Search

Rework is a pervasive problem within the construction industry, but many firms are reluctant to openly acknowledge it is an issue because it can potentially damage their reputations. Using a case study approach, this paper aims to examine how an AU$375 million program alliance, which experienced cost and schedule overruns and an increase in safety incidents as a result of rework, addressed this problem. The case analysis revealed that rework could be significantly reduced by having an authentic leadership style in place, empowering as well as actively engaging with contractors, and focusing on continuous improvement. As a result, the alliance was able go beyond lessons that were superficial (i.e., identifying procedures that were not followed) and undertake new and improved ways of doing business that encompassed context-specific learning. The novelty of the case study findings highlights the need to reduce rework by focusing greater attention on changing behaviors, particularly the motivations of alliance team members, by cultivating an error management culture. Such a culture needs to be harnessed in construction projects if rework is to be reduced and adopted industrywide, which necessitates the need for significant steps toward improving performance and productivity. [ABSTRACT FROM AUTHOR]

Research into performance measures for relationship-based construction projects becomes crucial because of an increasing trend of client organizations to adopt a relationship-based (or relational contracting) approach to their construction projects worldwide over the last decade. However, few, if any, comprehensive and systematic research studies focus on developing a comprehensive, objective, reliable, and practical performance evaluation model for relationship-based construction projects. A performance index (PI), which comprises eight weighted key performance indicators (KPIs) and a set of corresponding quantitative indicators (QIs) for measuring the performance of relationship-based construction projects have been developed in Australia. The PI and QIs can assist in developing a benchmark for measuring the performance of relationship-based construction projects. However, the establishment of a set of QIs cannot fully solve the subjectivity of performance evaluation. To remedy this deficiency, the aim of this paper is to adopt a fuzzy set theory (FST) approach to establish a well-defined range of quantitative requirements (QRs) for each QI within each of the five performance levels. By using the modified horizontal approach, fuzzy membership functions (FMFs) have been constructed through three various methods, namely constrained regression line with the vertical error method (VEM), the horizontal error method (HEM), and the bisector error method (BEM). It was shown that the results derived from the three methods were similar, and it seems that the BEM is the best technique to construct the FMFs because it considers both the errors created by the residual sum of squares by both vertical and horizontal distances. The newly developed performance evaluation model is not only innovative in nature, but it can also improve the objectiveness, reliability, and practicality in evaluating the performance of relationship-based construction projects. [ABSTRACT FROM AUTHOR]

Over the past decade, an increasing trend of client organizations has been observed to adopt relationship-based approaches to run their building and construction projects internationally. Since there are numerous benefits of adopting relationship-based projects in construction, it is important to conduct research in the area of key performance indicators (KPIs) because it can help set a benchmark for measuring the performance of relationship-based projects. Nevertheless, few, if any, comprehensive and systematic research studies in this area have been conducted. This paper reports an empirical study which applies the Delphi survey technique to formulate a model to assess the success of relationship-based construction projects in Australia. Four rounds of Delphi survey questionnaires were conducted with 22 construction experts in Australia. The Delphi survey selected eight KPIs to evaluate the success of relationship-based projects in Australia. These KPIs included: (1) client’s satisfaction; (2) cost performance; (3) quality performance; (4) time performance; (5) effective communications; (6) safety performance; (7) trust and respect; and (8) innovation and improvement. A statistically significant consensus on the eight selected KPIs was also obtained from the Delphi experts. A formula for calculating a performance index for relationship-based projects in Australia has been finally derived. Construction senior executives and project managers can use the index to measure, monitor, and improve the performance of their individual relationship-based projects. It also broadens the existing body of knowledge of both academics and practitioners in the construction industry because the research method could be replicated in other geographical locations to create similar indices for international comparisons, thus assisting in the understanding of managing relationship-based projects across different countries. [ABSTRACT FROM AUTHOR]

The Australian government has issued several calls to improve the performance of the construction industry. A lack of available benchmark metrics has made it difficult, if not impossible, for organizations to identify areas to target for process improvement. A significant factor that has been found to contribute to poor organizational and project performance is rework. Using the results of a questionnaire survey, the paper presents and discusses a series of benchmark metrics for the causes and costs of rework for 161 construction projects. A generic framework for benchmarking rework at the interfaces of a project’s life cycle is proposed, and unstructured interviews are used to subject the proposed framework to validation by industry practitioners. [ABSTRACT FROM AUTHOR]

This research reports upon the scale of building information modeling (BIM) implementation maturity, from nonadoption to full-scale deployment, within small-to-medium enterprises (SMEs) operating within the Australian construction industry. The research utilizes a competitive dynamics perspective (CDP) as the theoretical lens and analyses data collected from 135 SMEs using Bayesian belief networks (BBNs) to provide a richer insight into levels of BIM implementation maturity. Findings reveal that there is no meaningful association between BIM implementation maturity within SMEs and their organizational attributes, such as size and level of experience. A paucity of solid evidence to support a reasonable return on investment (ROI) was also identified as a key barrier to using BIM in higher levels of maturity. In practical terms, the study focuses on pertinent issues associated with mandated BIM in Australia from SMEs' perspectives, pointing out potential consequences and challenging the pressure for mandating. The research concludes by outlining industrial implications and providing pragmatic recommendations designed to accelerate the pace that Australian SMEs move across a BIM trajectory from nonadoption to higher levels of maturity. [ABSTRACT FROM AUTHOR]

Previous alliancing research has seldom addressed the implication of transaction costs and the impact of transaction attributes on transaction costs in project alliancing. Using multiple regression analysis on a sample of Australian alliances, this study tests the differential impact of uncertainty, frequency, and various dimensions of contracting parties' asset specificity on three individual transaction cost elements (set-up, monitoring, and enforcement costs). The results indicate that the impact of transaction attributes on transaction costs varies. Uncertainty has a positive impact on all three transaction cost elements. Frequency and some dimensions of contracting parties' asset specificity are positively associated with set-up costs and monitoring costs, which, however, does not apply to enforcement costs. The findings provide empirical evidence in support of the transaction cost economics' prediction regarding the influence of transaction attributes on transaction costs in the Australian construction industry, and thereby add another perspective to the knowledge base in the construction management discipline. The measurement methods of transaction attributes and transaction costs presented have valuable implications for future research. [ABSTRACT FROM AUTHOR]

Although traditional contracting is a primary method of procuring partners in delivering major construction projects, the relative benefits of relational agreements and its link to successful project delivery remain unclear among the construction professionals. Focusing on the Australian construction industry, the research aims to investigate the underlying attributes and factors critical to the success of relationship agreements in relation to traditional practices. On the basis of the results of a pilot study, a questionnaire was distributed to more than 150 participants from 43 selected projects managed by relationship agreements and traditional procurement practices. The rationales of selecting relationship agreements over traditional contracting methods were highlighted by standard statistical analysis. The findings revealed cost efficiency, trust, and communication as the key common drivers for successful outcomes in both relationship agreements and traditional contracting methods. However, relative impacts of these factors on the successful project delivery differ significantly. Factor analysis asserted cohesive project team as one of the key factors for achieving time, quality, and overall success across both contracting approaches in the project. Multivariate regression analysis performed on the factors' scores highlighted the influence of four and five significant factors () affecting the success of both relationship agreements and traditional contracting, respectively. The findings are expected to abridge a significant knowledge gap by shifting the priorities in contracting practices across all industry sectors. [ABSTRACT FROM AUTHOR]

Discusses a study which explored the crisis preparedness of construction companies in Australia. Conceptual framework for investigating crisis-proneness; Discussion of results; Conclusion.