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The challenges of adopting new engineering contract: a Hong Kong study
Abstract
Purpose
Project delays and cost over-runs are few common major problems arising from conventional contracts. To overcome these issues, the Hong Kong Government has been practicing the use of the New Engineering Contract (NEC) forms in several public works projects. However, despite the successful outcomes and the positive signs of adopting NEC, it appears that NEC forms of contracts are not widely adopted in the Hong Kong construction industry even after 25 years of their first introduction. The purpose of this paper is to identify the challenges and barriers for not implementing NEC widely in Hong Kong.
Design/methodology/approach
Based on a questionnaire survey data collected from 45 senior industry professionals, and six semi-structured interviews, the study evaluated the perceptions of construction professionals as to why NEC is still not popular in the industry and reported the relative importance of challenges in the implementation of NEC in Hong Kong.
Findings
The results reveal that “People are not willing to change,” “Limited number of trained professionals” and “Insufficient case law and adjudication experience” are the most significant challenges and barriers in adopting NEC. These findings are also supported by the opinions of construction professionals through semi-structured interviews.
Practical implications
The findings are relevant and would benefit to the industry stakeholders for adopting NEC contracts by informing them of the most significant challenges so that proper strategies may be devised to overcoming them for early contractors’ involvement, controlling cost and time overruns in infrastructure projects.
Originality/value
The empirical evidence of the study provides an insight into the challenges faced by the construction industry of Hong Kong. NEC form of contract is the way forward in order to create a better working environment conducive for all the parties that would result in better construction project performance and productivity.
... Such a well-known level of concern and subsequent innovation regarding this matter in the United Kingdom led to various options for standardised procurement models for engineering and construction projects being created and disseminated. This is also the case in developed countries, i.e., Hong Kong [2], New Zealand [3], United Arab Emirates [4], South Africa [5] and many more countries where due importance is given to the procurement process. ...
... Mutual trust is also a determining factor in the contractual management of successful infrastructure projects; this is the basic quality of the collaborative philosophy under which the standardised contracting models were designed, which seek to propose collaborative environments between all levels of the project [19]. Although mutual trust and collaboration may appear easily achievable in theory, they both rely on a major overall change in the philosophy of the conservative and bureaucratic mindsets [2]. ...
... Examines the procurement strategy on an infrastructure project in South Africa to determine its influence on outcomes. Lau et al. [2] 2019 Interviews Locates the challenges and barriers to NEC implementation in Hong Kong. ...
The modern civil engineering and construction sector requires collaborative work environments, learning and trust among all parties involved, qualities that are absent in the Peruvian reality. This study, which is based on an extensive literature review, investigates this challenge. The study reflects upon (i) the current situation of public works procurement in Peru and (ii) the New Engineering Contract (NEC), which has recently been implemented in Peruvian Special Public Infrastructure Projects. Comparisons are presented between the characteristics, documentation and roles of these two systems, with the purpose of understanding and representing the advantages, disadvantages and possibilities of integrating the good contractual management practices of the NEC4 Engineering and Construction Contract into the traditional Peruvian State Contracting Law (Ley de Contrataciones del Estado: LCE). The research is validated through the case study of a high-impact road infrastructure project in the city of Arequipa, Peru, which revealed five main deficiencies from Peruvian procurement processes which hinder good contractual management and, also, facilitated an initial assessment of the challenges and improvement opportunities in public infrastructure procurement. Thus, a contribution is made to closing the knowledge gap regarding the implementation of the NEC4 ECC in public sector works.
... Over the years, the level of distrust between parties in construction projects has globally increased, making it difficult to resolve disputes between parties and making it necessary to implement a collaborative work philosophy and culture [4][5][6][7]. As a result of the challenges that arise from this, many within the modern civil engineering and construction sector have argued for greater collaborative working, learning and trust environments between all parties involved [8][9][10]. ...
... Lau, et al. [6] 2019 Interviews Locates the challenges and barriers to NEC implementation in Hong Kong. ...
... On the other side, the recent publication of the National Sustainable Infrastructure Plan for Competitiveness [39] highlighted that there is still no standard contract model for projects developed under the Public Private Partnership modality in Peru, despite this being a key objective of the PNIC [35] which, in turn, identified the importance of the Project Management Office and the contract execution unit NEC3 for the success of the PEJP in 2019. Indeed, these models should have been 6 precedents for the improvement of the pro-forma of the public works tendering and execution contract in Peru. ...
The modern civil engineering and construction sector requires collaborative work environments, learning and trust among all parties involved, qualities that are absent in the Peruvian reality. This research, which is based on an extensive literature review, investigates this challenge. The study reflects upon (i) the current situation of public works procurement in Peru and (ii) the New Engineering Contract (NEC). Comparisons are presented between the characteristics, documentation and roles of these two systems, with the purpose of understanding and representing the advantages, disadvantages and possibilities of integrating tools of NEC4 Engineering and Construction Contract to the Peruvian State Contracting Law (Ley de Contrataciones del Estado: LCE). The research is validated through the case study of a high impact road infrastructure project in the city of Arequipa, Peru; which revealed five main negative impacts on good contractual management and, also, facilitated an initial assessment of challenges and improvement opportunities in public infrastructure procurement. Thus, contribution is made to closing the knowledge gap regarding the implementation of NEC4 ECC in public sector works.
... To achieve the goal of the study, this study has adopted a mixed methods approach featuring a literature review, semi-structured interviews and a questionnaire survey. Previous researchers have adopted and highlighted the drivers of using a mixed methods research design in the construction engineering and management field (Lau et al., 2019). This approach is adopted to qualitatively understand complex phenomena and to quantitatively explain the phenomena through numbers, charts and basic statistical analyses (Morse, 2016;Zou et al., 2014). ...
... This approach entails commencing with the collection and analysis of qualitative data, and subsequently proceeding with the collection and analysis of quantitative data to interpret the findings (Morse, 2016). Previous researchers have adopted and highlighted the enablers of using a mixed methods research design in the construction engineering and management field (Lau et al., 2019). This approach is adopted to qualitatively understand complex phenomena and to quantitatively explain the phenomena through numbers, charts and basic statistical analyses (Morse, 2016;Zou et al., 2014). ...
Offsite construction is a major approach to promote industrialisation in construction. However, implementation of prevailing industrial solutions is often less adequate and unsatisfactory, especially in renovation projects. Thus, the overall objective of this study is to understand the reasons behind the poor performance in implementation of the industrial solutions. The specific objectives include identifying the prominent barriers and enablers of prefabricated products in renovation projects. This study employed exploratory sequential mixed method. The qualitative data were gathered via semi-structured interviews to collect experiences and perception of experts related to industrial solutions. This was followed by quantitative data collection via questionnaire survey using a seven-point Likert scale. The major barriers and enablers of industrial solutions in renovation projects have been ranked in this study. The findings reveal that immutability of heritage buildings, the tolerances of old buildings and insufficient spaces to ensure construction work ranked the top three barriers for implementing industrial solutions in renovation projects. Moreover, the study identifies the most significant enablers including shorter project schedules, quality improvement and work safety improvement. The novelty of the research lies in the comprehensive presentation of the barriers and enablers of industrial solutions in the renovation project context. Policymakers, designers, and contractors can utilize these findings as guiding principles to enhance decision-making processes and create viable solutions for the obstacles encountered in renovation projects. This study further represents a vital step towards the efficient and effective implementation of industrial solutions in renovation projects, resulting in more sustainable and cost-effective outcomes. CITATION Chauhan K, Peltokorpi A, Lavikka R and Seppänen O (2024) Exploring the barriers and enablers of industrial solutions in renovation projects: a mixed-methods study in the finnish AEC industry.
... FIDIC 1999 offers a structured contract termination process, outlining specific grounds for termination, such as failure to perform obligations, prolonged work suspension, or contractor insolvency. Termination is formal, requiring written notice and adherence to procedures, ensuring clarity and protection of both parties' interests (Heaphy, 2013;Tembo-Silungwe & Khatleli, 2017) whereas NEC 3 promotes collaborative contract management, encouraging parties to resolve issues collaboratively before resorting to termination, fostering mutual trust and cooperation (Lau et al., 2019). The 1999 edition of FIDIC's Red Book is widely recognized as the most widely used standard-form construction contract in international projects, demonstrating its widespread acceptance among international organizations and governments (Tanriverdi et al., 2021). ...
... The 1999 edition of FIDIC's Red Book is widely recognized as the most widely used standard-form construction contract in international projects, demonstrating its widespread acceptance among international organizations and governments (Tanriverdi et al., 2021). On the other hand, NEC contracts, particularly NEC3, have gained traction in various regions, including the UK, Hong Kong, and South Africa, where they have been effectively applied in public works projects (Lau et al., 2019). FIDIC 1999 and NEC3 have been chosen for this paper due to their global prominence in the construction industry. ...
... The JCT suite of contracts, which has been very widely used in the UK construction industry, now faces stiff competition as many employers, including government departments and funding agencies, push for the adoption of the NEC alternatives (Besaiso et al. 2018). Yet sections of the construction industry, which is largely characterized by its adversarial nature, continue to resist the adoption of the NEC suite which promotes collaborative approaches to contract administration (Lau et al. 2019). Although studies have been undertaken to compare various provisions in standard forms of contracts (e.g., Besaiso et al. 2018;Burr et al. 2021;Lane and Pickavance 2015), to the best of authors' knowledge there has been no research published detailing a comparative analysis of the delay mechanisms in the JCT and NEC SFCs situated in an empirical case study context. ...
... A collaborative environment therefore assists the parties to communicate and thereby foster innovation in these projects. The collaborative nature of NEC contracts has been recognized in previous studies, with Broome (2012) and Lau et al. (2019) identifying the need for parties to act in the spirit of mutual trust and collaboration in NEC-adopted projects. This non-adversarial approach has been found to foster better working relationships, thus minimizing potential disputes in construction projects (Besaiso et al. 2018). ...
Many construction projects are delayed due to a range of factors, including the unique spatial and environmental context of every construction site, the challenges of maintaining quality, and the timing of decision making around design. In consequence, construction contracts include mechanisms to accommodate delay while maintaining enforceability. Different standard forms of contract (SFC) adopt different approaches to managing delay and lack consistency in accommodating delays of the same nature. This study selects two SFCs commonly used in UK construction projects, new engineering contract (NEC) and joint contracts tribunal (JCT) suites, and proposes a common approach to managing delays, focusing particularly on the handling of the compensation event (CE) and relevant event (RE) mechanisms in those respective contracts. Using a qualitative methodology, a multi-case study analysis was conducted comprising four general contractors utilizing JCT and NEC SFCs. The case studies enabled the analytic comparison of delay-caused challenges as between different projects delivered using different SFCs. The findings reveal that while on JCT-based projects general contractors have typically suffered cash flow and programming issues caused by employer failures to adhere to contractual time scales for assessing requests for extensions of time, on NEC-based projects general contractors have suffered CE-related issues associated with programming and administration. Further findings were that the common challenges of both CE and RE management processes were high volume, assessment and time scales of claims, as well as timing and collaboration. Developing from these findings, recommendations are made for additional clauses to be added to SFCs to achieve a consistent approach toward construction delays. Practical Applications: By examining delay management under two widely used standard forms of contract in the UK-the new engineering contract (NEC) and the joint contract tribunal (JCT) suites-this research not only identifies specific implementation challenges inherent in these contracts but also offers recommendations on how to address such challenges. Contractors using JCT contracts often face cash flow and scheduling issues due to employer delays in assessing extension of time requests, while those using NEC contracts encounter complexities with compensation events. To address these issues, the study proposes incorporation of additional clauses in contracts to standardize delay management, which can significantly enhance project outcomes. Furthermore, the research underscores the importance of collaborative contract management practices, particularly in NEC contracts, to mitigate delay-related challenges and promote timely project completion. These findings are crucial for industry professionals seeking to improve project efficiency, minimize disputes, and achieve successful project delivery. By adopting the recommended strategies, practitioners can enhance their approach to managing delays, ensuring smoother and more predictable project execution in the healthcare construction sector. The Institution of Civil Engineers and the Joint Contracts Tribunal, both responsible for publishing these contracts, and other institutions with similar provisions are also likely to find these recommendations useful when revising their contract documents.
... The mixed research methods allow interrogation and triangulation of both quantitative and qualitative data (Zou et al., 2014). Previous researchers also adopted and highlighted the benefits of using mixed methods research design in the construction engineering and management field (Lau et al., 2019). Triangulation, simultaneously using multiple research methods is a valuable strategy in the research process, as mix methods will complement the strengths and weaknesses of other methods (see Table 4). ...
... To ensure a high response rate, phone calls and e-mail reminders were made to remind respondents of the due date. Finally, 55 responses were received which is considered enough for an exploratory study of a limited phenomenon (in this case the use of industrialized construction) (Lau et al., 2019). It should be noted that this figure has already been relatively high compared to other studies carried out in the construction field (Hwang et al., 2018). ...
Offsite construction has been considered by academics and practitioners in many countries as an efficient way of delivering buildings. The benefits concerning time, cost and quality are well-documented. Even though the use of this technique provides many significant advantages, the current level of using these techniques in the French construction industry is limited. In addition, research studies that investigate this topic in France are rare. For these reasons, this study aims to fill the gap by first, explore the definition of construction industrialization in the French construction context and second, investigate the perceived benefits and hindrances of prefabrication's applications. A questionnaire survey was conducted in order to target the main construction industry players: manufacturers, contractors, designers and consultants. More than 55 questionnaires were completed and returned. The results indicated that advantages of using these techniques include improving productivity, minimizing construction time, improving quality, reducing waste and openness to industrialization and automation of construction. The top four hindrances were requirement of a long coordination work between the design office and the pre-manufacturer before starting production, inability to block the design early enough to start production at the factory, key decisions already taken exclude the prefabrication approach and the obligation to accept the lowest cost.
... Historically, housing in the UK has been delivered predominantly as site-based construction with evolving supporting standard contracts (Lupton et al., 2019). Lau et al. (2019) recognise that the developing complexity of construction schemes has considerable influence on procurement arrangements and forms of construction contracts. However, in their study of the challenges to the adoption of the new engineering contract in Hong Kong, the researchers discovered that resistance to change was ranked first overall and first also by clients. ...
... Developers and construction companies as key stakeholders in the housing sector were identified as being resistant to change. Lau et al. (2019) recognized clients' reluctance to change. The limited number of OSM suppliers was highlighted. ...
Purpose
The purpose of this study is to gain insight into procurement routes and forms of contract used for volumetric offsite manufacturing (VOSM) in the housing sector of the UK West Midlands. Seminal literature and government reports have established the potential of offsite technologies to improve the supply of quality housing in the UK. However, the lack of a structured procurement route, common to manufacturing approaches in construction, has significantly contributed to delays in large scale adoption.
Design/methodology/approach
To achieve the research intention, an exploratory study was undertaken. A literature review of seminal literature and government papers was conducted to establish and benchmark current trends in context. Data was collected using focus groups and interviews with a housing association and housing VOSMs. Grounded theory was used to analyse data and inductively generate themes leading to an original procurement model. The issues identified in the delivery of volumetric housing were categorised into three themes.
Findings
The findings suggest a limited familiarity with offsite manufacturing (OSM) by housing providers. Albeit, a willingness to adopt these technologies to deliver housing were demonstrated by trial attempts. However, due to limited knowledge, the approach to procurement is by adapting existing procurement models, which are not ideal and obstruct the potential benefits of using offsite technologies primarily because of the significant difference in processes. Also, geographical location influenced procurement decisions when comparing cost with conventional procurement and the dearth of specific government incentives to deliver housing using offsite technologies. This study proposes a procurement model for VOSM.
Practical implications
The results have implications for decisions about procurement routes and contractual terms used by housing providers delivering volumetric offsite manufactured housing at scale. Although this study focussed on the West Midlands region, most of the issues identified were not geographically unique.
Originality/value
This study contributes to the existing body of knowledge on potential barriers to the adoption of OSM in the housing sector of the UK. The findings will be of value to stakeholders involved in delivering housing and offers a useful contextual basis for future research.
... The research study revealed that the standard forms of construction contracts could be a tool to minimise disputes, but certainly not to eradicate them, and NEC appeared to be more capable than FIDIC to do so. Lau et al. (2019Lau et al. ( , p. 2395) stated that although there are several benefits of adopting NEC, they identified the challenges and barriers for adopting NEC in Hong Kong. The results revealed that "People are not willing to change", "A limited number of trained professionals" and "Insufficient case law and adjudication experience" were the most significant challenges and barriers in adopting NEC. ...
The research investigated the determinants of maintenance of hospital buildings.
... This relatively low response rate can be primarily attributed to the current engineering environment in Hong Kong. Conventional fragmented project delivery methods with segregated organizational hierarchies remain prevalent in the industry (Lau et al., 2019). This is evident from the feedback from several professionals who reported being unable to participate in the study, citing no practice of empowerment in the projects in which they had recently been involved. ...
This study examines the conditions for enhancing the psychological empowerment of a development project team. Drawing on the social exchange theory and the literature on empowerment, we conceptualize two forms of empowerment antecedents: directive and facilitative. We analysed project-specific data on empowering practices and project performance using structural equation modelling. We found that both directive and facilitative antecedents psychologically empowered the project team. Furthermore, team diversity and participative employers moderate the effect of psychological empowerment on substantive project performance but not on innovation development. Financial incentives strengthen the facilitative antecedent-psychological empowerment relationship. This study contributes to project management literature by introducing project team-oriented empowerment antecedents and validating the conditions that affect psychological empowerment. In practice, while employers are instrumental in crystallising project goals and responsibilities, a psychologically empowered team should have the autonomy to determine the best way to develop innovations.
... Lau, et al. [27] Identifies the challenges that hinder the widespread implementation of NEC in Hong Kong. ...
Over the years, the construction sector has used traditional methodologies that often fail to meet established budgets and deadlines, making it imperative to adopt collaborative methodologies such as IPD and BIM. This research evaluates the influence of these methodologies in the design stage of residential buildings, through a case study in Peru managed by an SME. The methodology is divided into three parts: first, a diagnosis of traditional management is carried out through documentary review and semi-structured interviews; second, a proposal for improvement is proposed using tools based on BIM and IPD; third, the proposal is validated through statistical analysis and a validation matrix. Nine typical management problems were identified, such as deficiencies in plans, measurements and budgets, and delays due to inadequate planning. Eight optimization tools are suggested, such as the NEC4 ECC Collaborative Contract, ECD, Revit, Navisworks, early integration of the contractor, ICE Sessions, 3D, 4D and 5D BIM models. The 3D model showed 0.48 interferences per m², the 4D model allowed monitoring the progress of the project, and the 5D model allowed a cost optimization of 4.73%. The profitability analysis showed a return on investment of S/ 3.42 per “sol” invested. The validation of the optimization was demonstrated by the Z Test. The validation matrix highlighted the NEC4 ECC Collaborative Contract and the 3D BIM Model as the most effective tools. In this way, the study contributes to closing the knowledge gap regarding the implementation of BIM and IPD to optimize the management of residential buildings.
... Regarding the distribution of risks in NECs, this model arises from the recommendations made by the Institution of Civil Engineers of the United Kingdom, with the aim of changing the traditional forms of contracting in construction and related areas, which focused on the rights and obligations of the parties, creating a model that would promote proper project management [35]. NECs were conceived with the construction of infrastructure projects in mind, but they are also applicable to other contractual objects, such as, for example, the contracting of goods and services related to the construction industry [36]. ...
Public–private partnerships (PPPs) are contractual schemes that have relative success in Latin America due to their configuration, where the spirit of the contract lies in an appropriate distribution of risks. This is both the most important and fundamental aspect of this contractual scheme but also the most complex, as it is the main cause of contract modifications (addenda) in countries across the region. In this context, different concessionary contractual frameworks for PPPs on the national road network of Peru were evaluated, revealing common failure indicators that lead to contract modifications within the first six years of the concession. This study offers the development of a management model that includes the good practices of contractual management of NEC4 Option F and the application of BIM information management processes, optimizing the management of infrastructure through emerging technologies of information management supported by agile contractual schemes.
... The works contract form drafts ÖNORM B 2203-1:2022 for conventional tunnelling and B 2203-2:2022 for mechanised tunnelling developed by the Austrian Standards Institute adopt the general risk allocation of ÖNORM 2110 [52] and provide a detailed mechanism for adjusting reimbursement and construction periods in accordance with the actual ground conditions within a given set of parameters of subsurface physical conditions [42]. Further, the ÖNORM B 2203 contract models contain supplementary regulations based on Austrian national law, hardly making their application in international construction projects an option [21]. Additional challenges arise in coordinating international project partners, primarily if the construction services or building components are supplied from other countries. ...
This paper explores how the ÖNORM B 2203-1 model can complement the FIDIC Emerald Book contracts in conventional tunnel construction projects, specifically focusing on cooperation, project management, reimbursement, and dispute resolution. The complex technical nature of such projects requires collaborative stakeholder engagement, efficient project management, and effective dispute resolution mechanisms. This article enhances the current body of literature by undertaking a qualitative comparative analysis of the FIDIC Emerald Book and the ÖNORM B 2203-1 model within the specific context of conventional tunnel construction projects. The findings demonstrate that specific areas in the FIDIC Emerald Book exist where supplementary guidance is required. Compared to the FIDIC Emerald Book, the ÖNORM model offers a more extensive range of project management aspects, reimbursement guidelines, dispute resolution provisions, and comprehensive technical specifications, all supported by contractual provisions. The major limitation of this study is its focus on a literature review. Thus, including the qualitative analysis in an actual project and applying the study results would be advantageous for verifying the findings.
... The mixed research methods allow interrogation and triangulation of both quantitative and qualitative data (Zou et al., 2014). Previous researchers also adopted and highlighted the benefits of using mixed methods research design in the construction engineering and management field (Lau et al., 2019). Triangulation, simultaneously using multiple research methods is a valuable strategy in the research process, as mix methods will complement the strengths and weaknesses of other methods. ...
Offsite construction is considered as a possible solution for addressing time, quality and cost concerns associated with traditional construction method. Successful implementation of these methods on a particular project requires systematic analysis and early decision making based on specific factors of the project. There is a lack of an efficient systematic approach that can match the changing needs, deal with the growing complexity of building projects and take into consideration recently developed innovations, technologies and regulations. The objective of this study is the development of an early-phase decision tool to support construction project teams in selecting construction methods. This paper proposes a multi-level decision framework. The first level conducts a feasibility study and evaluates the applicability of offsite construction. The second level proposes an integrated approach for the decision-making problem that combines the Analytical Hierarchy Process (AHP) and the Preference Ranking Organization Method for Enrichment Evaluations (PROMETHEE). The combination of both approaches enables a careful evaluation of different construction methods and scenarios for the same project. A computerized tool is developed and tested on a case study to help a project team in the decision-making process.
... In practice, traditional contracts are regarded to include more clarity issues compared to standard contract forms such as FIDIC or NEC [29]. Therefore, standard contract forms have been frequently used in the construction industry to reduce clarity and readability problems [30]. However, while adopting standard contract forms, various modifications in some clauses are made by clients to satisfy requirements of the projects [22]. ...
Issues related to readability risks in contracts could exacerbate conflict, claim and dispute occurrences in construction projects. Determination of root causes of readability risks by defining casual relationships in construction contracts is essential to improve contract documentation and enable successful risk management. This paper aims to differentiate net causes from net effect factors of readability risks in construction contracts. Most significant readability risks in construction contracts were analyzed using fuzzy decision-making trial and evaluation laboratory (DEMATEL) method, which is known for its wide implementation in similar problems. Root cause degree (RCD) diagram was drawn to illustrate the differentiation of these factors by adopting maximum mean de-entropy (MMDE) algorithm. Analysis results indicated that poor grammar use, legal terminology, visual representation, and negative language were the major underlying cause factors; while lengthy document, use of abbreviations, scope complexity, controversial uses, repetitions, and ambiguous words were the net effect factors. The results are expected to improve readability of contract documents, which would contribute to more effective risk management and better allocation of project resources.
... Kendall's coefficient of concordance W value ranges from 0 to 1, with 1 indicating total agreement, 0 indicating no agreement, and 0.05 indicating general agreement within the group on the ranking of specified variables [100]. An acceptable agreement is found among a group of respondents if the Kendall's coefficient of concordance W value is significant at the level of 0.05 [101]. The results of the Kendall's concordance analysis revealed a W value of 0.147 and a significance level of less than 0.001 for the rankings of the 35 FWS selection criteria among all respondents. ...
The formwork system (FWS) in reinforced concrete (RC) construction is a critical component. The appropriate FWS is selected based on a number of conflicting and compromising criteria, and the selection of the FWS is carried out by construction professionals with different technical and/or administrative backgrounds. The perspectives and perceptions of construction professionals and companies involved in the FWS selection process may vary depending on their motives. In addition, some building structural parameters may have a significant impact on the FWS selection criteria. Most of the former studies investigated the FWS selection criteria from only the perspective of contractors and neglected the potential differences in the perspectives and perceptions of different construction professionals (i.e., owners (CO), project managers (PM), construction managers (CM), site engineers (SE), planning engineers (PL), procurement engineers (PR), technical office engineers (TO), and formwork design and/or formwork sales engineers (FD/FSL)) and companies specialized in different fields (i.e., project management service (PMS), engineering and design (ENG/DSG), formwork and scaffolding (FW/SCF), and general and/or subcontractor (GC/SC)) regarding this issue. Moreover, the impact of building structural parameters on the FWS selection criteria has not been investigated. This study aims to fill this knowledge gap through analysing the FWS selection criteria for building construction projects while comparing the perspectives and perceptions of different groups of construction professionals and companies and investigating how FWS selection criteria are affected by the building structural parameters. Based on a comprehensive literature review, 35 FWS selection criteria were identified and a questionnaire was developed. The questionnaire data obtained from 222 Turkish construction professionals were statistically analysed using mean score analysis, the Kruskal-Wallis test, and the Mann-Whitney U test. According to the study's findings, the FD/FSL group presented significant statistical differences regarding the FWS selection criteria as compared to the CO, PM/CM/SE, and PL/PR/TO groups. Moreover, the total area of building construction and total building height significantly affected the FWS selection criteria. This study serves to underscore the perspectives of various groups of construction professionals and the critical connection between the structural parameters and FWS selection criteria. The findings of this study may guide construction professionals to select the appropriate FWS for their building construction projects.
... Features of modern elements of the contract for engineering services can be found in the works of Perry (1995). The main challenges facing the formation and implementation of the contract for engineering services in the context of business development, studied Lau et al. (2019) and Whyte and Donaldson (2015). ...
The current state of regulation of the engineering services market in the world is at the level of constant development and improvement. The formation of a system for concluding contractual relations in the field of engineering services is no exception. The imperfection of the system for concluding the contract for engineering services indicates the weak state of the current management system in the field of innovation and intellectual property in the field of doing business both in a single country and throughout the world, which necessitates revising and improving the principles of concluding contracts in the field of engineering services. The contract for engineering services appeared in the world legislation relatively recently, in science there is still no unity in understanding the nature of this contract, as well as in the terminology used to designate legal relations arising on its basis. There are different, sometimes polar, approaches to the essence, features and elements of the contract for engineering services. In addition, there is still no single mechanism for forming a contract. Given this, an important step towards improving the contract for engineering servicess in civil law will be the formation of a systematic sequence of steps using the IDEF0 functional model. In this regard, the main goal of the article is to form the basic principles of consistency and algorithmization of the process of concluding the contract for engineering servicess on the basis of a functional model IDEF0.
... Table 2 shows the profile of respondents about the first two categories and indicates the tests that were applied for the different characteristics in order to investigate perception differences. Nonparametric tests can be applied to small or unequal sample sizes (Degerliyurt et al. 2009;Elazzazi and Olson 2010;Kübler et al. 2005;Lau et al. 2019;Nazifi et al. 2012). ...
Projects in the architecture, engineering, and construction (AEC) industry are known for cost and time pressures that cause stress, which brings excessive workload to employees. As candidate professionals, civil engineering (CE) students often worry about the balance between work and life due to the adverse reputation of the industry in this regard. This study aimed to assess the work–life balance (WLB) perceptions of CE students and how their perceptions differ based on their demographic characteristics. To achieve these objectives, a questionnaire survey was administered in three civil engineering programs in Turkey and the US, and a total of 357 responses were collected. The results showed that statistically significant perception differences were observed in eight of the 12 questions related to WLB concepts with respect to country—more than the differences observed for any other classification of the students, such as gender or internship experience. The findings of this research highlight possible root causes of the issues by establishing clear baselines for the work and family life satisfaction-level perceptions of possible future industry professionals, thereby helping the industry identify strategies for attracting more qualified students as future employees.
... The findings indicated that there was no significant difference between private and public sector stakeholders, and client and contractors. Similar to this study, Lau et al. (2019) also found no significant perception difference between client and contractor groups while investigating challenges to adopting NEC standard contract type. However, in terms of stakeholder, perception differences were determined for three readability risks between subcontractors and other parties. ...
Readability and comprehensibility of contracts are important. A contract would be more practical and functional if the clauses can be interpreted more consistently. Therefore, an analysis of risks influencing readability of construction contracts other than the more common approach of analyzing operational risk is essential. This paper aims to assess risk factors affecting readability of contracts to avoid or minimize conflicts among project parties by adopting a fuzzy Visekriterijumska Optimizacija I Kompromisno Resenje (VIKOR) technique. Readability risks were analyzed based on conflicting potential interpretations of clauses on time, cost, and quality criteria. The results identified the top three risks as: (1) unnecessary complexity in using nouns and improper use of referents; (2) the use of abstract and ambiguous words or sentences leading to multiple interpretations; and (3) unnecessarily long sentence length. To establish consensus among experts, compare stakeholders’ perceptions, and ensure the robustness of the model, interrater agreement (IRA) analysis, Mann-Whitney U test, and sensitivity analysis were performed. The findings can help contract drafters recognize the importance of the role of readability of contracts. Improved readability can potentially lead to reduced conflicts, claims, and disputes in construction projects.
... This paper argues that the use of NEC in Hong Kong may improve collaboration among key stakeholders of the project. However, a small number of trained NEC professionals and dominant adversarial culture in the industry Jayantha et al. [28] are two main reasons behind the slow adoption of NEC. Both these issues are, however, manageable through extensive training of professionals on collaborative lines of thinking. ...
Project delays, cost overruns, and disputes are becoming a norm for the construction industry in Hong Kong. Researchers argue that the inability of traditional contracts to manage risk and associated changes are perhaps the main points of contention. The Institution of Civil Engineers published a new engineering contract (NEC), NEC4 Suite of Contracts in this to facilitate better risk management through collaborative culture in construction projects. NEC aims to increase the chances of project success thought its flexible nature of contracts, 'simple' and 'clearly written' documents and provision
for the incentive by adopting a better management approach. This paper focuses on traditional and NEC contracts to compare risk management and change management aspects. Through literature review and preliminary interviews with three industry professionals, the paper is exploring how a change in traditional contracts can recuperate from disaster. Our interviewees in this work have extensive experience in traditional as well as in NEC contracts. The results suggest a proactive risk management provisions in NEC contracts does make a difference to avoid later escalation of issues. Whereas, management of change helps streamline all identified issues through a structured process without going
in mediation or litigation. NEC, with its new approach to collaborative working, allows partners to be vigilant, yet gratifying in the project process.
... These are issues more likely to affect building works in emerging economies than in Western countries (where the literature has focused on shortcomings in planning and an underestimation of the risks in the design phase). Nevertheless, studies conducted in the Far East have also pointed to the role of contractual commitments and the need to avoid litigations between owners and contractors as crucial factors influencing the expected time to complete a development [36]. ...
Cost and time overruns in public mega-projects have been widely studied and considered as interdependent factors in the literature on project management and the public economy. On the other hand, small-scale projects for public works (costing under €100 million) are far more common and contribute to transforming cities and territories even more than mega-projects. Is the development of these kinds of projects affected in the same way by overrun issues? Do cost and time overruns always go hand in hand? The present contribution tries to answer these questions by means of an empirical study on a dataset of 4781 small public works planned and built in the Veneto Region (north-east Italy) from 1999 to 2018. Specifically, the analysis refers to the stage of development when the decision is made to outsource the work, that is, after the project’s design and before its construction. Our sample of data is considered both as a whole and clustered by period, cost, contractor and category of work. The results of our analysis and statistical modeling are counterintuitive, suggesting that time overruns do not depend on the cost dimension, whereas norms and regulations play a crucial part in extending the duration of public works. The threshold by law of 1 million € costs implies time-consuming procedures to verify abnormal offers in the bid, that double the average award time from 244 days to 479 days.
Construction projects often exceed budgets and deadlines, evidencing the need for collaborative methodologies such as Integrated Project Delivery (IPD) and Building Information Modeling (BIM). This research evaluates their influence on the design stage of residential buildings through a case study in Peru, managed by an SME. The methodology includes: (1) diagnosis of management through documentary review and interviews, (2) proposal of tools based on BIM and IPD, and (3) validation through statistical analysis and a validation matrix. Nine typical problems were identified, such as deficiencies in plans, measurements and budgets, and poor planning. Eight optimization tools were proposed, including NEC4 ECC contracts, Trimble Connect, Revit, Navis-works, contractor integration, ICE Sessions, 3D, 4D, and 5D BIM models. The 3D model showed 0.48 interferences per m2, the 4D facilitated the monitoring of progress, and the 5D optimized costs by 5.28%. The validation process highlighted the NEC4 ECC Contract, the integration of the contractor, and the 3D and 5D BIM models (Revit and Navisworks) as the most effective tools. This study provides evidence on the implementation of BIM and IPD to optimize the management of residential buildings.
Berdasarkan observasi lapangan yang telah dilakukan, diketahui bahwa jumlah kontraktor pada sektor konstruksi jauh lebih tinggi daripada kebanyakan sektor ekonomi lainnya. Akibat persaingan yang ketat ini, banyak perusahaan konstruksi skala kecil dan menengah di negara berkembang gulung tikar dalam lima tahun pertama pendiriannya. Di Gunungsitoli, banyak kontraktor yang gagal dalam penawaran mereka untuk mendapatkan proyek konstruksi dan sebagian besar kontraktor yang berhasil dalam penawaran mereka mengalami pembengkakan biaya, penundaan dan pengabaian proyek. Terdapat 12 faktor yang paling sesuai dan telah didokumentasikan pada penelitian ini. Penelitian ini menggunakan kuesioner dan meminta responden menilai tingkat pentingnya faktor-faktor yang mempengaruhi harga tender kontraktor. Analisis dan hasil pengolaha data menggunakan Mean Item Score (MIS) untuk menilai perspektif para profesional. Ketersediaan bahan baku, produktivitas tenaga kerja dan tingkat keuntungan adalah tiga faktor pertama yang mempengaruhi harga tender dalam pekerjaan konstruksi dengan peringkat skor rata-rata 4,62, 4,54 dan 4,5. Pengujian Chi-Kuadrat dilakukan untuk mengetahui tingkat signifikansi faktor-faktor yang mempengaruhi harga tender terhadap tingkat keberhasilan kontraktor. Hasil yang diperoleh dari penelitian ini adalah ketersediaan bahan baku, produktivitas tenaga kerja dan tingkat keuntungan merupakan faktor penentu paling besar untuk mencapai tingkat keberhasilan proyek.
In 2018, Rhondda-Cynon-Taf Borough Council initiated a project to find an innovative solution to segregate recyclable waste to meet the Welsh government’s zero-waste targets. The solution involved procurement of a state-of-the-art, highly automated recycling plant within an existing structure. Anticipating design and supply challenges, the collaborative NEC4 contract suite was adopted. This paper describes the benefits and flexibility of NEC4, especially when unanticipated challenges were encountered, as well as lessons learned.
Construction and engineering contracts are the core documents used to set out contractual relations, rights and obligations of parties, payment systems, communication lines, and dispute avoidance/resolution procedures in construction and engineering projects. Thus the importance of these documents is obvious. In this study, the Standard Bidding Document (SBD) for the Procurement of Small Works (PSWs) of the Government of Afghanistan (which’s the approximate cost is up to AFN 500 million) is chosen. It is to be compared with the Conditions of Contract for Construction—FIDIC RED BOOK—2nd Edition (2017) and New Engineering Contracts (NEC4) Engineering and Construction Contract (ECC) 4th Edition (2017). This study was conducted using different research papers, theses and books, which were relevant to the research, and by deep study of the above three mentioned types of documents of contracts. After that, the comparison of Afghanistan’s SBD for the PSWs with the FIDIC RED BOOK (2017) and NEC4—ECC (2017) in different parts with each other was carried out. After this comparison, the achieved results show that Afghanistan’s SBD for the PSWs has shortcomings, lack of some essential clauses and/or sub-clauses, insufficient information in some clauses which may lead to disputes, errors and/or mistakes in naming of some clauses, lack of flexibility, and unbalanced risk-sharing.KeywordsConstruction and engineering contractsStandard bidding documentFIDIC RED BOOK (2017)NEC4—ECCAfghanistan’s construction and engineering contract
Over the past three decades, a basket of research studies on New Engineering Contract (NEC) has been conducted in the construction management discipline. In fact, there is adequate evidence that an increasing number of client organisations have been adopting a NEC approach to undertake their building and construction projects both locally and worldwide during the last three decades. With the perceived benefits that NEC brings about, research into the Key Performance Indicators (KPIs) to evaluate the success of NEC projects in construction becomes all the more important because it can help set a benchmark for measuring the overall performance level of NEC projects. Although there are some related studies and papers on this research area, few, if any, comprehensive and systematic studies have focused on developing a comprehensive, objective, reliable and practical performance evaluation model for NEC projects. A benchmarking model has been developed in this paper using the Delphi survey technique to objectively measure the performance of the Engineering and Construction Contract (ECC) of NEC projects in Hong Kong based on a consolidated KPIs’ conceptual framework for NEC projects. Four rounds of Delphi questionnaire survey were conducted with 16 construction experts in Hong Kong and the United Kingdom. The results revealed that the top seven weighted KPIs to evaluate the success of NEC projects in Hong Kong include: (1) time performance; (2) safety performance; (3) quality performance; (4) development of mutual trust and cooperation; (5) cost performance; (6) equitable risk management mechanism; and (7) project team satisfaction. A statistically significant consensus on the top seven weighted KPIs was also obtained. Finally, a composite Project Performance Index for NEC projects (NECPPI) in Hong Kong was derived to provide an all-round assessment of NEC project performance. Different NEC projects can now be assessed on the same basis for benchmarking purposes. Construction senior executives and project managers can thus use the Index to measure, evaluate and improve the performance of their NEC projects to strive for construction excellence. Although the NECPPI was established locally in Hong Kong, the research methodology could be replicated in other parts of the world such as the United Kingdom or other European countries to produce similar indices for international comparisons. Such and extension would aid the understanding of managing NEC projects across different geographic locations.
Construction is an essential contributor for both developed and developing economies. Corruption, schedule delays, cost overruns, and erratic project performance are common few problems that face the conventional procurement process of any organization. This research focused on the weakness of current procurement practices in public construction projects in Iraq, as stated by the World Bank and Organization for Economic Cooperation and Development (OECD) reports. The methodology of this study was to collect data by conducting a thorough systematic search of existing literature. The authors used QDA Miner 4 software for coding and thematic categorization. The study found 42 variables from previous studies, and the authors distributed these variables into 12 thematic divisions representing the organization's key performance indicators (KPIs). The authors conclude that these indicators are important to introduce many frameworks for the integration of procurement process in developing countries. For future studies, there is a possibility to introduce an integrated construction and design framework to enhance organizational performance and the procurement process.
Reportedly, the application of Building Information Modelling (BIM) as a collaborative methodology for the life-cycle management of a building has numerous benefits. Nevertheless, its adoption during the operational stage remains limited, and the New Zealand (NZ) built environment is no exception. The present study offers a prioritized list of barriers that are inhibiting industry-wide adoption of BIM during the facility management (FM) phase. Both BIM and FM contexts were first thoroughly reviewed to identify the potential barriers (26), which were then refined via semi-structured interviews with qualified experts representing industry and academia. The refined barriers (20) were then prioritized through a hybrid Parsimonious Fuzzy AHP approach. Despite the leadership of the decision-makers in promoting the use of BIM in all phases of the building life cycle, the cost-related barriers (both for BIM software/hardware and training) remain the most significant. Perhaps, as a result of this, lack of expertise and unfamiliarity with BIM associated technology is among the most inhibiting barriers, which also requires utmost attention. It can be concluded that the industry stakeholders need to commit additional resources to help overcome the barriers and enable a wider application of BIM for FM. Increased application of BIM for FM will have positive implications for the future of the FM industry and digital future of the built environment, which has been a national strategy. The results are believed to identify the most crucial barriers impeding technology supported change in FM practices.
Purpose
Green walls (GWs), comprising living walls and green facades, have been touted as environmentally friendly products in architectural design. GWs can be viable in every aspect of sustainability; they provide residents of buildings with a wide range of economic, social and environmental benefits. Despite this, the adoption rate of GW is still in its infancy stage, and the existing literature concerning the hindrances inhibiting GW adoption is very limited. To address these gaps, the aim of this paper is to identify and prioritize the hindrances to GW adoption in Hong Kong.
Design/methodology/approach
After identifying 17 hindrances through an in-depth review of literature, the fuzzy Delphi method (FDM) is employed to refine the hindrances based on the local context with the help of 21 qualified experts in the field. Subsequently, Fuzzy Parsimonious Analytic Hierarchy Process (FPAHP) is exploited as a recently developed technique to prioritize the identified hindrances.
Findings
Results reveal that the most significant hindrances to the adoption of GW are maintenance cost, high installation cost, difficulties in maintenance, sophisticated implementation and inducement to fire. Findings call for scholars to address ways to improve GW installation practices and methods in order to eradicate the hindrances and provide lessons for policymakers, assisting them in facilitating the larger-scale adoption of GW.
Originality/value
Considering the dearth of studies on hindrances to the adoption of GWs, this paper provides a comprehensive outlook of the issue, providing knowledge that can be used as a building block for future scholars within the field. It also provides valuable insights for stakeholders within the construction industry about the hindrances to the adoption of GWs which could direct their efforts toward better implementation of it.
Purpose
Conflicts, claims and disputes are inherent in most construction projects. Acceptable degree of commonality in the interpretation of contract provisions is critical in effective contract administration. This study aims to assess the effects of contract ambiguity factors on construction conflicts, highlighting the causes of divergent interpretations using fuzzy technique for order of preference by the similarity-to-ideal-solution (TOPSIS) method.
Design/methodology/approach
Fuzzy TOPSIS framework with 27 ambiguity factors is constructed by conducting a comprehensive literature review, accompanied by a pilot study. Questionnaire survey is formed, and one-to-one interviews are arranged with 35 contract administration experts.
Findings
The findings indicate that (1) ambiguity due to excessive changes in the bill of quantity (BOQ) (including ambiguous provisions related to BOQ changes), (2) incomplete clauses that do not describe the scope of the intended work purely, (3) ambiguity due to excessive amendments in the scope of works (including ambiguous provisions related to scope changes), (4) ambiguous enforceability including excessive demands and (5) ambiguous goal and performance requirements are the top five ambiguity factors affecting construction conflicts.
Research limitations/implications
Presented framework is performed referring to ambiguity factors in all type of construction contracts in the general sense. However, the identified factors may vary depending on the project type, contract type, procurement method or use of standard contract forms (such as NEC, FIDIC).
Originality/value
The literature lacks the investigation of ambiguity factors in construction contracts, yet the assessment of the effects of contract ambiguity is essential to minimize conflicts.
Construction contracts, such as FIDIC model contracts, are relatively complex and cumbersome, and their composition needs to be better understood. This research uses a multi-functional approach that is widely recognized in the contract literature, and anatomizes FIDIC model contracts in order to gain a holistic and comprehensive understanding of them. Moreover, this research comparatively analyses the distribution of the three functions, namely control, coordination and adaptation, in four forms of FIDIC model contracts to explore how project delivery systems (PDSs) affect contract design. After a classification framework that includes three functions and ten subclasses was established, the FIDIC 1999 series model contracts were coded sentence by sentence using content analysis. The results show that the three functions are all non-trivially reflected in construction contracts and are influenced by project complexity. Regarding different PDSs, the complexity of contract control is relatively rigid; the complexity of contract coordination is largely influenced by PDSs; and the impact of PDSs on the complexity of adaptation provisions depends on the sub-class. The conclusions may help scholars and practitioners understand construction contracts from a functional perspective, and offer references for contract designers to reasonably consider the distribution of the three functions in construction contracts.
Like any other organization, it has become essential for the organizations in the construction industry to measure their performance effectively for long-term survival in today’s competitive business environment. Therefore, it is imperative for a construction organization to know about various performance measurement factors to evaluate its performance. However, most of the previous studies have focused on identification of factors for measuring performance at the level of projects only. Moreover, the majority of these studies have been undertaken in context to the developed construction markets. The present study addresses these gaps in the literature by identifying critical factors for examining the performance of construction firms at the organizational level. A total of 20 organizational performance attributes were identified and analyzed using a questionnaire survey conducted on 106 respondents among 90 different organizations operating in the National Capital Region (NCR) of India. It was found that attributes such as timely completion, relationship with the client, and satisfaction (in terms of both product and services) carry more weight than the cost performance of a construction organization. In addition to this, factor analysis conducted on the performance attributes of high importance has resulted in six performance factors: (1) profitability and asset management, (2) satisfaction of key stakeholders, (3) predictability of time and cost, (4) environment, health, and safety (EHS), (5) quality consciousness, and (6) low staff turnover. The performance factors obtained from the study may provide useful guidelines to the construction organizations enabling them to examine and improve their performance.
Contractual governance is considered to be one of the most effective mechanisms for promoting cooperation among construction participants. This study investigates the effects of contractual governance on contractors’ cooperation in construction projects by using samples from the Chinese construction industry. The authors, based on a functional perspective of contractual governance, dimensionalize contractual governance into control, coordination, and adaptation. The authors also distinguish between obligatory cooperation and voluntary cooperation of contractors. The empirical results show that (1) contractual control has a positive influence on obligatory cooperation and a negative influence on voluntary cooperation; (2) contractual coordination positively influences both obligatory and voluntary cooperation; and (3) contractual adaptation positively influences voluntary cooperation while having no significant impact on obligatory cooperation. Moreover, the severity of contract enforcement is found to moderate the relationship between contractual governance and contractors’ cooperation. These findings provide several implications for project owners regarding how to use a contractual governance mechanism effectively to promote cooperation from contractors.
Public-Private Partnership (PPP) projects success is the ultimate goal of practitioners and government organizations. In this regard, the last decade has seen considerable research into the critical success factors (CSFs) for PPP projects. However, a very important subject which has received very little attention in the normative literature is the success criteria for PPP projects. This paper examines the general perception of purposively sampled international PPP experts on a set of 15 PPP projects success criteria derived from literature. The survey results show that all the success criteria are critical; however seven are very critical. These include: effective risk management; meeting output specifications; reliable and quality service operations; adherence to time; satisfying the need for public facility/service; long-term relationship and partnership; and profitability. The findings of this study are impactful because they inform practitioners on the key measures to consider when evaluating the success of PPP projects. More research should be conducted to further develop a composite success index that could be used to objectively assess the success levels of different PPP projects. In addition, the perceptions of different stakeholders on PPP projects success criteria and the causal relationship between CSFs and success criteria for PPP projects should be investigated.
This article describes the development and validation of the Attitudes toward Sustainable Development scale, a quantitative 20-item scale that measures Italian university students’ attitudes toward sustainable development. A total of 484 undergraduate students completed the questionnaire. The validity and reliability of the scale was statistically tested by computing the KMO and Bartlett tests and via an exploratory factor analysis, descriptive statistics, Cronbach’s alpha, a confirmatory factor analysis and a multi-group invariance testing. The results of the principal components factor analysis show that the scale consists of the following four dimensions, with five items in each: environment, economy, society and education. The overall structure and measurement of the scale are confirmed by the confirmatory factor analysis and by the multi-group invariance testing. Internal reliability, which was found using Cronbach’s alpha, varies between .660 and .854. The results show that the instrument meets the validity and reliability criteria. To demonstrate its utility, the scale was applied to detect differences in sustainable development attitudes among students pursuing degrees in psychology and in agriculture. Relevant differences were detected for the dimensions of environment and society. The Attitudes toward Sustainable Development scale could be useful for understanding the ways in which students think about sustainability issues and could be used to investigate the relationship between sustainability attitudes and other variables.
Project delays are a conspicuous and common problem in the international construction industry of today. Investigating the reasons for delay has become an important contribution to improved construction industry performance; and has been recognised as such in many countries. This paper reports upon the findings of a questionnaire survey into the causes of delay as part of a research programme regarding the principal factors influencing construction durations of projects in Hong Kong. The questionnaire was based on 83 delay factors, which were further grouped into 8 major factor categories. A detailed analysis of the 69 completed questionnaires indicates differing perceptions between groups of clients, consultants and contractors as to the individual factors and factor categories causing delays in civil engineering projects and their relative importance. The degrees of agreement disagreement on both the individual factors and the factor categories between various groups of respondents are also determined and presented herein. The results reveal that delays can be minimised by improved planning and control throughout the project. It is also envisaged that the significant delay ('negative') factors as identified in this survey would be incorporated into developing a 'construction time' prediction model for local civil engineering works, along with 'positive' factors which are found to contribute to reduced project durations as will be determined from another survey.
Medical educators attempt to create reliable and valid tests and questionnaires in order to enhance the accuracy of their assessment and evaluations. Validity and reliability are two fundamental elements in the evaluation of a measurement instrument. Instruments can be conventional knowledge, skill or attitude tests, clinical simulations or survey questionnaires. Instruments can measure concepts, psychomotor skills or affective values. Validity is concerned with the extent to which an instrument measures what it is intended to measure. Reliability is concerned with the ability of an instrument to measure consistently.1 It should be noted that the reliability of an instrument is closely associated with its validity. An instrument cannot be valid unless it is reliable. However, the reliability of an instrument does not depend on its validity.2 It is possible to objectively measure the reliability of an instrument and in this paper we explain the meaning of Cronbach’s alpha, the most widely used objective measure of reliability.
Purpose: The success of schools fundamentally depends on teachers’ willingness to go above and beyond the call of duty, namely, to exhibit organizational citizenship behaviors (OCBs). Attempts to understand the causes of OCB frequently focus on individual characteristics; only recently have researchers begun to direct their attention to more contextual variables. The present study continues this line of research and proposes an integrative model. This allows the authors to examine simultaneously the relative impact of individual characteristics (dispositional variables of positive affectivity, negative affectivity, and teacher attitude) to perceived superior support and an organizational characteristic (of organizational values of individualism versus collectivism) on OCB at school.
Method: Data were collected from a survey of 104 teachers and their principals at eight elementary schools in northern Israel.
Results : A mixed models analysis demonstrates that perceived supervisor support and collectivism were positively related to OCB, whereas a negative relation was found between negative affectivity and OCB; no relation was found between positive affectivity and OCB. However, when these variables were examined simultaneously, the organizational variable of collectivism proved the most effective predictor of OCB.
Implications: The present results should serve to encourage OCB researchers to focus more attention on characteristics of organizational context as related to OCB. Schools are powerful suppliers of norms to their teachers, and exchange relationships that form within schools, as well as collective values, may partly determine the level of OCB in them.
The evolution of research in the area of construction engineering and management has moved toward the use of quantitative metrics and research methods for identifying and evaluating the impact of events or procedures on the construction process. While quantitative research methods can be very important for answering certain research questions, there are important reasons for adopting qualitative or mixed methodology studies to gain a better understanding of complex phenomena. This paper explores the use of observational studies and their potential use within the field of construction research. Observational studies can provide answers to "what" phenomena occurred, particularly when people are involved in a process, along with gaining insights into "why" the phenomena occurred. This paper discusses two types of observational studies, structured and unstructured, and provides a procedure for their implementation within construction research. To clearly demonstrate the methodology, a case study focused on the investigation of two different versions of an educational simulation application, the virtual construction simulator (VCS), is used to illustrate the benefits and challenges of implementing mixed methodology observational studies. The case study involved the video recording and analysis of interactions between student team members when using the VCS application for a construction sequencing task. The video recordings were analyzed, and important insights were identified, both qualitative and quantitative. Through content analysis, it was determined that the improvements made in a new version of the VCS application were beneficial, and the detailed observational studies identified insights into why the revisions in the application yielded improved results. This case study details the steps and considerations involved in planning an observational study, as well as the benefits and challenges that researchers may encounter when using observational research methodologies.
The fact that people play key roles in nearly all aspects of construction suggests that effective construction research requires proper application of social science research methods. This is particularly true for researchers studying topics that involve human actions or behavior in construction processes, such as leadership, innovation, and planning. In social science research, no single method of data collection (survey, experiment, participant observation, or unobtrusive research) is ideal. Each method has inherent strengths and weaknesses. Careful attention to the methodological ABCs of the design process, as discussed here, can enhance the validity and reliability of a given study. Combining quantitative and qualitative approaches in research design and data collection, however, should be considered whenever possible. Such mixed-methods research is more expensive than a single method approach, in terms of time, money, and energy, but improves the validity and reliability of the resulting data and strengthens causal inferences by providing the opportunity to observe data convergence or divergence in hypothesis testing.
The Likert scale is very popular, but the question as to the number of scale points is still controversial. This article studies the differences among 4-, 5-, 6-, and 11-point Likert scales with a sample of 1,217 students in Macau, using the Rosenberg Self-Esteem Scale as the measuring instrument. There is no major difference in internal structure in terms of means, standard deviations, item–item correlations, item–total correlations, Cronbach's alpha, or factor loadings. Findings indicate that having more scale points seems to reduce skewness, and the 11-point scale, ranging from 0 to 10, has the smallest kurtosis and is closest to normal. Only the 6- and 11-point scales follow normal distributions from Kolmogorov–Smirnov and Shapiro–Wilk statistics. Results on predictive validity are inconclusive. This article discusses future applications and suggests the use of an 11-point scale as it increases sensitivity and is closer to interval level of scaling and normality. Recommendations for social workers and teachers are made to better assist when using self-reported measurement scales.
Purpose
The paper aims to present a succinct review of guaranteed maximum price (GMP) and target cost contracting (TCC) concepts and features in general, and to identify the critical success factors for procuring GMP/TCC contracts from the Hong Kong perspective in particular.
Design/methodology/approach
By means of an empirical questionnaire survey geared towards industrial practitioners with direct hands‐on GMP/TCC experience, the opinions of various contracting parties including clients, consultants and contractors were solicited, analysed and compared in relation to GMP/TCC success factors.
Findings
Experienced practitioners shared the unanimous perception that: reasonable share of cost saving and fair risk allocation; partnering spirit from all contracting parties; right selection of project team; well‐defined scope of work in client's project brief and early involvement of contractor in design development, are the most essential ingredients for the successful implementation of GMP/TCC scheme.
Research limitations/implications
Although the research study is based in Hong Kong with a limited sample size, the survey findings and hands‐on experience of the relevant industrial practitioners may be cross‐referenced to other similar investigations in other parts of the world for international comparisons.
Originality/value
The research study has provided some useful insights into assisting key project stakeholders in determining important successful ingredients when launching GMP/TCC scheme. Such an identification of critical success factors would be valuable in formulating effective practical strategies to improve overall project performance, create win‐win opportunities for contracting parties and mitigate the occurrence of construction disputes/claims. It also attempts to seek more research evidence to capture the levels of success and lessons learned from previous GMP/TCC construction projects for generating best practice recommendations for future implementation.
DOI: 10.1061/(ASCE)CO.1943-7862.0000106 This research focuses on contracting firms within the construction sector. It characterizes and evaluates the composition of organizational culture using four culture types (clan, adhocracy, market, and hierarchy), the strategic approach for knowledge flow, and the success of knowledge management (KM) systems at different hierarchical levels of contracting organizations (project and parent organization level). Responses from managers of local or overseas contracting firms operating in Hong Kong were collected using a carefully constructed questionnaire survey that was distributed through electronic mail. The organizational value is analyzed in terms of the four cultural models. Clan culture is found to be the most popular at both project and organization levels, which means that the culture of contracting firms very much depends on honest communication, respect for people, trust, and cohesive relationships. On the other hand, hierarchy culture, which focuses on stability and continuity, and analysis and control, seems to be the least favored at both levels. Another significant finding was that the two main KM strategies for knowledge flow, codification and personalization, were employed at both project and organization levels in equal proportion. This indicates that successful KM efforts at both enterprise levels utilize a hybrid and balanced approach for their knowledge flow, and that they complement each other. The findings also revealed that knowledge management system success factors emphasize the support of the management level. The results show that KM is critical and beneficial as indicated by 64% at the project and 74% at the organization level. The expectation is higher for organizations as they are the organizational memories in which experiences of past projects are archived and connected. Understanding these factors and the relationships among them has been demonstrated to be critical in order to increase the chances of success or to help with making decisions when applying KM. Author name used in this publication: Patrick S. W. Fong
Using an exploratory case study approach, this paper examines an AU$375 million program alliance, which delivered 129 water infrastructure projects over a five-year period that had implemented a dedicated ‘Rework Prevention Program’. The program provided an environment that enabled collective learning to materialize throughout the project organization to produce a ‘cooperative learning alliance’. Based on the case study this paper presents empirical evidence of how coaching engendered by authentic leadership, enabled the translation from individual into collective learning to occur within a program alliance. A conceptual learning framework for program alliances derived from the empirical findings presented is proposed. It is proffered that the case study offers a learning opportunity for other organizations that are confronted with rework in their projects, particularly those adopting similar contracting strategies.
The paper consists of a high-level comparison between the NEC third edition and the Fidic (Federation Internationale des Ingenieurs-Conseils) 1999 suite of contracts. The paper covers the origins of each suite of contracts and then compares each of the individual contact forms published by the NEC and Fidic. The paper then moves on to focus on the NEC Engineering and Construction Contact and the Fidic 1999 Red and Yellow Books. The key areas of structure and format, contents of a contract document, roles and responsibilities, variations/extension of time/claims and dispute resolution are then compared and contrasted. The paper concludes with a view on the relative advantages and disadvantages of each contract form and consideration as to why each may be selected.
One perspective on construction safety practice and knowledge sees them as mutually constituted and intertwined. As such, it is important that construction safety research generates knowledge and understanding which is closely connected with safe working practices across contexts. This paper reviews the construction safety literature in order to explore the extent to which the knowledge generated by research considers the situated nature of safety learning and, therefore, addresses the needs of industry practice. The research methods adopted in 88 construction safety articles published by five highly-ranked international journals and one international conference proceedings were evaluated. The analytical results show that nearly half (43.2%) of the safety papers used quantitative methods while about a quarter (23.9%) applied qualitative methods and very few (9.1%) adopted mixed methods research. The remainder was review or conceptual papers. The implications of the research methods adopted in the 88 papers are discussed in terms of their relationship with the kinds of safety knowledge, safety learning processes, and safety management practices that they inform and/or generate. It is argued that a greater use of mixed methods research might act to better integrate the realms of theory and practice by enabling the co-production of safety theories and knowledge between university researchers and industry practitioners. The research design proposed in this paper provides a framework as a point of departure for academic researchers and industry practitioners to work together to improve construction safety performance.
This paper examines by means of a case study the effectiveness of the project and process method detailed in the NEC Engineering and Construction Contract (ECC), as developed and published by the Institute of Civil Engineers (ICE), and makes recommendations regarding its future use.The performance of the ECC with that of a conventional form of contract delivered by two separate contractors to the same employer on the same site in similar timeframes in New Zealand provided a unique opportunity for comparison. The objective was to determine if the benefits claimed by the proponents of the NEC ECC were realised, to understand the factors which need to be considered to ensure successful use of this form of contract and to understand if any changes are needed to make the contract more effective in the NZ environment. Qualitative data were gathered by way of a series of semi-structured interviews with the project management teams of the employer and with both contractors, supplemented by secondary quantitative data extracted from project records.It is concluded that use of ECC does deliver business benefits. Minor changes are recommended for alignment with NZ statutes. It is considered that the findings will be of interest to project managers for larger and complex engineering and construction projects in any country.
The multiple objectives of public clients in formulating partnerships with the private sector in infrastructure development and the radical realignment of risks, responsibilities, and awards among project participants in such partnerships necessitate a best value source selection (BVSS) methodology to choose the right private sector partner who assumes far more and much deeper risks than a mere contractor. One critical step in adopting the BVSS is to express the client's objectives in terms of best value contributing factors (BVCFs), against which alternative proposals are evaluated and consequently a sound and defensible contract award decision made. A set of 21 BVCFs in public private partnerships (PPPs) has been identified through literature review of BVCFs in different types of contracts, case studies of worldwide PPP practices, and interviews or correspondence with international PPP experts and experienced practitioners. The relative significance of these BVCFs is statistically analyzed based on a questionnaire survey of worldwide expert opinions. Results show that there is no statistical difference in the rating of these BVCFs between responses from academia and those from industry. Except for four BVCFs that are at a significance level between "fairly significant" and "significant" according to overall, academic, or industrial responses, all other BVCFs are at a significance level greater than "significant." These research outputs facilitate a BVSS process for PPPs in general.
Over the last decade, research in the construction industry has explored the owner-contractor relationship in project management resulting in a different paradigm called partnering. Partnering is a relationship characterized by cooperation and collaboration in contrast to the adversarial relationship more commonly experienced between owners and contractors. This study utilized data collected from 276 construction projects to examine the stability in the owner-contractor relationship. Owner-contractor relationships were classified as being adversarial, guarded adversarial, informal partners, or project partners. Fifty-eight percent of the projects experienced some fundamental change in working relationship - either positive or negative. Projects that began as formal partnerships were the most stable with over two thirds ending as they began. Guarded adversarial was the least stable with fewer than 30% maintaining this kind of relationship at the end of the project. Content analysis of the reasons stated for the change revealed factors that contribute to an improvement or deterioration in working relationships. The writers use this analysis to make recommendations for sustaining and improving partnerships between owner and contractors.
Different types of public-private partnerships (PPPs) have been practiced in worldwide infrastructure development with diverse results and a variety of problems have been encountered. A number of factors combine to determine the success or failure of an infrastructure project in terms of its objectives. There is an urgent need for a workable and efficient procurement protocol for improved practices in future PPP projects. As an important step toward the development of such a protocol, this study identifies, analyzes, and categorizes various critical success factors (CSFs) for PPPs in general based on a public-private win-win principle and a systematic research approach that includes case studies, literature review, and interviews/correspondence with international experts. A CSF package is developed that contains five main CSFs, each including a number of success subfactors (SSFs). Relative significances of these CSFs and SSFs are examined based on the results of a questionnaire survey of international expert opinions. Agreement analysis shows that there is a good agreement in the ranking of these CSFs and SSFs between respondents from the industrial sector and those from the academic sector.
The introduction of the New Engineering Contract (NEC) in the United Kingdom came at a time when the Royal Hong Kong Jockey Club were embarking on major contract works. This new contract provided the type of simple, flexible document ideal for our organization, which seeks to enter into co-operative joint ventures with contractors. This, however, has not been an example followed by other Employers in Hong Kong and this paper gives the author's views on the reasons for this and the prospects of a change in the future. The paper then summarises presentations by members of the Jockey Club's professional consultants and one of the Contractors at the Hong Kong NEC Conference. The Club's projects are described in detail, however, the timing of the paper in advance of completion of the two major projects prevents a final assessment of the use of NEC in Hong Kong.
This paper discusses clarity and style of drafting in construction contracts based on research carried out by the Project and Construction Management Group at the University of Birmingham into the efficacy of the New Engineering Contract. One of the three principle objectives of the NEC was the achievement of greater clarity. The first section of the paper asks whether existing conditions of contract achieve clarity, deduces that they do not and investigates why not. The second section reviews the original aims of the authors' of the New Engineering Contract (NEC), before presenting the findings of research to date on whether the contract fulfils both the needs of the construction industry and the self-stated aims of the authors of the NEC. It then briefly considers some general legal criticisms of it and the changes made to the second edition, the Engineering and Construction Contract (ECC). The paper then outlines the benefits of clarity to effective project management and concludes that while ECC is not perfect, it is a significant improvement on other forms of contract in terms of clarity.
The Government of the Hong Kong Special Administrative Region (SAR) has implemented different safety initiatives to improve the safety performance of the construction industry over the past decades. The Pay for Safety Scheme (PFSS), which is one of the effective safety measures launched by the government in 1996, has been widely adopted in the public works contracts. Both the accident rate and fatality rate of public sector projects have decreased noticeably over this period.
This paper aims to review the current state of application of PFSS in Hong Kong, and attempts to identify and analyze the perceived benefits of PFSS in construction via an industry-wide empirical questionnaire survey. A total of 145 project participants who have gained abundant hands-on experience with the PFSS construction projects were requested to complete a survey questionnaire to indicate the relative importance of those benefits identified in relation to PFSS. The perceived benefits were measured and ranked from the perspectives of the client and contractor for crosscomparison.
The survey findings suggested the most significant benefits derived from adopting PFSS were: (a) Increased safety training; (b) Enhanced safety awareness; (c) Encouragement of developing safety management system; and (d) Improved safety commitment. A wider application of PFSS should be advocated so as to achieve better safety performance within the construction industry.
It is recommended that a similar scheme to the PFSS currently adopted in Hong Kong may be developed for implementation in other regions or countries for international comparisons.
The standard form of contract plays a significant role in a construction project as it communicates the procedures to be adopted in executing the project including the determination of the rights and obligations of contracting parties. Hence, an acceptable degree of commonality in interpretation of this document by different contracting parties is a prerequisite for the smooth functioning of a construction project. The aim of this research is to ascertain whether there is a relationship between readability of contract clauses and their interpretation. Readability is concerned with the complexity of words and sentences of text and it is commonly assessed by readability formulas. The survey undertaken for this research measured the ability of construction contract clauses having different readability values to convey a common understanding to all categories of respondents in terms of the degree to which risk was apportioned between the client and the contractor. The study reveals that there is a relationship between readability and contract interpretation. When the readability of the contract document is high, there found to be a high degree of commonality in interpretation of the document by different readers.
Many construction companies have adopted partnering in their construction projects over the past 10-15 years due to favourable project outcomes achieved. Its use in construction projects has been increasing rapidly as its benefits become more apparent and pervasive. This paper reviews the partnering literature within the construction field and tries to portray the comprehensive picture of benefits for the partnering practice. Through partnering and the active involvement of all key project parties, the project is more likely to be completed within budget, on time, and with the least number of conflicts, claims and work defects. Also, this paper reports upon the findings of a questionnaire survey of partnering benefits in Hong Kong. Seventy-eight project participants completed a questionnaire to indicate the relative importance of partnering benefits. The perceived benefits were measured and ranked from the perspectives of the client, contractor and consultant for cross-comparison. The results revealed that 'Improved relationship amongst project participants', 'Improved communication amongst project participants' and 'More responsive to the short-term emergency, changing project or business needs' were the most significant benefits derived from the use of partnering. More partnering arrangements should be actively introduced into the construction procurement process so that every party can enjoy the full benefits of partnering.
This paper presents a general statistical methodology for the analysis of multivariate categorical data arising from observer reliability studies. The procedure essentially involves the construction of functions of the observed proportions which are directed at the extent to which the observers agree among themselves and the construction of test statistics for hypotheses involving these functions. Tests for interobserver bias are presented in terms of first-order marginal homogeneity and measures of interobserver agreement are developed as generalized kappa-type statistics. These procedures are illustrated with a clinical diagnosis example from the epidemiological literature.
Housing authority general conditions of contract for capital works
- Hong Kong Housing Authority
Introducing early contractor involvement in infrastructure projects, a client perspective”, master’s thesis
- S Karlenas
- C Sundstrom
Is Hong Kong ready for the NEC?
- K Keown
Constructing the Team (The Latham Report)”, Constructing Excellence
- M Latham
Tender Preparation and Administration of NEC Contracts, Evaluation of Partnering Contracts – NEC Trial in Government Projects
- Drainage Services Department
NEC in Hong Kong. NEC Users’ Group Annual Seminar 2014, Dynamic Infrastructure and Project Delivery
- Drainage Services Department