Assessing the Client's Risk Management Performance in Construction Procurement and Contracting: Case Studies

AbstractToday we are facing an increasingly uncertain world that can pose a threat to any business, but also an instance to leverage and generate new opportunities. Risk Management (RM) understands that present decisions and actions can influence the future, by identifying opportunities and threats. This paper addresses these issues with regards to the procurement and contract management of construction services in the mining industry, considering that this industry has not yet established a systematic framework for the application of RM in these functions. This situation results in the lack of knowledge about RM performance and gaps in procurement and contracting, making an evaluation and monitoring system of this function a needed methodology. With such a system, gaps in RM can be identified, improvement actions recommended and performance controlled. Then, a prototype evaluation system has been constructed based on maturity models where the evaluation is based on 1) a knowledge-based system that is able to propose actions to overcome current limitations of the RM function, and 2) a monitoring approach that is able to show the evolution of the RM function with the goal of improving it continuously. The maturity model and the prototype system used for this evaluation are described and results from two case studies corresponding to two mining companies are discussed. Also, main conclusions obtained from their analysis are presented. The prototype system has been validated through these cases and it might become the basis for the construction of a more functional system that could improve RM in procurement and contracting management in the future. These mining companies have considered the prototype as a useful tool because it establishes a framework for RM in the management of procurement and contracting processes, it can generate a systematic evaluation of RM in this area, and it is of easy access and use

Measuring the performance of project risk management: a preliminary model

The function of project risk management (PRM) is to understand the uncertainty that surrounds a project and to identify the potential threats than can affect it as well as to know how to handle these risks in an appropriate way. Then, the measurement of the performance of PRM becomes an important concern, an issue that has not yet been addressed in the research literature. It is necessary to know how successful the application of the PRM process is and how capable is the process within the organization. Regarding construction projects, it is essential to know whether the selected responses to mitigate or eliminate identified risks were suitable and well implemented after the execution of the project. This paper presents a critical analysis of the relevance of measuring the performance of PRM and the benefits of doing so. Additionally, it presents a preliminary and pioneering methodology to measure the performance of PRM through the evaluation of the adequacy of responses applied to mitigate risks as well as to evaluate the resulting impacts as indicators of the effectiveness of these actions at the end of the project. This knowledge will allow construction companies to incorporate good practices, generate lessons learned, and thereby to promote a continuous improvement of the whole PRM proces

Sustainable hospitals: critical items for their construction and the role of technical inspection

Currently, the public health infrastructure in Chile, at its different scales, has made important advances in determining sustainability design criteria. However, it is possible to see that, during its construction, there are no standardized verification processes on sustainability aspects, and that the work of technical inspection focuses on the administrative compliance of construction contracts, rather than on checking technical aspects. This research proposes a list of critical items and activities to supervise hospital construction, to guarantee sustainable criteria in their operation. A survey was also made to professionals involved in the design, construction, and supervision of hospital construction, ranking the results with a multi-criteria methodology (AHP), which showed a preference in the thermal envelope (20%) and thermal and ventilation installations (17%). Finally, based on the weaknesses stated by the professionals, a control and monitoring process of these items and activities is proposed, redesigning the work of the Worksite’ Technical Inspector.Actualmente, la infraestructura de salud pública en Chile, en sus distintas escalas, presenta avances significativos en la determinación de criterios de diseño en sustentabilidad. Sin embargo, es posible observar que durante su construcción no existen procesos de verificación estandarizados sobre aspectos de sustentabilidad y que la labor de la inspección técnica se centra en el cumplimiento administrativo de los contratos de construcción, más que en la verificación de los aspectos técnicos. La presente investigación propone una lista de partidas y actividades críticas a fiscalizar en la construcción de hospitales para asegurar criterios sustentables en su operación. Luego, se realiza una encuesta a profesionales que participan en el diseño, construcción y fiscalización de obras hospitalarias. Los resultados se jerarquizan con una metodología multicriterio (AHP), a partir de la cual se evidencia una preferencia en la envolvente térmica (20%) e instalaciones térmicas y de ventilación (17%). Finalmente, en base a las debilidades señaladas por los profesionales, se propone un proceso de control y seguimiento a estas partidas y actividades con un rediseño de la labor del Inspector Técnico de Obras

Evaluating Risk Management Practices in Construction Organizations

AbstractConstruction organizations in developing countries, approach risk management in construction projects by using a set of practices that are normally insufficient, produce poor results often, and limit the success of project management. This paper describes the development of an instrument based on an organizational maturity model for evaluating the risk-management capability of construction organizations. This instrument has been applied to both, clients and contractors and is part of a general knowledge-based system. Outcomes of this research will allow a client or contractor first, to develop or improve its project risk management capability based on international and local best practices and second, to continuously improve the performance of this function along the realization of new projects. The novelty of this approach is that it addresses the risk management function from a knowledge-based perspective and that it will be based in a web application that will be available to every organization

A Lessons-learned Mobile System for Construction Companies: Motivation and Design

AbstractConstruction projects are an important source of organizational knowledge. Though, it is common to find that most lessons learned in construction projects are lost because most companies never take care of collecting them. To change this situation, a mobile lesson-learned system application with interface for smartphones and web in a cloud environment is proposed. This article focuses on the design of a prototype of the system and the main characteristics of its architecture. It is concluded that the application of mobile technology on the field would facilitate the use of the system, been an appropriate tool for knowledge management

A Lessons-learned System for Construction Project Management: A Preliminary Application

AbstractConstruction companies are project-based organizations, since much of their knowledge is generated on site, from projects they carry out. In fact, projects are an important source of expert know-how and organizational knowledge, but lessons-learned from them are not systematically incorporated into subsequent projects, evidencing a lack of knowledge management and learning culture in local construction companies. This article describes a research effort that addressed this situation and developed a lessons-learned system to help construction companies to overcome these limitations. A multiple case-study methodology was applied to understand the knowledge and learning realities and needs of three Chilean construction companies. Based on these results, a mobile cloud-shared workspace to support knowledge management was developed. Results show that major concerns of users are associated with how the system acknowledges the particularities of construction projects and how it will be incorporated into daily activities. Main conclusions indicate that (1) companies acknowledge the need to develop a culture of innovation within the organization, (2) users consider the system as a tool that could really contribute to improve the construction project management process, and (3) the system needs improvements regarding database search and the Internet support before being fully implemented in the company as a project management tool

Campesina en los cerros de Valparaíso, Chile Siglo XXI. Metáfora de la ciudad y sus bordes

The extension of the city, rooted in Chilean farmer culture, makes it possible to reconstruct the edges of the territory and its urban-rural domain. Valparaiso, in the context of “city + harbor”, contains an orality that contributes to the understanding of its territory and the role of women in the appropriation of the city, declared a world heritage site in 2003 for its historic quarter. The study is based on the stories of the last farmer women who worked at the Hacienda Siete Hermanas until the middle of the 20th century. The Hacienda is now the Rodelillo Hill in Valparaiso, an heir and example of urban and architectural development based on massive waves of different colonies. In this context we observe the Hacienda, one of oldest institutions in Chile, and the presence of rural women made invisible who build the city from its edges.Keywords: city + port, edges, extension of the city, women.La extensión de la ciudad, arraigada en la cultura campesina chilena, permite reconstruir los bordes del territorio y su dominio urbano-rural. Valparaíso en su contexto de “ciudad+puerto” contiene una oralidad que contribuye a la comprensión de su territorio y el rol de la mujer en la apropiación de la ciudad, declarada en el año 2003 por su casco histórico Patrimonio de la Humanidad. La investigación se desarrolla a partir de los relatos de las últimas mujeres campesinas que trabajaron en la hacienda Las Siete Hermanas hasta mediados del siglo XX, hoy actual cerro Rodelillo en Valparaíso, heredero y ejemplo de desarrollo urbano y arquitectónico a partir de masivas oleadas de diferentes colonias. Desde este contexto, observamos la hacienda, una de las instituciones de más larga duración en Chile y la presencia de mujeres campesinas invisibilizadas que construyen ciudad desde los bordes.Palabras clave: ciudad+puerto, bordes, extensión de la ciudad, mujer

Selection of Construction Methods: A Knowledge-Based Approach

The appropriate selection of construction methods to be used during the execution of a construction project is a major determinant of high productivity, but sometimes this selection process is performed without the care and the systematic approach that it deserves, bringing negative consequences. This paper proposes a knowledge management approach that will enable the intelligent use of corporate experience and information and help to improve the selection of construction methods for a project. Then a knowledge-based system to support this decision-making process is proposed and described. To define and design the system, semistructured interviews were conducted within three construction companies with the purpose of studying the way that the method’ selection process is carried out in practice and the knowledge associated with it. A prototype of a Construction Methods Knowledge System (CMKS) was developed and then validated with construction industry professionals. As a conclusion, the CMKS was perceived as a valuable tool for construction methods’ selection, by helping companies to generate a corporate memory on this issue, reducing the reliance on individual knowledge and also the subjectivity of the decision-making process. The described benefits as provided by the system favor a better performance of construction projects

Herramienta para la evaluación de la accesibilidad universal al interior de viviendas

El presente estudio propone una herramienta para evaluar la accesibilidad universal al interior de viviendas, presentando un novedoso modelo cuantitativo para evaluar la accesibilidad de edificios para compradores o arrendatarios. Para ello se emplea un análisis multicriterio que reagrupa indicadores con diferentes unidades y escalas utilizando un único grado de accesibilidad para cuatro principales pilares: Autonomía, Movilidad, Confort y Seguridad. El método de evaluación fue aplicado en 35 departamentos en venta en el casco urbano de Santiago de Chile. Este trabajo muestra la aplicación y resultados de 4 departamentos. Los resultados de la evaluación se presentan de forma visual con un gráfico de barras circulares y una calificación final en escala de letras de la F a la A. En general, se observa que los cuatro departamentos tienen un bajo grado de accesibilidad (letra F a la D). Y el pilar de Autonomía es claramente el pilar más bajo de los departamentos seleccionados

Fostering the effective usage of risk management in construction

The effective management of risk is critical for construction projects. However, research findings show that risk management is either not used or done ineffectively in domestic construction projects. One of the primary reasons for this appears to be the lack of risk management (RM) capabilities and knowledge. A study aimed at developing a system for supporting the effective use of RM is presented. The system has been designed so as to provide the required functionality to assist owners and contractors to develop their capabilities to manage risk effectively, including: a) to assess the existing RM organizational maturity and to report on the existing gaps, b) to propose recommendations for improving the organizational RM capabilities in the light of the detected gaps, and c) to help companies with the im­plementation and improvement of RM within the organization. The system prototype has been successfully applied in several companies that served as initial case studies. It is anticipated that the system will assist clients and contractors to advance effective risk management capabilities and to improve their project risk management performance in the me­dium range. The system can also be applied in other countries that face the same RM difficulties