A critical review of performance measurement in construction

ISO 21500 and the Sustainability Focused ANP-BOCR Framework for Subcontractor Selection in Megaprojects

The aim of this article is to present a novel framework that integrates the strategic dimensions of sustainability and the ISO 21500 standard to evaluate and select subcontractors for megaprojects. ISO 21500 processes were utilized to develop benefits, opportunities, costs, and risks subnets, whereas triple-bottom line sustainability dimensions were used as strategic criteria. Subsequently, the Analytic Network Process was used to examine the proposed framework for the Qatar Rail megaproject. The proposed framework supports organizations dealing with megaprojects to align their subcontractor selection with ISO 21500 and achieve ecological and social objectives alongside the project’s stipulated economic benefits.

Cutting Waste Minimization of Rebar for Sustainable Structural Work: A Systematic Literature Review

Rebar, the core resource of reinforced concrete structures, generates more carbon dioxide per unit weight than any other construction resource. Therefore, reducing rebar cutting wastes greatly contributes to the reduction of greenhouse gas (GHG). Over the past decades, many studies have been conducted to minimize cutting wastes, and various optimization algorithms have been proposed. However, the reality is that about 3 to 5% of cutting wastes are still generated. In this paper, the trends in the research on cutting waste minimization (CWM) of rebar for sustainable work are reviewed in a systematic method with meta-analysis. So far, the literature related to cutting waste minimization or optimization of rebar published has been identified, screened, and selected for eligibility by Preferred Reporting Items for Systematic Reviews and Meta-Analyses, and the final 52 records have been included in quantitative and qualitative syntheses. Review by meta-analysis was conducted on selected literatures, and the results were discussed. The findings identified after reviewing the literature are: (1) many studies have performed optimization for the market length, making it difficult to realize near-zero cutting wastes; (2) to achieve near-zero cutting wastes, rebars must be matched to a specific length by partially adjusting the lap splice position (LSP); (3) CWM is not a one-dimensional problem but an n-dimensional cutting stock problem when considering several rebar combination conditions; and (4) CWM should be dealt with in terms of sustainable value chain management in terms of GHG contributions.

The mediating effect of productivity on profitability in Indian construction firms

Purpose

The paper aims to investigate the effect of firm age and size on profitability and productivity of construction firms in India. It also attempts to understand the indirect effect of firm age and size on profitability mediated through firm's productivity.

Design/methodology/approach

Data of 64 construction firms, for a period of 12 years (2006–2017), were collected. In order to measure the direct and indirect effect of size and age on profitability and productivity, a structural equation model was developed. In the structural models, productivity is a latent variable measured through proxies of material productivity (MP), labor productivity (LP) and equipment productivity (EP). The profitability is measured using three financial ratios: return on asset (ROA), return on capital employed (ROCE) and return on net worth (RONW). Then the direct and indirect effect of age and size is measured on ROA, ROCE, RONW and productivity.

Findings

The findings of the study suggest that age has a direct negative effect on profitability; however, it has an indirect positive effect on profitability, which is mediated by firm's productivity. This positive indirect effect compensates the direct negative effect and leads to an overall positive effect of firm age on profitability. However, firm size shows no effect on profitability and productivity.

Originality/value

To the best of authors’ knowledge, the study is the first attempt to measure the indirect effect of age and size on profitability, mediated through productivity. The study also examines the interrelationship among firms’ profitability and productivity and bridges an important research gap. The study proposes an integrated theoretical framework with a clear view of the interrelationships among age, size, profitability and productivity for construction firms in India, which can be further tested and validated for generalization.

Understanding TQM implementation barriers involving construction companies in a difficult environment

Purpose

The purpose of this paper is to identify the factors that affect TQM implementation in construction companies and it suggests solutions for TQM implementation in a difficult environment.

Design/methodology/approach

Studies were carried out at six large construction companies who ply their trade in Southern Africa and in-depth investigations were conducted to assess TQM implementation practices and associated TQM barriers. Interviews were conducted on directors and key personnel that play important roles in TQM implementation in their respective organisations. The empirical study also utilised a number of organisational documents which added rigour to the findings.

Findings

This study identified three core categories and ten main barriers affecting TQM implementation in Southern Africa construction companies. The core categories are motivation, infrastructure and penchants and tendencies while the factors are lack of quality support, poor TQM knowledge and TQM awareness, poor information sharing, temporary workers, overdependence on contract document, poor data collection measurement, undefined TQM roles and responsibilities, award to lowest bidder tendency, poor business environment and corruption.

Research limitations/implications

The study was conducted based on companies plying their trade in Southern Africa and mostly around Malawi, Zambia and Mozambique. It does not study companies in Namibia, Zimbabwe, Angola, South Africa and Botswana.

Practical implications

TQM cannot be exported wholly from another region to a new setting without taking into consideration the local factors associated with that setting. For successful TQM implementation in construction in Southern Africa, characteristics of this region have to be known. This study illuminates a number of TQM implementation barriers associated with construction especially applied to this difficult environment. Application of this knowledge would enhance TQM and heighten competitive advantage initiatives. The proportions highlighted in this study therefore help build up the TQM implementation awareness.

Social implications

At society level, the findings of this study indicate societal problems such as corruption and business environment which require wide level approaches to deal with these barriers. In addition, if TQM applied in road construction projects, the quality of the roads will be improved, this in turn will have direct impact on quality of life in the society, better roads means easier access to hospitals, schools and public places, better transport and movements of goods and services, etc. It can also save money for the country in long run and economic benefits to the society.

Originality/value

The factors identified in this study are based on current TQM implementation practices at established construction companies in Southern Africa. They provide a practical basis for guiding TQM in construction companies operating in difficult environments.

A Cross-Domain Decision Support System to Optimize Building Maintenance

Operations and maintenance optimization are primary issues in Facility Management (FM). Moreover, the increased complexity of the digitized assets leads Facility Managers to the adoption of interdisciplinary metrics that are able to measure the peculiar dynamics of the asset-service system. The aim of this research concerns the development of a cross-domain Decision Support System (DSS) for maintenance optimization. The algorithm underpinning the DSS enables the maintenance optimization through a wiser allocation of economic resources. Therefore, the primary metric encompassed in the DSS is a revised version of the Facility Condition Index (FCI). This metric is combined with an index measuring the service life of the assets, one measuring the preference of the owner and another measuring the criticality of each component in the asset. The four indexes are combined to obtain a Maintenance Priority Index (MPI) that can be employed for maintenance budget allocation. The robustness of the DSS has been tested on an office building in Italy and provided good results. Despite the proposed algorithm could be included in a wider Asset Management system employing other metrics (e.g., financial), a good reliability in the measurement of cross-domain performance of buildings has been observed.

MEASURING THE PERFORMANCE OF ASSETS: A REVIEW OF THE FACILITY CONDITION INDEX

Measurement of performances in asset management is an enabling factor to define an effective strategy. The scope of this research concerns the investigation on the Facility Condition Index (FCI): one of the most common metrics related to the built environment. The research aims at providing a critical review concerning the FCI and its use. The research methodology has been developed according to three steps: bibliographic research, bibliometric analysis and critical review. Most of the sources agree that FCI provides a reliable economic measurement of maintenance needs, though it must be tied to a strong condition assessment methodology. Moreover, different methodologies for computation of the deferred maintenance and the current replacement value can be found in literature and many researchers emphasised the limits of FCI when dealing with components characterised by a considerable difference in replacement costs. In conclusion, FCI is included in the wider framework of asset management business process.

LIFECYCLE PERFORMANCE MEASUREMENT OF PUBLIC-PRIVATE PARTNERSHIPS: A CASE STUDY IN CHINA’S WATER SECTOR

Numerous public-private partnership (PPP) infrastructure projects have been operating in China after nearly 30 years of development. Surprisingly, few lessons and experiences have been drawn from these existing cases, thereby creating an urgent demand for a comprehensive evaluation of their performance. Thus, this paper presents a timely contribution to the assessment of a representative PPP project in China’s water sector, the Chengdu No. 6 Water Plant B Project, from a lifecycle perspective. Through a triangulation method, the project is generally deemed a success providing instructive lessons on the future evolutionary development of PPPs in China despite several imperfections caused by particular historical factors. Moreover, this paper advances the performance measurement of PPPs offering empirical insights to promote the efficacy of conceptual performance measurement frameworks. The outcomes of this research are especially valuable to the current Chinese PPP community where huge opportunities and challenges simultaneously exist.

Developing attributes for evaluating construction project-based performance

Purpose

The Indonesian construction industry has to considerably rise due to the issues of quality product, organisational performance and global competitiveness faced today, along with settling several national challenges that continue to plague the construction industry. Delivering high-quality construction products and services is non-negotiable when competing for contracts with international constructors. Developing such an assessment system to evaluate the performance of Indonesian construction companies is an urgent need in order to encourage and motivate the construction companies to continually improve their performance in the execution of construction works. The purpose of this paper is to empirically test the key attributes related to the evaluation of quality and performance in the construction project-based case of Indonesia.

Design/methodology/approach

A survey was conducted in the five provinces in Indonesia involving 216 construction practitioners from medium and large qualifications of construction companies.

Findings

On the basis of the data analysis results, the study develops the 39 key attributes that can be a basis for the development of Indonesian building construction project performance assessment system. The attributes cover construction companies’ performance during project implementation, in delivering final project results and in implementing quality procedures for building construction works.

Originality/value

The outcome of this study is considered significant to provide a tool for the government to assess the quality performance of contractors in delivering projects against specified standards, and a guideline for the contractors to improve their competitiveness by implementing continuous quality improvement. The confirmed attributes developed from this study is an initial step towards developing an Indonesian construction comprehensive quality performance assessment system.

Application of a team integration performance index in road infrastructure alliance projects

Purpose

– The purpose of this paper is to explore the applicability of the Alliance Team Integration Performance Index (ATIPI) model as an assessment tool to measure the performance of team integration in alliance road infrastructure projects in New Zealand.

Design/methodology/approach

– This study takes a case study approach, using a qualitative research method. Three road infrastructure projects under project alliance from the New Zealand Transport Agency (NZTA) were selected as the cases. Data were collected through the interviews with a representative from the alliance management team from each case. Project records and documentation were also used to assist and support the actual data from the interviews.

Findings

– The findings indicated that the ATIPI is performing as expected and found to be both practical and applicable to measure the team integration performance in light of real life case studies of alliance road infrastructure projects. Across the three case studies, there is evidence that high levels of integrated performance is consistently fostered by the project teams over the lifecycle of projects. In addition, based on the cross-case analysis from the application of the ATIPI on three cases, further work could enhance the probability of the utilization of the tool to manage different project alliance teams consistently and objectively.

Research limitations/implications

– The study was limited to three alliance road infrastructure projects in New Zealand. Further research into different alliance projects is required to establish a comprehensive database of alliance team integration performance, so that the model could be more beneficial for owner and non-owner participants, for benchmarking purposes.

Practical implications

– As team integration practice can directly result in high performing teams in alliance projects, the ATIPI is an ideal model to facilitate the continuous evaluation of team integration performance consistently and objectively over the lifecycle of the projects.

Originality/value

– This study extends the team integration literature in construction research by providing significant insights into the empirical evaluation of alliance team integration performance, as well as providing added value for the enhancement of any future development of performance evaluation models in construction research.

Measuring strategic performance in construction companies: a proposed integrated model

Purpose

– This paper aims to examine and compare a performance measurement system and performance frameworks commonly used within the construction industry. The paper explores the strengths and weaknesses of balanced scorecard (BSC) and business excellence model (BEM) to propose an integrated model for measuring strategic performance of construction organisations as a single model. The purpose is to help organisations achieve performance excellence, financial integrity and continuous improvement in business results to sustain competitive advantage.

Design/methodology/approach

– This paper examines and compares performance measurement system and performance frameworks commonly used within the construction industry. The paper explores the strengths and weaknesses of BSC and BEM to propose an integrated model for measuring strategic performance of construction organisations as a single model. The purpose is to help organisations achieve performance excellence, financial integrity and continuous improvement in business results to sustain competitive advantage.

Findings

– The study reveals that the most popular performance measurement framework in construction includes: BSC; Key Performance Indicators and European Foundation for Quality Management. However, literature also reveals that Malcolm Baldrige National Quality Award is being used to measure performance in the construction. The study findings indicated that BSC and BEM could be combined to provide an integrated model that will encompass every facet of construction performance measures.

Research limitations/implications

– The paper integrates the BSC and BEM performance measurement models, to provide construction organisations the opportunities of benefitting from the two models as a single tool without having to use more than one model or miss out any important aspect of performance measures. The model will assist organisations perform regular health checks of all business process and at the same time help align organisational activities with strategic primacy.

Practical implications

– The paper offers an integrated construction excellence model as a useful tool for measuring both financial and non-financial performance aspects of construction organisations. This will provide managers, owners and other stakeholders the chance of measuring processes and pre-eminent strategic initiatives using a single model.

Originality/value

– The conceptual paper presents an integration of processes and perspectives for measuring performance as a new and useful tool in the context of the South African construction industry. The paper suggests that research efforts should be directed on how to implement the strategic performance model efficiently within a specific construction environment.

The Performance Measurement of Supply Chain Management (SCM) in Malaysian Infrastructure Project

The infrastructure project is a great challenge to the key player due it volume and complexity. The problem facing by most of infrastructure project in term of management aspect, such as management conflict and unsatisfied output becomes an obstacle to fulfill the government strategy mainly Malaysia. Supply Chain Management (SCM) is viewed as a strategic tool to tackle that issue but there is a lack of comprehensive view of SCM concept and lack of reliable measure which contribute to improper guideline to the practice of SCM. Due to that this paper aims to identify reliable performance measure of SCM through perception of key player in infrastructure project. The indicator for performance measure of SCM is based on survey that carried out on 116 key players of Malaysian Infrastructure Project. Statistical techniques were used to form, verify and test the reliability of the questionnaire. The conceptual classification of the previous literature review and justification of experts during the pilot study proposed six (6) indicators for measuring performance of supply chain management (SCM). However, in this study five (5) indicators have been identified, namely Information Dissemination, Management, Leadership, Relationship Development, Customer Management and Activities Sequences. Hence this measure could be used to evaluating and control the performance of supply chain and as a guidance for a new initiatives to improve and develop supply chain.

Chan D. Research trend of joint ventures in construction: a two-decade taxonomic review

Purpose

– This paper aims to systematically and critically explore the research trend of construction joint ventures (CJVs) in some selected leading construction journals over the past two decades between 1993 and 2012. It is also expected that some valuable insights into the extended application of JVs to facilities service management and maintenance could be generated from the research findings.

Design/methodology/approach

– A powerful search engine “Scopus” was selected to identify those journals that have published CJV-related articles. The papers related to CJVs, as retrieved from the selected journals, were first classified based on their relevance to CJV study and were then analyzed in terms of the annual number of CJV-related publications, research focus of CJV studies and the applied research methods and techniques. Future research directions are suggested to enrich and add value to the extant literature about CJVs.

Findings

– An apparent increasing trend of research on CJVs has been witnessed over the past two decades. A critical analysis of the two-decade research outputs indicated that research topics of CJVs published in the selected journals consist of several key areas: theory and model development; motives, benefits and other strategic demands of application; performance measurement or management; risk assessment or management; influential factors for practice; problematic issues and challenges in practice; and managerial practices of CJVs in the industry. This study also identified that the research methods employed in CJV studies are predominantly questionnaire survey, case study, literature review/analysis, and interview. Research techniques applied in CJV studies were classified into seven main groups, with rank-order analysis, structural equation modelling and regression analysis being the three mostly adopted analytical tools.

Research limitations/implications

– The critical review of CJV literature reveals several inherent limitations of the existing research and practices of CJVs, The research findings also help visualize future research directions associated with the identification of barriers to the adoption and successful operation of CJVs, investigation of the appropriateness and effectiveness of CJV contracting strategies, and exploration into possible strategies for improving the industrial applications in future.

Originality/value

– Joint ventures have been extensively used in the construction sector, which calls for the need of more rigorous and meaningful research to guide the appropriate and effective use of it. The findings of this taxonomic review could provide useful insights towards researchers into shaping their research foci under the umbrella of CJVs to suit the demands of both the literature base and the real construction market.

Effects of cultural assimilation on the performance of a construction project – evidence from UAE

Purpose

– The purpose of this study is to assess the effect of the national culture on the performance of a construction project in the UAE. This study benchmarks reason for the success or failure of construction projects from the cultural perspective.

Design/methodology/approach

– This study takes a case study approach, using the qualitative research method. Data were collected through participant observation and project records as part of the lessons learned and the data were analysed using the coding procedure of grounded theory. Re-confirmation and cross-checking interviews were also conducted to confirm the correctness of the coding. The qualitative data were expressed in quantitative terms to signify statistically the effect of the national culture on the construction project. In this way, the research methodology employed triangulation in its data analysis.

Findings

– This study found differences in the national culture of the Chinese construction project management teams in overseas construction projects in the UAE. The level of uncertainty and long-term orientation contributed to the success of one of the construction projects under scrutiny and the failure of the other.

Research limitations/implications

– The study was limited to two construction projects in the UAE. Further research into construction projects is required to validate whether the national culture is generally an element to consider in overseas construction projects.

Practical implications

– The research study provides reasons for the success and failure of the two projects from the perspective of differences in national culture. Understanding the cultural differences in international construction projects should help to resolve project issues before these need to be terminated. The termination of a project has economic and social implications for all the stakeholders.

Originality/value

– No research study was found to have identified the national culture dimensions of overseas construction project management teams in the UAE. The longitudinal study helped to understand cultural assimilation during the execution of construction projects in the UAE.

HOW EFFICIENT ARE REAL ESTATE AND CONSTRUCTION COMPANIES IN IRAN'S CLOSE ECONOMY?

This paper empirically explores various efficiency aspects of real estate and construction companies in Iran in light of their remarkable growth in recent years. The technique used to measure the efficiency is DEA and the sample is taken from the construction and real estate companies in Iran. Results from our analysis reveal that most of the real estate and construction companies in Iran are generally technical, scale and mix efficient. However, they are less cost efficient due to increasing higher cost of production. The sensitivity analysis results also suggest that the real estate and construction companies are experiencing diseconomies of scale. As Iran is an underdeveloped market and is currently one of the most interesting frontier markets in the world, this research contributes substantially to investors and multinationals (who have growing desire to gain exposure in this market) by providing current information about the efficiencies of real estate and construction companies in Iran. In addition, this research also provides some institutional voids on how to penetrate market environment in Iran through real estate development.