Creating Social Value within the Delivery of Construction Projects

The purpose of this paper is to present the current knowledge surrounding social value and show how lean approach supports social value realisation in the delivery of construction projects. A critical literature review was adopted, to gather the current knowledge surrounding social value from mainstream management sciences, construction management and lean literature. A total of 70 studies were critically reviewed. The study reveals that the separation theory propagated by Friedman, (1962), tends to separate social value from economic value, thus making organisations care less about delivering social value. The study found that there is still no clear or single criterion for measuring social value delivered and there is a dearth of scholarly publications on social value especially in construction management literature. The investigation shows that lean production approach has the potentials to enable construction organisations to conceptualise the community and the physical environment where they operate as customers, which contributes to the delivery of social value objectives in construction projects. This study conceptualises the community and the physical environment around where the construction project is executed as customers using lean production approach and shows that the Transformation, Flow & Value view support smooth workflow which enhances the achievement of social value objectives. This creates a new insight into how social value can be realised in construction project delivery. This study extends the on-going debate around the need for social value in construction project delivery and contributes to construction management and lean construction literature on social value. Future studies could build on this to obtain empirical data and develop an approach/method that would support the evidencing of social value delivery in construction projects

THE LAST PLANNER® SYSTEM PATH CLEARING APPROACH IN ACTION: A CASE STUDY

The “Last Planner® System” (LPS) is commonly viewed as the foundation of Lean Project Delivery. It is increasingly used in certain parts of the globe. However, LPS implementation often fades off due to issues reported at organisational, project and external levels. The LPS Path Clearing Approach (PCA) offers an antidote to these issues. The goal of this paper is to outline how the LPS-PCA helped restart a stalled implementation of the LPS through a “shallow and wide” organisational approach rather than a more traditional “narrow and deep” project approach. The LPS-PCA in action is documented within an on-going UK case study organisation. Action and covert research methods were used to introduce LPS principles, thinking and language without attributing them to LPS in response to resistance to the actual LPS. The 15 step actions within the LPS-PCA are expanded from a past, current and future state perspective. The study found that the LPS-PCA’s 15 step actions were useful as a benchmark to continuously remove constraints that blocked the implementation of the LPS. In summary, the use of the LPSPCA is recommended before, during and after organisations engage with LPS Consultants if organisations are serious about sustaining the implementation of the LPS

EMPIRICAL STUDY ON THE INFLUENCE OF PROCUREMENT METHODS ON LAST PLANNER® SYSTEM IMPLEMENTATION

Previous studies have examined various factors that influence the implementation of the Last Planner System (LPS) in construction projects. However, there is limited documented evidence on the influence of procurement methods on the implementation of the LPS. The aim of this study, therefore; is to understand the influence of some selected procurement methods on the implementation of the LPS using case study approach. Three in-depth case studies were conducted on building and highways projects in the UK. The projects were managed with the LPS principles with dissimilar procurement methods. In addition to document analysis and physical observation, 28 in-depth-interviews were conducted. The investigation shows that the prevailing traditional mindset exhibited by the designers in the traditional design bid build (DBB) influences the quality of promises and commitments that could be made during the lookahead planning. From the study, it seems no single procurement method is a sure way to the full application of the LPS process on a project. The study observes that irrespective of the procurement route used, a mindset change towards collaboration among the different stakeholders on the project is fundamental to successful LPS implementation. For instance, on projects where DBB was used and the subcontractors were in framework agreement, the LPS implementation worked well among the subcontractors. The study recommends that the procurement approach to be used on LPS projects should not be too firm, but lithe enough to integrate collaborative working among the different stakeholders on the project for a smooth workflow

Assessing Project Suitability for Off-site Production

Implementation of off-site production on construction projects isoften hindered by a number of specific process and procurementconstraints. These constraints are largely influenced by decisionswithin the control of construction clients, suggesting that theyhave a significant influence over the adoption of off-site productioninto construction projects. However, an appreciation of the effectof these constraints has been lacking. Addressing this need, anoff-site production implementation assessment instrument thatresides within a larger toolkit (IMMPREST) was developed usingquestionnaire survey data and a series of industrial workshops.IMMPREST is an interactive electronic toolkit developed byLoughborough University (UK), in conjunction with eleven industrialpartners, which facilitates the evaluation of benefit arising fromuse of off-site production within construction. It identifies thefactors that need to be considered for an evaluation, the datarequired to assess the effect of these factors, and where therequired data resides within the supply chain. Development ofthe implementation assessment instrument is discussed, whilstalso making reference to the role that clients can play in creatingthe process and procurement conditions that promote rather thanconstrain the adoption of off-site production

Institutional waste within the construction industry: an outline

Waste, as understood in Lean thinking, does not feature in modern construction economics or management theory. These approaches fail to recognise the imperfect systems in which entities not only operate inefficiently, but additionally protect themselves by adding contingency and behaving opportunistically. The effect of these practices is to embed inefficient and wasteful processes across the supply chain and throughout the project life cycle. Consequently they have become part of the institution of the construction industry, 'the way it does business'. The aim of this paper is to contribute to the understanding of waste in construction and shed light on a number of regulations, norms and routines, which are taken for granted and impede efficiency and improvement efforts in construction. It starts by critically discussing a number of imperfect systems and structures that support wasteful activities in construction. Next, the background of the institutional theory is introduced, which interestingly is not well established in construction management literature. We then demonstrate how the neo-institutional theory, a branch of organizational sociology, has the potential to be used as an analytical lens to deliver a more explicit theory of waste relating cause and effect within the wider aspects of construction systems and relationships. Finally, an outline of the concept of 'institutional waste in construction' is defined, and five tentative guiding hypotheses are specified for future empirical examination

A critical review of the safeguarding problem in construction procurement: unpicking the coherent current model

The construction industry has, over a long period, been criticised for its short term 'hit-and-run' relationships which are focused on win-lose situations and poor performance. Despite the wide recognition of these problems the industry persistently resists the radical demanded of it. This paper attempts to investigate why this might be the case by reviewing prevailing safeguarding practices within the current commercial systems and structures through literature review and industry observation. Findings reveal that clients and decision makers often tend to safeguard their project-specific assets, against opportunism and exploitation, through the deployment of formal contractual arrangements and governance structures. These arrangements and structures typically dominate the management of the project delivery often to the detriment of the project itself; but because there is a belief that interests are safeguarded, clients and decision makers feel they have taken the best course of action. This goes a long way to explaining the coherence of the current construction model and provides the basic information for preparing a route to the radical change required to move to lean methodologies

Are tier 1 contractors making their money out of wasteful procurement arrangements?

The UK Government challenged construction to achieve 50 faster delivery and a 33 reduction of clients' capital costs by 2025 – prevailing business models won't meet these targets. Eliminating waste from construction design and delivery as advocated by lean ideals is therefore a necessary step towards these goals. However, waste understood simply as the improvement of current processes rather than fundamental system redesign will not be enough. Obtaining a better understanding and conceptualisation of waste in construction is therefore becoming more crucial. One aspect of this is to challenge the apparent coherence of prevailing procurement practices generated by the institutional, organisational, and commercial environments that surround the design and delivery of construction projects. This paper contributes to this by examining Tier 1 contractors and presents examples of practices that open debate on how to challenge prevailing procurement models for construction. Through literature review and interviews, the study discusses the factors influencing the 'Principal-Agent' relationship demonstrating how procurement arrangements often mirror institutional forces. These forces do not necessarily guarantee better value services, they are more likely to serve the interests of large industry players with the bargaining power to create new rules (North, 1994). A radically different delivery model, where the client intends to eliminate the management fees and confrontational behaviours of their Tier 1 contractors is described

Lean and Sustainable Construction: A Systematic Critical Review of 25 Years of IGLC Research

Questions: Are there connections and trade-offs between Lean Construction (LC) and Sustainable Construction (SC)? If so, what is needed to support their integration in theory and practice? What are the gaps in knowledge and the opportunities for bringing closer linkage between research and practice? Purpose: A growing body of knowledge has been emerging from the International Group for Lean Construction (IGLC) community, in relation to synergies between LC and Sustainability. The purpose of this study, therefore, is to critically review the progress made towards integrating LC and SC in theory and practice, in order to provide a conceptual consolidation of this knowledge. Research Method: A Systematic Literature Review (SLR) of ‘LC and Sustainability’ studies published in proceedings of the IGLC annual conferences over the past 25 years, using a qualitative approach to research synthesis. Findings: This study presents the main synergies and inconsistencies between LC and SC, reveals the main limitations in approaches to LC and SC, exposes potential enablers for integrating LC and SC, and divulges opportunities for further research Limitations: This SLR study only includes peer-reviewed papers published by the IGLC and excludes the wider construction literature. Implications: The findings of this study advance the research agenda providing the potential to develop sustainable improvements in practice

Benefit evaluation for off-site production in construction

Evaluating to what extent a component or building system should be produced offsite is inadequate within the industry. The potential benefits of off-site production (OSP) are commonly cited when justifying an OSP approach, yet holistic and methodical assessments of the applicability and overall benefit of these solutions, to a particular project, have been found to be deficient. Common methods of evaluation simply take material, labour and transportation costs into account when comparing various options, often disregarding other cost-related items such as site facilities, crane use and rectification of works. These cost factors are usually buried within the nebulous preliminaries figure, with little reference to the building approach taken. Further, softer issues such as health and safety, effects on management and process benefits are either implicit or disregarded within these comparison exercises. Yet it is demonstrated that these issues are some of the most significant benefits of OSP. A series of case studies demonstrated that evaluation focus is almost solely on direct material and labour costs of components, without explicit regard for the wider cost or soft issue implications of OSP on a project. The paper argues that until evaluation is more holistic and value-based rather than cost-based, OSP uptake in construction will be slow

Creating social value within the delivery of construction projects: the role of lean approach

Purpose: The purpose of this paper is to present the current knowledge surrounding social value and show how lean approach supports social value realisation in the delivery of construction projects. Design/methodology/approach: A critical literature review was adopted, to gather the current knowledge surrounding social value from mainstream management sciences, construction management and lean literature. A total of 70 studies were critically reviewed. Findings: The study establishes that the current level of awareness on social value is still low and there is a dearth of scholarly publications on social value especially in construction management literature. The investigation reveals the potentials of lean approach in supporting the delivery of social value on construction projects. Social implication: This study conceptualises the community and the physical environment around where the construction project is executed as customers using lean production approach. It shows that the Transformation, Flow & Value view supports smooth workflow which enhances the achievement of social value objectives. This creates a new insight into how social value can be realised in construction project delivery. Originality and Value: This study extends the on-going debate around the need for social value in construction project delivery and contributes to construction management and lean construction literature on social value. Future studies could build on this to obtain empirical data and develop an approach/method that would support the evidencing of social value delivery on construction projects