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TEHNIČKI GLASNIK 19, 2(2025), 1-8 1
ISSN 1846-6168 (Print), ISSN 1848-5588 (Online)
Original scientific paper
https://doi.org/10.31803/tg-20240829131515
Received: 2024-08-29, Accepted: 2024-11-22
The Impact of Design Team Characteristics on Construction Project Performance with the
Mediating Role of Construction Project Costs
Parisa Khorashadi Moghaddam*, Nasrin Izadian, Mehdi Haghighatjoo, Amirhossein Moghaddas Jafari, Marzieh Zahedi
Abstract: The aim of this research was to examine the impact of design team characteristics on construction project performance with the mediating role of construction project
costs. A total of 212 project managers from construction projects participated in the study. Data were collected using a questionnaire and analyzed by PLS-SEM using SMARTPLS3
software. The results indicated that design team characteristics significantly and positively influence the performance of construction projects. Design team characteristics also
have a significant and negative impact on construction project costs. The effect of construction project costs on construction project performance was found to be negative and
significant. Furthermore, the mediating role of construction project costs in the relationship between design team characteristics and construction project performance was positive
and significant. As a result, it can be inferred that the characteristics of the design team in construction projects lead to improved performance of these projects by reducing
construction project costs.
Keywords: construction project costs; construction project performance; design team characteristics
1 INTRODUCTION
The construction industry, recognized for its complexity
within project-oriented industries, has been the subject of
extensive study by researchers in project management. This
industry significantly contributes to development and the
attainment of societal objectives. The construction industry
represents a significant portion of the economy, accounting
for around 10% of the gross national product in developed
nations. This industry is characterized by its complexity, as
it encompasses a variety of participants such as clients,
contractors, consultants, stakeholders, and regulatory bodies.
Additionally, the effectiveness of the construction sector is
closely linked to the overall performance of the national
economy. According to Yan [1], the contribution of the
construction sector to the economy varies significantly, with
advanced economies experiencing an added value between 7
and 10 percent, while developing nations see a contribution
ranging from 3 to 6 percent. These figures highlight the
crucial economic significance of the construction industry
and its essential role in the growth and advancement of
countries worldwide [2, 3]. Hence, enhancing processes and
implementing effective project management strategies within
this sector can lead to improved productivity, which in turn
may positively influence the broader national economy.
Despite the significant contribution of the construction
industry to the economies of developing countries and its
crucial role in their development, the performance of this
industry remains generally low. As Idoko and Ifediora [4]
noted, many projects in developing countries face significant
increases in time and costs, and may even become entirely
abandoned either before or after completion, failing to
achieve their intended benefits. Moreover, the growth of the
construction sector in developing nations tends to be
significantly slower than that of other industries within those
nations, as well as in comparison to the construction sectors
in more developed countries. Achieving success in
construction projects is a key objective for project
stakeholders, including both owners and contractors, which
has led to considerable research focused on identifying the
elements that contribute to project success. In addition,
public project owners are exploring various delivery methods
tailored to specific project characteristics to enhance the
success rates of construction initiatives and are committed to
selecting the most suitable contractor for each individual
project [5]. Project success is an abstract concept, and no
widely accepted general definition exists. Based on research
literature, the following fundamental issues have been
reported regarding construction project performance: low
quality, budget overruns, lateness, unsafe construction, and
customer dissatisfaction [6, 7]. Additionally, construction
projects frequently encounter intricate issues involving
various stakeholders. These challenges include disputes
among team members, such as clients and contractors, as
well as resistance from external groups like local
communities affected by the projects [8]. In recent years, the
landscape of construction projects has grown increasingly
demanding for both contractors and clients due to stringent
budgetary constraints and tight schedules. Consequently, to
enhance the likelihood of successful project outcomes, it is
essential to identify the factors that may contribute to either
the success or failure of construction initiatives in order to
optimize overall project performance.
The construction sector is characterized by its
fragmented structure. Historically, the design phase has been
viewed as a distinct entity, separate from the construction
phase of a project. Construction teams typically start fresh for
almost every new project. Research by Evbuomwan and
Anumba [9] indicated that one of the contributing factors to
subpar delivery outcomes within the construction industry is
the lack of collaborative efforts among project stakeholders.
The results of research studies highlight that effective process
and team integration play a crucial role in facilitating the
essential transformations needed for improved outcomes in
the construction sector. Nonetheless, merely assembling
individuals does not inherently result in effective teamwork.
Teams in construction begin to form as they embark on new
projects, aiming to showcase their worth through their
performance and the strength of their collaborative dynamics.
To achieve successful project outcomes, it is vital for
Khorashadi Moghaddam et al.: The Impact of Design Team Characteristics on Construction Project Performance with the Mediating Role of Construction Project Costs
2 TECHNICAL JOURNAL 19, 2(2025), 1-8
construction firms to focus on enhancing, assessing, and
evaluating the efficiency of their teams [10].
In any construction project, it is essential to involve key
stakeholders, which typically consist of the client,
contractors, and the design team, including architects and
engineers. Designers hold a pivotal position, as their
responsibilities cover the entire project lifecycle, from
inception to finalization [11] . Notably, critical decisions that
influence overall costs are primarily made during the initial
phases of the design process. Research studies have shown
that key characteristics of design teams in construction
projects are: procurement, skills, team experience,
communication, collaboration, and motivation for innovation
[12, 13]. Procurement encompasses the processes involved in
selecting and engaging a team responsible for the design and
construction of a project. It plays a critical role in shaping
both the delivery and financing aspects of a project.
Additionally, procurement impacts the level of trust among
stakeholders, as well as facilitating open communication and
interactions among team members [14, 15]. Furthermore, it
significantly influences risk management strategies within
construction projects. The term 'skills' pertains to the
collective expertise possessed by the design team, with the
exclusion of the client’s abilities. Team experience pertains
to the construction experience and overall project
background of the team. Communication refers to the
channels of communication during the project execution
process. Collaboration pertains to the team members’
feelings regarding teamwork and participation during the
design phase. Motivation for innovation refers to the efforts
of team members to introduce innovative ideas and solutions
[12, 16, 17]. Research shows that the characteristics of the
design team have an impact on project success [10, 18]. Some
research studies highlight the necessity of integrating
ecological considerations into the urban design process [19,
20] or municipal solid waste management [21] to foster
sustainable development, thus underscoring the importance
of stakeholder collaboration in achieving effective
environmental outcomes within construction projects.
Moreover, addressing the cognitive demands associated with
urban design processes during construction projects could
further mitigate risks and optimize performance across
diverse stakeholder groups [22]. These findings suggest that
augmenting these characteristics may facilitate the
attainment of project objectives and enhance overall
outcomes. Therefore, it is essential to conduct a
comprehensive and earnest evaluation of these dimensions
during the initial phases of design and planning for
construction projects. Such an approach can lay a robust
foundation for the future success of these endeavors.
As previously mentioned, the construction industry is a
key factor in the development of any city and plays a
significant role in job creation. However, it has often
experienced stagnation due to various internal and external
reasons. Among these, the most important issues are time
delays and cost overruns, which severely impact construction
project performance. Construction performance can be
evaluated through completion scheduling, completion costs,
productivity of completed tasks, and safety [23, 24]. This is
the primary reason many projects remain unfinished, leading
developers to move on to the next project. Understanding the
impacts and factors influencing time delays and cost
increases is crucial [25]. Research has also indicated that
construction project costs significantly affect project success
[23, 26]. In summary, the issue of construction project
performance manifests itself in various ways. Many
completed projects fail in terms of time performance, while
others fail in cost performance or in other performance
metrics. Projects have frequently faced setbacks throughout
history, including client-related problems, material access
issues, road closures, design modifications, added work, and
delayed decisions. Consequently, examining the factors
influencing the performance of construction projects has
become a key issue in this field. A review of the research
background indicates that, until now, no study has explored
the impact of design team characteristics on the performance
of construction projects with the mediating role of
construction project costs within the framework of structural
equation modeling (SEM). Hence, the fundamental objective
of the present study is to investigate the effect of design team
characteristics on the performance of construction projects,
with construction project costs serving as a mediating
variable. This aim is intended to enrich the research literature
and empirical evidence in this area and to take a step towards
improving the performance of construction projects.
Drawing upon existing theoretical literature and the
framework established through prior studies, the conceptual
model for this research is illustrated in Fig. 1. As can be seen,
the characteristics of the design team in construction projects
are considered as the independent variable, construction
project costs as the mediating variable, and construction
project performance as the dependent variable.
Figure 1 The conceptual model
Thus, the hypotheses of the research are as follows:
H1: The characteristics of the design team in
construction projects influence the performance of
construction projects.
H2: The characteristics of the design team in
construction projects influence the costs of construction
projects.
H3: The costs of construction projects influence the
performance of construction projects.
H4: The costs of construction projects play a mediating
role in the impact of the characteristics of the design team in
construction projects on the performance of construction
projects.
Khorashadi Moghaddam et al.: The Impact of Design Team Characteristics on Construction Project Performance with the Mediating Role of Construction Project Costs
TEHNIČKI GLASNIK 19, 2(2025), 1-8 3
2 RESEARCH METHODOLOGY
This research employs a descriptive correlational design
utilizing SEM with partial least squares (PLS) to investigate
the intricate relationships between key variables. SEM is
particularly advantageous in this study as it effectively
captures complex interrelationships and assesses the impact
of independent variables on dependent variables, even in the
presence of small sample sizes and non-normally distributed
data [13, 27]. By leveraging the strengths of SEM, this
research provides a comprehensive and valid analysis of the
relationships among the examined variables. This approach
not only enriches our understanding of the underlying factors
at play but also advances our knowledge of the social and
economic phenomena being studied.
2.1 Population
The target population for this research consisted of
construction project managers in Iran who possess at least
five years of professional experience. To collect the requisite
data, an initial phone contact was established to solicit
participation, following which a questionnaire was
distributed to 260 of these managers. A total of 212
questionnaires were completed and returned, yielding a
response rate of 82%. This high level of participation
underscores the willingness and commitment of project
managers to contribute their insights and experiences,
thereby enhancing the credibility of the findings derived from
this research.
2.2 Measures
To measure the characteristics of the design team, the
questionnaire developed by Hu & Skibniewski [12] was
utilized. This questionnaire consists of 6 items. For assessing
the performance of construction projects, the questionnaire
by Nguyen and Watanabe [7] was employed, which contains
7 items. To measure the costs of construction projects,
indicators introduced in the study by Olawale and Ming [28]
were used with slight modifications. This questionnaire
includes 6 items. The variables were assessed using a five-
point Likert scale, with response options ranging from 1
(indicating a very low level) to 5 (indicating a very high
level).
3 RESULTS
3.1 Measurement Model Test
To assess reliability, Cronbach's alpha and composite
reliability were used, while validity was evaluated using
factor loadings, average variance extracted (AVE), and the
Fornell-Larcker criterion. The composite reliability index
proposed by [29, 30] is superior to Cronbach's alpha because,
in Cronbach's alpha, all observable variables in each
measurement model have equal weights. This effectively
equalizes their relative importance. In contrast, composite
reliability does not make this assumption; it actually uses the
factor loadings of the items during its calculation, thus
making composite reliability values generally higher and
more accurately reflective compared to Cronbach's alpha.
The threshold for this index, similar to Cronbach's alpha, is a
value of 0.7 or higher for internal consistency within the
measurement model. Regarding the factor loading of each
item, a factor loading of 0.6 or greater in confirmatory factor
analysis indicates that the construct is well defined [31]. As
shown in Tab. 1, the factor loadings for the research variables
are above 0.6, thus confirming the factor loadings.
Table 1 Reliability
Variables
Item
Factor Loading
Cronbach's alpha
Composite reliability
AVE
Design Team Characteristics
1
0.826
0.918
0.936 0.710
2
0.850
3
0.873
4
0.847
5
0.868
6
0.789
Construction Project Cost
1
0.718
0.834 0.874 0.539
2
0.823
3
0.818
4
0.678
5
0.675
6
0.677
Construction Project Performance
1
0.746
0.880 0.907 0.582
2
0.734
3
0.818
4
0.715
5
0.739
6
0.835
7
0.746
A critical point here is that if, after calculating the factor
loadings, we encounter values less than 0.6 between the
construct and its indicators, we need to revise those indicators
(questionnaire items) or remove them from our research
model. To examine convergent validity, the AVE index was
used. Alipour et al. [31] suggest that AVE values should
reach at least 0.5, which signifies that a construct accounts
for roughly 50% or more of the variance observed in its
indicators [30]. In Tab. 1, the factor loadings, composite
reliability, and AVE for the variables investigated in this
study are displayed. The results presented in Tab. 1
Khorashadi Moghaddam et al.: The Impact of Design Team Characteristics on Construction Project Performance with the Mediating Role of Construction Project Costs
4 TECHNICAL JOURNAL 19, 2(2025), 1-8
demonstrate adequate and suitable reliability for the
constructs examined.
The results of discriminant validity are reported in Tab.
2. It indicates that the square root of the AVE for each
research variable exceeds their correlations with other
variables. These findings indicate the appropriate validity of
the measurement tools.
Table 2 Correlation Matrix and Square Root of AVE
Variables Design Team
Characteristics
Construction
Project Cost
Construction
Project
Performance
Design Team
Characteristics
0.84
Construction
Project Cost
‒0.53** 0.73
Construction
Project
Performance
0.59** ‒0.63** 0.76
**p < 0.01
3.2 SEM Testing
To evaluate the performance of construction projects, a
conceptual model was tested using PLS-SEM. The
relationships among the research variables and the tested
model are depicted in Fig. 2. It demonstrates that the
characteristics of the design team have a positive and
significant effect on the performance of construction
projects, whereas their influence on project costs is negative
and significant. Additionally, the costs associated with
construction projects have a negative and significant impact
on overall project performance. The figures within the circles
indicate the explained variances for each of the research
variables. Table 3 presents the estimated path coefficients
alongside the variance explained for the variables examined
in the study.
Figure 2 Tested model
Table 3 Path coefficients and explained variance
Variables
Path
Coefficient
t-
value
p-
value
Explained
Variance
On construction project
performance via:
Design team
characteristics
Construction project costs
0.352**
-0.441**
4.135
6.389
0.001
0.001
0.483
On construction project
costs via:
Design team
characteristics
-0.53**
10.619
0.001
0.281
The mediating role of
construction project costs
0.23** 5.711 0.001 -
*p < 0.05, **p < 0.01
According to Tab. 3, the mediating role of construction
project costs in the relationship between design team
characteristics and construction project performance is
positive and significant. Furthermore, 48% of the variance in
construction project performance and 28% of the variance in
construction project costs can be explained by the variables
in the research model. The results of the hypothesis testing
are presented in Tab. 4.
Table 4 Hypotheses Results
Hypotheses
Results
H1: The characteristics of the design team in
construction projects influence the performance of
construction projects.
Confirmed
H2: The characteristics of the design team in
construction projects influence the costs of construction
projects.
Confirmed
H3: The costs of construction projects influence the
performance of construction projects.
Confirmed
H4: The costs of construction projects play a mediating
role in the impact of the characteristics of the design
team in construction projects on the performance of
construction projects.
Confirmed
Khorashadi Moghaddam et al.: The Impact of Design Team Characteristics on Construction Project Performance with the Mediating Role of Construction Project Costs
TEHNIČKI GLASNIK 19, 2(2025), 1-8 5
The goodness-of-fit index (GOF) measures the model’s
predictive ability, particularly in relation to the endogenous
latent variables. In this study, the calculated absolute GOF
for the proposed model was 0.48, suggesting that the model
demonstrates a good fit. A GOF value exceeding 0.36 is
considered indicative of satisfactory model quality.
4 DISCUSSION
This research sought to establish a model that examines
how the characteristics of design teams influence the
performance of construction projects, considering project
costs as a mediating factor through SEM. Findings revealed
that the model aligns well with the collected data, accounting
for 48% of the variability in construction project performance
and 28% of the variability in project costs.
The results indicated that design team characteristics
have a significant positive impact on the performance of
construction projects; however, their impact on construction
project costs is significant and negative. Therefore, design
team characteristics lead to a reduction in construction
project costs and, consequently, improve the performance of
construction projects. This finding is consistent with the
results of the research conducted by Radhakrishnan et al. [18]
and Azmy [10]. To explain this finding, it can be stated that
if the selection and hiring process for the design team of a
construction project is based on competency and capability,
several key factors come into play. When the design team
possesses both collective and specialized skills, has relevant
construction and project experience, maintains essential
communication channels, fosters collaboration and
participation among team members, and is motivated to
generate innovative ideas and solutions, it ultimately leads to
a reduction in construction project costs. Consequently, this
approach significantly improves the overall performance of
the construction project. Teamwork is defined as "a group of
individuals who are mutually dependent on each other to
achieve a common goal." It encompasses commitment,
collaboration, clear objectives, and goals. Commitment,
accountability, and the skills of team members are some of
the essential characteristics required for team members to
reach their common goals. Therefore, for effective
teamwork, it is essential for team members to establish a
shared understanding of behavioral standards, project
planning, role allocation, and task management, including
scheduling and decision-making processes. Addressing these
aspects is crucial for minimizing misunderstandings
throughout the design phase of construction projects.
Teamwork is also important due to the increased
efficiency it can provide, and since it resembles a structure
where members work in a planned manner through both
collaboration and communication, it is well-organized, and
there is regular information exchange about ideas and
products. For this reason, projects that aim to reduce costs
and increase effectiveness prefer to utilize teamwork.
The findings demonstrate that construction costs have a
notable adverse impact on the performance of construction
projects, suggesting that higher expenses are linked to
reduced effectiveness in project outcomes. This finding is
consistent with the results of studies by Molavi and Barral
[23]; and Trach et al. [26]. To explain this finding, it can be
said that increasing costs in projects results in dissatisfaction
with project quality, project schedules, project costs, reduced
productivity, and lack of progress in the projects, ultimately
leading to a decline in the performance of projects [32].
Furthermore, as the findings indicate, the characteristics of
the design team have an impactful role in reducing
construction costs, thereby improving construction project
performance. A team operates with shared goals and
objectives, enabling members to build strong, collaborative
relationships aimed at achieving these goals. Effective
teamwork involves individuals working together in a
cooperative setting, where knowledge and skills are
exchanged to reach common objectives. Research highlights
that a primary characteristic of successful teams is their
commitment to a clear, collective purpose. Teams play a
crucial role in numerous projects, with successful
collaboration depending on the synergy among participants.
This collaborative spirit fosters a positive environment,
encouraging all members to contribute actively to the team's
success and effectiveness. Team members must exhibit the
flexibility to thrive in collaborative settings where success is
attained through cooperation and shared goals, rather than
through competition and individual aims [33]. Consequently,
the attributes of a construction project design team can be
viewed as a vital factor in achieving competitive advantage
within the construction industry.
5 PRACTICAL IMPLICATIONS
The results of this research offer substantial insights that
can significantly enhance the performance of construction
projects. The following key findings highlight practical
applications that stakeholders may consider implementing:
The study underscores the importance of design team
attributes—specifically competence, skill, and experience—
as critical factors in minimizing project costs and improving
overall performance. Consequently, it is advisable for
organizations to prioritize these characteristics as essential
criteria during the selection and recruitment process for
design team members. Evidence suggests that robust
communication channels within design teams facilitate
enhanced collaboration and engagement. It is imperative for
organizations to establish conducive platforms for the
exchange of ideas and perspectives among team members, as
this can lead to improved cooperation and cost efficiency.
The research highlights the value of fostering an
environment that motivates team members to propose
innovative solutions. By nurturing a culture that encourages
the free sharing of ideas, organizations can significantly
elevate project performance outcomes. The findings
emphasize that successful construction projects hinge on
effective teamwork. It is crucial for organizations to cultivate
a collaborative culture and enhance teamwork competencies
among design team members, thereby reinforcing the
collective skill set necessary for project success. The study
demonstrates that reducing costs not only improves project
performance but also heightens customer satisfaction and
Khorashadi Moghaddam et al.: The Impact of Design Team Characteristics on Construction Project Performance with the Mediating Role of Construction Project Costs
6 TECHNICAL JOURNAL 19, 2(2025), 1-8
ensures timely delivery. Therefore, prioritizing
comprehensive cost management strategies throughout all
phases of construction projects is essential. Clarifying and
establishing shared objectives among design team members
can foster synergy and enhance collaborative efforts. By
promoting a collective understanding of project aims, team
members are more likely to work cohesively toward
achieving the overall objectives. By implementing these
findings, stakeholders in construction management can
significantly improve project outcomes, fostering higher
efficiency, satisfaction, and success rates in construction
endeavors.
6 CONCLUSION
This study provides strong evidence that the costs
associated with construction projects play a crucial role as a
mediator between the characteristics of design teams and the
overall performance of construction projects. Our results
suggest that positive attributes of design teams not only
improve project performance but also help in reducing costs,
resulting in more favorable project outcomes. By recognizing
and nurturing key traits such as collective expertise, effective
communication, teamwork, and a unified commitment to
objectives, stakeholders can enhance the process of selecting
design teams and create an atmosphere that values efficiency
and innovation. These traits align well with the project life
cycle and significantly boost the likelihood of team success.
Additionally, comprehending the relationship between the
qualities of design teams and team dynamics is essential for
advancing project management methodologies. Our research
highlights the need to cultivate an environment that promotes
collaboration and problem-solving, which can lessen the time
needed for conflict resolution and improve the quality of
ideas exchanged, thereby influencing project schedules and
results. However, this study is limited by its focus on project
managers from construction projects in Iran, which may
restrict the applicability of the findings. Future studies should
aim to include a wider range of geographical locations and
project settings to gain a comprehensive understanding of the
results' relevance. In conclusion, our findings emphasize the
importance of investing in the development of design teams
as a strategic method to enhance construction project
performance. We urge industry professionals and researchers
to delve deeper into the intricate characteristics of design
teams and their effects on project success, thereby enriching
the field and promoting improved practices in construction
management globally. In future research, it would be
beneficial to include qualitative studies such as Ghorashi et
al. [34] and Darvishinia [35] that explore people's
experiences and opinions about design teams. Additionally,
using data mining such as Bevilacqua et al. [36], deep
learning such as Tashakkori et al. [37] and artificial
intelligence techniques such as Espahbod et al. [27],
Metaheuristics algorithms such as Bahadoran Baghbadorani
et al. [38] can help analyze data more effectively and provide
deeper insights into team performance and project outcomes.
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Khorashadi Moghaddam et al.: The Impact of Design Team Characteristics on Construction Project Performance with the Mediating Role of Construction Project Costs
8 TECHNICAL JOURNAL 19, 2(2025), 1-8
Authors’ contacts:
Parisa Khorashadi Moghaddam
(Corresponding author)
Industrial Management, Tagliatela College of Engineering, University of New
Haven, 300 Boston Post Rd, West Haven, CT 06516, USA
p.khorashadimoghaddam@gmail.com
Nasrin Izadian
A. Gary Anderson Graduate School of Management, University of California,
900 University Ave, Riverside, CA 92521, USA
Mehdi Haghighatjoo
Civil and Environmental Engineering (CEE) Department, Syracuse University,
0151 Link Hall, Syracuse, NY 13244, USA
Amirhossein Moghaddas Jafari, MEng, Transportation Modeler
Department of Civil and Environmental Engineering, University of Waterloo,
200 University Avenue West, Waterloo, ON, Canada N2L 3G1
Marzieh Zahedi
Department of Urban Design, School of Architecture and Environmental Design,
Iran University of Science and Technology (IUST),
Narmak, Tehran 16846-13114, Iran
