Macro models of UK construction contract prices

This paper describes the derivation of macro construction contract price models that are based on the economic theory of demand and supply using OLS multiple regression analysis. A structural equation model is presented which offers a structural explanation of the movements in the construction tender price index. Leading indicators of contract prices (in real terms) produced by the structural equations were unemployment level, real interest rate, manufacturing profitability, number of registered construction firms, building cost index, construction productivity and construction work stoppages. The equation produced an adjusted R2 of 0.97 for deflated data with minimal serial autocorrelation. A predictive reduced-form model is also developed that utilises simultaneous equation models comprising construction demand, supply and equilibrium models

Renegotiation of public private partnership road contracts: Issues and outcomes

The renegotiation of road projects has been an important issue that has generated concerns in PPP procurement over the last decade. This has had serious policy implications for public procurement policy across countries because of its implications for the achievement of the objectives defined at the inception of PPP road contracts. This paper assesses the renegotiation of Public-Private Partnership (PPP) infrastructure projects in order to identify the issues involved in renegotiation and its outcomes. Data were collected through a literature review of selected studies on PPP infrastructure projects on a sectoral basis with particular emphasis on Latin America, Portugal and Spain. It was revealed that a high proportion of PPP contracts in the transport sector are renegotiated: Indeed, in the transport sector, more PPP road projects are renegotiated than other forms of transport projects. The main factors surrounding the renegotiation of road contracts are: lack of an adequate contract design, frequent opportunistic behaviour on the part of both public and private partners during the implementation of PPP road projects, changes in the conditions affecting revenue and costs beyond the reasonable assumptions accounted for in the original contract, corruption, and political and economic instability, all of which in most instances reduce the chance of the public partner achieving its objective of value for money (VfM). The paper concludes with a discussion of the need to develop a framework for integrating considerations of value for money into the renegotiation process of PPP road contracts

Developments in the United Kingdom Dispute Resolution Process

It is generally recognized that the U.K. construction industry is associated with low profit, delay in payments, cash flow concerns, short-term relationships compared with other industries, and high levels of business failure. In particular, claims and disputes have proliferated in the industry largely due to unfair payment practices. Therefore, to encourage a swifter and more economic method of resolving construction disputes by way of adjudication, the U.K. Housing Grants, Construction and Regeneration Act 1996 (HGCRA) came into force on October 1st, 2011in England andWales, and November 1st, 2011 in Scotland. This study presents the HGCRA 1996 Act—highlighting its strengths and weaknesses—along with the new 2009 Construction Act. The study additionally presents awareness of the new Act, key reasons for amending the HGCRA 1996 Act, and the impact of key changes in the Act on the dispute resolution process. The paper concludes that the new Act is perceived as being more effective at improving cash flow in the construction supply chain and is expected to encourage parties to resolve disputes by adjudication—but it will have to overcome the historical fact that integration of such proposed changes in construction may be a complex issue

Facilities Management Approach For Achieving Sustainability in Commercial Buildings in Nigeria

The purpose of this research is to determine the extent of sustainable facilities management (FM) practice in the management of commercial buildings in Nigeria and identify barriers to it, in order to develop a solution model that will proffer ways of overcoming these barriers and ultimately determine sustainable methods by which facility managers in Nigeria can effectively manage commercial properties. This study is a work in progress and it presents a theoretical review on the extent of sustainable FM in developed countries, especially the United Kingdom (UK), and comparing it with the development of sustainable FM in developing countries and Nigeria in particular. Nigeria has a history of unsustainable building practices, mismanagement of buildings and poor maintenance culture with no consideration for its impact on the environment. Findings reveal the three main barriers to sustainable FM practice in corporate organisations in Nigeria, as lack of training and tools, lack of relevant laws and regulation, and lack of knowledge and awareness. Nevertheless, there remains the urgent need to investigate barriers of sustainable FM practice in the management of commercial buildings in Nigeria

Key performance measures to control maintenance-associated HAIs

Purpose – The purpose of this paper is to improve overall healthcare maintenance (HM) service performance in NHS infection control (IC). Hence, the authors identify critical success factors (CSFs) and key performance measures in maintenance-associated infections. These infections occur because of the poor performance of HM service in IC. Design/methodology/approach – In the first Delphi exercise, complete CSFs and performance measures were presented to the Delphi participants for refinement and modification. Delphi round 1 data were analysed manually and used to refine the rounds 2 and 3 Delphi instruments. In subsequent Delphi rounds, the results were analysed through descriptive statistics. Findings – In total, eight CSFs and 53 key performance measures were identified for reducing maintenance-associated infections in hospitals. For example, establishing clear communication between the infection control team (ICT) and HM unit is important for preventing maintenance-associated HAIs. Dust prevention is also identified by the healthcare experts as an important measure to prevent maintenance-associated HAIs in high-risk patient areas. Originality/value – The findings provide CSFs and key performance measures for measuring performance in HM in IC. Reducing the rate of maintenance-associated infections will have important socio-economic and health ramifications for hospitals. It will reduce cost and free up additional resources for alternative projects. It will also raise confidence among healthcare users about the quality of services provided by hospitals

Application of the Delphi technique in healthcare maintenance

Purpose The purpose of this paper is to examine the research design, issues and considerations in the application of the Delphi technique to identify, refine and rate the critical success factors and performance measures in maintenance-associated infections. Design/methodology/approach In-depth literature review through the application of open and axial coding were applied to formulate the interview and research questions. These were used to conduct an exploratory case study of two healthcare maintenance managers, randomly selected from two National Health Service Foundation Trusts in England. The results of exploratory case study provided the rationale for the application of the Delphi technique in this research. The different processes in the application of the Delphi technique in healthcare research are examined thoroughly. Findings This research demonstrates the need to apply and integrate different research methods to enhance the validity of the Delphi technique. The rationale for the application of the Delphi technique in this research is because some healthcare maintenance managers lack knowledge about basic infection control (IC) principles to make hospitals safe for patient care. The result of first round of the Delphi exercise is a useful contribution in its own rights. It identified a number of salient issues and differences in the opinions of the Delphi participants, noticeably between healthcare maintenance managers and members of the infection control team. It also resulted in useful suggestions and comments to improve the quality and presentation of the second- and third-round Delphi instruments. Practical implications This research provides a research methodology that can be adopted by researchers investigating new and emerging issues in the healthcare sector. As this research demonstrates, the Delphi technique is relevant in soliciting expert knowledge and opinion to identify performance measures to control maintenance-associated infections in hospitals. The methodology provided here could be applied by other researchers elsewhere to probe, investigate and generate rich information about new and emerging healthcare research topics. Originality/value The authors demonstrate how different research methods can be integrated to enhance the validity of the Delphi technique. For example, the results of an exploratory case study provided the rationale for the application of the Delphi technique investigating the key performance measures in maintenance-associated infections. The different processes involved in the application of the Delphi technique are also carefully explored and discussed in depth

Analysis of tender sum forecasting by quantity surveyors and contractors in South Africa

Although extensive research has been undertaken on the accuracy of quantity surveyors' tender price forecasts, very little of this research contains information relating to the factors affecting tender sum forecasting by quantity surveyors and contractors. The primary objective of this empirical study was to gain insight into the factors influencing both quantity surveyors' and contractors' tender price forecasts. This was achieved through an analysis of tender information relating to 278 projects for a fifteen-year period and collected from 30 quantity-surveying practices and MBATA tender records. The analysis of South African tender information reported in this article indicates an average forecast performance by quantity surveyors of 8.33% (std dev (standard deviation) = 11,183, CV (coefficient of variation) = 134,2%). The variability of contractors' tenders ranged from 0,37% to 46,53%, with a mean of 5,65% (std dev = 5,22, SE (standard error) = 0,313). Furthermore, there is no evidence to suggest that forecast performance is dependent on type of project, client, function of project, size of project, location of project and number of bidders. The contractor's results suggest that local authority projects are associated with high variability of their tender sum forecasts. The only factor, which shows significance for quantity surveyors, is the date of tender which may tend to point to the importance of market conditions and economic cycle in the tender sum forecast performance of South African quantity surveyors

A Performance Measurement Tool (PMT) to Control Maintenance-Associated Infections

Purpose Healthcare maintenance (HM) services have an important role in the control of hospital-acquired infections (HAIs). Notwithstanding, many HM managers still do not measure the performance of HM services in infection control (IC). This research, therefore, aims to establish the level of importance of critical success factors (CSFs) and performance measures in HM IC. A performance measurement tool (PMT) was also developed to improve the performance of the HM unit in IC. Design/methodology/approach The CSFs and performance measures identified in the literature were categorised into the four perspectives of balanced scorecard and analysed through Delphi. The Delphi participants were presented with 67 performance measures and asked to rate their level of importance in HM in IC. In total, they identified 53 important performance measures to control maintenance-associated HAIs. The results obtained from the Delphi study were used to categorise the performance measures into four means zones. The mean zones were assigned weights (1-4), and the level of importance of the CSFs was established through weighted average. Liaison and communication, IC practices and maintenance resource availability emerged as the most important CSFs in HM in IC. Conversely, customer satisfaction emerged as the least important. Information gathered about the CSFs and performance measures was used to develop a PMT in HM in IC. Findings The following CSFs, liaison and communication, IC practices and maintenance resource availability, emerged as the most important in HM in IC. Conversely, customer satisfaction emerged as the least important. Information gathered about the CSFs and performance measures was used to develop a PMT in HM in IC. Originality/value Through the application of the PMT, performance in IC can be estimated at different levels in the HM unit. The PMT allows managers to focus on the most crucial CSFs and performance measures that drive performance in HM in IC. The PMT could also be used for benchmarking purposes

Sustainable procurement strategies for competitive advantage: An empirical study

Procurement plays a key role in sustainability as policies and practices need to extend beyond organisations' boundaries to incorporate their whole supply chains. There is, however, a paucity of empirical research on sustainable forms of procurement initiatives currently being implemented in the UK construction sector to improve competitiveness - which is the core driver of this paper. In order to achieve this aim, a mixed research methodological approach was adopted to collect and analyse data. The findings are based primarily on quantitative data obtained from 53 completed postal questionnaires and semi-structured interviews with 17 professionals from 12 UK construction organisations. As revealed by this study, sustainable procurement is becoming increasingly important in the UK construction sector. The paper concludes that the process of integrating sustainable procurement initiatives into existing business models is often a complex issue. Therefore, there is an urgent need to explore the drivers and impediments associated with the successful integration of sustainable procurement initiatives into existing construction business models. It is also suggested that there is a need for cross-sector collaboration to capture and share best and worst practices relating to sustainable procurement strategies