EFFECT OF IMPLEMENTING SUSTAINABLE MANAGEMENT PRACTICES ON CLAIMS MITIGATION IN CONSTRUCTION PROJECTS

Moreover, there is an increasing amount of literature covering specific geotechnical risk analysis and management topics. Examples of these are the difference between unsafe geotechnical certainty and safe geotechnical uncertainty (Barends, 2005), the role of the human factor in achieving geotechnical reliability (Bea, 2006), objective and subjective ways of geotechnical risk classification (Altabba et al., 2004), and contractual allocation of geotechnical risk (Essex, 2007).

In Iran, a lot of money spent annually on construction projects, in the form of construction and non-construction projects. One of the serious shortcomings of the management construction in the country, is absence of a specified system for recording the actual costs of various activities. Project cost management is an activity which deals forecasting, planning, control, cost finding, analysis and assessment. When you realize cost management performance tangibly, as a result of mismanagement, lack of financial resources appears in all the components of project. In this situation, managers can be effective support to keep track of rework events and play an important role on the performance and efficiency of projects. Rework has opposite effect on the cost and timing of projects and satisfaction of people. Numerous studies have been carried out to quantify the cost of rework projects. Among the causes of reworking we can mention the factors related to customers, factors related to the design and factors related to subcontractors. This paper examines the construction cost management and the role of rework. Basic topics in management costs are presented and rework factors discussed in detail and finally refer to the appropriate methods for identifying and managing rework to reduce the total cost of construction projects. DOI: 10.5901/mjss.2015.v6n6s6p209

Knowledge management is concerned with the development and exploitation of the knowledge assets of an organisation, with a view to furthering the organisation’s objectives. The vital role that knowledge management processes play in the performance of business organisations has been the basis of several studies - a number of companies operating in various other industries have proven the need for, and performance enhancing benefits of, adopting knowledge management processes in one form or another. Taking these accounts into consideration, this article attempted to test the hypothesis that effective knowledge management use would constitute a performance enhancing tool in construction project management enterprise in South Africa. The research survey was thus carried out among registered professional construction project managers in South Africa. The levels of awareness and use of knowledge management systems among construction project management professionals in South Africa was analysed. This revealed a mostly ‘medium to high’ level of awareness and use. However, the Project Efficiency Review (PER) approach to performance measurement showed limited correlation between knowledge management use and enhanced performance in construction project performance. Other performance measurement approaches such as Metrics, Economic and Market Value also showed limited correlation. Two causative factors for this situation are construction project scope changes and schedule delays, which are seemingly pervasive in contemporary South Africa. As such, further research is recommended to establish more appropriate ‘objective’ performance measurement approaches that would be able to accommodate these complexities. This would facilitate the making of a business case for knowledge management use in construction project management.

Risk Management is recognized as an important exercise that creates value to a project and improves project performance. Time, cost and quality are the primary measures of a project performance in this industry. The success or failure in any construction project can be monitored through the attainment of these primary measures. Notably, Malaysian construction industry is considered as one of the important industries that positively contribute to the increase of Gross Domestic Product and subsequently the growth of the country’s economic development. Unfortunately, this industry suffers poor performance in which it leads to failure in accomplishing effective time, cost and quality performance. Most construction projects face a schedule delay, cost overrun and are poor in product quality. Thus, the aim of this study is to determine the influence of risk management on construction project performance of Malaysian companies based on these three primary measures. The degree of diffusion of risk management practice in the chosen construction project in Malaysia is also examined. The methodological approach exploited in this study is a case study approach involving analysis of documented data and face-to-face interviews with key players that hold different roles and responsibilities. They include a director, project managers, finance managers, contract managers and quantity surveyor managers. The results demonstrate that adopting effective risk management practices positively impacts project performance thus leading to project success. Nevertheless, the lack of knowledge and poor communication of risk management practices in construction projects contribute to the weak implementation of an effective and systematic risk management practices in Malaysia.

Many factors play a role in the life cycle of construction industry projects, focusing on human resources and relationships as the main axis of business development. Thus, the conflict of interests between the stakeholders in the construction industry projects is a clear and challenging problem. The increased number of stakeholders in the project complicates human relationships and, consequently, increases the possible conflicts. The conflicts may result in claims if not resolved. The success of construction projects and their cost and time management can be affected by the poor management of claims. Therefore, this research aims to take a significant step to improve the efficiency of projects by identifying and ranking the causes of claims and analyzing their effects on key efficiency indicators. Firstly, causes of claim are collected according to experts’ opinions and literature and classified based on key efficiency indicators using the integrated analytic hierarchy process-technique for order preference by similarity to ideal solution (AHP-TOPSIS) technique. According to findings, delays with a proximity coefficient of 0.728 are the most significant factors in making claims with a great effect on the key efficiency indicators of the construction project. The changes in most construction projects are ranked in second place, followed by acceleration command, extra work, changing workshop conditions, and contractual ambiguities. The present study results may reduce the challenges in managing the construction industry claims and ensure the successful completion of projects.

On-time completion and conformity with assigned cost of every project are the most important factors in the success of project plans. Cost overruns and time overrun (delays) have been critical problems of many projects around the world in general and in South Africa in particular. The main objectives of this research are to assess the dominant causes of cost and time overruns, identifying possible and practical measures that can minimize overruns in office building construction projects around eThekwini Municipal area of Kwazulu-Natal. These objectives are achieved through the implementation of the research methodologies that are mainly literature review and questionnaire survey conducted to identify and evaluate the significant factors contributing to delay and cost overruns within the projects of interest. A review of literature identified eighty-five variables for delay, grouped in nine major categories and nine variables for cost overruns ranked in their order of importance in three sets based on the responses from the professionals working for the client, consultants and contractors. The agreement among the sets of rankings for delay and cost overruns has also been tested using statistical methods. The result indicates that there is strong agreement on ranking the importance of the individual variables of delay and cost overruns between parties. From each of the three sets of rankings, the twenty most important variables of delay and the three most important variables of cost overrun are identified as critical. Based on overall results, the top five most important causes are contractor’s cash flow problems, delay in progress payments by the client, poor site supervision and management by contractor, inefficient quality control by the contractor during construction leading to rework due to errors, and contractor’s difficulties in financing the project. Out of the 20 most important delay causing variables, three are found to be common between all parties. These are delay in progress payments by the client, delay in delivery and late ordering of material, and insufficient skill of labour. Furthermore, the study reveals that all stakeholders of construction parties are deeply involved in contributing to the causes of the problems. Thus, in order to eliminate or minimize cost and time extension of office construction projects in the eThekwini Municipal area, a joint effort based on teamwork is essential through effective project planning, controlling and monitoring which boils down to putting in place best practice construction project management.

Managing construction projects requires constant monitoring of project performance and follow-up schedule updates. With updated project performance data, project managers can take corrective actions in a timely manner, thereby mitigating any negative impacts on both the cost and schedule of a project. Among project performance data, productivity data from the field plays a key role in evaluating and predicting project performance in terms of cost and schedule. Despite its importance, most contractors do not take full advantage of the benefits of analyzing productivity data and proactively control a project. Although computerized systems are commonly used in the construction industry today, few project managers make full use of on-site productivity data to accurately predict future project performance. As a result, schedule delays and cost overruns are detected at a much later stage than they should be, causing costly fixes and overtime work. This paper presents the preliminary results of an on-going research that aims to develop a new approach to achieve proactive project control based on better prediction of project performance which utilizes time series analysis techniques with integrated historical productivity data and on-going field productivity. This research proposes a new methodology, named “Pro-Con”, that extends the effectiveness of using productivity data that exists in most construction companies’ computer systems. The paper presents the potential use of time series analysis in the construction domain to predict performance of a project in progress using integrated productivity data. Two case studies are presented to explain the methodology. The Pro-Con concept enhances field data processing and supports decision making for projects by incorporating up-to-date productivity data into existing project control systems.

Rivalry competitiveness, significant capital investments, and cultural diversity are defining the construction industry’s evolving nature. Therefore, construction organizations have to manage their construction projects’ relationships carefully. Construction management researchers have progressively recognized the intelligible link between Relationship Management and construction project performance. However, few studies structurally reviewed the precipitated progression in this topic. This paper follows a systematic approach to review the literature from reliable databases and prominent journals between 2000–2020 in topics associated with Relationship Management in construction projects. This investigation sets to identify the key characteristics, categorial dimensions, attributes, or enablers of relationship management in construction. More than 500 articles were explored in this systematic review by thorough keyword research, out of which 73 articles were found relevant to this topic where an explicit content analysis was carried out. The findings identified 18 key Relationship Management characteristics classified into four categories: Contract-related, Management-related, Team-related, and General characteristics. Project Managers are recommended to pay specific attention on investigated characteristics to strengthen relationships, promote collaboration, and thereby foster project performance.

The total amount of cost overruns for any construction project can be fully determined once the project is completed. Estimating the amount of cost overruns at different stages of ongoing construction projects is important for project success. There is, however, a dearth of research for this exercise. This article reports the results of an investigative study on cost overruns for ongoing building projects in Abuja. The quantitative technique was adopted in this study. The investigation included ongoing building-construction projects within Abuja, from which a sample of 30 building projects (public and private) was purposively selected (project value of ZAR100 million and above). The data were sourced from the archival records (drawings, bills of quantities, project progress reports, and specifications) on the issues relating to the costs and duration of building projects. The data were analysed using descriptive (percentages) and inferential methods. The results revealed that the percentage of cost overruns ranged from a minimum of 5.56% with 90% project completion, and within 88% of the estimated time limit, to a maximum of 216.08% with merely 5% project completion, and within 8.3% of the estimated time limit. The entire projects had average cost overruns of 44.46%, with an average project completion of 52.4%, and within 91.4% of the average estimated time limit. Based on these findings, it can be concluded that continuous investigation into, and analyses of cost overruns at stages of building projects would encourage professionals to apply the best mitigation measures, in order to achieve a significant reduction in the total cost overrun at the completion of a project. Construction professionals should be well informed of these consequences (cost overruns) at an early stage, in order to evaluate the extent to which these consequences could be minimised.

This article focuses on enhancing the performance of supervisory consultants in construction projects through assessments conducted in the LKPP's SIKaP application. Supervision plays a crucial role in ensuring the smooth execution of construction activities and addressing potential obstacles. The quality and safety of construction operations have become increasingly important, necessitating effective supervision. The article highlights the importance of conducting assessments to measure the success of supervisory consultants in meeting project objectives and adhering to established standards. It emphasizes the evaluation of various performance criteria, including human resources, equipment, materials, costs, time, and quality. The assessment process enables the identification of strengths and weaknesses, facilitating corrective measures and improving future performance. The article also emphasizes the interconnectedness of construction supervision and project management, with project management playing a pivotal role in achieving project goals. Communication management is highlighted as a crucial aspect for effective project execution. The regulatory framework governing technical supervision activities in construction projects is discussed, along with the roles and responsibilities of construction management and construction supervision service providers. The article emphasizes the importance of on-site inspections, project administration, progress monitoring, and quality management in construction supervision. Lastly, the article discusses the evaluation of providers' performance in goods/services procurement, emphasizing the importance of quality, cost efficiency, and adherence to standards. The implementation of the SIKaP application is seen as a means to enhance transparency, accountability, and project quality in the construction industry, fostering a culture of continuous improvement and industry benchmarking.

This study aims to identify the causes of excessive change orders and their impact on public construction projects in Saudi Arabia. This should support the organizations working in the construction industry to improve variation order management (VOM) as a preventive action by dealing proactively with variation order causes. Therefore, a new methodology was proposed to minimize change orders and their impact on the successful completion of projects as well as cost during the project lifecycle. The methodology involved ten selected turnkey building projects at King Faisal University (KFU) campus, Saudi Arabia. Statistical analyses were conducted to predict the cost overrun in project size and contract value. The findings showed the most significant causes leading to variation order in public construction projects. These include the combined effect of the designer and owner technical committee, designer document, and owner stakeholder committee. Hence, a new model for VOM was developed as a best practice approach, including three stages. The first stage is the initiation process, which includes seven procedures, seven tools, and key responsibilities. The second stage deals with the course of change orders based on a certain number of procedures and weight for each parameter assigned to this phase. It supports decision processes based on a certain average ratio of weights calculation. The third stage is the decision to support decision makers in proceeding or not proceeding with the variation order. Although the present study was conducted in Saudi Arabia’s public building construction project, it is envisaged that these research results are widely applicable to other developing countries. The paper presents a direction for further research to enhance the impact of cost overrun in public sector construction projects in developing countries, i.e., Saudi Arabia.

Delays in construction projects pose significant challenges, particularly in remote areas like the Sumenep District. This research analyzed the pump house construction project delays using the Critical Path Method (CPM) to identify the primary factors causing delays, including material supply issues and labor shortages. A qualitative descriptive approach was employed, involving in-depth interviews with project stakeholders and analysis of project documents, including weekly reports and schedules. The findings indicated that the project experienced an average delay of two weeks, primarily due to delays in material supply from Surabaya and concurrent labor shortages caused by multiple simultaneous projects. To address these challenges, the study proposed solutions such as strengthening logistics coordination with local suppliers, increasing the workforce on critical tasks, and utilizing additional heavy equipment. The implications of this research highlight the importance of effective time and resource management in construction projects, particularly in remote locations. Applying the CPM method, this study identifies the root causes of delays and provides practical strategies to enhance project efficiency and reduce costs. This research contributes to the existing literature on construction management in Indonesia, emphasizing the need for adaptive approaches tailored to local conditions.

Purpose The project participants that own more critical knowledge resources have higher knowledge power, and the imbalance of knowledge power may affect construction project performance. This study examines the effect of knowledge power on construction project performance by considering the mediating role of interorganizational knowledge sharing and the moderating role of project complexity. Design/methodology/approach Data were collected through a questionnaire survey. All measurement items were adapted from established scales in prior research and measured using a Likert scale. The questionnaire was distributed to the managers of participating organizations in construction projects. A total of 531 valid responses were collected, and the data were analyzed using structural equation modeling and bootstrapping. Findings Value-rational knowledge power has a stronger positive effect on project performance than instrumental-rational knowledge power. Value-rational knowledge power improves project performance through both in-role and extra-role knowledge sharing, whereas instrumental-rational knowledge power achieves this only through in-role knowledge sharing. Furthermore, both types of knowledge power have stronger effects on extra-role knowledge sharing under high project complexity. Originality/value The findings offer insights into how project participants balance instrumental-rational and value-rational knowledge power to enhance interorganizational knowledge sharing and construction project performance, thereby contributing to the theory of knowledge management in construction projects.

With the increase in legislation and the drive for ever-greater efficiency and accountability, health and safety in construction is becoming an increasingly important subject. This book covers the essential issues that apply specifically to construction projects, including the nature and causes of occupational injury or illness, project organisation and OHS, OHS risk management, OHS legislation, the psychology of OHS, behavioural safety management, using IT to manage OHS, and OHS training. Numerous case studies illustrate important points and refer to current successful safety management techniques, giving practical guidance to the practitioner and putting the issues into context for the student. This book will be of specific interest to clients, project managers, specialist consultants, designers, contractors, sub-contractors and suppliers.

Any construction practitioner fundamental goal is to complete the projects within estimated duration and budgets, and expected quality targets. However, time and cost overruns are regular and universal phenomenon in construction projects and the construction projects in Malaysia has no exemption from the problems of time overrun and cost overrun. In order to accomplish the successful completion of construction projects on specified time and within planned cost, there are various factors that should be given serious attention so that issues such as time and cost overrun can be addressed. This paper aims to construct a framework for the causes of time overrun and cost overrun in construction projects of Malaysia. Based on the relevant literature review, causative factors of time overrun and cost overrun in Malaysian construction projects are summarized and the theoretical frameworks of the causes of construction time overrun and cost overrun is constructed. The developed frameworks for construction time and cost overruns based on the existing literature will assist the construction practitioners to plan the efficient approaches for achieving successful completion of the projects.