Partnering: Tool for Construction Claims Reduction

On the number of near-maximum insurance claim under dependence

The construction industry is complex, fragmented, dynamic and involves many parties in an adversarial relationship. This makes disputes almost inevitable in any construction project. This paper aims to provide a comprehensive review of the adopted methodologies in resolving disputes that arise in the construction projects. The paper evaluates and classifies the different methods of disputes resolution. A comparison was conducted between the advantages and disadvantages of each method. The paper distinguishes between the traditional method of disputes resolution; litigation and Alternative Dispute Resolution (ADR) methods such as arbitration, mediation, med/arb, mini-trial and dispute review board. In conclusion there is no best way to solve all kind of disputes in construction projects, however, a general step by step process of how disputes should be addressed is finally presented.

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).

A model for the statistical analysis of the total amount of insurance paid out on a policy is developed and applied. The model simultaneously deals with the number of claims (zero or more) and the amount of each claim. The number of claims is from a Poisson-based discrete distribution. Individual claim sizes are from a continuous right skewed distribution. The resulting distribution of total claim size is a mixed discrete-continuous model, with positive probability of a zero claim. The means and dispersions of the claim frequency and claim size distribution are modeled in terms of risk factors. The model is applied to a car insurance data set.

Aim . The presented study aims to formulate the methodological basis of a market mechanism for ensuring the efficiency of investment and construction projects in the context of negligible transaction costs. Tasks . The authors analyze the effect of the relationship between the subjects of an investment and construction project on its efficiency; examine the major groups of fundamental economic mechanisms for enabling integration cooperation between economic entities; describe the IPD approach as the methodological basis of a market mechanism for ensuring the efficiency of investment and construction projects; define the principles of formation of local and global maximum economic effects of investments at the stage of an investment and construction project; formulate the methodological foundations of an economic IPD partnership, which is viewed as a market mechanism for maximizing the integral effect of an investment and construction project. Methods . This study uses general scientific methods of cognition and the institutional approach, which considers the market, organizational, and government groups as the fundamental economic mechanisms for enabling integration cooperation between economic entities, to develop the economic fundamentals of the IPD approach as a methodological basis of a market mechanism for ensuring the efficiency of investment and construction projects. Results . During the implementation of investment and construction projects, the so-called mutual effects of independent entities arise when changes in the cost and/or duration of one stage of the project affect the quality of the results at another stage. The need to develop mechanisms for ensuring the integral efficiency of investment and construction projects by compensating for efficiency losses at each stage is substantiated. In the case of negligible transaction costs, the best such mechanism would be to establish voluntary agreements between the parties based on a market mechanism. In investment and construction management, IPD contracts serve as the instrument of such agreements. The authors develop a methodological basis for an economic IPD partnership by differentiating the subjects included in the IPD contract in correlation with their costs and results within the investment and construction process and by establishing the conditions for remuneration payments and internalization of "internal" externalities by types of subjects in the IPD project. Conclusions . Economic interaction modeled according to the presented methodology is meant to ensure a cognitive IPD partnership combining the knowledge, competencies, and interests of different subjects, experts and specialists, which in turn serves as one of the mechanisms for maximizing the integral effect of an investment and construction project. Having a common digital information space for the project is a modern prerequisite for a successful IPD partnership based on the presented model of economic interaction between subjects.

In the today's complex world, construction projects are not only measured by the classical success factors anymore. Obviously, finishing the project in time, within the budget and with the required quality is the major interest of all stakeholders in a construction project. Nevertheless, other considerations, such as sustainability, engineering ethics, and social impact of the construction gain more and more importance. This development is driven by various new law and policy all over the world. Thus, for example the United Nations Development Goals, the European Green Deal, and the widespread deployment of code of ethics will have an increasing impact on the construction industry in future. The purpose of the study is to elaborate challenges that construction project stakeholders face today and also in future, aside from the risks resulting from the classical success factors. The focus of the research lies on ethical challenges in the construction process. During their research, the authors analyzed current literature with the focus on sustainability and codes of ethics for engineers. Using literature studies and legal analysis, they provide an overview about modern risk factors in construction projects. The authors conclude that sustainability issues in general, and relating ethical concerns in particular, increase the risks of managing construction projects. The new risk factors must be considered in construction contract design as well as in planning and executing of a construction project.

Construction projects usually are susceptible to conflicts because of their complexity. Additionally, the involvement of different stakeholders pursuing different aims and implementing them by different means, often results in disputable situations that must be solved. The existence of several dispute resolution procedures with various advantages and disadvantages makes it difficult to select the most suitable one for solving the particular conflict. Not every method seems appropriate for resolution of each type of dispute. Litigation may take a long time and incurs substantial cost. However, conflict parties seldom choose alternative dispute resolution (ADR) procedures such as adjudication, mediation and conciliation. Based on literature research and the analysis of several surveys, the authors identified a massive knowledge deficit of construction industry regarding the details of ADR procedures. The authors conclude that deeper knowledge about pros and cons of the various dispute resolution methods can help construction companies with their decision for a suitable way of conflict settlement. The paper provides information about a decision supporting chart for choosing the appropriate dispute resolution measure. That decision supporting tool, developed by the authors, primarily shall assist smaller and mid-size construction companies, normally not having easy access to legal advice, in deciding for a dispute resolution strategy.

This paper presents a methodology to study the effect of different resolution strategies on the value of the investment in a project-specific dispute resolution ladder (DRL) using option/real option theories from financial engineering, process centric modeling, and system dynamics methodology. Of particular interest in this paper is the integration of these research methodologies into a computer model to support the evaluation of the DRL investment in a particular construction project by taking into account the characteristics of: (1) the project, and (2) the different alternative dispute resolution (ADR) techniques chosen for the DRL implementation. Finally, an example is presented to illustrate the application of the computer model in a real construction project.

Detailed insights on energy use are missing for the building stock in Singapore that may aid reduction of energy consumption through a targeted approach. Therefore, we created two whole‐building energy models for a large commercial office building in the tropics representing a fully glazed and a concrete façade. We used Singapore's current building codes, which include compliance with local green‐rating system, and collaboration between two entities with first‐hand experience with design, construction, and operation of buildings in the tropics to define the models. The models provide a first step towards a set of standardized inputs and assumptions for office buildings in the tropics. The results show an energy use intensity of 146 kWh m−2 a−1. The three highest energy consumers are air conditioning and mechanical ventilation (43 %), lighting (29 %), and plug loads (21 %) whereas the two main sources of cooling loads are ventilation (29 %) and conduction and radiation through windows (20 %). Finally, we evaluated the effects of exterior shading on the fully glazed energy model to demonstrate the use of the models to building stakeholders.

Most construction projects carry a certain level of risk, and in order to determine and manage them, it is necessary to know their essence, causes, carefully plan the construction process and ensure the ability to quickly make the right decisions at each stage of the construction process [1]. Therefore, determining the essence of risks, their causes and effective methods of their management is extremely important to ensure the successful implementation of construction projects [3;4;5].During the construction process, several types of risk factors may arise simultaneously, in particular, an unexpected increase in the cost of construction materials, completed works, delays in meeting the deadlines of construction projects caused by the investor, contractor, environment, etc. As shown by the feedback of investors and contractors,the impact of COVID-19 on construction projects is significant, in particular, quarantine restrictions led to delays in the completion of projects and an increase in the cost of their completion.Analyzing the research data, it can be noted that construction projects regularly suffer from significant incidents, which are related to both the financial component and a large number of emergency situations. Effective construction risk management requires persistent attention to detail and training of the workforce to avoid undesirable situations during construction, including quality construction, accident prevention. International risk management standards vary widely, and there is almost always room for improvement. Infrastructure projects are becoming more and more complex and require more complex methods of control over them. When design work does not meet construction standards, the cost of repairs and associated risks can be extremely high. Therefore, insurers, contractors and clients should be interested in minimizing losses and perceive risk engineering as a way of positive contribution to the process of achieving a better result and as a result of a worthy investment in the future project.According to the PMBoK international standard, the risks of construction projects, their causes and solutions must be recorded, that is, timely response to negative risks contributes to the smooth execution of construction works without financial losses.

Roads funding priority index for Sub-Saharan Africa using principal components analysis

In the construction industry, labour productivity is the most important factor in construction projects. As construction work widely depends on labour. When labour productivity is maintained under the good management, the construction projects can be completed on time, with better quality and controlled cost. When the labour productivity is maintained under bad or low management, Construction projects face various problems such as delays, increased costs, and poor quality of work. This project study focuses on understanding the impact of labour productivity on the construction process. This project study was conducted through reviewing earlier research works relating to labour productivity and by collecting primary data through a questionnaire survey. The response data collected from the questionnaire survey were analysed to determine the main factors affecting labour productivity. The study found that the workers skill level, availability of materials, site conditions, supervision, and construction management practices have a major effect on labour productivity, which directly affects the project time, planning, cost, and quality. The findings of this study work will help the construction professionals to understand labour productivity issues and take the necessary steps to improve labour performance and overall construction project execution. The questionnaire survey was conducted using Google Forms and responses were collected from construction professionals, site engineers, supervisors, contractors, and workers from the Karnataka state region.

This is a comprehensive book on infrastructure development and construction management. It is written keeping in mind the curricula of construction management programmes in India and abroad. It covers infrastructure development, the construction industry in India, financial analysis of the real estate industry in India, economic analysis of projects, tendering and bidding, contracts and contract management, FIDIC conditions of contract, construction disputes and claims, arbitration, conciliation and dispute resolution, international construction project exports and identifying, analysing and managing construction project risk. Thus, this book covers most of the construction management activities that are carried out at different stages of a construction project. This is an essential book for students of construction management, construction professionals, academicians and researchers.

The objective of this paper is to analyse communication and information flow within construction projects on the basis of a survey study and a review of the literature. The subject of communication and its impact on carrying out a construction project is widely discussed in global academic literature. Many scholars point to problems with communication and information flow while also reporting that it directly affects construction project time and cost. In the literature, communication is also presented as an essential factor that improves safety and partnering in construction projects. There is also a group of studies that points to the lack of effective communication as the cause of delays and modifications. The authors, in reference to global studies, present the results of a survey study performed in Poland on a group of 160 construction industry practitioners. Information about five research areas was collected. These areas included: general information about communication and information flow between construction project participants, problems in carrying out construction projects in relation to the lack of effective communication, the impact of communication on the success of carrying out a construction project, communication costs, and the need to develop a tool (a digital system) that would support construction project managers in the optimal control over communication between project participants. On the basis of the obtained research results and the literature study, it was found that effective communication and information flow within a construction project can improve the construction process and that there exists a need to develop a comprehensive approach that would aid construction project managers in ensuring a more effective information flow.

Urban microclimate and its impact on building performance: A case study of San Francisco