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The challenge for engineering firms to align with an unprecedented variation of digital integration agendas across projects is a recent phenomenon. The literature has offered only a partial understanding of this challenge due to the episodic focus on the digital delivery of individual projects or the initial adoption of digital practice in firms. Through a longitudinal ethnographic study of an engineering firm, this paper explored how practitioners act upon the surge of custom digital integration agendas across multiple projects. By looking at and beyond a large portfolio of projects that demanded building information modeling (BIM) cloud collaboration, this study found that disparate digital agendas across projects disrupt digital integration routines, and they have knock-on effects that can overreach project boundaries and impact projects portfolios and firm operations. With this evidence, this research spotlights the shifting loci of information integration in practice, wherein custom agendas pressure practitioners to shift the focus of integration from their permanent practice at firms to temporary workflows in projects. By revealing organizational responses to this phenomenon, this paper introduces the concept of genericity–complexity trade-off in digital integration routines to explain how firms generate routines that address integration either with ad hoc responses in projects or with systemized integrative efforts across all constellations of practice. [ABSTRACT FROM AUTHOR]

For an engineering or construction firm, the decision to enter a new market sector (e.g., add a trade or service, expand geographically) is a complex undertaking, particularly since the industry-specific literature provides little guidance on how to navigate these market entry decisions. This research uses an original design for consensus-building workshops to identify and prioritize 23 market entry decision factors collected from the literature and from experiential knowledge of over 130 industry experts. The industry consensus resulting from the workshops leads to the identification of decision factors for four types of market entry. Data analysis reveals that the following eight essential factors are always important regardless of the market entry decision type: competition in the market, competitive advantage, strategic fit, experience and abilities of the champion, investment capital, market need, profit projections, and start-up costs. The workshop design developed for this study represents an original and simple approach for synthesizing the experience and practical knowledge of several industry experts. This study contributes to the body of knowledge by identifying for the first time the eight most important factors for engineering and construction firms to consider when assessing a new, domestic market entry. Working independently, only 2 out of 108 individuals identified the top two most important factors to market entry success, indicating that the industry's collective knowledge is not as obvious to individuals making market entry decisions, and further highlighting the contribution of this paper. [ABSTRACT FROM AUTHOR]

A good deal has been written on strategy that explains how firms compete. However, there is nothing yet in the literature that explains the relationship between the strategies used by firms in an offshore context and the kinds of localizational adaptations a firm makes to serve those strategic ambitions. This paper investigates 60 foreign firms active in the Chinese architecture/engineering/construction industry, measures their rates of localization across five localization parameters, and identifies specific strategic orientations associated with varying rates of localization across those five parameters. The approach used is case study based, using data collected from semistructured interviews and in-house documentation. In describing the relationship between measured rates of localization and the associated observed strategic orientations of firms, this paper concludes by offering a new model of strategy as a function of localization. [ABSTRACT FROM AUTHOR]

This paper examines the process of design and engineering in large-scale construction projects delivered by multinational organizations. The analysis is on the basis of using transaction cost economics to represent design and engineering as a stream of intra-firm transactions between the local contracting office and the network of subsidiary offices. The paper then applies the concept of asset specificity to process-level design and engineering knowledge and induces a theoretical framework on the basis of local and expertise specificity of assets. The framework posits that different levels of local and expertise specificity lead to different modes for intra-firm governance of work packages in design and engineering. The paper validates the theoretical framework with interview data from six major international design and engineering organizations and derives a set of management recommendations for practitioners. The framework takes the transaction cost theory into the realm of intra-firm governance represented as a stream of asset-specific transactions. The framework extends construction engineering and management literature with a transaction-based elaboration of the design and engineering process. [ABSTRACT FROM AUTHOR]

The goal of knowledge management as a process is to improve the organization’s ability to execute its core business functions more efficiently and effectively. The key to knowledge management is capturing intellectual assets for the tangible benefit of the organization. On the other hand, the aim of any design engineering consulting firm is to produce projects with high quality and in less time. The paper starts by discussing the importance of knowledge management in improving the competitive edge of firms in general and of consulting firms in particular. Then, the paper discusses the process of building a knowledge management system in the Mechanical and Industrial Department at DAR AL HANDASAH, which is a leading consulting firm in the Middle East and the world. The paper concludes with the lessons learned from the experience of building the knowledge management system and the steps needed to improve it. [ABSTRACT FROM AUTHOR]

Abstract: There has been considerable consternation over the years about the disintegration of the status of civil engineers, as well as significant distress over the profitability of engineering firms in view of a continuing decline in the compensation of civil engineers relative to other professionals. This paper studies the impact of government agencies’ use of outdated percentage of construction fee schedules for determination of professional compensation. Research has found that, due to the application of stagnant fee curves without adjustment for the effects of inflation on project costs, fees over the last several decades have dropped on the order of 20% or more. Prior to the early 1970s, fee curves published by the professional societies were regularly updated to reflect inflationary trends in project costs. However, since that time, few government agencies have adopted any meaningful deviation from the fee curves of the pre-Justice Department antitrust settlement with the professional societies. The settlement agreement was that the professional societies would no longer publish minimum fee curves to establish appropriate compensation of their members. The paper discusses the erosive financial implications of these policies for the design professions’ compensation. [ABSTRACT FROM AUTHOR]

With China's entry into the World Trade Organization (WTO), the Chinese construction market will be increasingly open and finally become part of the international market. Because of different social and economic systems, as well as different historical and cultural backgrounds, contractors are likely to encounter different risks in different markets. Based on questionnaires and case studies, this paper adopts an importance evaluation index and makes an importance evaluation of various risks encountered by Chinese contractors when contracting for projects in Chinese markets. This paper also makes comparisons between and analyses of the research findings and related available investigation results. The Cox-Stuart trend increase test method is applied in the current research, the results indicating that the variance corresponding to the importance index value tends to increase as the risk event importance decreases. This tendency shows that those investigated tend towards unanimity in terms of higher importance risk events. This paper also examines the reliability of the questionnaires by means of Cronbach's Alpha Coefficient. The research shows that the main risk currently encountered by Chinese contractors in domestic markets includes owner's irregular behavior and government departments' interference in construction markets. China's accession to the WTO has provided greater opportunities for international contractors to enter the Chinese construction market. Therefore the research results described in this paper can provide valuable data enabling international contractors to gain a better understanding of the potential risks in the environment of the Chinese construction market. [ABSTRACT FROM AUTHOR]

Environmental management systems (EMSs) are intended to formalize procedures for managing and reducing environmental impacts. Construction firms typically do not have comprehensive and certified environmental management systems. This paper discusses the elements of environmental management systems, the relationship to the ISO 14001 standard, and the importance for construction firms to implement an EMS. A case study of a certified environmental management system for a construction firm is presented. Benefits and costs of such systems are identified. The paper concludes that construction firms should begin to work towards implementing more complete environmental management systems, although fully certified systems are not essential. [ABSTRACT FROM AUTHOR]

Most university students now have access to wireless devices (e.g., smartphones, tablets, or laptops). By using an online student response systems (OSRS), students can use those wireless devices to respond to questions and quizzes posted by the instructor. Those questions may have different styles such as multiple-choice, true/false, and open-ended questions. This paper assesses different effects of implementing OSRS on students' engagement and performance when taking an engineering ethics course by comparing selected measures of effectiveness of an experimental group of students (where OSRS has been implemented) with those of a control group (where OSRS has not been implemented). It was found that implementing OSRS significantly increased students' attendance rate and ability to function in a group. However, implementing OSRS in an engineering ethics course was found to have no significant effect on improving students' performance or their level of achieving the course's learning outcomes or performance indicators. It was also found that students tend to dedicate less time studying for an engineering ethics course than for other typical engineering courses. [ABSTRACT FROM AUTHOR]

This paper describes a conceptual model for measuring the productivity of design professionals during the contract document phase. Unlike traditional cost accounting methods that rely on careful delineation of time into numerous cost codes, the proposed system relies on the measurement of design output. Rules of credit and conversion factors are initially developed for unique classes of projects. The paper explains how these parameters are developed. Thereafter, these parameters are used and no further development is necessary. The remaining input to the system involves the tracking of construction documents as drafts are developed, reviewed, revised, and approved. The system is simple and easy to use. An example of an actual middle school project is used to illustrate the calculations. It is shown that the measured productivity actually models the design performance as various events disrupted the design effort. Workhour forecasts and time of completion estimates are also illustrated. [ABSTRACT FROM AUTHOR]

The concept of design/build was investigated as part of a research project that studied the drivers and trends that will affect U.S. engineering and construction industry competitiveness in the next decade. The research results were presented as the keynote address at the Design/Build America conference in Washington, D.C., in March of 1994, sponsored by the Design/Build Institute. This paper summarizes the keynote presentation and provides additional information on the use of design/build in the future. The paper discusses several different issues that emerged from the research effort on the further implementation of design/build processes by U.S. engineering and construction (E/C) firms. The areas presented include the influence of design/build on the E/C industry; potential changes in the E/C industry for firms, clients, contracting strategies, and projects; the focus of clients, which leads to design/build; advantages and disadvantages to owners of the design/build approach, types of clients who use design/build projects; strategies for design/build firms to remain competitive; new firm configurations; factors required for the success of projects; and marketing strategies for design/build firms. [ABSTRACT FROM AUTHOR]

Engineering consulting (EC) firms in the construction industry are knowledge-intensive and experience-based organizations. As the knowledge accumulated from previous experiences is the essential asset for wining and managing future projects, many EC firms have developed diversified knowledge management systems (KMSs) to accumulate and retain this essential knowledge. However, evaluation methods and results regarding the benefit analysis of KMSs are rarely found in literature. To evaluate the performances of KMSs, most previous studies have adopted qualitative approaches. This paper, on the other hand, presents a ratio-based approach for evaluating the benefits of KMSs. The proposed approach is tested using one of the KMSs from a study EC firm: the proposal preparation assistant (PPA) system. Based on a test of two real cases, this study found that a 48.7% time reduction in data collection and 25.3% staff-hour savings can be achieved when using the PPA system to prepare service proposal drafts. The results revealed in this study not only prove the usability of the proposed ratio-based benefit analysis approach, but also provide convincing and inspiring information for knowledge management practitioners as they plan their future works. [ABSTRACT FROM AUTHOR]

Design is one of the most important aspects in the engineering project cycle. To improve the quality of engineering consulting firms, various quality techniques and practices have been proposed by researchers. Most researchers agree that the successful implementation of such quality practices depends on the quality culture of the consultant organization. Therefore, a thorough understanding of the overall quality culture that exists in a consultant organization is essential. The purpose of this paper is to develop a pragmatic tool, a quality culture auditing (QCA) questionnaire, which enables engineering consulting firms to measure the quality culture quantitatively through a scoring system. The responses obtained from 30 engineering consulting firms that participated in the QCA show that the scores obtained can be a good indicator of a consultant organization’s current quality culture. Using these results as the basis, benchmarking exercises and parametric studies can also be conducted. Through the use of QCA, an engineering consultant can pinpoint areas of weakness so that more effort can be put into these areas for future improvement. [ABSTRACT FROM AUTHOR]

This research examines the strategic performance of sixty-one large international engineering and construction (E&C) firms from the regions of North America, Europe, and East Asia. The primary objective is to identify critical factors of corporate strategy that potentially affect the prospects of a large E&C firm. The research methodology relies on financial analysis and strategic management theories to draw meaningful conclusions. Statistical tests are selectively conducted to assess various aspects, including profitability, capital structure and asset liquidity. This paper documents the research findings for the first aspect—profitability. The first part of the findings suggests that there is no significant correlation between firm size and profitability. Large firms, which are endowed with greater resources and prowess, are not guaranteed to be more profitable. However, firm size has some influence on generic strategies, as large firms tend to adopt either a broadly targeted or a nonrelated diversification strategy. Regional trends of revenue growth of firms are subsequently presented. Despite strong forces of globalization experienced in many other industries, the growth trends suggest that the construction business remains largely localized in nature. Consequently, domestic and regional economic outlook, rather than global trends, should be given more weights in strategic planning. [ABSTRACT FROM AUTHOR]

Corporate governance has emerged as a topic of significant importance, particularly in the aftermath of the Enron scandal. Undoubtedly, the renewed scrutiny of this entity is not without justification. Enron’s failure is largely attributed to a breakdown of corporate governance with the inability, or unwillingness, of the board of directors to hold management accountable on behalf of the shareholders. Meanwhile, the academic and popular literatures have yet to provide unequivocal guidance as to the appropriate modus of operandi in the boardroom. Based on survey and interview results, this paper provides some suggested practices regarding the proper functions, optimum configurations, and appropriate incentive schemes of the boardrooms belonging to the energy industry. The importance of the energy sector stems from its prominent role as a main contributor to the production of goods and services. The guidelines presented in this study would enable the boardroom to be vigilant and adopt preventive measures not just in crisis situations, but also continually. [ABSTRACT FROM AUTHOR]

In this research study, selected indicators are set up to analyze the strategic performance of large international engineering and construction (E&C) firms from North America, Europe, and East Asia. The primary objective is to examine critical areas of corporate strategy that would affect the long-term prospects of E&C firms and provide guidance for their growth and survival. This paper focuses on the relationships between selected aspects of business strategies (internationalization and product/service diversification) and financial strategies (asset liquidity and capital structure). By analyzing data derived from financial reports and other public sources, it is deduced that internationalization is positively associated with current ratio but negatively correlated with book leverage. An opposite trend is found for the aspect of diversification. These results signal different risk management strategies for the respective modes of business strategies. It is thus suggested that if liquidity cannot be increased in the near term to support internationalization, firms should then concentrate on product/service diversification. Overall, the study confirms the importance of examining interactions between business and financial strategies. [ABSTRACT FROM AUTHOR]

Many engineering design companies collect data such as person hours to manage projects. But the relationships between operational variables and performance are usually not thoroughly analyzed and interpreted. This paper proposes a system model and procedure to relate influence variables to project productivity. The model was tested by analyzing 190 projects of an engineering consulting company. The relationships between design productivity and various input and process variables were identified and interpreted. For example, project size has a negative relationship with productivity, while the effect of quality assurance/quality control on productivity is not clear. Based on documented data and derived information, this model can help companies gain operational insight and thus improve productivity and profitability. [ABSTRACT FROM AUTHOR]

Consulting engineering companies need an adequate cost control system to improve their profitability and productivity. Cost control enables the firm to make decisions if the measurements do not comply with the initial targets. This paper introduces a new theoretical approach to cost control and its implementation procedure. Technical (or productive) personnel costs are considered as indirect costs. A general principle stated is the total absorption of overhead costs by billable time of technical personnel. The proposed methodology establishes time as the key element of control in a professional services company. It considers production of consulting engineering firms as a function of time; therefore the productivity of the personnel can be controlled. [ABSTRACT FROM AUTHOR]

This paper presents an empirical study of factors contributing to the success and failure of 24 large international construction firms originating in the United States, Europe, and Japan. The study is conducted using fundamental analysis, a methodology that is commonly applied in economics and investment practices to study the prospects of a company. Based on publicly available data, both quantitative and qualitative measures are developed and assessed collectively to derive insightful knowledge about corporate strategy and firm outlook. Preliminary conclusions drawn from this study include: (1) A universal formula for success is elusive-critical success factors can be uniquely derived from different modes of operational, financial, technological, and human-related conditions and (2) causes of failure are diverse, thus construction firms must consistently check the downside risks of all measures. Thus, debates concerning the merits of common dichotomies such as diversification versus focused differentiation appear rather hollow. These aspects of strategy are far from fixed and should instead be treated as variables. The findings suggest that an open perspective of strategy is necessary in construction organizations and provide the foundation for the development of a new strategic model for the industry. [ABSTRACT FROM AUTHOR]

China is gradually opening up its engineering construction services sector to overseas contractors and consultants as part of its move towards joining the World Trade Organization (WTO). Traditionally, design institutes have operated as state-owned enterprises (SOEs), and for them, China’s accession to the WTO in 2001 presents both a threat as well as an opportunity. Given the market conditions in China, most of the design institutes are restructuring their organizations to cope with the increasing competition. Through a pilot investigation, the strengths, weaknesses, opportunities, and threats of the Chinese design institutes are identified. Based on the analysis, this paper proposes development strategies for the sustainable growth of Chinese design institutes and suggests approaches for collaboration with foreign contractors and consultants. A case study is presented to demonstrate the practical application of these strategies. [ABSTRACT FROM AUTHOR]

Although the need to improve performance and work processes in a company may seem obvious, concrete approaches for this are rare in the construction industry. Admittedly, efforts for embedding improvement processes have been made, but most construction companies are still struggling with concepts, avoiding available tools and techniques for assessment and review. In doing so, they ignore possibilities to identify how they can improve their performance and work processes. In the few cases where tools and techniques have been used, they often fail to address the specific characteristics of the organization. This paper presents how a systematic approach for assessment and review of operations and work processes can be tailored for a large construction company. An in-depth case study carried out at the large construction company Skanska Sweden is the basis for this study. Interaction between research and development work at the company has enabled a deep understanding of the company’s operations, its culture, and its way of working. The approach presented is based on the existing management system at Skanska Sweden and its focus is on creating a structured way to discuss how operations are carried out. The aims are to assess how operations at the local units within the company can be improved and to improve the management system and thereby benefit the organization as a whole. [ABSTRACT FROM AUTHOR]

The failure of construction firms to adopt modern management systems has been remarked on by many authors. The marketing function has come in for particular criticism. This inadequate attention to marketing is also manifested in the paucity of reported research and helpful general literature on the subject. This paper reports on research carried out to address this problem. After a thorough literature review, a questionnaire survey of construction firms was undertaken to investigate their current marketing strategies and practices. The survey results indicate that firms are increasingly realizing the importance of marketing, with contractors being ahead of professional firms in the planning and implementation of marketing activities. It is however noted that marketing is being conducted in an ad hoc manner. Only one out of three firms surveyed employ marketing professionals or make use of services of external marketing consultants. There is a need for better understanding of what marketing really is and ways of improving its planning and implementation by both professionals firms and contractors. [ABSTRACT FROM AUTHOR]

Project managers play a critical role in the success of architectural-engineering firms. They have responsibilities that may begin before project acquisition and continue beyond project close-out. They also have responsibilities relating to overall quality management, staff development, and professional activities. This paper suggests a set of standards of performance for project managers and outlines many of the ingredients necessary for successful project management. Common pitfalls occurring in the path to achieving quality projects are identified, and corrective stances are suggested. [ABSTRACT FROM AUTHOR]

The success of total quality management (TQM) largely depends on all members of an organization accepting the philosophy and principles of TQM. TQM will be more readily accepted if all personnel participate in developing, implementing, and evaluating TQM. In a large organization, simultaneous active participation by all personnel is not practical but can effectively be attained by establishing problem-solving teams. These teams enable experienced members to demonstrate technical, communication, and leadership skills while they provide inexperienced members an opportunity to build and develop those skills. This paper addresses the application of the team concept by a multidisciplinary architectural/engineering firm in the initiation and development of TQM in three ways: to perform a self-analysis and define specific issues adverse to quality; to establish the operating procedures for the program; and to resolve the issues identified by the analysis. Involving everyone in the process of continual improvement through the team concept provides a better understanding of the TQM process. [ABSTRACT FROM AUTHOR]

Increasing globalization is creating both challenges and opportunities for engineering and construction (E&C) companies. Many researchers have examined the drivers and key success factors that enable globalizing E&C firms to become truly global. However, although firms integrate recommended globalization tactics, they lack an approach to evaluate the effect of different tactics and strategies on their globalizing performance. This paper presents an index that enables firms to assess their globalizing performance in two dimensions: degree of global reach and degree of global integration. Data were collected from 15 E&C companies to internally validate the developed globalizing index. The globalizing scores of the 15 E&C companies with their international revenue ratios were then compared to externally validate that the international revenue ratio is positively correlated with the global reach score. This research fills an essential gap in the construction engineering and management literature by contributing a novel index for E&C firms' to measure their globalizing performance. [ABSTRACT FROM AUTHOR]