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The use of Game Theory to solve conflicts in the project management and construction industry
Abstract
A typical construction project involves a wide range of disparate professionals, in many cases geographically distributed, working together for a relatively short period of time on the design and construction of a facility. Since organizations are becoming flatter, culturally rich, geographically diverse and intensely competitive, the possibilities for conflict in such environments are greater. Negotiation is an important aspect of a project and plays an important role in resolving claims, preventing disputes, and keeping a harmonious relationship between project participants. Part of any project manager's role as a leader is to recognize conflict, understand the sources of conflict and manage it, and to do this a project manager must be able to understand the basics of negotiation theory and have sufficient competencies to lead in such situations. To address the complex technical and human issues in negotiation, different negotiation theories and models are available which mainly include game theory, economic theory, and behavior theory. Since Game Theory provides, by its very nature, the appropriate tools for the analysis and eventual solution of conflicts of any kind, this paper uses a model based on Game Theory in order to identify the activities that are responsible for the delays in a project and divide the costs among them.
... Cristobal (2015) [71] also proposes a game-theoretic model to identify activities that are responsible for delays in (primarily construction) projects, and apportion the costs associated with delays among these activities accordingly. Again, the game they propose is a cooperative game, which they solve by modelling it as a constrained linear optimisation problem: an approach very similar to [72][73][74]. ...
... Bergantinos and Sanchez (2002) [72] also consider how to share the additional cost of a project delay among the firms (subcontractors) responsible for it, using game theory. Again, following an approach similar to [70,71,75], they formulate a "cost game" and use constrained optimisation techniques, utilising the "Shapley value" of the cost game. Therefore, this is an algorithm for fair allocation of costs that each subcontractor then needs to be convinced about, rather than an equilibrium solution reached by selfish behaviour of each subcontractor whereby the subcontractor will have no incentive to deviate from it. ...
... Bergantinos and Sanchez (2002) [76] use non-transferable utility (NTU) games to divide slack time into different activities of the project, within the context of Project Evaluation and Review Technique (PERT). In this sense, this work has similarities to works by the authors of [71][72][73][74][75], which use game-theoretic modelling to assign costs related to project delay among participating activities (or subcontractors responsible for those activities) in the project. ...
This paper provides a structured literature review and analysis of using game theory to model project management scenarios. We select and review thirty-two papers from Scopus, present a complex three-dimensional classification of the selected papers, and analyse the resultant citation network. According to the industry-based classification, the surveyed literature can be classified in terms of construction industry, ICT industry or unspecified industry. Based on the types of players, the literature can be classified into papers that use government-contractor games, contractor–contractor games, contractor-subcontractor games, subcontractor–subcontractor games or games involving other types of players. Based on the type of games used, papers using normal-form non-cooperative games, normal-form cooperative games, extensive-form non-cooperative games or extensive-form cooperative games are present. Also, we show that each of the above classifications plays a role in influencing which papers are likely to cite a particular paper, though the strongest influence is exerted by the type-of-game classification. Overall, the citation network in this field is sparse, implying that the awareness of authors in this field about studies by other academics is suboptimal. Our review suggests that game theory is a very useful tool for modelling project management scenarios, and that more work needs to be done focusing on project management in ICT domain, as well as by using extensive-form cooperative games where relevant.
... A great number of projects suffer from various problems such as high fragmentation, resource discrepancies, complexity and dynamicity, cost and time overruns, or conflicts and disputes (San Cristóbal, 2015). ...
... There is in particular a limited coverage of conflict management and negotiation in the standards for project management (San Cristóbal, 2015). The Australian National Competency Standard for Project management, one of the most widely recognized and referenced project management standards based on the nine areas of the American Body of Knowledge (Project Management Institute, 2013) concentrates on the mechanisms of communication within a project, but the only reference to negotiation is that of contract negotiation. ...
... In strategic project management, game theory is still in the beginning of its practical applications (San Cristóbal, 2015). The mathematical theory of games was invented by John von Neumann and Oskar Morgenstern (1944). ...
... Game theory is a study of mathematical models of competitive or cooperative interactions among rational, intelligent, and selfinterested agents (Cristóbal 2015;Wooldridge 2012). It focuses on decision-making in interactions where the action of each player can affect the outcomes of other players (Wooldridge 2012). ...
... Asgari et al. (2014) proposed a cooperative game theory approach to help subcontractors maximize their benefits from the available resources considering a short-term partnering. Cristóbal (2015) developed a game theory model to devise the allocation of the delay cost to the different project participants. Ahmed et al. (2016) developed a game theory approach to avoid the winner's curse by learning from previous bidding decisions. ...
... It is, therefore, evident that the applications of Game Theory and Negotiation Theory to construction management have increased in recent decades [51]. Specifically, a Game Theory study was applied to explain the influence of the degree of reliability of the planned work schedule on the behavior of subcontractors and project managers under a traditional contracting scheme of unit prices [52]. ...
... Complementing the trajectory of Game Theory, this research expands its application to the scheduling of engineering projects using the PERT method, finding limited bibliographic evidence indicating that Game Theory has been previously incorporated into teaching the PERT scheduling method [52]. This fact is corroborated by Kline and Ayer [64], who provided a comprehensive review of the academic literature from the last 20 years, examining educators' diverse methods of teaching construction scheduling. ...
This research focuses on applying Game Theory to teach the PERT scheduling method to civil engineering students. The work was carried out with students from the Construction Planning and Scheduling course, who were given face-to-face classes on Game Theory applied to teaching the PERT method. This proposal considers that gamification plays a role in user engagement, while Game Theory contributes to data analysis and decision strategies. It began with an initial pre-test evaluation consisting of questions classified by items and evaluation criteria to teach the PERT method using Game Theory, followed by a post-test and a quantitative evaluation that allowed to know the perception and interests of the students. Using Game Theory principles in teaching the PERT method demonstrated improvements in students. In addition, the results presented statistically significant differences in favor of using Game Theory, which would allow it to be proposed as a viable option for teaching PERT and other scheduling methods.
... A variety of decision-making methods have been used in selecting general contractors for construction works [7][8][9][10], choosing the optimal organizational options [11][12][13], or optimizing construction projects [14][15][16]. Decision-making models have also been used in the identification, analysis, and projection of investment risk [17][18][19] as well as in conflict management in works related contracts [20,21]. ...
... To solve complex technical and human-related problems in negotiations between the participants of an investment process, San Cristóbal [21] developed a model based on game theory, which made it possible to determine the actions responsible for project delays and the distribution of costs among them. ...
The problem of setting prices for construction works is significant for both the investor and contractor companies. The periodically occurring instabilities in the economy require investment process participants to perform detailed market analyses and assessments, as well as to monitor price forecasts in construction. It is only after such an assessment that it is possible within the framework of the initial assumptions for cost calculation to select the basis for setting prices and their levels. The identification and analysis of the risks related to uncontrolled price increases allow contractors to secure their businesses by developing bids that ensure maximum profit. In view of the above, this study proposes an approach based on the use of game theory against nature to identify the optimal variant of a bid estimate. The study considers price forecasts for construction products, which may reduce the negative impact in case the prices increase. The obtained results confirmed the effectiveness of the used decision-making support methods, indicating the optimal strategy to reduce financial losses in times of market instability. The proposed approach also allows for a balance (symmetry) between maximum profit and probability of winning the contract.
... The research approach of the study presented in this paper is rooted in previously established economic theory and its recent applications to construction management and economics (Gryzl et al, 2019;San Cristobal, 2015;Holmstrom, 2016). The hypotheses are informed by a series of interviews conducted with stakeholders of previously completed IPD projects. ...
Question: Why is Integrated Project Delivery (IPD) a relatively underutilized procurement method in construction? Purpose: Expose and explain a few market failures that owners/developers might be ignoring by choosing traditional methods over IPD. Research Method: Game theoretic modeling and application of microeconomic principles. Informed by interviews with IPD participants, we model the important strategic and social advantages of IPD that complement more well-known efficiency advantages. Findings: Our primary insight is that traditional design-bid-build projects encounter pervasive moral hazard problems and externalities that reduce the efficiency of construction and create conflict between participants. At a basic human behavior level, IPD eliminates or mitigates these issues. Limitations: The interviews we conducted provide insight, not empirical inference. Therefore, this paper stands on its theoretical contribution and makes no boast of providing representative data or causal analysis. Implications: Owners/developers would do well to embrace IPD given its social and strategic contributions to Lean Construction. Additional efficiencies we highlight complement the more well-known advantages, possibly tipping the scales toward IPD for a greater number of construction projects. Value for practitioners: This paper will explain how non-integrated methods such as designbid-build create greater cost and conflict than previously realized. It suggests a path forward through (scalable) IPD that mitigates these costs. Keywords: Integrated Project Delivery, Procurement Methods, Moral Hazard, Cooperative Methods, Circular Economy, Construction Efficiency, Lean Procurement Paper type: Full paper
... A coalition means the formation of a subset of players' options under coordinated strategies. [2] B. ...
Game Theory principles and their resultant games hold academic fascination and offer insights into strategies for interpersonal interactions, particularly in professional contexts. Effective communication is pivotal in successful project management. This research endeavors to bridge the gap between game-theoretic thinking and current project management models. The study’s findings shed light on the potential utility and importance of Game Theory in the project environment, enhancing traditional stakeholder analysis for project managers.
... Third, thanks to game-based activities, students also practice and then develop strategic soft skills, like communication (Reinders and Wattana, 2014), critical thinking (Hung, 2017;Isabelle, 2020), decision-making (Armstrong andLanders, 2017;Savard, 2015), and problemsolving (San Cristóbal, 2015;Sung et al., 2015). In particular, the role of game-based activities in developing problem-solving skills fits with educational theories based on problem-based learning (Chang et al., 2020). ...
Reporting processes on sustainability and, in particular, Integrated Reporting, are held to change managers' mindset on sustainability and favour its integrative management. Therefore, teaching to university students how to report ESG aspects may contribute to build future professionals' knowledge and skills in this field. However, teachers have to use innovative methods to engage students and train them to deal with complex aspects, such as those required by sustainability reporting. Educators strive for capturing the attention of students and engaging them in a manner that boosts their interest. In order to help teachers improve students' learning, this study offers insights into the benefits of using a game-based approach, by testing a board game developed by the authors. The game has been designed to encourage students to apply their knowledge, engage in critical thinking, and think systematically while understanding the connections between stakeholders' needs, company policies, risks and performance. Among a range of alternative available teaching tools, this study focuses on instructional board games and tests its effectiveness through a survey submitted to bachelor and master students. The survey analyses the key elements of the game that impact students' perceived learning: motivation, attitude, and flow. Findings show that those three elements have a relevant impact on students' perceived learning, that is here meant as proxy for the games' effectiveness in preparing students to deal with sustainability reporting. Findings are of practical interest to teachers when developing educational material at all levels of education, aiming to increase student engagement and enhance their learning performance. 2 In addition, they contribute to enrich existing scant literature on the impacts of gamification on student's knowledge about sustainability.
... Thus, there is a need for a tool that objectively and consistently appropriate liabilities among contractors based on their contribution. Cristóbal (2015) presented a model to identify delayed activities and apportion cost using the core, a concept of game theory. But the approach ignored fairness to participants who complete a project ahead of schedule and could not handle concurrent delays. ...
Concurrent delays are multiple project participants incurring delays on parallel schedule paths. They have been controversial because it is challenging to apportion liability for liquidated damages fairly and equitably. To date, there exist neither a transparent solution, nor one that addresses all possible scenarios, including mixed, where some participants are ahead of schedule and others are behind. This study therefore proposes a comprehensive model that also newly includes incentive bonuses. This cooperative game theory-based approach has three steps: (1) identify as-planned and as-built schedule inputs; (2) categorize delayed and ahead activities; and (3) operate games to determine Shapley values. Compared with prior delay analysis methods, our model is more robust and apportions liability not just in days, but also in financial terms. A real-world case was analyzed to validate it and demonstrate the reasonableness of its results. This study contributes to the body of knowledge by creating an objective concurrent delay analysis using readily available project data. It also aids in incentivizing project participants to deliver their best possible performance.
... In this regard, game theory (GT), which develops models to analyze problems involving competition, conflict, bargaining, and cooperation, provides project managers with the necessary tools. GT models can support the managers to analyze the negotiation strategies and develop approaches for conflict solving and bidding (Cristóbal 2015). Owing to this potential, applications of GT in project management (PM) constitute an important body of literature. ...
The growing literature on game theory models in project management is reviewed in this paper. A systematic study that includes collecting materials, defining the structural dimensions and categories, presenting a descriptive analysis, and evaluating the results has been carried out. Application areas of game theory in project management were explored and the research gaps were identified. The literature review revealed the need for studying knowledge-sharing mechanisms to enhance project governance and cooperation, developing dynamic models to integrate various sources of uncertainty, optimizing different financial objective functions to improve the project’s capital structure, developing integrated scheduling techniques to facilitate project planning and control, and formulating strategies to improve bidding under fierce competition. These findings contribute to identifying the promising directions in the management in engineering research.
... This study aimed to analyze the position of partners between online transportation companies and drivers so that they can run in a balanced and fair manner using the game theory method. Game theory is a mathematical model that tends to be applied in situations of conflict of interest [10]. Alternative strategy choices for online transportation companies and drivers were analyzed and arranged in a payoff table to reach a saddle point with a linear programming solution using a simplex table [11][12]. ...
Online motorcycle taxi drivers are a group of people who are economically affected by the Covid-19 pandemic. This study aimed to provide a balanced choice strategy for drivers and companies. Game theory was applied to conflict of interest situations as a research method. Choices for online transportation companies and drivers are analyzed and arranged in a payoff table until they reach the saddle point. Simulation software as an illustration of a balanced model. This research resulted in driver diligence and incentive strategies as optimal strategies for drivers and companies. If drivers improve performance by choosing a driver diligence strategy, the driver's expectations of getting incentives will be more realistic. Meanwhile, for the company, when the driver's diligence increases, the choice of providing incentives will provide balanced benefits as well.
... For example, Ahmadi and Moreno (2013) use game theory in solving water distribution problem of the Mexican Valley, while Cristóba (2015) used it to solve conflicts in the "project management" in construction industry. Therefore, this study apply game theoretic models to analyse moves (strategies) of both the federal government of Nigeria and the Niger Delta militants and the consequences of such moves on the growth, resources and the political support for the players, so that the risks associated with every move can be best understood, help in solving problems that involve conflict of interest, and to proof that individuals with conflicting interests can reach a mutually beneficial outcomes. ...
Published by International Journal of Humanities and Social Science
... It was also noted that inadequate supervision, as well as the managers not encouraging or recognising the work completed by the employees in line environment of low morale, with these goals leads to an as employees lose interest in the project and the willingness to complete a task in the timeframe set (Dansoh, Frimpong & Oteng, 2017). This implies that while the management team is focused on negotiation with all stakeholders to resolve claims, prevent disputes (San Cristóbal, 2015), the relationship between them and the employees is not harmonious. ...
Work Method Statements (WMS) are a key strategy relied upon in the Construction industry to ensure that safe work is conducted, and safe work practices are followed. However, an increase in a number of observed behaviours indicate that employee complacency is a major issue regarding the adherence of WMS practices for this industry. Employee's beliefs about complacency towards WMS was therefore explored with employees indicating that repetition/routine, lack of interest, boredom, poor communication and personality clashes/conflict were the main factors that drive complacency. Employees identified that complacency was more prevalent at the end of the working week or shift cycle for some employee groups, however this was not reflected across all job divisions. Results also identified that a high percentage of employees supported positive communication in the form of encouragement, humour, personal discussions and job-related issues to reduce this workplace complacency. Suggestions for stopping complacency also included encouraging increased interactions between workers and management in order to guide and support employees, as well as identifying which tasks contributed to increased levels of complacency. Employees identified that increased site visits, having positive interactions and discussions as well as implementing group reviews would see a demonstrated greater sense of active involvement in workplace safety in order to reduce complacency.
... In many previous studies on conflict management for resolution, the methodologies, such as game theory and computerized decision-making techniques, are used to solve the differences in stakeholders' positions. The research suggested that the optimal negotiation condition, represented by a stable state or Nash equilibrium where stakeholders can negotiate, could be achieved by applying the graph model that is widely used in game theory (Atamtürk et al., 2000;Kuang et al., 2015;Kassab et al., 2006;Kilgour and Hipel, 2005;Kinsara et al., 2015;San Cristóbal, 2015;Ben-Haim and Hipel, 2002). The negotiation model, however, is based on theory rather than an application to an actual case. ...
... Some studies provide evidence that game-based learning improves skills such as critical thinking and decision making [45], [46], [47]; problem solving [46], [48]; conflict resolution [49]; and communication skills [50]. ...
Students’ participation and motivation are of great importance in their learning process. The decrease in attendance and difficulties in stimulating students’ activity makes it necessary to find new methodologies that can solve these problems. The use of game mechanics in non-ludic environments (Gamification) has begun to be of great interest in research, since it could increase the motivation and therefore the activity of the students. This study tries to verify if there is an existing relationship between gamification and a possible increase in student activity or between the cessation of gamification and student activity. In addition, it evaluates whether a greater student activity corresponds to a greater learning improvement. In the obtained results, no significant differences were found between the methodology or the activity with a learning improvement. According to the study, the simple use of gamified elements does not necessarily imply a solution to the problems posed. The students’ activity in a course of these characteristics does not imply a better learning improvement, the importance lies in the quality of the activity generated and not in the quantity.
... Game theory, known well as the study of mathematical models of conflict and cooperation between rational decision-makers, has the ability to address almost the issues in all fields of social science as well as in computer science. [9]. In project scheduling problems, game theory plays an essential part in solving its practical applications. ...
This paper aims to put a new approach in the picture to the payment scheduling problem, which looks for a schedule that maximizes the benefit of all parties in a project. In a project, both sponsor and contractor seek to have a good payment strategy on their own. The timing of payments and the completion times of activities in projects are determined simultaneously in order to achieve an equitable schedule among the sponsor and the development team. In previous research, we developed a Unified Game-Based Model for conflicts in project management. In this paper, we applied this model to this problem, implemented in an open sourced evolutionary computation library named MOEA framework. The use of a Unified Game-Based Model enables us to figure out a suitable schedule for the problem, and in the tool, we conducted an experimental test of the model by the used of several multi-objective optimization algorithms. The experimental results demonstrated that the presented approach is effective and promising so that both parties could use this model to choose the proper tactics for each of them in scheduling payment.
... Models based on the game theory were 2 applied for renewal of construction objects [6], analysis of bidding procedure [7] and profit distribution in construction projects [8]. The need to support the negotiation processes in a construction industry was recognized too [9]. The example of an application of the game theory to managing conflict situation between a client and a general contractor is presented in [10]. ...
The process of negotiation can be analyzed considering some scientific issues (e.g. psychological, sociological). When a construction subcontract is negotiated, as it is a business
activity, the rational choices should be considered more than other factors influencing the decisions of the negotiating parties. A game theory supports rational decision making based on calculations, expected values and strategic choices. An experiment was carried with the participation of the students of Civil Engineering Faculty. Five different games were prepared. The students started playing with the “nature”. Then the probabilities of the “nature” strategies were introduced. Finally, they played three one-on-one sets of repetitive games. The results prove that knowing the needs of the opposite player (knowing his/her possible strategies) leads to a win-win result where the score of both players is maximized. The experiment and its result are analyzed in the paper. The multiple negotiations, and then multiple cooperation of a general contractor with the same subcontractor on construction projects is an often case. These parties
discuss the rules of their cooperation formalized in subcontracts several times. The typical image of a general contractor’s need is a low price given by a subcontractor. In fact, it is only one of the needs. Moreover, it is not a rare case where the flexibility of engagement on a building site or a high number of equipment units or favorable terms of payment are desired by a general contractor more than the low price given by a subcontractor. A subcontractor’s standing can be
different too. They can search for profitable cooperation or they have to provide work for some brigades not to have them unengaged. They can afford long term payment or they have to be paid in advance. The experiment proves that disclosure of the needs (strategies) by negotiating parties leads to the achievement of higher gain for both of them (when the game is repetitive). The paper sets the basis for modelling negotiations of a construction subcontract based on a game theory.
... • tender preparation, selection of a contractor for construction works [1][2][3][4], • entities cooperation [5], • setting a portfolio of orders, • building a market entry strategy for a new entity, product or service (technology), • negotiating terms and conditions of cooperation of the parties to the contract [6,7], • mediation between contractors, • wage negotiations with employees, • selection of the optimal technological variant [8,9], • simulation of the course of conflict between entities competing in the same market, exploiting the same resource (e.g., employees, materials) [10][11][12][13][14][15], • simulating the course of the "price war" between sellers of construction production, enforcing obligations of the parties to the contract [16], • simulating the course of the conflict resolved in court, • simulating the operation of the entity (development company, executive, warehouse of building materials) in a situation of high competition in the construction market [17][18][19], • determining the level, scope, and type of construction production affected by the market situation [20], • identification, analysis and modeling of investment risk [21][22][23][24], • management in the investment process [8,[25][26][27][28][29], • optimization of investment projects [30][31][32][33]. ...
Interest has recently grown in the application of game theory (GT) to solve a number of diverse problems in the field of construction. The use of GT by a general contractor (GC) of construction works to indicate the best strategy leading to winning court proceedings in a situation of conflict with investor (IN), has not been investigated until now. Thus the aim of this paper is to indicate the optimal strategy from the GC viewpoint in a conflict situation with the IN. The article presents a list of the most common causes of conflict between parties of a construction work contract, defines the background of the problem and the cause of the dispute, and subsequently the authors generate a theoretical model of the game. Based on the analyzed game model, the expected payoffs for players were calculated and the probability boundary value determined in making the GC apply the indicated strategy. The study results show that while the probability of issuing a judgment favorable for the GC is at least equal to 0.69 it is justified to use an aggressive strategy. The analysis also confirms that from the financial perspective, litigation in most cases of conflicts in the area of construction should be the ultimate choice.
... • tender preparation, selection of a contractor for construction works [1][2][3][4], • entities cooperation [5], • setting a portfolio of orders, • building a market entry strategy for a new entity, product or service (technology), • negotiating terms and conditions of cooperation of the parties to the contract [6,7], • mediation between contractors, • wage negotiations with employees, • selection of the optimal technological variant [8,9], • simulation of the course of conflict between entities competing in the same market, exploiting the same resource (e.g., employees, materials) [10][11][12][13][14][15], • simulating the course of the "price war" between sellers of construction production, enforcing obligations of the parties to the contract [16], • simulating the course of the conflict resolved in court, • simulating the operation of the entity (development company, executive, warehouse of building materials) in a situation of high competition in the construction market [17][18][19], • determining the level, scope, and type of construction production affected by the market situation [20], • identification, analysis and modeling of investment risk [21][22][23][24], • management in the investment process [8,[25][26][27][28][29], • optimization of investment projects [30][31][32][33]. ...
Recently there has been growing interest in the application of game theory (GT) to solve many diverse problems in the field of construction, including i.a.: tender preparation, selection of a contractor for construction works, negotiating terms and conditions of cooperation of the parties to the contract, analysis and modeling of investment risk. In the authors opinion, the use of GT by general contractor (GC) of construction works to indicate the best strategy leading to winning court proceedings in a situation of conflict with investor (IN), so far has not been the subject of research. Taking into account the above, the aim of the presented paper is to indicate the optimal strategy from the GC point of view in the conflict situation with IN. The article presents a list of the most common causes of conflicts between parties of the construction works' contract, defines the background of the problem and the cause of the dispute, and on its basis, the authors generate the theoretical model of the game. Based on the analyzed game model, expected payoffs for players were calculated and the probability border value at which GC should apply the indicated strategy determined. The results of the study show that in the case when the probability of issuing a judgment favorable for GC is at least equal to 69.23%, it is justified to use an aggressive strategy. The analysis also confirms that from the financial perspective, litigation in most cases of conflicts in the area of construction should be the last choice.
... The different aspects and barriers of strategic choice of the producer-customer relations were considered in the numerous contributions (see [10,13,15,23]). For example, there are solutions on how to overcome the customers' negative behavior (see [3,4] or [14]). Pioneered in the works of J. von Neumann and D. Morgenstern [18] and still developed, the game theory is the efficient apparatus for solving complex socio-economic problems [6]. ...
The digitalization of economic activity poses new challenges to both
enterprises’ managers and software developers. Software ceases to be a mass product, acquiring the characteristics required and defined by the consumer. The understanding of customers' needs helps the reducing uncertainty and allows the producer’s development strategy selection. In this work, a model of interaction between software developers and its consumers is created. Since the primary goal of this work is an analysis of possible effects of the choice of developer-customer interaction strategies, the model is considered as a specific strategic game, and its interpretation is carried out using the game theory and decision under uncertainty tools.
... • tender preparation, selection of a contractor for construction works [1][2][3][4], • entities cooperation [5], • setting a portfolio of orders, • building a market entry strategy for a new entity, product or service (technology), • negotiating terms and conditions of cooperation of the parties to the contract [6,7], • mediation between contractors, • wage negotiations with employees, • selection of the optimal technological variant [8,9], • simulation of the course of conflict between entities competing in the same market, exploiting the same resource (e.g., employees, materials) [10][11][12][13][14][15], • simulating the course of the "price war" between sellers of construction production, enforcing obligations of the parties to the contract [16], • simulating the course of the conflict resolved in court, • simulating the operation of the entity (development company, executive, warehouse of building materials) in a situation of high competition in the construction market [17][18][19], • determining the level, scope, and type of construction production affected by the market situation [20], • identification, analysis and modeling of investment risk [21][22][23][24], • management in the investment process [8,[25][26][27][28][29], • optimization of investment projects [30][31][32][33]. ...
The subject of this article is the application of game theory (GT) to solve the problem occurring in the management of construction contracts. One of the fundamental reasons for disputes between the investor (IN) and the general contractor (GC) is payment for supplementary works—an additional expenditure incurred by GC that was not planned at the tender stage. If IN delays signing the annex to the contract and rejects any financial and timeframe-related claims, GC usually considers one of the two strategies: to stop works or to continue works without the annex and the guarantee of payment for additional works. IN also analyzes the consequences of adopting one of the two strategies: not to sign the annex, or to sign the annex and pay for the additional work. The aim of the presented game is to indicate the optimal strategy from the GC point of view in the conflict situation with IN. The article defines the background of the problem, the cause of the dispute, and formulates a theoretical model of the game.
... In conflict resolving, negotiation, which also became a focus of researchers [18] , was thought to play an important role [19] . Thomas ] built a conflict resolution strategy model with five factors based on the study of interpersonal relationship [20] . ...
... En esta línea trabajos más recientes han destacado dicha aptitud educativa (del Castillo, et al., 2012;Koutromanos y Avraa, 2014;Marín, 2014;San Cristobal, 2015;Suang, Hwang y Yen, 2015;Marín y Sampedro, 2016;Sánchez, Ruíz y Sánchez, 2017). ...
The use of information and communication technologies in the teaching-learning- processes bring two perspectives, that of the teacher and the student. In the video games case the presence of these in educational area comes to hand of point of view that the teacher have of them and their educational inclusion. In this paper we present the research carried out with pupils Grade in Primary Education of University of Cordova (Spain) (N=223) on the educational viability of video games in their trainer process. Doing an ex post facto study, it has could confirm that the students think that these can help to prevent the dropout and to develop the reflection process. However, call the attention that they have a lacking educational value. This can be determined by their not use in classroom by their teacher.
... Therefore, a mathematical model incorporating game theory was developed to explore the multi-objective trade-off problem. Game theory has been widely used before to examine the behaviors of conflict and cooperation between rational decision makers [26][27][28]. It not only provides a useful approach to study the conceptual aspects of construction projects [29-31], but also offers valuable insights into the way that participants utilize resources in different situations. ...
Based on the consideration of the relative importance of sustainability-related objectives and the inherent nature of sustainable construction projects, this study proposes that the contractor can balance the levels of efforts and resources used to improve the overall project sustainability. A multi-objective trade-off model using game theory was established and verified through simulation and numerical example under a moral hazard situation. Results indicate that effort levels of the contractor on sustainability-related objectives are positively related to the outcome coefficient while negatively to the coefficients of effort cost of the relevant objectives. High levels of the relative importance of sustainability-related objectives contribute to high levels of effort of the contractor. With the variation in effort levels and the coefficient of benefit allocation, the project net benefit increases before declining. The function of project benefit has a marked peak value, with an inverted “U” shape. An equilibrium always exists as for the given relative importance and coefficients of the effort costs of sustainability-related objectives. Under this condition, the owner may offer the contractor a less intense incentive and motivate the contractor reasonably arranging input resources. The coefficient of benefit allocation is affected by the contractor characteristic factors and the project characteristic factors. The owner should balance these two types of factors and select the most appropriate incentive mechanism to improve the project benefit. Meanwhile, the contractor can balance the relative importance of the objectives and arrange the appropriate levels of effort and resources to achieve a sustainability-related objective. Very few studies have emphasized the effects of the relative importance of sustainability-related objectives on the benefits of sustainable construction projects. This study therefore builds a multi-objective trade-off model to bridge this research gap. This study sheds significant theoretical and practical insights regarding the objective management of sustainability-related objectives, as well as insights into the improvement of performance in sustainable construction projects.
... Similarly, conflict can be classified into collaborative conflict and competitive conflict due to different attitudes and strategies when handling conflicts (Hemple et al., 2009;Wong et al., 1999). In construction projects, team conflict not only highlights the interaction among different project teams, but also relates to the difference between task and process arrangements among stakeholders (Jia et al., 2011;San Cristobal, 2015). In addition, conflicts derive from the interdependencies between project stakeholders, team diversity, and inadequate internal mechanisms, such as the lack of adequate communication mechanisms and an atmosphere of cooperation (Akiner, 2014;de Carvalho et al., 2015;Zhang and Huo, 2015). ...
This study aims to investigate the effects of communication-conflict interaction on the success of construction projects. The conceptual model was validated with empirical data via the structural equation modeling. The results showed that task conflict was positively related to project success, while enhanced communication among teams stimulated the positive effect of task conflict. Process conflict and relationship conflict affected each other and were negatively related to project success, leading to poor communication among teams. Additionally, communication willingness and formal communication were positively associated with the project success, whereas informal communication negatively affected project success. Therefore, it is necessary to enhance the communication willingness and effectively enhance the formal communication among various project teams during the implementation of construction projects. Efforts are required to establish the formal communication mechanism to take advantage of the positive effect of task conflict whereas mitigating the negative effect of process and relationship conflict.
... Therefore, a mathematical model using game theory was developed under different situations. Game theory has been used to examine the conflict and cooperation between rational decision makers [32,33]. Game theory provides a useful approach to study the conceptual aspects of construction projects [34][35][36][37], and provides useful insights into the way that the participants utilize the resources under different situations. ...
Considering the cooperative relationship between owners and contractors in sustainable construction projects, as well as the synergistic effects created by cooperative behaviors, a cooperative incentive model was developed using game theory. The model was formulated and analyzed under both non-moral hazard and moral hazard situations. Then, a numerical simulation and example were proposed to verify the conclusions derived from the model. The results showed that the synergistic effect increases the input intensity of one party’s resource transfer into the increase of marginal utility of the other party, thus the owner and contractor are willing to enhance their levels of effort. One party’s optimal benefit allocation coefficient is positively affected by its own output efficiency, and negatively affected by the other party’s output efficiency. The effort level and expected benefits of the owner and contractor can be improved by enhancing the cooperative relationship between the two parties, as well as enhancing the net benefits of a sustainable construction project. The synergistic effect cannot lower the negative effect of moral hazard behaviors during the implementation of sustainable construction projects. Conversely, the higher levels of the cooperative relationship, the wider the gaps amongst the optimal values under both non-moral hazard and moral hazard situations for the levels of effort, expected benefits and net project benefits. Since few studies to date have emphasized the effects of cooperative relationship on sustainable construction projects, this study constructed a game-based incentive model to bridge the gaps. This study contributes significant theoretical and practical insights into the management of cooperation amongst stakeholders, and into the enhancement of the overall benefits of sustainable construction projects.
The coexistence of the winner’s curse and cost overruns in the construction industry implies a cost pendulum in which the winning bid is undervalued, whereas the final payment to the contractor is overvalued. We posit that this results from a strategic interaction between three stakeholders: the public agency (PA), the project manager (PM), and the winning contractor, and we propose a game-theoretic framework to model this dynamic. In the current state of practice, the subgame between the contractor and the PM leads to opportunistic contractor behavior and lenient supervision, resulting in increased costs for the PA. We analyze how procedural and cultural interventions by the PA, specifically shifting from a low-bid to an average-bid auction and incentivizing stricter PM oversight, alter the strategic equilibrium. Our findings indicate that while each change alone provides limited improvement, implementing both significantly reduces cost overruns by aligning stakeholder incentives. The findings of this analysis provide insight into how public agencies can mitigate the widespread problem of cost overruns.
Construction projects often face disruptions that can impact project delivery and result in disruption claims. However, dealing with these claims is a complex process due to the challenges involved in proving them, which often leads to disagreements and disputes between contracting parties. This study aims to identify (1) the difficulties encountered in the disruption claims process, (2) their impacts, and (3) the success criteria for handling such claims. To achieve this, 22 disruption claims experts in Australia were interviewed. Difficulties were identified across different stages of disruption claims, including preparation and submission, assessment, and resolution. The findings revealed that nine difficulties were associated with the preparation and submission, seven with the resolution and six with the assessment of disruption claims. According to the experts, the most prevalent difficulty in all stages of disruption claims is the lack of contemporaneous information and records. Moreover, the major impact of these difficulties is the occurrence of disputes between contracting parties, resulting in significant cost and time implications. The experts also emphasized that the availability of relevant information (28%) and achieving commercial success (20%) are crucial factors for a successful disruption claim process. Furthermore, this research proposes a conceptual framework based on information management and the utilization of modern technologies, such as drones, cameras, radio frequency identifiers (RFIDs), building information modeling (BIM), project management software programs, big data and machine learning. The aim is to simplify the disruption claims process and minimize the occurrence of disputes.
The article provides a review of existing project management models and methods using particular game theory tools. The purpose of the review is to determine the current level of the research in this scientific topic, and to determine the most applicable classes of game-theoretic models and methods for the study of particular strategic interactions types that arise at certain stages of the project life cycle. Scientific papers published in international peer-reviewed journals and conferences proceedings over the past 10 years are used as an information base for analytical research. The first part of the article is devoted to the description of the most successful examples of the game-theoretic models’ application for the study of strategic interactions within project management processes. Based on this part, a conclusion is made about the locality of the game theory tools application for solving project management problems, as well as the expediency of developing an integrated approach that allows describing strategic interactions in project management processes in an invariant form. The second part of the article is devoted to the definition of criteria for the existing game-theoretic models’ classification. The classification criteria selected in this part of the article are used later in the third and fourth parts. The third part of the article is devoted to the classification of existing models by the composition of agents participating in the strategic interaction. According to this criterion, the models and methods are divided into the classes "Public-private partnership", "Contractor – contractor", "Contractor – subcontractor", "Subcontractor – subcontractor", "Interactions within the team", "Others". Based on the results of this classification, a conclusion is made about the dominant attention of researchers to the problems of organizing contractual relations and a clear lack of attention to non-contractual relations of performers within the project team. The fourth part of the article is devoted to the classification of existing models by their type. In this classification method, game-theoretic models are divided in two changes: strategic interactions are divided into simultaneous and sequential, as well as cooperative and non-cooperative (within the last class, into zero-sum games and non-zero-sum games). Based on the results of this classification, certain classes of game-theoretic models are determined that are most applicable in the study of strategic interactions in project management processes. The results of the work confirm the prospects of developing both particular game-theoretic models for describing specific strategic interactions that arise during the project implementation, and an invariant approach for describing a project as a complex of the stakeholders’ strategic interactions. The results of the work can be used by researchers to substantiate the relevance of their own research on this topic.
The paper analyzes various project management systems. It is shown that in conditions of rapid changes in the external environment for both complex and very complex projects, the choice of one or even two complementary project management systems may not be effective. The paper analyzes three complementary pairs of project management methods. The advantages and disadvantages of each project management method are shown. At the end of the analysis, a "Convergence Model" of project management methods is presented, in which the values of systems theory, game theory and fuzzy sets are separately noted, allowing the use of project analytics, which relieves companies from excessive formalization of project activities.
Aim/Purpose: This study’s objective is to demonstrate the wisdom of the crowds phenomenon in construction project tenders and relate it to cost overruns in these projects. Background: The wisdom of the crowd’s phenomenon is an age-old idea that argues that collective opinion is better than any single (even expert) opinion. The first data-based evidence for it is from the beginning of the twentieth century when statistician Francis Galton attended an exhibition in which attendants were asked to estimate the weight of a large ox. He found that while individual estimates varied considerably, the median estimate was within less than one percent from the true weight. The existence of the wisdom of the crowds has a particularly important implication in tenders. Consider a tender for a contract in which the winner is the bidder that agrees to take the contract for the lowest cost. If the collective bid, i.e., the mean bid, is the most accurate in assessing the true value of the contract, then the winning bid is overestimating the contract and is therefore expected to end up with a loss. Indeed, this winner’s curse, was first observed in tenders in the petroleum industry and has been since found in many other fields. Methodology: All the construction projects that were tendered and completed between January 2017 and July 2020 under the management of the department of engineering and construction, a government agency in Israel, were analyzed. After data cleansing, the data comprised 148 tenders with 1295 bids and total value of 229 million US dollars. For each project we determined the valid bids, average (valid) bid, the winning bid, the original project estimated cost, and the actual payments to the winning contractor (actual project cost). Contribution: Construction projects in the public sector are typically granted through a bidding process in which the lowest bidder is granted the contract. It is therefore of interest to examine whether the wisdom of the crowds and the winner’s curse phenomena are manifested in this type of tenders. The results could help understand the reasons for cost overruns in public construction projects. Findings: 1. Wisdom of the crowds: For each project we computed the ratio of the average bid and the project’s estimated cost. The mean ratio (for the 148 projects) was 1.01 suggesting that, on average, the bids are within 1 percent from the true project value. 2. Winner’s curse: On average the winning bid was 7.9% less than the estimated cost and 8.1% less than the average bid. 3. Cost overruns: On average, the payments to the contractor were 16.3% higher than the estimated cost, and 18.8% higher than the average bid. 4. In total these results demonstrate how contractors are able to overcome the winner’s curse. On average, payments to the contractor were 30.7% higher than their bid. Recommendations for Practitioners: Tender issuing public agencies should take into account that the winning bid is based on unrealistic optimism and when the winning contractor is tested by the real costs, they will be hard pressed to avoid these losses and therefore will drive the project into cost overruns. Recommendations for Researchers: It is important to model the strategic game between contractors and project managers that represent the tender-issuing agency. This may explain why the construction industry is beleaguered by cost overruns. Impact on Society: In the current state, the public is paying more than needed for construction projects since winning contractors are struggling to spin their losses into gains. Future Research: Develop game theory models that are based on our empirical findings and that can help to reduce cost overruns in construction projects.
Game theory allows mathematical solutions for many situations in the construction and construction industry. The effective factors in the various stages of the projects in the construction sector show complexity and diversity depending on the situation. For example, the lack of information in the design or construction projects may cause negative situations. In this study, the use of game theory applications in the solution of negative situations that may arise in the project design and implementation stages in the construction sector was evaluated. scientific studies carried out in the world on this subject are examined and the results obtained from these studies are presented. İnşaat Mühendisliği, İnşaat ve Yapı Endüstrisinde Oyun Teorisi Uygulamaları Özet Oyun teorisi, inşaat ve inşaat endüstrisindeki birçok durum için matematiksel çözümlere izin verir. İnşaat sektöründeki projelerin çeşitli aşamalarında etkili olan faktörler duruma bağlı olarak karmaşıklık ve çeşitlilik göstermektedir. Örneğin, tasarım veya inşaat projelerindeki bilgilerin eksikliği olumsuz durumlara neden olabilir. Bu çalışmada, oyun tasarım teorisi uygulamalarının, proje tasarımında doğabilecek olumsuz durumların çözümünde ve inşaat sektöründe uygulama aşamalarında kullanımı değerlendirilmiştir. Dünyada bu konuda yapılan bilimsel çalışmalar incelenmiş ve bu çalışmalardan elde edilen sonuçlar sunulmaktadır.
Purpose:
This paper aims to develop a partner selection approach for the high-speed rail (HSR) firms from the perspective of achieving competitive advantage in the international competitive bidding sphere.
Design/methodology/approach:
The current study developed a partner selection approach based on the evolutionary game theory. Firstly, the current study identified the influencing variables and logical formation path of competitive advantage on the international HSR project by literature review and case analysis. After that, a pay-off model was developed based on the theoretical foundation. Meanwhile, the evolutionary stable strategy was analyzed for different combinations of initial pay-offs.
Findings:
A real-world case was simulated to verify the effectiveness of the developed approach. The simulation results secured support from three industry professionals, indicating the developed approach is valid.
Originality/value:
The current study can help HSR firms to select their partners and develop a cooperation strategy from the perspective of winning awards. Also, the proposed approach is based on the advantage driving variables and formation path, which can contribute to HSR firms' understanding of the sources of competitive advantage.
As new technologies pave the way to increasingly sophisticated and academically relevant experiences, gamification of the learning process, regardless of the field of expertise, becomes more and more important. This study aims to express several constructs that explain how one can apply Game-Based Learning to education while granting motivational success, attitudes, flow and learning. In this sense, in the present article, several theories have been used and related to each other, namely Landers’ Theory of Gamified Learning, Self Determination Theory, Flow Theory, and Planned Behaviour. The aim was to understand how Motivation, Flow and Attitude dimensions, which were obtained by applying Games Based Learning resources to the teaching of Accounting, can influence Perceived Learning. These constructs were examined to see how they influenced the Perceived Learning of Accounting (N = 816) college undergraduates who used AccountinGame like a quiz with contents learned in the classes. This research contributes to the current body of literature on Game-Based Learning in Accounting Education. Results clearly showed there is a robust relationship between the proposed framework dimensions. In this sense, after students had used games in Accounting curricular units, it was observed that Motivation and Attitudes influenced Perceived Learning, unlike Flow, which had no statistical influence.
Delay has been one of the most prevalent challenges within church construction projects, especially in the orthodox churches. Despite construction challenges and project delays within most orthodox churches, there is still a lack of empirical evidence on unearthing the factors that lead to church construction delays. This quantitative study is aimed at exploring church construction delays within the Presbyterian Church of Ghana. After extensive literature and theoretical review, a proposed construct was generated with a structured questionnaire and distributed using the online survey tool, MikeCRM. Out of the 480 questionnaires distributed, 402 were completed and returned, representing a response rate of 84.8%. The questionnaires were completed by 39.3% Other Positions, 21.9% Resident Pastors/Agents, 18.9% Managers, 9.95% Project Managers, 5.90% Consultants, 1.99% Site superintendents (foreman), and 1.99% Electricians. The sample data were analysed statistically using Exploratory Factor Analysis, Confirmatory Factor Analysis, Cronbach’s Alpha, Pearson correlations, and AMOS for reliability and validity and for measuring the proposed constructs' suitability. The study confirmed six factors as being responsible for the church construction delay, with Material-related being the highest influential factor and Client/Owner-related as the least. The other four factors include Project-related, Quality-related, External-related, and Church Organizational Structure. The findings will help academicians, building contractors and church stakeholders with the awareness of church construction delays. Theoretically, the findings will contribute to the existing body of knowledge in the research area of church construction delay from developing countries' perspective.
1. Wprowadzenie Umowy o roboty budowlane najczęściej mają ściśle określony przedmiot umowy-projekt wykonawczy danego elementu budowli, czy też konkretnej instalacji. Harmonogram budowy też najczęściej jest ściśle określony-zwykle jest częścią umowy między generalnym wykonawcą a inwestorem. Wydaje się więc, że jedynym istotnym elementem, który wykonawca musi uzgodnić z przedsiębiorstwem, które zamierza zatrudnić jako swojego podwykonawcę, są kwestie finansowe, czyli cena za określony projektem zakres prac oraz warunki płatności. Takie podejście obydwu-negocjujących warunki umowy podwykonawczej-stron często prowadzi do fiaska rozmów lub do porozumienia, które satysfakcjonuje w pełni ani wykonawcy, ani podwykonawcy. Popularne stwierdzenie mówiące, że najgorszym rozwiązaniem jest kompromis znajduje potwierdzenie w [1], gdzie opisano przykłady, w których dochodzenie do porozumienia drogą "ustępstwo za ustępstwo" prowadzi do ominięcia w rozmowach kwestii mogących znacznie ułatwić dojście do porozumienia, ale także późniejszą realizację umowy. Negocjacje można określić jako pewnego rodzaju grę, w której przeciwnicy chcą uzyskać dla siebie jak najwięcej, poświęcając jak najmniej. W niniejszym artykule przedstawiono wyniki eksperymentu (będącego częścią procesu dydaktycznego) przeprowadzonego ze studentami Wydziału Inżynierii Lądowej Politechniki Warszawskiej. Publikacje przedstawiające wykorzystanie teorii gier [2, 3] do rozwiązywania problemów w zarządzaniu przedsięwzięciami budowlanymi [4-9] były inspiracją do przygotowania zestawu gier, dzięki któremu uczestnicy eksperymentu przekonują się, że ujawnienie własnej strategii oraz wspólna dyskusja graczy nad strategią każdego z nich przynosi w grze wymierne korzyści. Pozytywny efekt jest tym silniejszy, im więcej razy przystąpią oni do gry. W dalszej części artykułu opisano także przykłady, gdy ujawnienie przez wykonawcę i podwykonawcę wszystkich swoich oczekiwań i obaw związanych z negocjowaną umową prowadzi do uzgodnień, z których każda z negocjujących stron jest zadowolona. 2. Eksperyment na bazie teorii gier Sam eksperyment i jego wyniki zostały już wcześniej opisane w [10]. W teorii gier [2] grą nazywa się sytuację, w której-jest co najmniej 2 graczy,-każdy gracz ma do wyboru pewną liczbę strategii,-wynik gry jest determinowany przez kombinację strategii graczy,
The paper analyzes the systematic approach of project management. The description of the structural elements of a systematic approach is given — the project management methodology, game theory and system thinking theory. Due to the qualitative differences between the projects, the levels of project structuring and the needs of interested parties, the work describes a seriesparallel nature of the development stages of the project management. The paper proposes an algorithm for the basic project management processes that is fair for each functional area of the project. Using this algorithm will allow the project manager to increase the quality of management decisions and significantly reduce efforts and time for organizing the project management process.
Game theory (GT) is a mathematical tool to help different parties involved in an interaction (i.e., game) predict the outcome of their actions. Complex interactional situations may arise as a result of dispute resolution cases. There are various types of alternative dispute resolution (ADR) approaches such as arbitration, conciliation, and mediation. Mediation is an informal way of solving conflicts or disagreements among two or more parties and involves of a neutral third party as the mediator who helps facilitate and settle the disagreement. Prisoner’s dilemma and chicken game are the two GT models that are the focus of this research to be explored as a decision support tool in mediation. This study investigates how these models can be used to predict the conflict outcomes for all parties and their consequences on each party’s interests in different scenarios where a mediator is involved. Two case studies on conflicts between different parties involved in construction projects are presented. In these case studies, the role of the moderator in resolving the conflict based on GT models is described. Results indicate that GT can be an extremely useful tool to help make decisions about the outcome of different actions in conflict resolution scenarios.
This study aims to investigate the influence of project team fairness perceptions on conflicts and project performance in Chinese megaprojects. A theoretical model was developed and a structured questionnaire survey was conducted with 374 professionals. The structural equation modelling technique was used to analyse the data. The results show that task conflicts are significantly positively correlated with project performance in megaprojects, so establishing good team fairness perception helps to stimulate task conflicts. Process and relationship conflicts are interactive and negatively associated with project performance. Good team fairness perceptions have significant positive impacts on project performance. Task, relationship and process conflicts mediate the effects of fairness perceptions on project performance. Few studies have investigated the effects of team fairness perceptions on conflicts and project performance in megaprojects. This study is an important supplement to the existing body of knowledge for conflicts and project management. This study additionally confirmed that relationship and process conflicts could be mutually influenced and explains how conflicts play functional and dysfunctional roles in megaprojects.
Purpose
The purpose of this research is to quantify the effect of stakeholder conflicts on project constraints in the construction industry using ordinal regression analysis. For this purpose, the most significant project constraints and factors that cause stakeholder conflicts found in the literature are measured.
Design/methodology/approach
Factors causing stakeholder conflicts and project constraints are extracted through a content analysis of the published literature. Further, a questionnaire survey is conducted involving 170 professionals to assess the effect of conflicts on project constraints. Finally, to obtain a more objective assessment, a statistical model is developed, and to highlight the most severe factors causing conflict and impacting project constraints, ordinal regression analysis is performed.
Findings
The results show that in the construction industry, all project constraints are affected by stakeholder conflicts. Factors that result in stakeholder conflicts indicated a positive relationship with cost, time and resources. This means that any increase or decrease in the effect of stakeholder conflicts will directly influence these three project constraints. Similarly, a negative relationship was observed between stakeholder conflicts and quality, workforce productivity, protection of environment and safety regulations in the construction industry, indicating that increase in the effect of stakeholder conflicts will decrease these four project constraints and vice versa. The results for cumulative ordinal regression model highlight that lack of communication, poor quality of completed works and change orders and rework have intense effects on project constraints collectively.
Originality/value
A small number of studies have been undertaken to examine the emergence of project constraints in the developing countries. And even more, its relationship with stakeholder conflicts in the construction industry is limited. This research highlights the most significant project constraints and factors that result in stakeholder conflicts in the construction industry. Therefore, this study adds to the existing body of knowledge by developing an ordinal regression model that will help decision-makers and top management control this enigma of stakeholder conflicts in the construction industry.
To address the gap, that is, few studies have explored the influence of the participants’ interactions with one another during construction quality supervision, this paper proposes a system dynamics model based on evolutionary game theory to describe the complex and dynamic interactions among tripartite stakeholders in China, including the project owner (PO), construction supervising engineer (CSE), and construction contractor (CC). First, the replicated dynamic equation set is established in terms of expense targets. Second, the equilibrium solutions of the equation set are obtained to test strategy options. The trends of system fluctuations caused by penalty and reward changes are also analyzed. Finally, the stability of the proposed model is improved by integrating a dynamic penalty–reward scenario into the evolutionary strategy of the PO. Simulation results show that: 1) the evolutionary stable strategy does not exist in initial interactions, 2) the degrees of penalty and reward considerably affect the CC’s rate variable, and 3) the dynamic penalty–reward scenario could effectively improve the stability of the proposed model. The unsteadiness of the quality supervision system and the stability control scenario could help in understanding the impact of interactions among stakeholders and provide suggestions for optimizing quality supervision procedures.
Gamification is gaining momentum as an educational innovation to motivate and to engage students in their learning process. Nevertheless students' beliefs towards educational methodologies can affect both their motivation and attitude towards a given educational methodology. This study main goal is to explore key drivers of students' attitude towards the use of gamification as an educational methodology to develop their competencies. Using Keller's ARCS model (1987) a research model is developed and tested via Partial Least Squares (PLS) on a sample of 128 undergraduate students enrolled in a private Higher Education institution in Spain. Main results suggest that perceived attention, perceived relevance, and perceived confidence influence in a direct and positive way students' attitude towards the use of online educational video games to develop their competencies. Both attention and confidence also affects students' perceived relevance of online educational video games as a suitable means to develop their competencies. Managerial for citations: Journal of e-Learning and Knowledge Society Je-LKS
Despite broad improvements in construction management, claims still are an inseparable part of many construction projects. Due to huge cases of claim in construction industry, this study argues that claim management is a significant factor in construction projects success. In this study, the most possible causes of these emerging claims are identified and statistically ranked by Probability-Impact Matrix. Subsequently, by classifying claims in different cases, the most important ones are ranked in order to achieve a better understanding of claim management in each project. In this regard, a new index is defined, being able to be applied in a variety of projects with different time and cost values, to calculate the amount of possible claims in each project along with related ratios with respect to the cost and time of each claim. This study introduces a new model to predict the frequency of claims in construction projects. By using the proposed model, the rate of possible claims in each project can be obtained. This model is validated by applying it into fitting case studies in Iran construction industry.
This paper discusses a proposed model of multi-person decision on prioritizing selection with regard to continuing or terminating unfinished construction projects. This involved multiple steps including determining criteria and sub criteria, selecting and weighting of alternatives, optimizing, and analyzing coalition formation and agreement option. Criteria and sub criteria that were obtained from perspectives of 120 project managers are the first basis to construct decision hierarchy. The model is implemented in one of the biggest private construction projects in Indonesia. The implementation was based on the Analytic Hierarchy Process for multi criteria decision involving coalition and agreement options in a multi-person decision. Goal Programming was used to optimize based on cost constrains. The results demonstrate a process of multiperson decision to select priorities of each alternative to each decision and concluded that some of the projects were continued, postponed or terminated. The new direction of research presented in this paper presents some interesting challenges to those involved in modeling computer-based multi-person decision support utilizing both Multi Agent System and Multi Criteria Decision Making.
The purpose of the current study was to investigate face and facework during conflicts across four national cultures: China, Germany, Japan, and the United States. A questionnaire was administered to 768 participants in the 4 national cultures, in their respective languages, to measure 3 face concerns and 11 facework behaviors. The major findings of the current study are as follows: (a) self-construals had the strongest effects on face concerns and facework with independence positively associated with self-face and dominating facework and interdependence positively associated with other- and mutual-face and integrating and avoiding facework; (b) power distance had small, positive effects on all three face concerns and avoiding and dominating facework; (c) individualistic, small-power distance cultures had less other-face concern and avoiding facework, and more dominating facework than collectivistic, large-power distance cultures; (d) Germans had more self- and mutual-face concerns and used defending more than U.S. Americans; (e) Chinese had more self-face concern and involved a third party more than Japanese; and (f) relational closeness and status only had small effects on face concerns and facework behavior.
Factors that affect time overrun in the Nigerian construction industry have been studied, and the rank agreement factor for the professionals are architects/engineers, 0.75; architects/builders, 0.83; quantity surveyors/engineers, 0.74; quantity surveyors/builders, 0.79; and engineers/builders, 0.69. Important findings are (1) the degree of occurrence of time overrun is high-between 80 and 90%; (2) relative contributions of the client, contractor, and others are 62, 32, and 6%, respectively; (3) time overrun is more pronounced in government/public sector projects (89%); and (4) time overrun occurs on all projects, irrespective of size.
Purpose
The paper seeks to identify the major factors causing delay in building construction projects in Malaysia.
Design/methodology/approach
A questionnaire survey was used to carry out the study. The questionnaire consisted of 31 factors which were grouped into four major categories by responsibility – contractor factors, owner factors, consultant factors and external factors. The level of importance of the categories was measured and the relative importance of weights was ranked.
Findings
The study finds that financial problems are the main factor and coordination problems are the second most important factor causing delay in construction projects in Malaysia. The results were analyzed to rank the causes of delay and further classify the types of delay.
Research limitations/implications
The scope of this study is limited to building projects in the Klang Valley area, where major Malaysian cities such as Kuala Lumpur, Putrajaya, Petaling Jaya, Shah Alam and Seremban are located. The data for this study was gathered through a detailed questionnaire survey.
Originality/value
Based on the analysis of the ranking and intensity of causes of delay, this paper suggests possible improvements that could be made in order to reduce delays in the construction industry.
The authors examine their own experience helping resolve conflicts in U.S.-based Japanese subsidiaries. The heart of the problem lay in different, culturally based communication styles of the American managers, the Japanese managers located in the United States, and Tokyo headquarters. For instance, the American sales manger didn't understand why her Japanese liaison in Tokyo didn't respond to her emails and deadlines. The Japanese managers, on the other hand, couldn't understand why the American managers wouldn't communicate face-to-face and less formally-and why they considered to be a useless exercise-brainstorming. Clarke and Lipp describe specific strategies for improving cross-cultural communication, particularly in working with the Japanese. Their seven-step model-which involves the concepts of anthropology, uniqueness, and blending-is based on the premise that cultural diversity is a positive factor rather than a negative one. Indeed, the authors argue that diversity is essential for leading-edge solutions to global competitiveness. The steps progress from problem identification and clarification to cultural and organizational exploration to conflict resolution and impact assessment. The last step is organizational integration. An integral element throughout the process of conflict resolution, especially in working with Asians, is achieving harmony.
People with strong leadership skills can be more effective Project Managers (PM). Organizations are becoming flatter, culturally rich, geographically diverse, and intensely competitive. The possibilities for conflict are greater in such environments, and PM's must have sufficient competencies to lead in such situations. This paper will reflect on three complementary leadership competencies that are addressed in world wide competency standards, that of, conflict management, negotiation, and effective communication, which the authors argue are not well represented in the National (Australian) Competency Standards for Project Management. These competencies have been found by the authors to be most useful in practicing project management. To manage conflict a PM must understand the basics of negotiation theory and effective communications. This paper discusses some recognized negotiation techniques, and useful communications skills that will enhance the ability of PM's to be more effective not only in conflict management, but in many aspects of Project Management. Introduction People with strong leadership skills can be more effective Project Managers (PM). Organizations are becoming flatter, culturally rich, geographically diverse, and intensely competitive. The possibilities for conflict are greater in such environments, and PM's must have sufficient competencies to lead in such situations.
The management of organizational conflict involves the diagnosis of and intervention in affective and substantive conflicts at the interpersonal, intragroup, and intergroup levels and the styles (strategies) used to handle these conflicts. A diagnosis should indicate whether there is need for an intervention and the type of intervention needed. In general, an intervention is designed (a) to attain and maintain a moderate amount of substantive conflict in nonroutine tasks at various levels, (b) to reduce affective conflict at all levels, and (c) to enable the organizational members to select and use the appropriate styles of handling conflict so that various situations can be effectively dealt with. Organizational learning and effectiveness can be enhanced through an appropriate diagnosis of and process and structural interventions in conflict.
This unique collection of comparable case studies addresses the need to assess modes of conflict resolution in a larger sociocultural context with attention to varying approaches and cultural perspectives. Editors Avruch, Black, and Scimecca, together with other anthropologists and sociologists, propose and test different propositions, while looking toward a general theory of conflict and conflict resolution. Their joint effort should be of real interest to sociologists, anthropologists, political scientists, indeed to all those concerned with ethnic studies and ethnoconflict today.
The contributors examine different theoretical concepts and approaches to conflict resolution in five different cultures, American, Arab, Asian, Latin American, and Pacific societies. The interdisciplinary study offers a broad range of vantage points for considering interpersonal, community, institutional, and national problems. The authors analyze concepts of personhood, the role of power and authority, ethical values, and methods for negotiating differences, and conflict resolution as an emerging discipline.
The main objective of this chapter is the identification and analysis of the body of knowledge related to project management in the context of PMI(R) and ISO standards and norms. The chapter highlights the need to manage all the knowledge generated within the project (e.g. historical information, best practices, knowledge of the processes, lessons learned etc.) in order to improve organizational processes, reduce the time of project management and reduce the cost of the project. It also suggests that, through the correct application of these normative knowledge areas and their diffusion in the project management culture, organizations can expect to govern their businesses more effectively and efficiently.
In groundwater construction projects, many variables affect construction schedule and cost overruns. This paper aims to examine and evaluate the relative importance of the main factors that cause delay and cost overruns in groundwater construction projects. In order to identify these factors, a questionnaire survey was conducted. Questionnaires were sent to professionals involved in groundwater construction projects in Ghana. The data was analyzed and ranked, based on the profession of the respondents and their roles in the industry (i.e. owners, contractors and consultants). The questionnaire survey consisted of 49 factors which were grouped into nine major categories, and the level of importance of the categories was measured and ranked by the relative importance weights. The percentage agreements in ranking among the three groups were measured. The results shows that: (1) the surveyed groups generally agreed that the project financing category is the main reason for groundwater construction delay and cost overruns, whereas the labor category is the least; (2) owners, consultants and contractors substantially agree on the ranking of the major categories of delay and cost overruns factors. The paper concludes that all the three groups felt that project financing, micro-economics, natural conditions and materials factor categories play a predominant role in causing delay and cost overruns to groundwater construction projects.
This article attempts to show that delay does matter and that different methods of analyzing schedule delay will lead to different results for the owner and the contractor. A delay is an act or event that extends the time required to perform tasks under a contract. It usually shows up as additional days of work or as the delayed start of an activity, and may or may not involve a change in the scope of the contract.
Delays in the completion of highway construction and maintenance projects are important concerns to state highway agencies and contractors alike because such time delays can have a number of adverse consequences, such as extending the duration of active work zones, contributing to road-user dissatisfaction and increasing the risk of litigation regarding delay responsibility. In this paper, using data from 1,722 highway projects in Indiana, random-parameter statistical models are estimated to study the factors that contribute to the likelihood of encountering a project time delay and its duration. The model estimation results show that the likelihood and duration of project time delays are significantly influenced by factors such as project cost (contract bid amount), project type, planned project duration, and the likelihood of adverse weather. DOI: 10.1061/(ASCE)CO.1943-7862.0000437. (C) 2012 American Society of Civil Engineers.
Construction delays impact the time and cost of projects. A survey of the delays experienced in highrise building construction projects in Bangkok, Thailand, was undertaken and the result compared with other studies of delays and overruns around the world to determine whether there are special problems that generate delays for construction in developing economies. Resource supply problems were by far the most acute problems of the Thai construction industry in the boom years. The results of the study support the view that construction industry problems in developing economies can be nested in three layers: (a) problems of shortages or inadequacies in industry infrastructure (mainly supply of resources); (b) problems caused by clients and consultants and (c) problems caused by contractor incompetence/inadequacies. Conclusions recommend the need for focussed effort by economy managers and construction industry associations to provide the infrastructure needed for efficient project management. This study should be of interest to emerging economies in Europe and Indochina.
The subject of project management in developing countries is addressed, with a focus on Nigeria, one of the largest and most populated countries in Africa. The causes of delay and cost overruns are investigated by examining data relating to construction projects. After a brief introduction to the overall economy, an analysis is given of recently completed highway projects in the country. This points to substantial cost variations relative to the initial contract, and excessive project overruns, for neither of which is there much explanation in status reporting. A brief review then follows of contractual systems and project financing arrangements currently in operation. The results of a questionnaire survey carried out in 1992 with around 50 construction personnel from contractor, consultant and client organisations in Nigeria are then presented. The conclusions suggest that there could be better phasing of contracts, and a wider variety of contracts could be used. Overruns are attributed to finance and payment arrangements, poor contract management, materials shortages, inaccurate estimating, and overall price fluctuations. Recommendations are given on how project management could be improved in developing countries such as Nigeria by appropriate action being taken at both the conceptual and detailed planning stages of projects. Wider action is further called for at both government and international level.
Construction projects in India are experiencing widespread delays. Due to a dramatic shift in the capacity and volume of the Indian construction sector over the last decade, the need of a systematic analysis of the reasons of delays and developing a clear understanding among the industry professionals are highly crucial. Using a selected set of 45 attributes, this research first identified the key factors impacting delay in Indian construction industry and then established the relationship between the critical attributes for developing prediction models for assessing the impacts of these factors on delay. A questionnaire and personal interviews have formed the basis of this research. Factor analysis and regression modelling were used to examine the significance of the delay factors. From the factor analysis, most critical factors of construction delay were identified as (1) lack of commitment; (2) inefficient site management; (3) poor site coordination; (4) improper planning; (5) lack of clarity in project scope; (6) lack of communication; and (7) substandard contract. Regression model indicates slow decision from owner, poor labour productivity, architects' reluctance for change and rework due to mistakes in construction are the reasons that affect the overall delay of the project significantly. These findings are expected to be significant contributions to Indian construction industry in controlling the time overruns in construction contracts.
Avoiding construction claims and disputes requires an understanding of the contractual terms and causes of claims. The dual underlying theme of this paper is to investigate the causes of delays on 130 public projects in Jordan and to aid construction managers in establishing adequate evaluation prior to the contract award using quantitative data. Projects investigated in this study included residential, office and administration buildings, school buildings, medical centers and communication facilities. Results of this study indicates the main causes of delay in construction of public projects relate to designers, user changes, weather, site conditions, late deliveries, economic conditions and increase in quantity. The presence of these factors have an impact on the successful completion of the projects at the time contractually specified. The findings suggest that special attention to factors identified in this study will help industry practitioners in minimising the risk of contract disputes.
Delays are among the most common phenomena in the construction industry. During the last three decades delays have occurred in most types of projects, from simple building projects to the most complex projects such as nuclear power plants or tunneling works. Generally, delays may be caused by: the client (compensable delays); the contractors (non-excusable delays); or acts of God or a third party (excusable delays). This paper classifies the main causes of non-excusable delays according to the source of occurrence, then identifies the factors contributing to those causes. It is assumed that the client has more control over the compensable delays and can take action to prevent them. The contractor is expected to have control over the non-excusable delays and, presumably, do more to prevent them. Several studies have discussed the issues relating to these delays, but no major study has been conducted to examine the causes of non-excusable delays in great depth. Understanding the underlying factors that contribute to causes of non-excusable delays would help in identifying and overcoming the problems faced by contractors during the construction process. To assist in identifying the factors contributing to causes of non-excusable delays, the Ishikawa or fish bone diagram has been used as an analytical tool, and a ranking methodology has been devised. As a report of initial findings of the study, which is currently being undertaken at Loughborough University, U.K., this paper identifies materials-, equipment-, and labor-related delays as major causes of contractors' performance delays.
Delayed completion of a construction project is often caused by a complex interaction of a combination of events, some of which are the contractor's risks and others are the project owner's. The apportionment of the liability to give effect to the risk allocation has therefore been a matter of great controversy. Many delay analysis methodologies have been developed over the years for performing this task. This paper reports on an empirical study into the current practice in the use of these methodologies in the United Kingdom, as part of a wider study aimed at developing a framework for improving delay claims analysis. The part of the study reported here was based on a questionnaire survey of key informants. The issues investigated include the categories of staff within contracting organizations who contribute to delay claims analyses, the awareness, use and reliability of existing delay analysis methods and the obstacles to their use in practice. The main findings of the study are that: (1) the preparation of delay claims often requires input from commercial managers (quantity surveyors), schedulers, site managers, external claim consultants and estimators; (2) commercial managers have the greatest involvement; (3) claims analyzed using the as-built versus as-planned and the impacted as-planned techniques are often successful although there is considerable literature on the shortcomings of these techniques; and (4) the main obstacles to the use of the methods relates to deficiencies in project records and scheduling practice.
Resolving the delay claims that usually trail delayed completion of construction projects is beset with immense difficulties that often lead to disputes between the parties involved. The research reported in this paper is a part of a wider study aimed at developing a framework for reducing the attendant disputes and aiding cost-efficient dispute resolution. The focus of the part reported here is owner consultants' perceptions on existing methodologies for analyzing project delay. Based on a survey of U.K. construction consulting organizations, the study examined, among others, the awareness and use of these methodologies, their perceived reliability, expert involvement, and obstacles to their use. The main study findings are: (i) delay analysis is a multidisciplinary task, with the project quantity surveyor often playing the leading role on the owner's side; (ii) the simpler methodologies are used more often than the complex ones although the former are known to be less reliable than the latter; and (iii) the principal obstacles to the use of the sophisticated methodologies are: lack of adequate project information, the use of programmes not in CPM network form, and poorly updated programmes. It is thus argued that improvement in current programming and record-keeping practices will promote the use of the more reliable methodologies which, in turn, will facilitate smoother resolution of delay claims.
Severe weather conditions can be disruptive to construction. Contractors typically obtain time extensions for weather days beyond normal conditions. However, contracting parties often dispute the extent of weather-related time extensions. Typical industry contracts may overlook many important points that can provide an acceptable resolution. This paper classifies seven factors causing discrepancies in analysis of adverse weather for time extensions; namely, the definition of normal weather, weather thresholds, type of work, lingering days, criteria for lost days, lost days equivalent due to lost productivity, and work days lost versus calendar days lost. An analysis of an actual weather-caused delay claim illustrates the impacts of those factors on the outcomes of the analysis. A contract should define anticipated weather delay days and their lingering days and provide threshold values for weather parameters to differentiate between predictable and unpredictable severe weather. The contract should clearly define how a time extension is granted in calendar days as a result of work days lost, and also address how a time extension is granted due to inefficiency caused by unusually severe weather. Future research may provide an appropriate mechanism for analyzing equivalent lost days to account for lost productivity.
Construction delays are disruptive and expensive. This Study assesses the causes of delays by focusing on actions and inactions of project participants and external factors. The study analyzed quantitative data from completed building projects to assess the extent of delays, and data obtained from a postal questionnaire survey of construction managers to assess the extent to which 44 identified factors contributed to overall delays on a typical project they have been involved with. The findings showed that the factors could be prioritized. However, Pareto analysis revealed that 88% of the factors (representing 39 highest priority factors) were responsible for 90% of the overall delays. This suggests that there is no discernable difference among the different delay factors and none really stands out as contributing to a large percentage of the problem. A one-sample t test further confirmed that most of the factors are important contributors to delays. The results suggest the interdependent nature of construction activities and roles of project participants. The overall ranking of the factors and ranking within each factor category provide useful information for construction industry practitioners. policy makers, and researchers when devising ways of combating delays. The results also indicate areas of construction industry practice that require improvement.
Delay is one of the most common problems in the construction industry. This paper presents a method for computing activity delays and assessing their contributions to project delay. The method consists of a set of equations, which can be easily coded into a computer program that allows speedy access to project delay information and activity contributions. The proposed method contrasts the as-planned and as-built schedules. It is not based on critical path analyses; therefore, it does not require the calculation or updating of the critical path, and it is even not necessary to update the as-planned schedule, as required by the traditional delay analysis methods. The results calculated from the proposed method include various variations of activity schedules and their contributions (in days) to the overall project delay. They provide an objective baseline for deter mining responsibilities of delays. The method can be integrated into any delay analysis system to further improve and automate the construction delay analysis process. Practical examples are used to illustrate the computation mechanism.
The time allowed for construction project performance is usually an important consideration for both the project owner and the project contractor. Yet, it is typical for construction projects to be delayed. Delays may be caused by the owner (compensable delay), by the contractor (nonexcusable delay), by acts of god, or a third party (excusable delay), or several different kinds of delays may happen concurrently. Because of the many sources and causes of construction delays, it is often difficult to analyze the ultimate liability in delay claims. The original schedule (as-planned) is known, and, likewise, the actual schedule (as-built) is known. What is unknown is the appropriate schedule when all allowable adjustments to the schedule are taken into account; this schedule is often called the as-adjusted schedule. This paper presents a tool to aid in analysis of delay claims. The procedure set forth will handle delays and accelerations and will help in determination of the as-adjusted schedule.
Construction delays are common in civil engineering projects in Hong Kong, inevitably resulting in contractual claims and increased project cost. This study was aimed, first, at gathering the perceptions of civil construction practitioners on how significant are the causes of delay; and, second, investigating whether the suggestions as stated in the report of the Construction Industry Review Committee (the Committee comprises members with good standing and knowledge in the construction and related fields as well as those from other professions who are responsible for examining the current state of the construction industry in terms of its output quantity, the quality of work, its environmental friendliness, site safety, its workforce and the system of supervision) are applicable to and effective at mitigating the corresponding delays with reference to a ranking order established using the mean score method. The extent of the differences in perception among the different respondent groups on these two issues was also examined using the rank agreement factor (RAF), percentage agreement (PA), and percentage disagreement (PD). The differences in the perceptions of the respondents on the significance of delays and the actual causes of delays for the six projects studied were also examined. The results of the study showed that the respondents tended to admit their own faults as shown in the top ten significant causes of delay. A strong consensus was found between the client and consultant groups on the significance of the various causes of delay (PA=74%) and the effectiveness of mitigation measures (PA=67%) compared with the other pairs of groups. The consultant and contractor groups held extremely different perceptions regarding the significance of various delay causes (RAF=4.9 and PD=32%) and the effectiveness of corresponding mitigation measures (RAF=6.2 and PD=47%). It is believed that the findings can provide much more insight for the construction practitioners as well as the researchers and thus help to improve the productivity and overall performance of civil construction projects in Hong Kong.
This paper describes the importance of applying proper management in dealing with delays in construction for a growing economy. The main objective of this paper is to identify the management tools that are practiced in the local construction industry in mitigating delay. It also aims to identify the main factors that lead to project delays and to suggest recommendations on how to overcome or mitigate effects of the problem. Data is gathered from responses from questionnaire survey and interviews with those involved in construction project. The surveys and research findings indicate that delay incidents occur mainly during the construction phase of a project and one or more parties usually contribute to delay. This paper highlights the importance of having more experienced and capable construction managers as well as skilled laborers to enable the industry to develop at a faster rate either nationally or internationally.
An investigation was conducted concerning the influence of the following items on construction project cost-overrun rates: project size, construction type, number of bidders, and the percent difference between the government estimate and the award amount. The cost-overrun rate is defined as the total dollar amount of change orders and claims divided by the award amount. The analysis was conducted on 1,576 Navy construction projects that were in progress from 1984 to 1987. It was found that the shape of the frequency distribution for the cost-overrun rate changed with the size of the project. Cost overruns occurred more frequently for larger projects. The cost-overrun rate was also influenced by the percent difference between the government estimate and the award amount. Cost overruns were more likely when the award amount was less than the government estimate.
The present paper outlines the main causes of delay in large building projects in Saudi Arabia and their relative importance. A survey of a randomly selected sample of 24 contractors, 15 architectural/engineering firms (A/E), and nine owners from the Eastern Province of Saudi Arabia was undertaken. The survey included 56 causes of delay, and the respondents were asked to indicate their degree of importance. The delay factors were grouped into nine major groups. The level of importance of the causes and the groups were measured and ranked by their importance index for contractors, owners and A/Es. It was found that contractors, A/Es, and owners generally agree on the ranking of the individual delay factors. It was also shown that contractors and A/Es substantially agree on the ranking of the groups of delay factors, whereas contractors and owners, and A/Es and owners do not agree. It was also shown that the financing group of delay factors was ranked the highest by all three parties and that environment was ranked the lowest.
Delay in construction projects is considered one of the most common problems causing a multitude of negative effects on the project and its participating parties. This paper aims to identify the main causes of delay in construction projects in Egypt from the point of view of contractors, consultants, and owners. A literature review was conducted to compile a list of delay causes that was purged based on appropriateness to Egypt in seven semistructured interviews. The resulting list of delay causes was subjected to a questionnaire survey for quantitative confirmation and identification of the most important causes of delay. The overall results indicated that the most important causes are: financing by contractor during construction, delays in contractor's payment by owner, design changes by owner or his agent during construction, partial payments during construction, and nonutilization of professional construction/contractual management. The contractor and owner were found to have opposing views, mostly blaming one another for delays, while the consultant was seen as having a more intermediate view. Results'analyses suggest that in order to significantly reduce delay a joint effort based on teamwork is required. Furthermore, causes of project delay were discussed based on the type and size of the project.
The present paper presents the major causes of delays in the construction industry in Lebanon and the relative importance of these postponements. A survey of a randomly selected sample of 11 owners, 15 contractors and 10 architectural/engineering (A/E) firms from Lebanon was undertaken. The survey included 64 causes of delay, grouped into 10 major groups, in which the participants were asked to indicate their level of importance of each delay. The level of importance of the causes and the groups were measured and ranked by the importance index for owners, contractors and A/E firms. It was found that all three parties generally agreed on the ranking of the major categories of delay factors. Owners had more concerns with regard to financial issues, while contractors ranked contractual relationships highest, and finally, A/E firms ranked project management highest.
Negotiation is an important stage in construction claims management process. Unfortunately, most construction claims negotiations are conducted inefficiently due to various reasons. The recent development of multi-agent systems provides an innovative approach to facilitating various negotiations. This research has developed a multi-agent system for construction claims negotiation (MASCOT) to resolve the inefficiency problem. This paper discusses the key points of the MASCOT model. Of particular interest is the computer implementation of the developed MASCOT model using the ZEUS agent building toolkit.
The effects of construction delays are not confined to the construction industry but influence the state of the overall economy of a country. This is particularly so in Turkey where construction investments account for almost half of all investments and where delays have reached significant magnitudes in the 1970–80 decade. A Iurge number of public agencies that are construction owners and a large number of contractors that undertake construction work for public agencies in Turkey were surveyed to identify and rank in an order of importance the causes for such delays. The results indicate that shortages of some resources; public agencies' and contractors' fincincial dfiiculties; organizational deficiencies and delays in design work, frequent chunge orders and considerable extra work are the most important sources of delay. While some of the causes are dependent on national economic policies, others may be overcome by measures to be taken by public agencies and contractors.
This study examines the structure of 105 work groups and management teams to address the question of whether conflict can be beneficial. Multiple methods were used to examine the effects of conflict on both individual- and group-level variables to provide a more refined model of intragroup conflict. Results show that whether conflict was beneficial depended on the type of conflict and the structure of the group in terms of task type, task interdependence, and group norms. Relationship and task conflicts were negatively associated with individuals' satisfaction, liking of other group members, and intent to remain in the group. In groups performing very routine tasks, disagreements about the task were detrimental to group functioning. In contrast, in groups performing nonroutine tasks, disagreements about the tasks did not have a detrimental effect, and in some cases, such disagreements were actually beneficial. Contrary to expectations, norms encouraging open discussion of conflict were not always advantageous. The results suggest that while such norms were associated with an increase in the number and intensity of relationship conflicts, they did not increase members' ability to deal with the conflicts constructively. The model developed here contributes to an integrated perspective on organizational conflict.
In this paper we study how to distribute the cost caused by the delay of a project among the firms which are responsible for it. We present two rules, one based on serial cost sharing problems and the other, in game theory. Moreover, we introduce some desirable properties, inspired by well-known principles, and study which of them are satisfied by the rules.
The aim of this paper is to investigate the conflict resolution in a large-scale construction projects using multi-attribute decision-making theory and to aggregate group's preference information. Multi-attribute decision analysis theory and flexible theory are integrated with bargaining theory to coordinate controversial issues among stakeholders in construction project when computer-based automated negotiation fails or is terminated by decision-makers in this paper. Therefore, the paper establishes an interactive multi-attribute bargaining decision model for large-scale construction projects. The interactive decision model can make the controversial issue reached an agreement acceptable to all participants by applying concessions in different objectives. Moreover, the final results are inline with the necessary requirement of group decision-making, i.e., maximizing the preference consistency of participants and minimizing the utility gaps between each negotiator's preference and the group's.
Delays occur commonly in construction projects. Assessing the impact of delay is sometimes a contentious issue. Several delay analysis methods are available but no one method can be universally used over another in all situations. The selection of the proper analysis method depends upon a variety of factors including information available, time of analysis, capabilities of the methodology, and time, funds and effort allocated to the analysis. The paper reviews 20 research studies that discuss various aspects of delay analysis methods and summarizes the advantages and disadvantages of widely used delay analysis methods, including the as-planned vs. as-built, impact as-planned, collapsed as-built, and time impact analysis methods. The paper also discusses the most important issues in delay analysis that affect the results of the analysis. The selection of a suitable analysis method depends heavily on the availability of scheduling data, the familiarity of the analyst with the capabilities of the software used in the project, clear specifications in the contract concerning the treatment of concurrent delays and the ownership of float.
This paper presents the results of a survey undertaken to determine and evaluate the relative importance of the significant factors causing delays in Hong Kong construction projects. The survey covered 83 previously identified delay factors, which were grouped into eight major categories. The main reasons for delays were analyzed and ranked according to different groups classified on the basis of (a) the role of the parties in the local construction industry (i.e. whether clients, consultants or contractors) and (b) the type of projects. Results indicate that the five principal and common causes of delays are: ‘poor site management and supervision’, ‘unforeseen ground conditions’, ‘low speed of decision making involving all project teams’, ‘client-initiated variations’ and ‘necessary variations of works’. Differing perceptions as to the principal causes delaying projects are observed between Hong Kong, Saudi Arabia and Nigeria, the two latter countries being chosen for purposes of comparison with other countries. It is hoped that the significant delay factors identified in this survey will provide a basis for strategies to minimize delays and will also be incorporated into a ‘construction time’ forecasting model for Hong Kong construction projects in the future research programme.
A survey on time performance of different types of construction projects in Saudi Arabia was conducted to determine the causes of delay and their importance according to each of the project participants, i.e., the owner, consultant and the contractor. The field survey conducted included 23 contractors, 19 consultants, and 15 owners. Seventy-three causes of delay were identified during the research. 76% of the contractors and 56% of the consultants indicated that average of time overrun is between 10% and 30% of the original duration. The most common cause of delay identified by all the three parties is “change order”. Surveys concluded that 70% of projects experienced time overrun and found that 45 out of 76 projects considered were delayed.
Although it is widely admitted that the client and contractor face significant difficulties in negotiating major projects, project negotiations have not attracted much attention in the academia. Negotiations have not been studied very systematically in the project context, research lacks a common abstraction of the subject and there exists a serious gap in knowledge, for instance as to what frames of thought can assist project practitioners in crafting better agreements. This study proposes a systematic, logically consistent and theoretically well-founded approach to the study of project negotiations. The basic idea of the approach is to embrace both the buyer and seller perspectives in a single continuum of recurring negotiations, oriented around the zone of possible agreement. Evidence for the validity and relevance of the approach is developed through an empirical inquiry into the negotiations surrounding the construction of a World Trade Center complex. The results of the study suggest that the approach allows documentation and communication of descriptive and explanatory insights from past project negotiations, including profound efficiency and fairness considerations. Finally, as the next logical step on the research agenda and an attractive venue for future research, the study proposes to expand the scope of application to prescriptive uses, i.e., the development of advice to project practitioners in on-going negotiations.
Negotiation is an important stage in construction claims management process. Unfortunately, most construction claims negotiations are conducted inefficiently due to various reasons. The recent development of multi-agent systems provides an innovative approach to facilitating various negotiations. This research has developed a multi-agent system for construction claims negotiation (MASCOT) to resolve the inefficiency problem. This paper discusses the key points of the MASCOT model. Of particular interest is the computer implementation of the developed MASCOT model using the ZEUS agent building toolkit.