aims to statistically model inexperienced individual bidders’ learning in recurrent bidding under partial and full information feedback conditions. Using an experimental dataset, the developed linear mixed model contains three predictor variables, namely: time factor, information feedback conditions, and bidding success rate in the preceding round. The results show nonlinearity and curvature in the bidders’ learning curves. They are generally less competitive in time periods after a winning bid with lower average bids submitted by those subjected to full information feedback condition. In addition, the model has captured the existence of heterogeneity across bidders with individual-specific parameter estimates that demonstrate the uniqueness of individual bidders’ learning curves in recurrent bidding. The findings advocate for adequate bidding feedback information in clients’ procurement design to facilitate learning among contractors, which may in turn lead to increased competitiveness in their bids

Boosting project outcomes through goal alignment: a case study of Vietnam

Goal alignment among members of a project team is important so that individual team members can work towards common project outcomes.  This study aims to identify effective goal alignment practices to improve construction project outcomes in Vietnam. With the aid of a survey questionnaire, data were collected from practitioners in Vietnam’s construction industry. The overall results show that although there is significant schedule overrun, projects in Vietnam are generally completed within budget.  These projects also have significantly good quality and client satisfaction.  The results show that goal alignment practices relating to having shared objectives, effective communication, flexibility, and fairness are significantly correlated with schedule performance, quality, and client satisfaction.  It is recommended that project team members share, align and adjust their goals and objectives in order to achieve a better schedule outcome.  Effective communication of problems pertaining to delivery and quality may lead to better client satisfaction.  It is also recommended that consultants and contractors make adjustments and customize their products to derive higher quality and client satisfaction.  Clients should also be fair in sharing project benefits and valuing variations. 

Managing the implementation of construction innovations

This study investigates some factors that need to be considered in the management of innovation implementation within construction project organization. The main objective was to find explanatory variables that significantly affect the benefits of an innovation to project team members and the project as a whole. As part of a larger study on innovation in Singapore's construction industry, a survey was conducted and data from 58 projects that had adopted innovations in Singapore were collected via mailed questionnaire. The questionnaire requested respondents to provide specific data about their projects, the type of innovations adopted and the enablers and barriers to innovation. Four main categories of factors were found to significantly affect the extent to which an innovation will benefit project team members and the project. These are: the level of interest of project team members; working environment; formation of task groups; and the capabilities of the people involved in the innovation. Research questions relating to modelling innovation success are posed for further study.Construction innovation, innovation implementation, innovation management,

ENABLING KNOWLEDGE FLOW: RETAINING GRADUATE WOMEN IN THE SINGAPORE CONSTRUCTION INDUSTRY

As extensive resources are expanded in transferring knowledge from universities to undergraduates, it is important for them to enter the workforce upon graduation to enable the knowledge to flow to the industry. The aim of this study is to investigate the extent to which knowledge flow is disrupted because graduate women are not entering the Singapore construction industry to ensure its sustainable growth. This study used a structured questionnaire, with data collected from 116 construction-trained graduate women via postal survey. Results show that 58% of them chose not to enter or are considering leaving the construction industry. The disruption in knowledge flow is due to better prospects in other industries (pull factor) and poor job conditions within the construction industry (push factor). To retain graduate women in the construction industry, it is recommended that employers: introduce flexible work schedule; allow graduate women to work from home; and give them the same opportunities as their male counterparts

Benefits that foreign AEC firms derive when undertaking construction projects in China

10.1108/00251740510593512Management Decision434501-51

Key relationship-based determinants of project performance in China

The aim of this paper is to investigate the relationship-based factors that affect performance of general building projects in China. Thirteen performance metrics that may be used to measure the success level of construction projects are defined and categorized into four groups namely cost, schedule, quality and relationship performance. Fourteen risks inherent in relationships and 16 tools expected to facilitate relationship building that may affect project success are identified. Data of different projects were collected in China via a self-administered postal survey. Multiple linear regression models are developed to help explain the variance in different performance metrics. It has been found that ten risks and nine tools have either positive or negative influence on project performance to some different extents and in different project development process stages. Detailed explanations are made, especially to those variables bearing unexpected signs. It is recommended that firms in the Chinese construction industry manage the relationship-based factors that are significant in the MLR models so as to achieve project success.<br /

Model for fostering trust and building relationships in China\u27s construction industry

Trust is an underlying psychological condition that can cause cooperation or risk-taking. Trust is considered as a predominant feature and a central mechanism in business transactions, especially among Chinese. Trust-based relationships create advantages in conducting business such as lowering cost, shortening duration, and improving performance. Indispensable conditions for trust to arise are relationships and risks. Different risks surface as a result of different levels of relationships. Sustained trust is therefore fostered by various means to counterbalance those risks. In order to assess the links between distinct trust-related features, a model is constructed and tested through a questionnaire survey in China. The findings generally support the model in terms of explaining the dominant relationships, inherent risks, and trust-fostering tools. It is recommended that firms adopt the refined model and utilize successful practices verified in this paper to foster trust and relationships and in turn secure project success.<br /

Enablers for Singapore contractors to internationalize construction services

With international trade liberalization, construction firms are expected to export their services to ensure continued growth. Some firms have been successful in the international arena, while many are still struggling to gain a foothold outside their domestic markets. The characteristics of construction firms that enable them to secure contracts outside their home countries are investigated. The characteristics of exporters and non-exporters are compared. Detailed characteristics of 60 exporters and 60 non-exporters were obtained from the database of registered contractors in Singapore. Significant variables that correlate with the number and value of international projects were identified. In order to win more overseas projects, firms should be well established, have stronger financial capability and have continued operations in the home market. When exporting, firms should be willing to play the role of both main and subcontractors, have the capability to handle different types of projects and venture into several geographical locations. Several differences between exporters and non-exporters based in Singapore are identified. Exporting firms are more likely to be public listed firms, and larger firms with higher paid up capital. Non-exporters are more likely to be principal contractors who are handling a wide variety of projects. Firms that want to export their services would need to develop their financial strength, and offer niche products or services.International construction, export, construction services, construction firms,

Structural equation modelling of organizational justice and cooperative behaviour in the construction project claims process: contractors' perspectives

A cooperative attitude is essential for successful teamwork in construction. The levels of conflict and dispute on construction projects are conceptualized as forms of cooperative/uncooperative attitude. A theoretical model demonstrates how conflict intensity, contractors' dispute tendencies and six identified constructs of organizational justice interact with and relate to each other. The model is tested using a structural equation modelling technique with partial least‐squares estimation. It uses survey data obtained from 41 contractors regarding their project experience. The results suggest that perceptions about organizational justice either promote or hinder cooperative behaviour in the construction project delivery process. Organizational justice, or at least people's perceptions of it, influenced 38% of conflict intensity levels, and altered 46% of contractors' tendencies to dispute. Perceptions about the quantum of claims approved (favourability of the outcome and the perceived fairness of the outcome) influenced the levels of conflict and dispute. However, the way people are treated (quality of treatment) and the way claims are administered (quality of decision‐making) have the largest impact on the model developed. Cooperative behaviour can be promoted on projects by managing construction claims in a proactive manner and by proper implementation of the claims mechanism.Claims, cooperation, conflict, organizational justice, structural equation model,