Adding Qualitative Context Factors to Analogy Estimating of Construction Projects

AbstractExisting estimating models have certain shortcomings in the management of historical data. There is a need of defining more objective and consistent criteria for the selection of historical construction data to be used for estimating. In this perspective, a methodology based on historical information, which incorporates qualitative context factors to the structure and use of this information for cost estimating, such as project complexity, environmental conditions and characteristics of workmanship, among others, is proposed. A list of qualitative project context factors that are most influential for construction projects’ cost and productivity is presented. Additionally, a context model that includes these variables is described together with an explanation of how they are incorporated into the cost estimate. It is concluded that the incorporation of qualitative context factors in cost estimating improves the use of historical information and that most critical aspects to achieve this feature are the creation of a reliable site-work feedback system and the correct structure of historical information

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

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

Estimating a unit price for roads maintenance activities using exponential robust regression

Good road maintenance schemes allow reducing costs and extending the service life of roads. There are several methods to plan these project maintenances but all of them require input information about maintenance costs, which can be very different depending on the geographical zone and the contracted volume. Nowadays agencies do not have written documentation on the entire process for preparing project estimates, and experience plays an important role in price estimation. In this paper, a structured methodology for estimating a unit price for road maintenance activi­ties is proposed, modeling the exponential decay nature of economies of scale. Using an exponential robust regression procedure, curves are adjusted and parameters generated. Additionally, a cost contingency analysis is performed in order to provide cost ranges associated to specific contracted volumes. The validation of the methodology was carried out through its use in the estimation of real unit prices of historic road maintenance projects in Chile. The procedure may be used by road planners as well ascontractors looking for a more confident approach before participating in a bid. Furthermore, this methodology is not limited to road maintenance only, but also to any other field where economies of scale and exponential fitting are needed

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

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

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

Awareness, actions, drivers and barriers of sustainable construction in Chile

The socio-economic conditions of a country and the overall practices of the construction industry towards Sustainable Construction (SC) are critical factors to define the foundations for developing and carrying out a strategic plan to advance in sustainable construction. This paper reports the results of a study about SC practices currently implemented by construction companies and discusses the level of awareness and knowledge, barriers and drivers of SC that were found in building and infrastructure construction companies. In addition, it analyses the influence of the company size on SC practices. Research results show that Chilean construction firms are in an early stage of the path for achieving SC. Their practices towards SC are highly dependent of the company's size and its core business. Main barriers towards SC are the lack of financial incentives, lack of integrated design, and affordability whereas company's tax reduction incentives related to the level of investment effort on SC would be a key governmental policy to promote sustainability. The results of this study might be particularly useful for other countries, particularly developing ones, and for government policy making

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