Project communication variables : a comparative study of US and UK industry perceptions

Research undertaken at the Construction Industry Institute (CII) in the USA has indicated the need for project managers to focus their attention on six ‘Critical Communication Variables’ as a means of ensuring the fulfillment of time cost and quality targets. These variables refer to the accuracy, timeliness and completeness of information presented to participants, as well as the level of understanding, barriers to and procedures for project based communication. The findings and tools generated by the CII study have been used as part of case study based research examining construction projects in the Central Belt region of Scotland. In addition to the CII data collection tools employed, the Scottish study included semi-structured interviews as a means of contextualising the communication and decision-making taking place. This paper presents the results of this benchmarking exercise, and highlights significant issues that project team members need to improve upon in order to achieve the timeliness quality and cost required in today’s construction industr

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

Construction procurement systems : don’t forget murphy’s law!

What can go wrong will go wrong! The rule of ‘Murphy’ can strike any unsuspecting project team and is best not forgotten. This is especially so if we consider the current UK construction industry agenda for performance improvement through a culture of eliminating waste (time, money, labour, materials) and a desire for ‘zero defects.’ This paper demonstrates (using 11 case study construction projects) that Murphy is alive and well on many projects and may indeed be visiting a site near you today. Design and construction professionals were interviewed on each project and information gathered resulted in the formation of a typology for each project. The typology indicated both project enhancing and detrimental events, which had taken place on each project. The typology allowed for the creation of 11 individual project ‘footprints.’ The footprints are compared and contrasted in this paper and reference is made to the procurement route (traditional, D&B and management) used on each project. The concepts of project risk, uncertainty, procurement systems and project success are also discussed

Macro-economic leading indicators of construction contract prices

An understanding of future trends in construction prices is likely to influence the construction investment strategy of a variety of interested parties, ranging from private and public clients to construction contractors, property speculators, financial institutions, and construction professionals. This paper derives leading indicators for construction prices in the United Kingdom. These indicators are based on two experimental methods: turning points of the basic indicators in relation to construction price turning points; and predictive power of lags of the basic indicators. It is concluded, based on the analyses, that unemployment level, construction output, industrial production, and ratio of price to cost indices in manufacturing are consistent leading indicators of construction prices. Building cost index and gross national product constitute coincident indicators. 'Popular' macro-economic time series such as nominal interest rate, inflation rate, real interest rate, all share index and money supply produced inconclusive results.Price, Tender Price Index, Forecasting, Leading Indicator, Time Series, Analysis, Macro-economic, Variables,

The causal relationship between construction workload and construction price

Based on the Engle-Granger (1987) methodology for cointegration and error correction mechanism models the paper examines causal relationships between the UK construction workload and price. The model tests the intuitive belief that the construction price (tender price index) is a long run determinant of construction workload (new orders) and that the relationship is constantly correcting itself back on to this long run path. The results suggest that there is a relationship between the variables but a very weak one.

Construction procurement : redefining the contours of organizational structures in procurement

Today there are a number of different types of procurement routes available for clients to choose from. Each different type of procurement (traditional, design and build, management, etc.) has its own proponents and inherent strengths and weaknesses. Selection of optimal procurement systems is difficult, because even experienced clients cannot know all the potential benefits or risks for each system. Procurement is, therefore, a succession of ‘calculated risks’. Industry and academia have focussed research on reducing procurement risk through better procurement-system selection methods. Current research considers procurement as a set of rationalistic decisions within a closed environment, aiming to produce generic, prescriptive rules for clients and advisers to use to select the ‘best’ procurement route for their project. This paper seeks to identify whether prescriptive procurement guidance was adhered to on a set of case study projects. It was found that clients usually selected appropriate procurement systems, and where an inappropriate system was selected, alterations were made in contract form to incorporate aspects of the ‘best’ procurement route

Procurement routes and the selection of appropriate organisational structure

The construction industry has a number of commonly used routes to procure new buildings, each of which has varying levels of success dependent upon project objectives and organisational structure. Generally these procurement routes can be classified as separated, integrated and management types (Masterman, 1992). In line with manufacturing industry, current trends in construction procurement are moving towards the concept of a more integrated approach utilising such concepts as strategic partnering and concurrent engineering. The research being conducted seeks to identify the most appropriate organisational structure for the underpinning of the design and construction process. This research also examines the decision and communication patterns between project inception and completion. The research is based around a sample of 20 case study projects, consisting of a range of project types and sizes. The primary research method was the use of structured interviews conducted by research staff based at the two universities taking part. Ultimately this paper seeks to identify the linkages between project organisational design and procurement routes, and thereby present a series of criteria upon which a choice of an appropriate organisational design can be made

Organisational design

This chapter looks at organisational design in relation to organisational issues in procurement system