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Challenges and potentials for construction logistics in urban areas
Abstract
Construction logistics suffers from inefficient planning leading to lower productivity, damage and loss of material, delays in project and eventually resulting in higher cost of the building. Apart from lowering productivity and economic benefits, unorganized construction work also affects quality of building and increases project time leading to higher cost for the project. In urban areas, logistics activities at construction site can be a challenging task due to constraints such as limited space, local regulations, proximity to active neighborhood, restricted time to work. The transportation of materials, equipment and personnel to and from the construction sites is one of the most comprehensive city logistics flows. Construction logistics accounts for about one third of the freight traffic in cities. Limited space on road creates congestion, safety and pollution related problem due to flow and size of vehicles delivering construction material. Thus, for construction logistics in urban areas the stakes are high in terms of economic, social and environmental aspects. An evident need exists to organize logistics to build sustainably, smartly, clean and socially. Consequently, this paper explores the field of construction logistics in urban setting by giving overview of the different construction phases, actual construction steps, use of materials and their characteristics at different steps and their impact on logistics activities. After creating sufficient knowledge ground, the article elaborates on specific challenges (e.g. space, collaboration, scheduling, standardization…) and opportunities (e.g. consolidation, information management, recycling, technological advances…) associated with logistics with emphasis on activities in urban areas.
... The project disturbing the local population lifestyle and economy. [29,[46][47][48][49] The project problems are related to logistics. The project disturbing the area's ecology (contamination of river water, odors, noise, and erosion). ...
... Identifying environmental risks is a crucial matter that should be considered in the construction industry [46]. Construction logistics inefficient plan leads to lower productivity, delays in the project, and higher building costs [47,48]. Table 2 lists three factors within the environmental group. ...
... The project problems related to logistics was the first ranked (I.I = 29.73%), supported by several studies such as Wasim Haji [47], Groves [48], and Guerlain [49], but ranked 45th in a study by Enshassi et al. [29]. Figure 5 shows the top ten critical factors among 51 factors according to I.I% that may affect the projects' cost estimation in the Middle East. ...
The construction industry is subjected to more risk and uncertainty than many other industries, in addition to poor risk-tracking records. This usually causes the late completion of projects, surpassing their estimated budgets even without achieving the desired quality and operational requirements. This study first identified the most critical factors affecting the accuracy of cost estimates. A questionnaire has been designed and distributed to construction experts; the results indicated stakeholders’ perception to improve their cost estimation using a proper and predefined risk management plan. Following the respondents’ judgment, this study identified 51 risk factors and their potential root causes and presents a response plan for the most critical risks that might affect cost estimates to improve construction-industry performance. Then, a new simple model has been developed to analyze risk factors affecting the accuracy of conceptual cost estimates, from both clients’ and contractors’ perspectives. The developed model will provide the decision-makers with a list of risks accompanied by guidelines/response plans to mitigate their effect on project cost to help the estimators identify the most effective cost contingency against the project’s scope creep.
... Perhaps one of the largest challenges in high-rise construction is the lack of on-site storage space. Within city centers, land is expensive and limited; therefore, it is unfeasible to allocate large surfaces for material storage [1]. In contrast to suburban or industrial zone developments, where mass storage can be achieved in laydown yards, urban high-rise construction sites are forced to use limited on-site inventory. ...
... Studies indicate that JIT-based material flow enhances spatial efficiency by preventing congestion and allowing construction activities to proceed without obstruction [9]. Additionally, reducing on-site inventory mitigates theft-related risks, weather damage, and improper handling, leading to better material security and quality control [1]. ...
High-rise construction in densely populated urban centers presents significant logistical challenges, primarily due to limited space, traffic congestion, and stringent safety regulations. Traditional construction logistics models rely on extensive on-site storage and uncoordinated material deliveries and are increasingly ineffective in high-density urban environments. This study investigates the micro-logistics framework, which integrates Just-in-Time (JIT) delivery, urban staging areas, and modular construction to enhance material flow efficiency while mitigating the constraints imposed by limited on-site storage and transportation restrictions. JIT delivery minimizes on-site material stockpiling and enhances workflow efficiency, but its success hinges on precise supplier coordination and real-time project scheduling. Urban staging areas, acting as temporary material hubs, facilitate controlled material consolidation, phased deliveries, and site decongestion, allowing for optimized site logistics. Furthermore, modular construction significantly reduces logistical complexity by shifting fabrication off-site, streamlining material transport, labor management, and project timelines. A case study of the development of the Bridgeport, Virginia, illustrates how micro-logistics strategies improved construction efficiency despite challenging site conditions. The study found that a phased material allocation approach, structured staging zones, and weekly supplier coordination updates resulted in zero material backlog and reduced site congestion, ensuring timely project completion. The findings emphasize that adopting micro-logistics frameworks in high-rise construction is imperative for future urban development, particularly as cities continue to densify. By leveraging real-time digital tracking systems, artificial intelligence (AI)-driven traffic forecasting, and integrated Building Information Modeling (BIM) for supply chain management, the construction industry can further optimize material flow, reduce costs, and enhance sustainability. This paper highlights the necessity of precision-driven logistics solutions, offering a roadmap for efficient, cost-effective, and environmentally responsible urban construction.
Construction is required to create attractive, sustainable and economically viable cities. Inner city developments are a common feature within many urban areas. When activities at and around construction sites are not managed effectively, they can negatively impact the surrounding areas. A large share of the freight traffic in cities is related to construction. Evaluation of recent urban construction projects introducing logistics concepts by construction companies shows that implementing alternative city logistics concepts can significantly reduce total logistic costs, urban congestion and improve productivity. The 'ground rules' for smarter and cleaner construction logistics in urban areas are set during the tendering process. This research has developed a framework for 'logistics quality' to be used as a quality criterion for EMAT (Economically Most Advantageous Tender) procedures to support tendering construction projects by both public and private clients.
The aim of this paper is to identify the various managerial issues encountered by UK/Irish contractors in the management of materials in confined urban construction sites. Through extensive literature review, detailed interviews, case studies, cognitive mapping, causal loop diagrams, questionnaire survey and documenting severity indices, a comprehensive insight into the materials management concerns within a confined construction site environment is envisaged and portrayed. The leading issues highlighted are: that contractors’ material spatial requirements exceed available space, it is difficult to coordinate the storage of materials in line with the programme, location of the site entrance makes delivery of materials particularly difficult, it is difficult to store materials on-site due to the lack of space, and difficult to coordinate the storage requirements of the various sub-contractors. With the continued development of confined urban centres and the increasing high cost of materials, any marginal savings made on-site would translate into significant monetary savings at project completion. Such savings would give developers a distinct competitive advantage in this challenging economic climate. As on-site management professionals successfully identify, acknowledge and counteract the numerous issues illustrated, the successful management of materials on a confined urban construction site becomes attainable.
Stakeholder theory has been a popular heuristic for describing the management environment for years, but it has not attained full theoretical status. Our aim in this article is to contribute to a theory of stakeholder identification and salience based on stakeholders possessing one or more of three relationship attributes: power, legitimacy, and urgency. By combining these attributes, we generate a typology of stakeholders, propositions concerning their salience to managers of the firm, and research and management implications.
Compared to many other industries, construction is a specific type of project industry with certain peculiarities
influencing the characteristics of constructed products, ways of production, and the industry itself. Previously three major peculiarities of production in construction have been discussed, i.e. site production (i.e. organising the production around the product dependent on outdoor conditions), temporary production organisation (e.g. fragmented supply chain), and one-of-a kind product (e.g. design-to-order project-based production). Many times, particularly within the realms of lean construction, the basic hypothesis has been that these peculiarities lead to variability and thus to waste, and low performance levels in terms of productivity and value delivery to clients. Inversely, lean construction should be aimed at the banning of waste, thus reduction of variability, and thus the reduction or even resolution of peculiarities.
In this paper, the peculiarities of production in construction are discussed and whether they always cause problems, whether they are always leading to waste, and whether they always can and need to be reduced or resolved. Some examples of solutions resolving or reducing certain peculiarities are given, such as modular housing, pre-engineered buildings and off-site production. Based on the examples, the effects and costs of reduction and resolution of peculiarities are discussed.
To conclude it is discussed whether construction must and can always be improved by resolving the peculiarities, and at what cost. It is concluded that peculiarities should be resolved when they are not needed. However, before to decide to do so, the additional costs or even the potential value loss that may be caused by peculiarities must always be related to the whole life costs and value of the object
built, and the extra costs and efforts for resolving the peculiarities. Finally, issues for future research are given.
The purpose of this chapter is to outline the development of the idea of "stakeholder management" as it has come to be applied in strategic management. We begin by developing a brief history of the concept. We then suggest that traditionally the stakeholder approach to strategic management has several related characteristics that serve as distinguishing features. We review recent work on stakeholder theory and suggest how stakeholder management has affected the practice of management. We end by suggesting further research questions.
Following several studies investigating the causes of construction rework among some projects in the Swedish construction industry, we conducted this study in cooperation with R&D West, a group of construction companies in Sweden, to measure the costs of rework in construction projects. Rework has become an endemic feature of the procurement process in construction that invariably leads to time and cost overruns in projects. Thus, in order to improve the performance of projects, it is necessary to identify the causes and costs of construction rework. The research presented in this paper identifies, analyzes, and discusses the causes, magnitudes, and costs of rework experienced in seven Swedish construction projects. The findings revealed that the costs of rework for the case study projects were 4.4% of the construction values of the observation period, and the time needed to correct them was 7.1% of the total work time. The construction errors that generated rework were further analyzed according to their origins, types, and positions, causes of construction rework were identified and discussed, and preventive actions were suggested.
Material waste has been recognized as a major problem in the construction industry that has important implications both for the efficiency industry and for the environmental impact of construction projects. Moreover, waste measurement plays an important role in the management of production systems since it is an effective way to assess their performance, allowing areas of potential improvement to be pointed out. This paper describes the main results of two research studies carried out in Brazil that investigated the occurrence of material waste at 74 building sites located in different regions of that country. Some typical figures for the waste of some key construction materials are provided, and the main causes of waste in the sector are discussed. The results indicate that the waste of materials in the Brazilian building industry is fairly high and that a large variability in waste incidence is found across different projects. Most of this waste can be avoided by implementing inexpensive preventive measures, mostly related to managerial improvements.
The Occupational Safety and Health Administration (OSHA) investigates most worker-related fatalities and many accidents involving serious injuries. A research study was conducted that focused on the data OSHA accumulated on construction worker accidents involving falls. In the construction industry, falls are the most frequently occurring types of accidents resulting in fatalities. The purpose of the study was to identify the root causes of fall accidents and to identify any additional information that might be helpful in reducing the incidence of construction worker falls in the future. While data from January 1990 through October 2001 were examined, particular emphasis was placed on fall accidents that occurred in the last 5 years of this time interval, a period when more data were accumulated and coded in the OSHA investigation reports. Results show that most fall accidents take place at elevations of less than 9.15 m (30 ft), occurring primarily on new construction projects of commercial buildings and residential projects of relatively low construction cost. Furthermore, experience does not seem to diminish accident occurrence; hazards are often misjudged by workers; and various other patterns can also be observed. Most alarming, the results show that fall accidents account for a growing proportion of the total number of construction worker fatalities.
The layout of a construction site plays a major role in the safety and productivity of operations, particularly when site space is restricted. As construction evolves, however, the site layout may need to be dynamically reorganized at various schedule intervals to accommodate operational needs. As opposed to considering only productivity issues during site planning, this paper presents a layout planning approach that considers both safety and productivity. First, safety issues on construction sites are discussed and the factors that contribute to unsafe sites are outlined. A procedure for optimum layout of temporary facilities is then developed in integration with a scheduling tool. Four aspects are considered during site-layout planning: 1 defining the safety-related temporary facilities needed on construction sites; 2 defining proper safety zones around the construction space; 3 considering safety in determining the optimum placement of temporary facilities on the site; and 4 utilizing parts of the constructed space as temporary facilities to relieve congestion on restricted sites. A case study is presented on a prototype system to demonstrate the benefits of the proposed approach.
In this paper, we review previous radio frequency (RF)-related research in construction and further evaluate the pros and cons of several RF-based technologies including GPS, RFID, and Bluetooth. Particularly, we show the limitations of applying GPS for tracking construction vehicles in a highly dense urban area by conducting extensive field tests in Hong Kong. We then propose a continuous, all-location, real-time solution for tracking, positioning construction vehicles by integrating GPS with the vehicle navigation technology called “dead reckoning” (DR). DR automatically supplants GPS when GPS signals become unavailable or unreliable. To automatically calibrate positioning errors resulting from DR, road-side beacons can be placed at control points with well-defined coordinates. The beacon operates on the Bluetooth for establishing communication links with the in-vehicle navigation unit. In addition, the real-time location and status of a construction vehicle can be transmitted to the control center by the use of short message service over mobile phone networks. In the context of monitoring ready mixed concrete production and delivery processes on and off building sites situated within the urban environment of Hong Kong, we conducted extensive field trials of the vehicle navigation technologies for 12 months in 2005/06. The integrated vehicle tracking system is found reliable and accurate for recording key event times of the mixer truck under practical site conditions.
Construction projects attract interest from various stakeholders who express needs and expectations about the project. These are often in conflict with each other and it is unlikely that all of them can be fulfilled. The stakeholder management process involves evaluating the needs and expectations of stakeholders in relation to the main objectives of the project. An important basis for this evaluation is stakeholder analysis. The approach is based upon established theory, knowledge of stakeholder management and empirical data. The analysis consists of a stakeholder impact index to determine the nature and impact of stakeholder influence, the probability of stakeholders exercising their influence and each stakeholder's position in relation to the project—are they proponents or opponents? The analysis of the stakeholder impact index can help project managers to formalize a stakeholder management process.
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