Category: Construction

Professional Bodies Related to the Profession

The profession of an engineering technologist belongs to the number of well-paid jobs that require a wide range of skills and specific knowledge. Speaking about the profession, it needs to be said that such specialists can work in a wide range of industries where it is necessary to apply theoretical concepts and models in order to improve production processes and properly utilize accepted working practices.

When it comes to the United Kingdom in general and London in particular, it is necessary to highlight that, due to the high degree of economic development of the country, some numerous institutions and associations discuss, set, and use requirements to engineering technologists and make a contribution to their professional development. Among them, there is the Engineering Council of the United Kingdom that is the institution responsible for accreditation and registration of engineering technologists.

Apart from that, the institution conducts consultations concerning the most recent professional standards defining the skills that specialists must demonstrate to obtain official certificates. Due to these consultations, young specialists are provided with all the necessary information helping to achieve professional registration. The information concerning the number of members of the organization is not available.

The organization has a significant impact on the engineering profession in London and other cities in the United Kingdom as it sets standards that are used to evaluate the applicants who want to be registered as qualified engineers. Among these standards, there are UK SPEC and ICT Tech that describe communication skills, responsibilities, professional skills, and ethical principles related to the profession.

Another institution that regulates the profession in the United Kingdom is the Institution of Engineering and Technology that is headquartered in London. The organization has existed for more than one hundred years. Nowadays, the primary aim of the given organization is to utilize recognized standards related to the profession and consider the applications of specialists who would like to obtain professional registration that provides numerous benefits even outside the United Kingdom.

The number of IET members exceeds 160,000 people, and it makes the organization one of the most popular in the country. Acting as a representative of EC that has been mentioned, IET uses the same standards and promotes ethical standards for engineering technologists and other engineering specialists. Besides, it is regarded as an organization that provides training for individuals willing to work in the field.

Apart from these two institutions associated with this profession in the United Kingdom, there is the Engineering Technologists’ Mobility Forum what was organized due to the concerted efforts of national organizations in six countries including the United Kingdom. The particular organizations related to this forum provide specialists in engineering technology with the opportunity to obtain professional registration and be recognized by IntET. Using professional and ethical standards and modern information resources, these organizations provide opportunities for continuous professional development to their clients and applicants.

Market Research

Nowadays, there is a high demand for construction and consulting services in London and other cities of the United Kingdom. The business plan that will be developed within the frame of the assignment will focus on the strengths and weaknesses of a new business related to engineering technology services. There is no doubt that the establishment of new companies should always be preceded by a thorough market analysis as the latter remains the most credible source of knowledge helping future entrepreneurs to define the methods to increase their businesses’ competitive advantage in advance. In this connection, the presence of competitors and factors that increase their popularity among customers can be regarded as one of the most important points of analysis.

The business plan will discuss the establishment of an engineering consulting company based in London. The company that will be created will work on the development and implementation of construction projects both for companies in the city and particular citizens. The actions to maintaining the trust of our target clients will include the establishment of a discount system for standing clients, regular training courses for employees, and the creation of a social media marketing strategy.

Nowadays, there are a number of large companies that provide similar services. Among them, there is WS Atkins that is a multinational company that works with customers with almost thirty countries. Nowadays, the company is recognized as one of the largest design organizations in the world, and it makes WS Atkins the key business rival. The planned company is going to be much smaller than WS Atkins, and this is why it will be rather difficult for this new business to attract the attention of target customers at the beginning of its operation.

When it comes to the most obvious advantages that WS Atkins has, it is pivotal to mention that it offers a variety of services related to construction and consultancy to companies in different parts of the world. This company presents the strongest business rival to the new company that will be created not only due to the number of services that it provides. Apart from that, the company has a strong positive reputation as its projects are well-known. Among the most famous projects that have been developed and executed by specialists from WS Atkins, there is Newport (a railway station), Mecca Metro in Saudi Arabia, Lulu shopping mall, and the Address Downtown Dubai (a skyscraper) (Project showcase n.d.).

Another company that can be considered as a key competitor of new engineering consulting companies in London is PHS Construction Ltd that is a construction company headquartered in London (Cohen, Reichl & Schmidthaler 2014). PHS Construction provides building and consulting services to companies in London and other cities in the United Kingdom. Apart from that, specialists from PHS Construction design unique projects from scratch, providing solutions related to design and planning. The company has already implemented more than 1700 projects designed for companies and private citizens in the area.

Consulting services that the company provides are appreciated by numerous clients. As it has been mentioned in the report, the new company that will be created will provide project design and construction services to two categories of clients: companies and citizens. Taking into account that PHS Construction primarily focuses on small projects related to home design, the effective work of this organization may have a negative impact on the attractiveness of our new company for private clients. At the same time, WS Atkins will be our primary competitor if the emphasis is placed on collaboration with corporate clients.

B&G Construction also belongs to the number of large and successful construction and consulting companies working with private and corporate clients in London and other cities of the United Kingdom. In addition, it designs and implements its projects in Sweden and France. The range of services that the company offers to its clients includes minor building works such as the installation of roof extensions, the restoration of old buildings, and plastering that are usually provided to private clients.

More than that, the organization also provides commercial building services to small and large companies and offers consultations to those people and companies who want their construction projects to be assessed and improved. The portfolio of the company includes numerous projects such as Cadogan Gardens (one of the luxurious hotels in London). Considering the quality of service that it provides and the fact that the organization already has a strong positive reputation in the city, B&G Construction is likely to be one of the key competitors of the company that is going to be established.

Among the key advantages that all companies that have been analyzed have, there is a strong positive reputation manifested in the great number of successful projects and the variety of services that companies provide. In addition, it needs to be said that these companies have stable organizational structures, and tasks are distributed among specialists in different departments. Due to task distribution, the potential competitors of the business that is being planned to ensure the high quality of all services that are provided. The company that will be created will need to utilize similar principles and put emphasis on quality and proper marketing strategy to become popular among target customers within a short period of time.

In order to identify those companies that can be regarded as key competitors for the business that will be created, the number of references in the media and customer recommendations available on the Internet was considered. In general, there are numerous ways to conduct market research to learn more about target customers, define their primary needs, and analyze factors that impact their purchasing decisions. In general, there are two approaches to conducting market research surveys.

First, tools helping to study markets and their properties can be used to describe markets or industries in general and single out key market players. Apart from that, surveys can be conducted by particular companies that would like to know more about the attitude of common people to their brands and the perceived quality of their products.

The construction market is studied by researchers from different countries. For instance, there are official reports that are devoted to the key tendencies related to the construction market in the United Kingdom and outline the structure of the sector that can be used to create the future business plan.

This report can be used as a valuable source for the business plan because it touches upon different aspects of the market, the use of innovation in construction services, and future problems that companies in this sector may face (UK construction: an economic analysis of the sector 2013). Considering that this source uses only official statistical data, its importance for the process of strategy development cannot be overstated.

Another source that uses the results of market research surveys in combination with the official statistics was conducted by Turner and Townsend, a British company. The source focuses on the global construction market and the average amount of money spent on construction activities in different countries and cities.

According to the findings that the company reports, the construction market in London has a significant impact on market tendencies and the demand for construction services in the United Kingdom (International construction market survey 2016). The source can be used to create an effective development strategy that will be discussed in the business plan.

Reference List

Cohen, JJ, Reichl, J & Schmidthaler, M 2014, ‘Re-focusing research efforts on the public acceptance of energy infrastructure: a critical review’, Energy, vol. 76, pp. 4-9.

International construction market survey 2016. 2016. Web.

Project showcase n.d. Web.

UK construction: an economic analysis of the sector. 2013. Web.

Introduction

Malaysia currently ranks among the leading states that support and encourage project initiatives related to sustainable urban development and so-called “green urbanism.” The Malaysian government promotes policies and development plans that suggest various strategies of improving green networks and increasing energy efficiency in cities (Aziz 2016).

Cyberjaya was created to be a pioneering community in green technology and is meant to serve as an example for other cities of Malaysia to adopt environmentally friendly development strategies. The city is now actively involved in the construction of green buildings, sustainable houses, and cooling systems (Jereme et al. 2015). However, despite a considerable number of green initiatives, it has only one large-scale project related to open-air recreational zones: the Cyberjaya Lake Gardens. This area covers 1.6 square kilometers and is considered to be the primary landscaped space of the city. More than 6 hectares of this territory are occupied by the lake, which attracts many tourists and locals alike (Abidin 2016).

The idea of the green city project is to shift the focus of attention away from the Garden City Concept itself and instead turn the only garden in the city into a “city-in-a-garden.” To this end, the project aims to expand the borders of the garden until it covers the whole residential area. This goal implies incorporating green technology principles during the development stage of building construction. Through this project, Cyberjaya will be integrated into the existing natural environment and become an uninterrupted open space. Furthermore, the expanded wetlands will filter water naturally, which can be a perfect cost-saving replacement for traditional filtration systems (Abidin 2016).

Thus, the aim of the research at hand is to analyze the future of the above-mentioned green project of Cyberjaya in terms of its practical implementation and its ability to achieve the desired result of a green city.

The objectives of the study include the following:

1. To analyze existing literature concerning green township and its possible applicability to Cyberjaya;
2. To outline the values that can be derived from the planned landscape project;
3. To propose a specific project implementation plan;
4. To identify associated risks;
5. To analyze the outcomes of the project.

Literature Review: Green Township Significance and Social Impacts

Despite the fact that the idea of promoting environmentally friendly technology and enlarging green spaces in cities has gained popularity only recently, the concept of environmental sustainability and efficiency had already appeared by the 1970s. However, the forecasts of population growth were rather pessimistic: Most studies on the topic came to the conclusion that society’s striving for prosperity and technological advancement would result in both economic and environmental collapse within 50 years (Abidin 2016).

The Bruntland Report (1987) and the Rio Declaration (1982) were released to propose effective plans that would allow communities to switch from the classical models of development to more sustainable ones, making it possible for city communities to adjust to ecological deterioration, climatic changes, increasing levels of carbon dioxide, and pollution. Yet, despite the fact that these were considerable steps forward that attracted a great deal of public attention to a serious problem, the concept of green township was not developed as a separate strategy, and the related recommendations were limited to a number of unconnected steps (Hosseini & Wahid 2014).

Still, the increased attention of the community made Malaysian cities more aware of environmental problems as well as the marketing benefits of becoming more sustainable. They started to encourage environmental development in order to increase their ecological capacity, which would be beneficial not only for the community at large but also for investors and businesses as it would allow them to save money (San Onga et al. 2016).

The concept was later transformed into so-called “green development” or “green urbanism” as it implied the implementation of a set of ecological measures that would also be economically profitable: For instance, sustainability could be increased by introducing lifestyle changes such as walking or cycling instead of driving; by rejecting types of energy production that create pollution in favor of more sustainable, ecologically clean energy sources; and by promoting environmental restoration policies for areas that have been severely damaged by human activities (Hosseini & Wahid 2014).

For cities like Cyberjaya, initially planned to be an environmentally friendly community, it would mean, first and foremost, that the construction of buildings would have to be switched to a new policy: Classical models had to be replaced by environmentally friendly ones in which spatiality would be extended into green township. Such cities were built to serve as an example to others, showing how to achieve a more sustainable technological future that would not cause the destruction of the environment but would use it to gain economic advantage.

Indeed, the greatest problem indicated by researchers today is the increased urbanism across the planet, a tendency that is unlikely to change over the next decade and that will result in 60% of the global population living in cities. Given this trend, the task at hand is not to make the population go back to villages and small towns but rather to reduce the impact of climatic changes in big cities in order to make them more suitable for living (Hosseini & Wahid 2014).

Many historical references to the idea of garden cities can be encountered both in professional and fictional literature. However, never before 1898 was the concept used as a part of a real implementation plan. The concept was suggested by Sir Ebenezer Howard who incorporated a “green” element into the modern planning of cities and insisted on furthering the development of garden cities.

The environmental problems of cities had been addressed long before, and there were many different strategies developed to deal with the consequences of the Industrial Revolution. However, for the first time, it was proposed to switch from focusing on problems to instead developing sustainable cities that would result in the appearance of well-structured, self-contained communities that would become a part of green areas and host industries that would not damage the environment. Furthermore, this idea brought the issue of carbon emissions to the forefront, highlighting its economic disadvantages as well as its ruinous impact on human health, which brought even more attention to green elements (Supni et al. 2015).

Thus, the government of Malaysia has become attracted to the idea of resolving environmental challenges by implementing and promoting a comprehensive policy of green township that, in its wider interpretation, includes site-specific green concepts. For Cyberjaya, the implementation of the project was facilitated by the fact that the city was initially planned as an ecologically friendly area with a number of green buildings and facilities and a special green urban design in architecture. Yet, the city was still striving to create a so-called “green neighborhood,” a process which can be characterized as follows (Supni et al. 2015):

• Considerably reducing their negative ecological impact;
• Acknowledging their contributions to the larger community and global environmental crisis and acting accordingly;
• Trying to plan all actions and policies so that they work together;
• Switching from a linear to a circular system of environmental awareness;
• Addressing both domestic and global problems of self-sufficiency that would include all related problems (e.g. healthy food production and distribution, power generation, a reduction in carbon dioxide levels);
• Encouraging a healthy lifestyle for the population that would make it possible to reduce hospital admissions to a minimum;
• Striving for the achievement of a high quality of life in all aspects of city planning and development.

Following the criteria enumerated above, Cyberjaya was to become not only a community that implements ecological policies and protects the environment but also an integrated planned habitat that is continuously involved in ecological improvement, which includes concerns over efficient resource distribution, public health promotion, safety, and the overall well-being of the population. Since the city already had a vast territory occupied by a park, the project was viewed as one that could actually be implemented in practice (San Onga et al. 2016).

Moreover, the local community was attached to this area, and most of the city population already preferred to spend free time in the Lake Gardens, which meant that expanding the garden to the whole community was sure to be supported by the majority of residents.

Yet, the idea went much further than the simple planting of more trees or the enlarging of park territory; indeed, it would involve the development of waste-free, transportation-efficient, low-carbon, sustainable practices that would be incorporated in the construction of new areas and would transform the old ones (Bohari et al. 2016). Parks would be included in the project not simply as recreational zones but as the “lungs” of the city, making it possible to reduce carbon output and achieve a higher quality of air and water—the latter of which is especially relevant to Cyberjaya and its famous lake.

Living, working, shopping, playing sports, and resting were all supposed to be combined within the new framework since green urbanism represents community cohesion and a shared commitment to green consciousness in all activities. Efforts to reduce greenhouse emissions were supposed to be multidirectional, the idea being that the quality of life, accommodation, education, and even mental health of people largely depend on their surroundings.

Well-designed and properly managed green spaces were recognized by the Malaysian government to be crucial for the development of businesses as well. That is why the majority of companies operating in the area had to switch from traditional modes of operation to sustainable ones (Supni et al. 2015).

It was decided that the whole community of Cyberjaya was to contribute to the development and incorporation of green elements into daily life: Green spaces and corridors, trees planted in the streets, roof gardens, and other innovations were made a priority among residents, who were further encouraged to propose their own initiatives on how to improve the area (Bohari et al. 2016).

The idea of green township is primarily based not on the amount of green landscape but on green performance, ranging from effective water and air management to energy-saving systems. However, the most important aspect of this concept is changing the attitude of the population and creating a unique vision that provides clear guidelines for this new way of life. A new way of life necessitates a new way of thinking and thus relies upon the commitment of all residents. It would be useless to expand the area of the Lake Gardens by planting new trees unless all the other steps enumerated above are taken.

This was the conclusion ultimately reached by the Malaysian government, which has had significant experience promoting environmental innovations in a number of its city plans since the introduction of the 8^th Malaysia Plan (2001-2005). The common idea of such projects is to intensify the sustainable use of resources and to propose efficient environmental initiatives that cover the industrial, residential, and commercial sectors simultaneously.

The success of any project is usually measured by its ability to become law, making it a standard or a guideline to be implemented on a larger scale in a number of cities across the country. The government has already come up with its National Physical Plan (NPP) and National Urbanization Policy (NUP), both of which provide a national framework for achieving a totally new status by 2020. The policies can be summarized as follows (Bohari et al. 2016):

• A transit-oriented development (TOD2) concept was proposed to increase the viability of public transportation in busy areas while developing walkway connections.
• Solid waste disposal and pollution recovery facilities were created for urban areas to improve their current ecological state; moreover, the National Solid Waste Master Plan entails recycling, collection, and disposal.
• Electricity generation plants were built to provide a supply of green energy to consumers as they generate energy from sun, wind, biomass, and water instead of using traditional sources that damage the environment.

All these introduced acts and launched projects demonstrate that the nation is ready to support green urbanism. This intention was reflected in Malaysia’s National Urbanization Policy, signed in 2006, which regulates the utilization of open spaces (including their use for tourism), waste management, urban growth, transport development, and renewable energy generation. For cities including Cyberjaya, this policy entails the follow strategies (Bohari et al. 2016):

• Using land for urbanization optimally, especially concerning green areas and natural landmarks as all new buildings must be compatible with the surroundings;
• Promoting urban regeneration and re-development programs to save costs;
• Meeting the needs of the population in green areas that would have a minimal level of carbon emissions;
• Creating cost-effective transportation systems that are easy to use and do not pollute the environment (including the promotion of bicycles and electric cars);
• Building toxic waste management systems and programs including the use of biodegradable materials;
• Developing housing that would use solar energy; and
• Reducing noise levels.

Case Study

Value Analysis of the Landscape for Cyberjaya

As mentioned previously, the Lake Gardens play a significant role for tourism in the region as a lot of people come to see this natural landmark, bringing the city considerable economic benefit. However, it would be wrong to assume that the concept of city landscape is reduced to the appreciation of the beauty of the park. On the contrary, city landscape refers to the whole infrastructure and ecology of the city, the geological structure of the soil, its animals and vegetation, and all human activities related to the use of the land that lead to both positive and negative transformations. Generally speaking, the landscape entails both natural resources and people’s interactions with them (Teo 2014).

Thus, the role of the City-in-the-Garden project is hard to overestimate: Its implementation will lead to a substantial transformation of the city landscape, increasing the number of benefits that the Gardens currently contribute to the city. The possible future benefits include the following four major aspects (Bohari et al. 2016):

1. Giving aesthetic pleasure through the experience of beauty: Although it is often considered a side effect by market analysts, in fact, landscape may inspire many people to launch new green projects, construct buildings, and re-organize public places. Moreover, landscape is a shared experience of the whole city population, providing conditions for people to realize their identity. Another important fact about the beauty of the landscape is that it leads to the cultural development of the city, as many artists, composers, directors, writers, poets, designers, and photographers get inspiration from their surroundings. As a result, the community development of Cyberjaya will be increased as the Gardens move beyond being a tourist attraction and acquire a new status as a vehicle of values.
2. Preserving nature and maintaining the biological diversity of the city: The ecosystem of any highly developed city suffers from urbanization that affects the natural vegetation, flora, and fauna. Indeed, human interventions are rarely positive. In the majority of cases, the influence of rapid industrial development is ruinous to the environment. Cyberjaya is to become an exception to the rule, as the project is designed to change the nature of urbanization by promoting green industries, green construction strategies, and green jobs to conserve the biological abundance of the city.
3. Conserving the history of the city: All monuments, landmarks, and buildings that constitute the landscape also have the purpose of preserving human history. The population of Cyberjaya will have an unprecedented impact on the development of the city, giving future generations the chance to dwell there in harmony with nature. This will also increase the environmental consciousness of the population by changing people’s attitudes not only to this particular landmark but also to the city as a whole.
4. Providing a source of recreation and an attraction for tourists: The Lake Gardens already enjoy immense popularity among tourists as many come to the city to visit them. This popularity will only grow as the area is expanded. The public use of natural landmarks not only serves recreational purposes but also gives the city economic benefits. People expect such areas to offer all kinds of activities including walking, biking, climbing, gliding, taking photographs, organizing picnic and parties, swimming, and more. When the green area covers the whole city, the number of activities there will be practically unlimited.

Establishing Economic Value

The creation of strong economic value deserves a separate discussion. Any property development, even one related to environmental conservation, pursues the ultimate goal of making profit. The landscape project of Cyberjaya presents the selected area as an asset that promotes the distinctive character of the city and determines the direction of business and environmental activities in the future. Still, appropriate mechanisms and marketing strategies are required to establish the strong value of this property since it is not privately owned and is unlikely to attract investors at the present moment. First and foremost, it is important to emphasize the fact that landscapes provide the following services to the economy (Samarrokhi et al. 2014):

• Attracting artistic professionals whose work increases the touristic popularity of the city;
• Creating opportunities for physical exercise and sports, which in turn may lead some investors to build sports grounds, playgrounds, and stadiums in the Gardens to make it possible for professional sportsmen to train in the open;
• Providing recreational opportunities to local residents, which will open a wide range of business opportunities for real estate, sales, and entertainment;
• Acting as a carbon sink and reducing the level of other dangerous emissions, which is economically beneficial as it eliminates the need to devise more expensive ways of pollution management.

It can be logically deduced that some of the given benefits are obtained directly from the area itself, while others are indirect and do not require any financial investments to be received. Economic profits from the Lake Gardens are obtained in the following ways (Samarrokhi et al. 2014):

1. Direct use values: Such benefits are received as a result of the use of the natural landscape by people. This category is usually subdivided into extractive and non-extractive values; the former presupposes the use of the area for timber and non-timber products, which could be obtained without having to cut trees (e.g. flowers, mushrooms, berries, fruit, roots, herbs) and later consumed or sold. The latter values are connected with recreational benefits, research projects, and educational and commercial studies that make it possible to analyze new opportunities for growth and business in the area.
2. Indirect use values: This type refers to the environmental functions of natural resources that can be used by residents for their economic activities (such as controlling erosion and lake sedimentation). The landscape under discussion can provide Cyberjaya with a number of other services including carbon sequestration, micro-climate stabilization, and the purification of water and air.
3. Optional values: The transformation of the city into a city-in-the-garden will create an optional value of conserving the landscape for future generations. Another optional value is maintaining the biodiversity of the area.
4. Non-use values: All the enumerated values are derived by using the landscape in a particular way; however, there is also the value of not using it and merely knowing that it exists in the city. Even though some areas cannot bring economic profit, they can satisfy people’s needs to see natural beauty conserved. This category of values is especially applicable to the given case, as the Lake Gardens are unique as a natural landmark.

Implementation Strategy and Associated Risks

The proposed project will be implemented through the following sequence of steps:

• Increasing the green coverage of the Lake Gardens area for it to encompass the whole city;
• Promoting the use of renewable energy sources and waste management systems;
• Transforming the physical infrastructure of Cyberjaya to align with green township principles;
• Increasing population awareness;
• Encouraging green initiatives in businesses and industry;
• Providing educational, financial, and technical assistance as well as market benefits to those who want to invest in the area’s development;
• Proposing new environmental standards to the government for the city’s model to be used by other regions;
• Introducing a green code of conduct for the local population as well as tourists;
• Developing responsible tourism in the area;
• Encouraging engagement among young people who want to participate in the project;
• Attracting organizations that may assist with project planning and implementation;
• Forming committees and agencies that will be responsible for managing risk and evaluating results; and
• Ensuring good governance of the project at the national level.

The major risks associated with the project implementation are as follows:

• Lack of government funding;
• Lack of funding provided by private investors and organizations;
• Delays due to red tape as the number of stakeholders is quite large;
• Problems arising from associated projects (e.g. green building design, air and water filtration systems, waste management);
• Risks to tourism as the area is under development;
• Damage to the natural habitat and biodiversity of the Gardens; and
• Unscrupulous businesses that may do harm to the area in their pursuit of profit.

Research Method

The research method will depend on an observation of how the green city initiative is implemented. This close observation must be done in order to detect mistakes in the initial design of the strategic plan and to change the direction of the program as necessary. However, this observation must be performed on several levels for it to be effective and comprehensive:

• Technical experts will be hired and provided with all necessary equipment and logistical support to be able to monitor the process and uncover its flaws.
• A monitoring committee will assess the progress of the project on regular basis.
• A research team will evaluate the correspondence of the project with the major targets, objectives, and expected outcomes of green township.
• Representatives of various municipal agencies, political parties, and population groups will be invited to perform an independent evaluation.
• A risk management team will address the challenges and risks related to the project and develop plans to prevent and eliminate them.

Analysis and Results

In order to make conclusions about the proposed initiative, it is necessary to analyze not only its financial and non-financial values but also its overall impact. The most important aspect of the project in Cyberjaya is its direct contribution to the development of a garden nation—an aspiration that the Malaysian government has had since the end of the 1990s. The successful experience of one city will allow other cities to adopt its policies. Thus, the project will be analyzed by the following criteria (Kasbun, The & Ong 2016):

1. Successfully contributing to the building of the garden nation: Since the implementation of the project is connected with drastic environmental changes, it may bring about certain negative consequences as the natural balance of the area may be accidentally disturbed. However, if implemented successfully, the project will make the city an example of how to build the garden nation.
2. Establishing a green infrastructure: It is essential that the project not be limited to mere expansion of the Lake Gardens, as its ultimate goal of changing the city infrastructure will benefit people and organizations. A close look at Cyberjaya reveals that the community is consistent with the green township vision, which means that there is a good chance for success with this initiative.
3. Conserving and preserving natural resources: This target is both environmental and economic. Any project has to be assessed based on its ability to cut cost and create value. As shown in the value analysis of the previous section, this initiative is capable of saving resources and fostering their optimal use by local residents.
4. Ensuring that the landscape is taken into consideration by all stakeholders: This factor is crucial for any environmental project as the initiative must be aligned with all efforts in the city. Such commitment requires a coordinated effort of the whole community and cannot be guaranteed by the implementation of a single initiative. The task of the government is to ensure that a business that violates green principles is not accepted in the region.
5. Reviewing and improving legislation related to landscape management: This is another factor that cannot be achieved by the proposed project. Although it presupposes a change of attitude toward environmental development and active participation of businesses and citizens, it lacks legal power to be able to change laws related to the environment.
6. Strengthening industries that can operate in the area: The project will create many opportunities for the development of recreational, entertainment, sport, research, and other facilities and foster the development of several business sectors.
7. Fostering landscape as one of the integral parts of people’s way of life: The project is to emphasize the unique character of the tropical climate in Malaysia as well as its geological formations. Thus, all improvements to cities must be made creatively in order to ensure that no violation of the natural characteristics of the land occurs. Moreover, the country’s culture and historical significance must be preserved, no matter what alterations are made. The initiative under discussion has this potential on the local level; yet, it is difficult to state whether the experience of Cyberjaya will be adopted by other cities in the nation.
8. Promoting the principle of “design follows function”: Although attractive design and creativity are important (especially concerning tourist attractions), the project outcome can be positive only if the new infrastructure is functional. Functionality is the key goal of the given project, and there is a risk that, if some steps are omitted, the idea will be reduced to its secondary aesthetic function.

Having analyzed the project against the selected criteria, the following conclusions can be reached:

• The initiative is viable.
• It makes a contribution to building the garden nation.
• The project will not only establish but also promote green infrastructure.
• It will allow for the preservation of natural resources.
• It lacks legislative power.
• There is no guarantee that it will be aligned with other business initiatives.
• The implementation of the project will emphasize and promote the Malaysian lifestyle.
• If some of the steps are not given proper attention, there is a risk that design will prevail over functionality.

Conclusion

The idea of the Malaysian government to create Cyberjaya as a pioneering city in green technology needs to be developed so that it may be adopted by other cities in the country. The only large-scale project connected with open-air recreational zones currently existing in the city is the Lake Gardens, the major landscaped space of Cyberjaya. Thus, the initiative of the green city project is to transform the only garden in the city into a city in the garden.

Based on a value analysis, it is possible to conclude that the initiative has strong potential to turn Cyberjaya into an uninterrupted open space, which will bring numerous economic, cultural, and aesthetic benefits. However, for this positive outcome to be achieved, it is necessary to be mindful of the risks that may undermine the success of the project and eliminate them.

Reference List

Abidin, NZ 2016, Environmental concerns in Malaysian construction industry, Penerbit USM, Gelugor.

Aziz, AA 2016, ‘Execution of contemporary Islamic architecture through design: the Cyberjaya green platinum mosque project in Malaysia’, WIT Transactions on The Built Environment, vol. 159, no. 1, pp. 11-22.

Bohari, AAM, Skitmore, M, Xia, B & Zhang, X 2016, ‘Insights into the adoption of green construction in Malaysia: the drivers and challenges’, Environment-Behaviour Proceedings Journal, vol. 1, no. 4, pp. 45-53.

Hosseini, SE & Abdul Wahid, M 2014, ‘The role of renewable and sustainable energy in the energy mix of Malaysia: a review’, International Journal of Energy Research, vol. 38, no. 14, pp. 1769-1792.

Jereme, A, Siwar, C, Begum, RA & Alam, MM 2015, ‘An assessment of waste management operation in Malaysia: case study on Kuala Langat and Sepang Innocent’, International Journal of Environment and Waste Management, vol. 16, no. 2, pp. 133-144.

Kasbun, NF, Teh, BH & Ong, TS 2016, ‘Sustainability reporting and financial performance of Malaysian public listed companies’, Institutions and Economies, vol. 8, no. 4, pp. 78-93.

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Abstract

The field of construction management is open to innovations and effective rational solutions, and one of the possible ways of increasing performance is introducing automated systems into the production process. This study aims at describing the advantages that such mechanisms bear in the context of labor organization, as well as the barriers and challenges that the leaders of individual structural units may encounter.

As a substantiation base, an extended literature review will be conducted as a research method. Relevant academic resources will be utilized to ensure the credibility of the research and all reasoning given. The findings will help to confirm specific theories and assumptions regarding the effectiveness of the implementation of robotics in construction management. Based on the results of the review, relevant recommendations will be given. In order to focus on specific areas of work, the political, economic, social, environmental, and legal implications of innovations will be considered.

In accordance with the results of the work carried out, it can be noted that representatives of the construction management sector can gain significant benefits through the introduction of robotic systems into the production process. Despite some barriers and challenges, the cooperative activity of people and automatic mechanisms makes it possible to improve the quality of all operational procedures and minimize routine and tedious tasks.

Following the analysis, the proposed recommendations should be considered in order not to violate the existing standards of work in the construction management sector. The results of the study may be utilized as a guideline for introducing relevant equipment in the workflow and searching for justifications for the effectiveness of such activity.

The robotization of technological operations is an essential direction of the automation of construction processes. Prior to introducing appropriate mechanisms, the thorough analysis of forthcoming work is to be carried out, which is an integral part of managing the autonomous components of work. During the analysis, technical, organizational, and social factors should be analyzed, as well as the economic feasibility of a planned project.

When conducting the evaluation, the level of mechanization and automation of construction processes is assessed, and their operational analysis is performed. The results of this assessment allow identifying the degree of the complexity of robotized processes and the justification of their use. The analysis of technological equipment allows evaluating the possibility of engaging both standard mechanisms and the means of robotization.

In the construction industry, the assessment is made of the feasibility of automating individual operations based on the traditional means of mechanization and the feasibility of using robots. Programming, operating, and maintaining specific equipment requires identifying those areas that can improve the existing methods and support their work. In this regard, it is crucial to consider the benefits and problems associated with adopting corresponding approaches.

The assessment of the economic feasibility of the robotization of individual construction processes is based on cost analysis and the calculation of payback. At the same time, the compatibility of implemented funds with other technological equipment is to be taken into account. The objects of robotization are considered selected if they provide an economic effect. According to Oesterreich and Teuteberg (2016), the final decision on the feasibility of such implementation is better to take on the basis of expert assessments and expert opinions. This topic is an issue since, in some cases, there is a lack of the awareness of the principles and consequences of special mechanisms implementation.

As Faghihi, Nejat, Reinschmidt, and Kang (2015) note, with regard to the field of construction management, robotics has quite broad prospects because certain calculations and justifications for the use of specific equipment is a critical aspect of work. When developing and controlling a robotic technology for the construction process, it is necessary to study the design documentation of buildings and structures. This will allow grouping structural elements on certain grounds and providing an opportunity to estimate the volume of activities performed accurately.

The key objective of this study is to analyze the possibilities of using robotics in the field of construction management to identify specific methods for improving current practices and highlight the difficulties encountered. Also, as the objectives of research, the benefits of adopting appropriate approaches will be mentioned, as well as the attendant problems of their implementation. As the main method of assessing current knowledge in this area, a literature review will be conducted, and relevant academic studies will be involved.

The concepts of automation and robotics in construction management will be analyzed and compared, and such topics will be covered as implementation difficulties, the merits of equipping with special mechanisms, and those areas where these innovations can be of good use. Based on the findings of the review, recommendations will be made regarding changes in processes that will lead to environmental and economic benefits in the global industry regarding cost reduction, quality, and time constraints. Automation and robotics are the significant aspects of modern construction management, and the effective analysis of their proper use can improve the outcomes of work in this area and help achieve high production results.

Literature Review

To address all the issues and problems raised, a literary review will be conducted with the use of findings from various scholars, including reasoning and facts about automation and robotics in construction management. Some visual aids will be utilized for the ease of displaying data and obtaining systematic statistical reports. Based on the results of the review, conclusions will be made regarding the development of these areas, relevant facts about the achievements and progress in this area will be studied, and recommendations will be given in relation to promoting the adoption of innovations in a specific field.

Construction Automation Concepts

The concepts of construction automation are based on the principles of using special devices in accordance with their purpose and assigned functions. Bock (2015) highlights the five key ways of implementing automated systems and offers the following list: a robot-oriented design, robotic industrialization, construction robots, site automation, and ambient robotics. These types are distributed in accordance with the methods of implementation in modern technological processes and their application to construction management.

Faghihi et al. (2015) emphasize the advantages of automation in the context of the sphere under consideration and note that modern production concepts differ depending on such criteria as compliance with specific projects, the dynamics of their application, the nature of automatic mechanisms, as well as the amount of work performed. Aliakbarlou, Wilkinson, and Costello (2017) study modern approaches to automation and argue that the evolution in the field of construction management is due to the timely practical implementation of the theoretical concepts of value and quality.

Construction automation concepts are also classified in terms of their relevance to the target area. Saturno, Ramos, Polato, Deschamps, and Loures (2017) give an example of the centralization of approaches and note that according to the system of gradation, approaches to automation are higher than those to communication networks. In this regard, the authors mention the concept of maturity and remark that the formation of a system for improving work processes is the result of competent management practices (Saturno et al., 2017).

Saidi, Bock, and Georgoulas (2016) who consider this topic directly in the context of various theories confirm the existence of the aforementioned “concept of integrated robotized construction sites” and note that this concept includes the combination of factory technologies and approaches to improving the current base (p. 1497). Oesterreich and Teuteberg (2016) also provide a unique discussion on the approaches to automation. They suggest paying attention to such concepts as “Product-Lifecycle-Management (PLM)” and “Modularisation and Robotics” (Oesterreich & Teuteberg, 2016, p. 126). All the concepts discussed are applicable to the topic under study and can serve as valuable methodologies for assessing the relevance of innovations in construction management.

Automation vs. Robotics in Construction Management

Although the concepts of automation and robotics are often considered in a synonymous context, these aspects have some unique features that fundamentally distinguish them from each other. According to Tibaut, Rebolj, and Perc (2016), the evolution in the construction industry has led to the significant expansion of automated operations compared to manual ones, but robotics has not received the same global distribution yet.

Terminology can explain the difference in the concepts of both these phenomena. As Pan, Linner, Pan, Cheng, and Bock (2018) argue, automation is the process of complete or partial replacing an operator with a stand-alone controller or an entire system. Robotics, in turn, is different in that instead of operators, multichannel technical means are utilized that choose controlling programs independently (Pan et al., 2018). In other words, robotics is a more advanced technical area than automation. In construction management, both principles are actively promoted, and Perkins and Skitmore (2015) cite an example of using 3D printing technology to create various visual models of structures. This approach reflects the evolution in the field of automation and its improvement.

Using 3D printing as an example, it is possible to identify those concepts that are promoted in robotics algorithms. As Tay et al. (2017) remark, in this technology, “an overall control system concept and kinematics equation” are maintained (p. 264). With regard to the field of construction management, it is essential to take into account not only mechanical but also the operational characteristics of objects created due to robotic controllers.

Valero and Adán (2016) give an example of building information models that are associated with the aforementioned 3D format and allow evaluating the quality of construction work within the framework of these programs. According to Kim, Chen, and Cho (2018), scanning systems utilized on construction sites provide not only the automation of control but the comprehensive implementation of all monitoring procedures. Accordingly, robotics in the sector of construction management plays a significant role.

Current Practices and Applications of Robotics in Construction Management

Applying robotics in the modern conditions of construction management is gaining increasing popularity due to the convenience of the entirely autonomous mechanism of control over all production operations. The analysis of findings from academic literature proves that implementing such a working system makes it possible to improve the quality of monitoring and ensure the safety of design operations. As a result, a number of advantages are manifested in the process of application. According to Fang, Cho, Zhang, and Perez (2016), today, robotics finds its usage in such areas as “site security control, safety management, asset management, and productivity monitoring” (p. 05016003).

At modern industrial enterprises focused on construction technologies, the partial or complete replacement of people by automatic control systems is the norm. The training of specialists in the management of specialized robotic devices is the relevant area of education, and in Figure 1, a sample of effective interaction is demonstrated (“Master in Robotics and Advanced Construction,” n.d.).

In the field of construction management, robotics is often used in site planning and resource allocation. Li et al. (2015) emphasize the convenience of such systems in ensuring the safety of subordinates since smart equipment not only runs smoothly but also eliminates any incidents. It is particularly important at large construction sites where there is an increased risk of injuries. Due to the fact that there is no need to monitor the activities of autonomous mechanisms, more attention can be paid to performance. Moreover, according to Zhang, Cao, and Zhao (2017), high-precision robotic mechanisms are often equipped with safe operation modes.

In construction management, it is a relevant decision because any injuries at work are fraught with serious proceedings against the leaders of individual brigades. An opportunity to adjust mechanisms so as to prevent deviations from the intended mode is a widely requested function. Therefore, in the modern field of construction management, utilizing robotics is justified for many reasons.

Challenges of Adopting Robotics and Automation Initiatives

Despite the obvious advantages of introducing robotics into modern construction management practices, some challenges and barriers periodically arise, which negatively affects the rating of automated systems. According to Kamaruddin, Mohammad, and Mahbub (2016), there are several difficulties that innovators face, and one of them is the lack of funding. The need to purchase appropriate equipment and maintain it in good condition requires certain investments, and some production enterprises cannot afford additional costs.

Another significant challenge is the lack of the necessary base for implementation, in other words, too a weak capacity of a particular market (“10 most automated countries in the world,” 2018). Figure 2 demonstrates the ranking of countries where robotic mechanisms are implemented, and, judging by the indicators in some states, there is a shortage of valuable devices.

In addition to the aforementioned external factors, some internal difficulties may also affect the adoption of robotics in construction management negatively. As Willcocks, Lacity, and Craig (2017) note, the staff of individual organizations may resist the introduction of automated mechanisms for fear of losing jobs. Although such concerns have some justification, the performance of activities in such an environment is usually low, and the lack of labor efficiency is the consequence of outdated working regimes.

Also, according to Leitão, Colombo, and Karnouskos (2016), the improper management of robotic equipment is fraught with difficulties for construction companies. If the leaders of structural units are not able to ensure the smooth operation of autonomous systems, additional should become an essential aspect of practice. Therefore, despite the relevance of robotics and automation initiatives to construction management, some challenges can impede the process of their implementation significantly.

Influential Drivers, Potential Benefits, and Areas for Improvement

The evaluation of influential drivers stimulating the development of robotics in the field of construction management may help identify those factors that can improve this activity and provide significant benefits. Suprun and Stewart (2015) argue that “the desire of construction companies to capture a competitive advantage is a significant driver of innovation diffusion” (p. 287). Also, the authors consider the technical capabilities of enterprises as a criterion that largely determines the course towards robotization (Suprun & Stewart, 2015). Li and Liu (2018) focus on the benefits that innovative technologies bring in constructions management and notice that an opportunity to maintain competent logistics and the control of supply chains is one of the significant advantages of utilizing modern robotics as ancillary equipment.

The advantages of robotics are not limited to organizing supplies. According to Kim, Chi, Wang, and Ding (2015), managers can use innovative automated mechanisms to plan activities efficiently and distribute workload competently. In addition, Whitlock, Abanda, Manjia, Pettang, and Nkeng (2018) argue that robotics makes it possible to evaluate the performance of operations and make valuable conclusions based on detailed information obtained in the process of analyzing the activities of automated equipment.

As Jamil and Fathi (2016) remark, the possibility of adopting robotics helps assess the stakeholders’ environment of a particular project and take all the necessary initiatives to maintain a stable interaction among all participants. Therefore, using such mechanisms is a relevant and in-demand practice in modern construction management.

Recommendations for Promoting the Adoption of Robotics in Construction Management

In order to confirm the relevance of the findings of the conducted literature review, it is necessary to consider the various implications of robotics introduction into construction management. Based on the analysis of the merits and values of such innovations, recommendations will be made regarding the mechanisms for introducing automated equipment into the workflow and the outcomes of this promotion. Ultimately, it will be possible to draw competent conclusions regarding the effectiveness of this activity and its validity from different perspectives.

Political Implications

The introduction of robotic mechanisms to increase productivity and improve construction management can have positive political implications. The importance of such outcomes is significant since the authorities often play a key role in making decisions about the availability of production modernization. According to Demirel, Leendertse, Volker, and Hertogh (2017), “politicians are very important stakeholders and a main cause of changes,” and the rationale in support of this assertion is that the regulation of innovation development issues often requires approval from officials (p. 201). As a result, authorities’ opinions may be a key factor in determining the availability of innovative development and the possibility of reorganizing a particular management regime.

In addition, the political implications of adopting automated mechanisms may suggest the convenience of controlling the business activities of organizations involved in construction activities. The standardization of production and stable operating systems eliminate any disruptions that may lead to public outcry. Li et al. (2015) emphasize the importance of safe construction management and argue that the absence of injuries will positively affect the reputation of governing boards. Therefore, the authorities can increase their credibility and public recognition by participating in safe production promotion programs and approving innovations.

Economic Implications

One of the main recommendations that can be given to stakeholders involved in the process of introducing robotics into construction management is the need to modernize outdated equipment to increase profits. As Decker, Fischer, and Ott (2017) note, “optimizing the human-machine interface for a specific cooperative task” is the natural outcome of technological development (p. 352). Also, the authors cite arguments on the mandatory aspects of work on innovations (Decker et al., 2017). Specific ideas related to economic implications are demonstrated in Table 1.

Table 1. Economic Aspects of Introducing Robotics.

Social Implications

From the standpoint of social implications, the introduction of robotics into construction management may have significant positive outcomes. First, according to Veruggio, Operto, and Bekey (2016), the leaders of individual organizations can exempt subordinates from routine and tedious activities, which will increase performance indicators and, at the same time, ensure job stability. Secondly, in countries with a high level of technological development where a large number of innovative equipment can be introduced, many subordinates will be involved in the maintenance of robotic systems.

This, in turn, will improve the situation in the labor market and give jobs. Moreover, workers will be able to improve their skills constantly through the acquisition of new experience. Therefore, as a recommendation to construction managers, special training courses should be offered to subordinates.

The practice of modernization also implies an increase in social responsibility. Veruggio et al. (2016) remark that governing boards are obliged to ensure an appropriate mode of operation, which could meet modern standards. Thus, if high-precision robotic equipment is used, it will be an incentive for managers to adhere to the latest leadership approaches and will be the key to the competent achievement of their goals.

Environmental Implications

Despite the fears of many environmentalists about the destructive influence of modern technologies on nature, automated production systems in the construction industry are able to improve the current ecological situation. In order to achieve the desired effect, the managers of individual organizations should conduct the comparative analyses of pollution in the working conditions of two different modes.

According to Greenblatt and Shaheen (2015), this step will help prove that robotics does not have a negative impact on the environment and also contributes to improving an ecological situation. Due to the fact that the overwhelming majority of modern mechanisms operate on autonomous energy sources, they do not emit any harmful substances into the atmosphere. Consequently, it is one of the advantages of automated equipment.

Also, unlike traditional construction mechanisms, the operational term of robotic equipment is significantly higher. Managers need to maintain such equipment in good working conditions in order to prevent its premature failure. In such a case, automated tools will operate for a long time and will not have to be disposed of as potentially hazardous wastes. Therefore, the use of modern robotic devices in construction management is justified from an environmental point of view.

Legal Implications

The legal implications of active robotic equipment introduction in the field of construction management can be positive if the enterprises’ leaders adhere to the current legislation regarding the operation of such devices. Holder, Khurana, Hook, Bacon, and Day (2016) emphasize that while maintaining an innovation policy, particular attention should be paid to a proper recruitment system.

Based on the aforementioned recommendations on the operation of automated mechanisms, it is essential to take into account the nuances of recruiting activities and ensure that the rights of subordinates are not affected by the active introduction of modern devices. In this case, managers will be able to establish reliable and efficient activities, subordinates will not demonstrate displeasure concerning the loss of jobs.

In addition to the aforementioned recommendation, additional emphasis should be made on the choice of innovative equipment. It is crucial for robotic mechanisms to comply with the existing standards since, in the construction sector, any violations may have severe consequences. In this regard, managers are to take into account the technical characteristics of the devices that they use as auxiliary equipment in order to prevent sanctions from the control authorities and not to violate working standards.

Conclusions

In the field of construction management, automation and robotics are highly demanded and valuable practices that can increase productivity and provide significant support to the leaders of organizations. The impact of innovative equipment on the nature of all activities may be big if relevant initiatives are maintained and current standards are respected. With regard to the impact on performance, robotic devices have high technical characteristics and can be used for different purposes, thereby simplifying work for managers and eliminating the need to constantly search for the new ways of optimizing production.

Regarding the prospects for the future, it is likely that robotics will become a widely applicable technology to modernize the field of construction management. Due to the expansion of the capabilities and power of modern mechanisms, automated devices will be able to realize more functions and help managers achieve their operational goals in the shortest possible time. Accordingly, if there are no problems in maintenance, robotic technologies are likely to expand the range of their application, for instance, due to the possibilities of monitoring specific modes of operation and planning future activities. Therefore, in further practice, an even greater spread of such devices will certainly be observed.

Based on the findings of the conducted literature review, it can be argued that there are some barriers to the successful introduction of innovations in construction management, for instance, concerns about replacing human labor with machine one. Nevertheless, in many academic sources, the opinion is given that compliance with legislative norms and effective personnel management exclude such a risk and, on the contrary, increase performance indicators by minimizing routine activities and time-consuming tasks. Innovation development policies should be based on various aspects, and certain economic, social, legal, environmental, and political implications are to be considered.

The analysis of implications makes it possible to give recommendations to stakeholders regarding the ways of increasing productivity through initiatives to optimize construction management regimes, minimize costs, and organize effective promoting programs. Overcoming implementation barriers through the achievement of sustainability and stable operational management can be effective. Findings and observations prove that utilizing high-precision equipment contributes to planning all the activities and monitoring compliance with safety measures, which is a crucial aspect of construction management.

In relation to the benefits of innovations, evidence has been found in favor of adopting robotic systems as indispensable mechanisms for conducting high-precision work. Moreover, when evaluating the scope of such mechanisms, it is possible to argue about numerous functions that can be implemented with their help. Therefore, in terms of relevance and the impact of this transition program on activity outcomes, many advantages are manifested.

In the field of construction management, the findings and observations obtained may be used as a guideline for implementing robotics in order to improve production efficiency and performance indicators. From the standpoint of relevance, all the references utilized are appropriate. The evaluation of the practical significance of the research suggests the possibility of applying the review results and recommendations in real working conditions.

No ethical issues are addressed, and all reasoning can be justified theoretically. In general, the construction management industry is a promising sector in terms of introducing innovations, and applying automated systems is one of the effective practices for improving the quality of control due to significant resources and an opportunity to minimize production risks.

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Introduction

Over the years, different civilisations have relied on the construction industry to support human activities (Ralph 2000). Presently, the global construction industry is experiencing a surge in construction projects because of increased human activities like trade and industrialisation. Like other economic sectors, the construction industry is characterised by multiple challenges (Ralph 2000). In this dissertation, the author focuses on delays and poor quality of work within the industry as some of these challenges. The study focuses on the construction industry in the Kingdom of Saudi Arabia (herein referred to as KSA) to illustrate the effects of delays and poor work quality. Ralph (2000) is of the view that a construction industry is an important component of economic growth. Therefore, the study highlights the KSA’s construction policy in relation to the economy. Thereafter, this paper makes an analysis of the said challenges to determine their effects on the kingdom’s construction policies.

In this chapter, the author lays the foundation for a discourse, which seeks to illustrate the negative impacts of delays and poor work quality in the Kingdom of Saudi Arabia. This paper further provides a background of the study by providing details of the infrastructure policy in the KSA. Thereafter, the aims and objectives are itemised alongside the scope. In this section, this paper also outlines the limitations of the study. Delimitations to the same are further provided.

Background of Study

The construction industry is playing a significant role in the development of the Saudi economy. Still, the industry has a big room to develop. Since the Saudi government is expanding its operations with respect to the country’s development, the growth and development of the industry is bringing in revenues and higher profits in the kingdom. Since the country is developing its construction sector and the economy has a large scope of good construction projects. The development of the construction industry has widened the scope of the projects and by maintaining the overall profits for the country. The Saudi projects are expanding the construction projects as well as the overall revenues that shall take part in the development of the country. The construction and development of the several projects in Saudi shall expand the overall revenues as well as the cost of production in Saudi. The country expands the developmental projects and maintains the performance of the country. The overall construction in Saudi will grow the affiliated industries and improve income in Saudi Arabia.

However, since the last decade, many projects have failed to meet their completion dates. This has happened because of many factors. These factors are responsible for the development of the industry. Moreover, they can expand the procedures and the policies of the country. Furthermore, they can further develop affiliated industries like hospitality and hotels. The overall management of the company goals affiliate with the performance and the management of resources in Saudi Arabia.

The management of labour in Saudi Arabia must understand working issues and task management programs. This way, they would improve the overall profitability and shares of their companies. The company must enforce their values and other cultural aspects that improve them.

As aforementioned, the construction industry is a vital part of the economic growth of a particular society (Wenham 2012). The Kingdom of Saudi Arabia, by virtue of its vast oil deposits, is an economic powerhouse in the Middle East. Consequently, the kingdom’s economy has experienced a boom over the past decades, and enhanced the growth of the construction industry. Notwithstanding the huge financial resources, there are emergent problems that threaten to bring down the industry. This research will discuss these issues in later sections of this study.

Carnell (2005) illustrates that the growth of the construction industry in the kingdom has affect almost all facets of the sector. According to Ralph (2000), the industry is characterised by five different types of constructions. They include the erection of commercial buildings, industrial units, institutional setups, residential units, and heavy civil construction (Ralph 2000). The industry covers all of the aforementioned areas. Prevalent problems like delays and poor work quality have the potential of bringing the entire industry to a halt, as we shall discuss later in this study.

According to Calculated Industries and Kokernak (2006), there are several problems prevalent in the construction industry in general. Lo, Fung and Tung (2006) points out that scarcity of skilled labour and resources are the most common challenges in the industry. In addition, there are certain cases where contractors do not take into account the set standards in the industry when performing their duties. Consequently, the quality of their work is poor. At the same time, projects end up delaying because of the aforementioned challenges. A case in point is the various trends of construction in Saudi Arabia, where the government insists that infrastructure growth is at the core of their decision-making (Carnell 2005). In addition, the Saudi government is keen on solving the housing problem, hence initiating major projects, like the Jeddah project (Carnell 2005). The demand for major infrastructure projects has resulted in high demand for cement; thereby forcing the government to pump SAR3 billion towards setting up cement plants.

The aforementioned trends show the significance of the construction industry to the kingdom’s infrastructure agenda. When the construction industry becomes a vital aspect of a country’s blue print for growth, it is important to address its prevalent challenges (Bansal 2012). Consequently, delays and poor quality standards mentioned in this paper need to urgent solutions. The same is intervention is only possible once sufficient studies explain their causes. When there are delays in completing a given project, there is a corresponding increase in the overall cost of the project. The ripple effects of such a situation translate to negative impacts on a country’s economy (Abedi, Fathi & Mohammad 2011). Delays in the construction industry occur because of various factors. In his study, Falqi (2004) argues that understanding the causes of the delays requires us to grade them according to various types. The same process makes it easier to determine the exact cause of delay in completing a given project.

According to Falqi (2004), the first category is the excusable and non-excusable delay. Such kinds of delays determine the liability of the contractor in a given project. The other category is the independent and concurrent delay. Falqi (2004) illustrates that such delays are subject to the source of their occurrence. The other category of delay is the critical and noncritical type. Time causes impediments of such a nature are (Falqi 2004). Each of the categories mentioned have their respective causes. This study will outline the same in other sections of this dissertation.

Another vital component of the construction industry is the quality of the projects. The increasing competitiveness in the industry compels contractors to develop structures that meet construction standards in the industry (Delgado-Hernandez & Aspinwall 2008, p. 1014). In the event that a contractor is unable to meet these standards, their projects risk condemnation. This is true because structures of poor workmanship pose a safety hazard to potential occupants.

Aims and objectives of the study

Aim

The aim of this study is to investigate the causes of project delays and poor project quality in the Saudi construction industry

Objectives

• To Investigate the progress of construction in Saudi Arabia.
• To understand the basic grounds of construction in Saudi Arabia.
• To evaluate the causes of delays in the construction and development projects in Saudi.
• To explain why the Saudi construction industry is poorly managed.
• To find out the drawbacks of the construction industry in Saudi Arabia.
• To establish the reasons for delays in Saudi construction projects.
• To propose strategies for improving construction projects in Saudi Arabia.

The research questions

• What is the progress of construction in Saudi Arabia?
• What are the grounds of construction in Saudi?
• What are the causes of delays in the construction and development projects in Saudi?
• Is the Saudi construction industry poorly managed?
• What are the drawbacks of the construction industry in Saudi Arabia?
• How could we improve the quality of construction projects in Saudi Arabia?

Statement of the Research

Gravetter and Forzano (2011) posit that any research undertaking must have a clearly defined thesis statement. From the title of the study, it is apparent that the construction industry in the Kingdom of Saudi Arabia is facing several challenges. Delays in the completion of projects and poor work quality are the major challenges. The only way to determine the actual causes of the two problems is by making a case of the negative effects highlighted. Thus, the thesis statement for this study is “Delays and poor work quality in the construction industry are hurting the gains outlined under the Kingdom of Saudi Arabia’s National Development Plan”.

The study will affirm the hypothesis that highlights the dangers posed by increasing delays and poor work quality. The same will result in determination of the root causes of the two problems (Long & Maisel 2010).By determining the challenges prevalent in the industry, the study intends to illustrate that indeed, delays poor work quality are a threat to the growth of the industry as a whole. The same analysis acts as an avenue for widening the scope of determining the causes of delays in the industry. By categorising the delays, it becomes simple to itemise the actual causes of delays in the industry. Once the same issues are illustrated, it is possible to outline the instances of poor work quality due to the inability to meet the outlined standards. By understanding the negative effects that result from delays and poor work quality in the construction industry, it is easy to support the thesis statement outlined in this study.

Literature

The literature shows that the government is improving its profitability and maximising its income to increase public revenues. The literature will reflect on the research problem and probe into the research questions. In addition, the literature focused on the various attributes of the study and included development programs in the study plans. In addition, the study considered all construction attributes. The literature investigated the various attributes of the research problem and explored how they related with the research design. The sources of information included available research sources, such as journals, articles, case studies.

Scope, Limitations, and Delimitations

Scope

It is difficult to cover all aspects of a research problem in one study. According to Bryan (2012, p. 41), a researcher is expected to outline the boundaries that will restrict the data collection and interpretation processes. Thus, this study restricts itself to project delays and poor work quality as the challenges facing the construction industry. The focus is on Saudi Arabia. The participants, in this study, are familiar with the KSA construction sector and are actively engaged in the industry. Notwithstanding the availability of other experts, the study sourced its respondents from different groups of employees in the construction industry. In addition, the study focused on the aforementioned problems owing to the threat they pose to the kingdom’s development plans. The findings of this study will help to determine the root causes of project delays and poor quality project outcomes in a bid to improve the industry’s standing in the region.

Limitations of the study

The study focused on the Kingdom of Saudi Arabia as opposed to the wider Middle East region. The primary source of data collection was a written questionnaire. Some of the respondents could have given false information. The hypothesis of the study does not include political instability as a potential problem to the construction industry in the Kingdom of Saudi Arabia. The study was selective about the participants who could participate in the study. Construction industry workers outlined the main respondent group. Other professionals, like economists, would have increased the credibility of the study. The study relied on certain secondary materials published before the year 2005.

Delimitations

The Kingdom of Saudi Arabia is a leading member in the Arab League of Nations. Coupled with its economic might, the country is a suitable pick for this case study. Encompassing the entire Middle East would have complicated the study. Since the research participants benefitted from the results of the study, it was in their best interest to be truthful while answering the questionnaires. The Kingdom of Saudi Arabia currently enjoys political stability. There are no riots to indicate instability. When seeking volunteers to participate in the study, many participants came from the construction industry. Two respondents who were from other professions had little knowledge of construction matters. Thus, including them would have reduced the quality of results. We selected the secondary materials in this study based on their relevance. Thus, we excluded materials published earlier than 2005 from the study owing their irrelevance, in terms of present delays and quality of work.

Research Methodology

The research will combine the qualitative and the quantitative methods of research. It will take in account the questionnaire and the interviews for the study. Several professional groups participated in the study. The methodology of the study also depended on the various attributes of the study plans and the interview designs.

Validity

This concept refers to the worthiness of the research information. Validation occurred by using credible research information, such as journal articles, periodicals and other credible research information.

Reliability

This study obtained data from reliable sources of information. These pieces of information discussed the various attribute of the research. We used the SPSS data analysis method to come up with reliable findings.

Structure of the Dissertation

A research undertaking is expected to be detailed so that the various points of the discourse are elaborately displayed (Bryan 2012). The structure of this study is in terms of chapters, which respond to the requirements of the dissertation. In total, this paper comprised of eight chapters. Each of the chapter acts as a build up to the other, to elaborately discuss the topic and justify the statement of the research. The first chapter is the introduction chapter, which outlines the fundamental aspects of the study. The second chapter is the literature review. In this section, we outline past studies on the subject focus to illustrate the areas that need further research (Bryan 2012). The third chapter is the research methodology, which outlines details of the questionnaire.

The fourth chapter outlines the results of the data collected. The fifth chapter is a discussion of the results obtained about the actual causes of the delays and poor quality in the Saudi construction industry. According to Bryman (2012), the statement of the research is justified once the results obtained respond to the hypothesis. The same analogy explains this chapter in the discussion section. The sixth chapter contains recommendations to avert future delays and poor work quality in the construction industry. The seventh chapter discusses the study by reviewing the importance of the construction industry in the kingdom of Saudi Arabia. The last chapter summarizes the findings and recommends areas of future research.

Chapter Summary

This chapter shows that the construction industry in the Kingdom of Saudi Arabia is under threat due to delays and poor work quality. The background raises the need to determine the causes of the aforementioned problems. The statement of the research is clear, laying the ground for further discussions on the effects of the said delays and work quality. In this chapter, the objectives are clear. The scope, limitations and delimitations are also well structured. The next chapter discusses previous studies that point out to the causes of delays and poor work quality in Saudi Arabia, alongside the general status of the construction industry.

Literature Review

Saudi construction projects capture big market shares. Saudi Arabia generates a lot of revenue thorough its tourism and construction sectors. The kingdom is also the hub of Muslims, as it is the wish of every Muslim to visit their holy places in the kingdom. (Schellen 2014) The government is always concerned about the tourist industry and various construction projects in the kingdom. However, public projects have several restrictions. Still, various factors limit the construction industry in Saudi. Many of these factors are “public” factors. This chapter discusses various problems in the sector, such as restrictive factors, and the overall managerial issues in the industry. The Saudi construction industry shall influence the construction projects and maximise the revenues through the successful entrepreneur projects carried by the government and the private sector.

Economic Survey of Saudi FY 2013 for the construction industry of Saudi

The economic survey of Saudi FY 2013 showed that the tourism industry had created almost 10 million jobs in the last decade (Oxfordbusinessgroup.com 2014). The government is planning projects of almost $ 75.6 billion in Saudi Arabia, which are creating new jobs, maintaining tourist attractions, and improving the share of public involvement in such projects. The government projects should end in the next three years and generate revenues that should increase the GDP from 8.4 percent to almost 13 percent.

The Construction Industry in the Kingdom of Saudi Arabia

The literature review section intends to build on the background of the study outlined in the previous chapter. Consequently, this chapter outlines a brief overview of the kingdom. Furthermore, this paper elaborates on previous studies that focus the construction industry in the country. Thereafter, it highlights some common problems, like delays and poor work quality. In addition, it explains some of the causes for these negative project outcomes. The details highlighted in this section are essential in developing the thesis statement for this study.

As previously illustrated, the growth of the construction industry in Saudi Arabia has affected almost all the sectors of the economy (Carnell 2005). This paper has also established that the construction industry is characterised by five different types of construction projects. They include the construction of commercial buildings, industrial units, institutional setups, residential units and civil constructions (Ralph 2000). Within the Kingdom of Saudi Arabia, construction projects span the entire breadth of the country’s landscape. Prevalent problems like delays and poor work quality have the potential of bringing the entire industry to a halt, as we shall see later.

Contract management in the construction projects in Saudi

The Reconstruction and Project Agency of Saudi Arabia has shown, in its report, that the projects in Makah aim to increase its capacity from 48000 pilgrims to 130000 pilgrims per hour (SyndiGate.info 2013; Al-Rashid 2005) However, the delays in the projects resulted in the loss of almost $12 billion by FY 2013. This could not be accounted as loss, but the revenues were less, compared to the preceding year’s performance.

Table 1: Responsibility and Type of Delay – Management and Administrative.

Incomplete projects and project delays occurred because of negligence on the side of the contractors (AI-Khalil, 1995). Besides the constructions in the mosque, other construction projects in Makah included 11 major malls affiliated to the mosque, 158 gardens and municipal utilities, 68 flood-related projects and 43 urban projects (Torchia 2014). The other major obstacles in this regard were the lack of proper information, lack of enough details, vague objectives and poor financing.

Contract-Related Causes In the Saudi Construction Projects

Many scholars claim that governments cannot complete their projects on the time. In this regard, Gazette (2014) says Saudi projects need more planning and effective leadership. Since gulf countries are undertaking different construction and development projects, they maintain their managerial policies that make it easy for them to carry out the projects (GALAL 2014). Besides managerial issues, these management aspects create more jobs and decrease unemployment in the region. This way, the Arabian countries can maximise the overall potential of the construction industry. Therefore, the companies need to consider labour and management issues of planning, controlling, commanding, leadership and the other perspectives that involve the process of construction. Moreover, the country should maximise its revenues with the effective policies, action plans and the theories for including in the Saudi construction projects.

The following diagram explains the various challenges in the industry

The prevalent problems in the industry are an indicator that the same challenges need urgent attention. In this section, we outline an overview of the construction industry in the Kingdom of Saudi Arab. Thereafter, we present the various challenges in the industry in the outline. In addition, this chapter looks at quality standards in the industry and the causes of poor work quality. In addition, this chapter discusses the several causes of delays. It relies on previous studies on the subject. In the previous chapter, it is evident that the construction industry is a fundamental human activity in any developing society.

Government Concerns in the Construction Projects in Saudi Arabia

Several construction projects were going on in Makah in 2011 and 2012. These projects aimed to improve efficiency in various processes, like flood management, and increase the use of various infrastructure landmarks, such as bridges and the community park. The government aims to satisfy the public and create more jobs in Saudi Arabia. The construction should support the tourists (NEW, 2013). The reports showed that the contractors delayed almost 400 projects. The mayor of Makah, Osama Al-Be, said that contractors had various excuses for the delays. They claimed they had several sub-contracts, which delayed. They also said several other materials were precious and needed more time to transport. These matters are still under investigation.

Table 2: Responsibility and Type of Delay – Code Related.

The project managers further reported that they had to be very careful with each aspects of the project (Almashabi 2014). The mayor discussed that the delay accounted for a loss equal to the amount of profit accrued from the 10 projects. The financial aspect in this regard showed that 6% of the projects in Makah earned almost $5 million each and were left to accumulate more revenue. Moreover, the overall profitability and the financial performance of the contractors linked to the municipals and the mayor (RASOOLDEEN 2014).

Reconstruction and Projects Agency of Saudi

Scholars are studying the flaws and factors responsible for the weaknesses of the construction industry in Saudi (Al-Rashid 2005). The other proposed construction in the country had to delay because it did not meet its objectives or focus on its plans on (Zawya 2014). The project managers knew about the tunnel construction, global developmental standards, cable connections and project-related deaths (Almashabi 2014)

Table 3: Responsibility and Type of Delay – Acts of God.

The construction industry in Saudi Arabia hinges on project development and government support (Shrader-Frechette 2011). Various studies have investigated the construction industry and its development in the country. They explore the project developmental plans and focus on how such plans contribute to the growth of construction-related information in the kingdom.

Waiting time for approval of test in Saudi construction projects

The high-speed rail project constructed in Median is still incomplete (it has a 52% completion rate) (Alhomidan 2013). This project is valuable. The rail transport project will link Makah and Medina. It has stopped in Jeddah, due to its late starting ceremony. The country’s rails shall avail a 280 mile (450 km) Harman link between the cities. The completed project should accommodate almost 25,000 passengers at a time and take 2.5 hours to cover the distance.

The speed of the railways should be 300kmph. The project should end by March 2014. However, due to several factors (delays and industry bottlenecks); this project will end in December 2014 (Almashabi, 2014). The change of completion date increased project costs.

Construction in Jeddah: An Example of Delays

The Jeddah projects should have ended by December 2013 (it had created about five million jobs). However, the projects had to continue into FY 2014. The new completion date is June 2014. All stakeholders are still to complete their roles in the project. They were unable to produce the required outcomes in the scheduled time. In addition, the expected return of the project has similarly delayed (Oxfordbusinessgroup.com 2014).

The Jeddah Chamber of commerce decided that the state has to focus on the hurdles and possibilities for maximising overall research approaches and attributes. In addition, the Jeddah projects end by FY 2015 and shall bring more revenues to the country. The projects in the construction industry will make available various facilities, approaches and the plans to segregate the overall attribute of the projects. The Jeddah projects shall expand the market targets and the overall availability of the projects in the state (Saudigazette.com.sa 2014). The harming link in Jeddah, which is expected to be complete by December 2015, shall cover an area of 300 KM and shall serve as the fifth small station of the Jeddah airport industry in Saudi Arabia.

Construction Issues in Jeddah

The expected construction in Jeddah shall cost approximately $12 billion and it should generate revenues of $15.7billion in the first three years of its construction. Therefore, the Jeddah airport project shall expand operation and development policies to create room for adopting effective construction procedures in the kingdom. The construction will also expand the operations in the city and make Jeddah a more populated and developed cosmopolitan. The construction has a budget of $12 billion. However, the first phase will cost $ 15.7 billion, meaning there is inadequate financing (Torchia 2014).

Scholars say that the discussion should follow up the policies and the procedure about the research (Constructionweekonline.com 2012). The literature showed that the study would focus on the overall $30 billion benefit for the country in the coming decade. In addition, the project accounts for the $30 billion to maximise the overall effectiveness and the efficiency of the construction in the company. Moreover, the construction shall focus on the incomes and the revenues in the country. The project expects to generate revenues of $30 billion and shall benefit a population of almost 40,000 people at one time.

Construction Role for Pilgrims in Saudi Arabia

Saudi receives a huge income from tourism. Almost 7 billion tourists go to Saudi Arabia each year for pilgrimage (SCHECK 2014). Tourism generates the most revenue in the county. It improves the country’s overall market position and develops its key strengths, such as transportation (Rasli 2012).

Construction Projects in Medina

The government is carrying out various projects in Medina, which should expand its overall profitability and revenue. In addition, the construction projects in the city shall expand its overall operations and further develop the market share of the country (gulf-daily-news.com, 2014). The country’s projection shall expand the overall revenues for the state (Sweis 2013). Literatures show that the country is expanding the overall processes for attracting more industries in the country. Furthermore, SCHECK (2014) says that the travelling and the tourism industries would further improve and expand in the country. The tourists in the state shall expand the overall operations of the state. These operations should bring in more people in the city and support expansion projects in the construction industry.

Medina is the second biggest city after Mecca (Sweis 2013). The city attracts religious tourists and Muslims. Many people living in Hajj go to medina. Thus, the income for development and tourism in medina is similar to Mecca. Both cities sit at the centre of the tourism industry in the country (Sophia 2014). Researchers say that the government of Saudi Arabia is always engaged in expanding the operations of medina and Makah. They strive to maximise the incomes and the revenues earned through both cities.

Construction Is the Key To Success For Saudi Arabia

Saudi Arabia is an oil-rich country. The mineral is the second largest source of revenue for the country. The country plans to expand its operations by improving the tourism industry. Construction and development is pivotal to its success. In addition, the country maintains its overall strategic performance through the high number of tourists.

Each year hajj not only generates the revenues for the country, but for the hotel industry as well. It boosts the economy structure as a whole (Gazette, 2014). The government is trying to expand the overall market structure of the industry to improve the facilities too (Derhally, 2013). The country improves the overall revenues and GDP through tourist attraction. The government earns almost $16.5bn per annum from the income generated by the people coming for Hajj and Umbra. The hospitality industry earned more than $10 billion each year through the hajj (Aldosary 2008). In addition, throughout the year, people go for Umbra. This maintains the capacity and the performance of the country to maximise its revenues and improve its profitability

Table 4: Responsibility and Type of Delay – Financial/Economical.

Construction Problems

The maximum number of tourists shall expand the operations and the industrial growth of the company. The country is engaged in the construction and expansion the overall tourism industry. The literature said, to expand further, the country must focus on its construction policies and make the sector effective. Moreover, the effectiveness of the construction projects shall develop the state by increasing its effectiveness and efficiency

Construction Methods and Construction Issues

Religious tourism improves the profitability of a state. Through increased revenues, the state becomes stable (financially). Literatures show that the government is expanding its overall strategies and operational plans to increase the number of religious tourists. The hajj is the highest source of revenue for various economic sectors of Saudi Arabia.

Scholars say the state of Saudi is the highest earning state in the globe. It maximises its revenue and improves its profitability through increased tourist numbers. The country is the hub for Muslims and attracts billions of Muslims to the country, yearly. Thus, in such a case, it is important for the country to improve its profits by increasing its tourist numbers. In addition, the country must develop the state infrastructure for maximising its revenue.

Mistakes during Construction Stage

Scholars say Saudi Arabia is expanding its infrastructure projects through the expansion of tourism projects. The scholars emphasise that its overall strategies shall be maintained and expanded to increase the outcomes of the country. However, the government should understand the drawbacks in the operational and the managerial plans of the country

Inadequate experience of contractors

Besides religious tourism, Saudi Arabia is expanding its operations in the desserts, mountains, and the Arabian Sea to attract tourists in the country. In addition, the overall strategies aim to increase revenues for the country. The government is also expanding infrastructure projects, such as the bridge to Bahrain, museums, and world heritage sites. Stated differently, the government is focusing on the overall planning and development aspects of the country. Moreover, it aims to expand the operational plans for the country and maximise its revenues. Existing literatures further show that the Ministers of Foreign Affairs and Interior shall improve the profitability of the country through improved tourist facilities and increased availability of tour guides.

Religious Tourism Reaches New Levels In 2012

In 2012, the economic survey of the country showed that the kingdom is improving its overall tourist locations. For example, the overall hajj performance had expanded, although the year’s performance was low. However, its future performance is increasing. Since it involves constructing several floors, the project shall generate the revenue for the state and improve its overall profitability. Therefore, every hour almost 1.7 billion people could perform hajj and umbra.

Managing Construction-Related Projects in Saudi Arabia

The Kingdom of Saudi Arabia is within the Arabian Peninsula. It is the largest country in the region (Long & Merisel 2010, p. 13). By virtue of its vast oil deposits, the country is an economic powerhouse in the region. The country’s geographical location makes it an ideal location for infrastructure development (Akinsiku & Akinsulire 2012). The illustration in figure 1 shows the kingdom’s location in the Middle East.

Scholars say the construction and tourism industries are the fastest growing industries in the kingdom. For example, the construction industry is growing by 10% per annum, (Saleh Al Hadi Tumi 2009). Observers expect this growth to reach 30% in the next decade. Certain cities, like Makah and Medina, have large number of tourists throughout the year. Saudi Arabia has many development projects. Therefore, tourists are attracted to the kingdom as they come to see them.

Figure 12 shows that Saudi Arabia is strategically located in a region that is experiencing robust economic growth (Ventures Middle East 2009). Some of the country’s immediate neighbours include Qatar and the United Arab Emirates. Both countries are experiencing a boom in their economies owing to their petroleum revenues. Somewhat, pressure is piling on Saudi Arabia to match up with their development partners. The same pressure explains the need for a sustainable construction industry.

Quality Improvement Plans for Construction in Saudi Arabia

Like any other country, the Kingdom of Saudi Arabia has a blue print for guiding its development objectives. Dubbed the National Development Plan, the Saudi government aims to diversify the economy through different avenues, like construction (Kingdom of Saudi Arabia Ministry of Economic Planning 2010). In a past report, the government illustrated its intention to address structural developments. In a bid to boost its economic revenues, the government has supported the construction industry as a significant pillar of the country’s development blue print.

Material-Related Causes of Delay in Saudi Arabia

In Saudi Arabia, the construction industry is characterised with various projects that span across different sectors (Carnell 2005). Carnell (2005) says many projects are commercial and health-related. An example is the Aldara Hospital. According to Carnell (2005), the project is in the country’s capital, Riyadh. Scheduled for completion in 2015, the project is a joint venture between Saudi’s Aldara Medical Corporation and a company based in the United Arab Emirates. The project is estimated to cost a total of $404 million (Carnell 2005). Given that healthcare is an important aspect of the country’s policies, the project is highly valued.

Considering the importance of the Holy city of Mecca, the government is keen on maximising revenues from its annual pilgrimage (Long & Maisel 2010). Consequently, the Kingdom of Saudi Arabia has engaged in the development of a satellite city called Abraj Kudai Development. According to Carnell (2005), the project is estimated to cost a total of SAR13 billion. Once complete, the facility will have a train station, residential units, and commercial centres. Considering its location, it is important for the project to end.

Labour and Equipment Challenges in Saudi Arabia

According to Falqi (2004), the construction industry is a vital aspect of a country’s economy. For example, the United States of America (herein referred to as USA) has one of the largest construction industries in the world. In the year 2007, the annual expenditure of the industry was $1.2 trillion (El-Raze, Bassoon & Mubarak 2008).

Such huge amounts suggest that the industry is a key player in the business landscape. That notwithstanding, there are several challenges which reduce its effectiveness.

Labour Issues in the Saudi Construction Industry

According to Assaf and Al-Hejji (2006), labour is a vital resource in the construction industry. Considering the amount of work that characterises the industry, contractors require a huge labour force. In addition, increased competition dictates that newer designs and techniques of construction require skilled labour. However, a survey of skilled personnel working in the Arabian Peninsula is declining (Assaf & Al-Hejji 2006). Globally, the number of skilled workers is also declining. Falqi (2004) reports that the work force in Europe, aged between 35 years and 45 years, is declining as well. Forecasts suggest that this trend will continue in the near future.

Managing Skilled Labour

Baloyi and Bekker (2011) point out that the cost of skilled labour is increasing and contractors are keen on minimising the cost of construction. Consequently, many contractors seek cheap labour, which is often unskilled. In the Middle East, the habit is common because companies recruit staff from other countries, like India and Bangladesh. Given that such labour is cheap, there is a high possibility that the quality of work is subsequently going to diminish.

Climate Change

Falqi (2004) used their thesis to make comparisons between the construction industry and the United Kingdom (herein referred to as the UK). In their study, they found out that climate change was an emerging environmental challenge facing the sector, in terms of energy. In countries like Qatar, Jordan, and Saudi Arabia, the cost of construction accounts for about 30% of the total energy consumption (Delgado- Hernandez & Aspin wall 2008). Considering that fossil fuels produce energy, the carbon footprint in the construction industry is similarly high.

Table 5: Responsibility and Type of Delay – Design Related.

The need to shift from fossil fuel to alternative clean energy sources in the construction industry is urgent (Al-Karachi & Skit more 2009). The same is true in response to the argument that increasing carbon dioxide emissions to the environment contributes to global warming. Consequently, the construction industry has come up with approaches to make sure that most buildings have an almost zero carbon footprint. The challenge comes in terms of cost and capacity building.

Poor Infrastructure

In the construction industry, transporting raw materials is an important element of operations. Therefore, the infrastructure should be of high quality. Alienate, Apollo and Tindiwensi (2013) sought to understand the challenges experienced by many developing countries in this regard. In their study, the researchers found out that poor infrastructures explain why most projects take a long time to complete. The many hours spent in trying to navigate through bad roads increase the cost of the project altogether, forcing contractors to shun areas with poor infrastructure.

Table 6: Responsibility and Type of Delay – Construction Related.

While carrying out a study on the construction industry in Jordan, Sweis, Abu-Hammad and Shboul (2007) said that poor infrastructure reduces project productivity. The three researchers argue that the high cost of poor infrastructure is to blame for high costs of construction in most areas in the Middle East. Countries like Jordan and Qatar are leading in the investment of road infrastructure. The same development helps to reduce the cost of construction by drastically reducing the cost of raw materials.

Major Causes of Delays in the Construction Industry of Saudi

Financial Causes

Finance and Payments Of Completed

From a total value of $2.5 trillion dollars, $1.2 trillion is in the construction sector. About $600 billion of this figure finances advanced projects. The remainder ($500 billion) finances early-stage construction projects. Contractors spend about $1 trillion on real estate projects for purposes of office, residential, and leisure

Owner Interference

The spending of oil & gas sector is of greatest significance in Algeria. Power and water costs dominate the spending patterns in Jordan. Other countries report lower construction costs. It is pertinent to mention that the Jordan construction industry is currently undergoing a growth period, which constitutes 130% of its current gross domestic project (GDP).

Slow Decision-Making

Saudi Arabia leads in terms of country expenditure (to the tune of $784 billion worth of projects). The UAE follows it with a $669mn expenditure plan. By spending $273bn, Qatar is third and Kuwait occupies the fourth place because it spends $294 billion. Finally, Egypt is the fifth most vibrant country because it spends $143bn in construction. Hence, Egypt is the only non-GCC country with more than $100bn worth of active projects

Unrealistic Contract Duration

The author of the report, Farek Soussa, states that infrastructure accounts for $ 812 billion of construction costs. Oil and gas constitutes $ 376 billion, while power and water constitute $298 billion, respectively. These activities comprise the major spending areas in the construction industry. However, priority varies from one country to another.

For instance, real estate projects are more in the UAE than other countries. Huge infrastructure projects are more prevalent in Qatar.

Contract-Related Causes

Subcontractors

The Haramain link, which will accommodate high-speed electric trains, will link Islam’s two most popular pilgrimage destinations. It will be 450 KM (280 miles) long, enabling trains to reach at least 300Kmph. According to a source, the due date of opening would be near the end of December 2015. It is due to open by the end of December 2015.

Site management

The long awaited rail system located in the capital Riyadh (of Saudi Arabia) has finally started to undergo construction work. Observers say this project will birth the world’s largest public transport system. The multi-billion project will carry electric driverless trains involving six rain lines, extending 176 Kilometres.

Saudi Arabia’s Railway Expenditure Set To Reach $79bn

Researchers reported that huge infrastructure investments in Saudi Arabia are likely to reach new heights. The total cost of investments in the transport sector is likely to increase to about $79 billion. The government will use most of this money to improve the railway infrastructure and construct a modern railway network. Indeed, there are plans to construct two new transport networks, logistic centres, and freight conferences in Saudi Arabia, in 2015. The aggressive pace of transport infrastructure development provided an enabling environment for regional and logistic service providers to establish and expand their presence, according to the Riyadh Exhibition Company (REC).

Atkins Hired For $120m Riyadh Metro Design Job

The new Metro project will be the largest network of transportation in the world. The government is establishing three to six rail lines for this mega project. The government has awarded WS Atkins the work at a cost of $120 million. In an official statement, Atkins mentioned that it will forge a design joint venture with a Spanish consultancy, Tysa, for the first consortium, including countries such as FCC, Samsung, Alstom, Strukton and Freyssinet, which will build over a third of the total track. This will effectively cover the fourth, fifth and sixth metro lines. Arriyadh Development Authority awarded the design and building package to FAST. It amounts to about $7 billion. This cost involves building 25 stations, two depots, seven parks and several ride car parks. It will involve a multidisciplinary team of around 200 specialist employees who will work from Riyadh, Hong Kong, UAE, the UK and Bangalore.

Construction Methods

The project will require tens of thousands of workers in the oil-rich kingdom. It will end in 2019. The Saudi government is also planning the modernisation of the transport system in the Islamic holy city of Mecca. This would also result in the creation of a metro system and bus network, respectively. In addition, the government is also upgrading numerous other rail systems in the Kingdom. This project includes a rail line estimated to be two, 750 Kilometres running from the northern border of Riyadh to Jordan.

Inadequate Planning

According to a new report, some 60% of the $2.5 worth of projects in Middle East and Northern Africa occur in Saudi Arabia and the United Arab Emirates. The GCC countries are responsible for almost 90% of the value of the projects in the Kingdom of Saudi Arabia and the United Arab Emirates. In terms of MENA projects, they account for 60% of all projects.

Consultant-Related Causes

Contract Management

The Saudi construction market will expand in the next three years, because its growth rate is 35%. The construction industry is the fastest growing industry. Current estimation of the value of projects reached a $732 billion. The year 2013 was the strongest year for the construction industry because it received $42billion. Comparatively, the industry only got $17billion in the past years.

Solutions and future plans of the Saudi Government

Preparation and Approval of Drawings

During the last quarter of 2013, the Central Department of Statistics announced that the gross domestic product rate of Saudi Arabia increased by 3.19% (this was 2.7% more than the last quarter). Moreover, GDP increased by $875.19 billion quarterly. According to the department, GDP in real term prices has increased by 3.05% quarterly. GDP rate decreased by 18.52% compared with same quarter in the past year, which is $102.6 billion in current prices. On other hand, prices increased by 2.43%. In the private sector, current prices in the third quarter of 2013 increased by 6.53%, which is $244.08 billion, compared to the 2013 price, which was $229.13 billion. In the construction and building industry, a considerable growth rate 9.76 and 7.87 emerged. Moreover, the price growth is 3.31%.

Quality Assurance/Control

Riyadh International Convention and Exhibition Centre (RICEC) is organising Saudi Build Show (SBS) yearly for the past 25 years. The value of estimated planned projects in the Kingdom for the coming future would amount $732 million. Saudi Arabia has captured 39% of construction industry in the GCC region.

Waiting Time for Test Approval

The groundbreaking ceremony to occur in the Capital city marked the first day of construction work. The chief guest present throughout the ceremony was the emir of Riyadh, Prince Khalid bin Bandar. Prince Khalid bin Bandar, reported by Reuters, said that the phase of research and planning has ended.

Material-Related Causes

To undertake the design and construction of the system, three foreign-led consortia received $22.5 billion in contracts from the Saudi Arabian government. For some Saudis, the metro is unlikely to dissuade them to forgo their passion for automobile transport. The chance to escape severe traffic congestion in the project was a welcoming sign for many. Lower income individuals would also move around the city (conveniently). Easy movement would also create convenience for women to commute around the city, inside a country where cannot drive. The metros also accommodate special privacy sections for families.

Table 7: SPSS analysis of Project related factors.

Table 8: SPSS analysis of Labour.

Research and Methodology

This chapter explains the methodologies used to conduct the study (different types methods apply to different types of studies). The improvement possibility for the factors is missing and indescribable under this analysis. The findings show that project delays and poor quality project outcomes stem from contractor-related issues. The ratio of lack of knowledge of the participants has created a significant heterogeneity between the participants and the reasons for project delay. The view of each respondent group (concerning each group of causes) reflects the main results as shown.

Equation 1: Calculation of the Population Size

n= n’/ [1+ (n’/N)]

N = total number of population

n= sample size from finite population

n’ = sample size from infinite population = S²/V²; where S2 is the variance of the population elements and V is a standard error of sampling population. (Usually S = 0.5 and V = 0.06)

So, for 33 contractor organisations:

n= n’/ [1+ (n’/N)]

n’= S²/V² = (0.5)2/(0.06)2 = 0.12

N = 33

n= 0.12/ [1+ (33 / 100)] = 26

This means that 46 contractor organisations should get a questionnaire to achieve a 94% confidence level

Equation 2: Confidence Level in Research

RII = Σ W / A×N

A = the highest weight = 5W is the weight given to each factor by the respondents and ranges from 1 to 5

N = the total number of respondents

The most influencing reasons for the delay of the projects are the large considerable amounts of money needed, undersupplied workforce for the project completion, lack of innovative construction designs.

In this chapter of the study, the focus shifts to the actual research. Therefore, a suitable research design will be appropriate for the study. Creswell (2008) points out that it is important to highlight a research design that relies on a suitable study type. The same approach depends on the study problem at hand. In addition, in this chapter the sample size and the demographics of the study outline well. The chapter acts as a means for data collection.

Research Design

According to Christensen et al. (2010), it is possible to have a research undertaking that has a quantitative and qualitative approach. There are other instances when a study assumes both approaches with respect to the type of research. A research design that adopts the two approaches is useful when the intention is to test a hypothesis, or affirm a given thesis statement. The objectivity of such a research design makes it the most preferred in our study. Gravetter and Forzano (2011) argue that a mixed research approach contains components of an exploratory research design. Consequently, this study intends to assume a similar design. By virtue of incorporating qualitative components, the study will take a systematic approach of data collection. The data will also adopt a descriptive approach. The literature review has illustrated the same approach using secondary materials. From the secondary sources, this study collected data to respond to the objectives of the study aim, which is to determine the causes of delays and poor work quality.

There were two phases involved in the current study. The first phase incorporated secondary sources where 16 reasons contributed to the delays in the construction industry. According to Creswell (2008), literature reviews are insufficient in exhausting the particulars of a study. For that reason, the second phase of the research undertaking involved the administration of questionnaires. The data obtained from the respondents helped to build on the subject matter. The current study relies on both primary and secondary sources of information. When it comes to primary source of data, Walkman (2010) proposes the use of suitable research instruments. Some of the instruments include interviews and questionnaires (White & McBurney 2012). One benefit of using such an instrument is the credibility it gives to a study. For instance, the use of a questionnaire allows an in-depth understanding of the sample population.

In this study, I distributed the questionnaires randomly. Creswell (2008) points out that, questionnaires are prone to errors, like obtaining false information. To overcome such errors, I selected respondents for the study based on their perceived importance. The participants were students from various institutions of higher learning. They also included professionals from construction companies. They stand to benefit from the results of this study. Consequently, they will not give false information as it may jeopardise the research undertaking.

Scope

As mentioned earlier, the study focuses on the Kingdom of Saudi Arabia. It also focuses on major construction projects in the kingdom. Data came from professionals and scholars in the construction industry within Saudi Arabia. Most of the data came from contractors and engineering students. The national plans of the government included the public expenditure, which was significant in the coming three years. A major problem for the country’s construction industry is the “normal” and extensive delays experienced during work. It is first necessary to identify the major causes of these negative project outcomes to analyse the overall situation.

Main Trends

The largest exporter of oil in the world is Saudi Arabia. Thus, the construction sector has specifically witnessed significant increases in activity, whereas the Saudi economy has been on the rise in general.

Within the construction sector, the main trends are as follows:

• The Saudi government has always been actively engaged.
• Saudi infrastructure Indications show that concerns regarding the growing infrastructure in Saudi Arabia have always been the priority of the Saudi government. This concern remains at the forefront of the Saudi decision-making process.
• Because of the increasing growth in the population, the government’s focus has increasingly turned to the housing shortage in Saudi Arabia.
• The large demand for cement and other building materials, as well as the number of ongoing and new projects in Saudi Arabia support the huge demand for construction services.
• The Ministry of Commerce and industry reports SAR 5 billion in capitalisation for the construction of three cement plants over the next year. Indeed, this growth is required to meet the demand that keeps the economy progressing.
• The Saudi government increased the restrictions imposed to tighten on foreign investment by implementing more restrictive requirements to obtain a foreign investment license.
• Foreign entities seeking to engage in construction activities in Saudi Arabia have recently experienced severe restrictions.

Questionnaire

The primary sources of data for this study came from a questionnaire administered to 33 participants. According to Walkman (2010), a questionnaire should contain the details of the participants and the actual questions touching on the study. Thus, the questionnaire adopted for this study contained three sections. The first section required the participants to list their contact information and their familiarity with the construction industry in the Kingdom of Saudi Arabia. The participants were mostly engineering students, contractors and consultants in the industry. The second section of the questionnaire contained a raft of items, which explained the problems to delays in the construction industry. Sever (2001) suggests that most of the delays can be categorised into groups. The questionnaire considered this fact by clustering the causes into nine groups. They appear below

Financial causes:

• Finance and payments of completed.
• Owner Interference.
• Slow decision-making.
• Unrealistic contract duration.

Contracts-related causes:

• Subcontractors.
• Site management.
• Construction methods.
• Inadequate planning.
• Mistakes during construction stage.
• Inadequate experience of contractors.

Consultant-related causes:

• Contract management.
• Preparation and approval of drawings.
• Quality assurance /control.
• Waiting time for approval of test.

Materials-related causes:

• Quality of material.
• Labour and equipment.
• Labour supply.
• Labour productivity.
• Equipment availability and failure.

Contract-related causes:

• Change orders.
• Mistakes and discrepancies in contract.
• Major disputes.
• Inappropriate overall organizational.
• Lack of communication.

Other causes;

• Climate conditions.
• Regulatory changes.
• Problem with neighbours.
• Unforeseen site conditions.

The questionnaire asked the respondents two questions. The first question determined the frequency of the factor’s occurrence. The second question sought to determine the extent to which the delay affects the project. It is important to mention that the frequency of occurrence and the severity of the delay depend on four parameters, as listed below:

1. Always.
2. Often.
3. Sometimes.
4. Rarely.

In the same respect, the severity of occurrence depended on four parameters. They included

1. Extreme.
2. Great.
3. Moderate.
4. Little.

The third section of the questionnaire seeks to determine the instances of poor work quality. Thus, several reasons emerged. The participants responded to the reasons by marking alongside the proposed causes. I graded their responses based on the same four parameters, as was the case in the causes of delays. In point form, the reasons listed as instances of poor work quality included

1. Unfinished projects.
2. Structural errors.
3. Construction technique.
4. Use of substandard material.
5. Unskilled labour.

The fourth section of the questionnaire sought to determine the causes of the poor work quality, as evidenced by the instances illustrated above. Consequently, it provided four main variables, which allowed the participant to select one. Similar to the frequency and severity grading system, the section had a four-point option, which allowed a respondent to pick one. The four parameters under consideration included

1. Labour.
2. Financing.
3. Material quality.
4. Contractors.

The fifth section of the questionnaire contained the potential solutions. The participants had to select from a raft of proposals their opinions of the solution to the delays and the poor work quality. The questionnaire also provided severity and frequency indexes. In point form, the following are the options proposed as solutions in both of the cases:

1. Government regulation of the industry.
2. Continuous education on total quality management.
3. Review of tender policy.
4. The creation of a database for contractors.
5. The formation of an in house body to regulate contractors.

The final section of the questionnaire sought to determine the personal opinion of the respondents regarding whether delays and poor work quality posed a threat to the construction industry. The participants responded with a “yes” or “no” response, depending on their views. The questionnaire also incorporated severity and frequency parameters in this section. According to Walkman (2010), a random distribution of questionnaires is beneficial. Furthermore, the author recommends that at least 75% of the respondents respond to at least 80% of the questions (Walkman 2010). In the study, all the participants responded to the all questions.

Summary

In this section of the paper describes the research methodology. The paper employed a two-pronged approach in the data collection process. The first instance emerged in the literature review section. Therein, this paper used secondary sources to determine the various causes of delays and poor work quality. The information formed the basis for the study to employ the use of a questionnaire. In each case, the questionnaire proposed different items as causes for delays and poor work quality. There was a grading system and participants determined the severity and frequency of the proposed causes. The next chapter outlines the results of this study.

Results

This chapter shows the findings derived from the interviews and questionnaires (surveys). It shows the respondents’ views about the main causes of project delays and poor quality project outcomes in Saudi Arabia. The structure of this chapter accommodates two sets of findings. The first set of findings shows the survey responses of 27 respondents, while the second set of findings shows the interview responses of company managers. However, since this paper used the SPSS analysis to analyse the data sampled, it is, first, important to understand its findings

SPSS Results

Internal Validity Test

The Pearson Correlation Coefficient test showed that this study had a high internal validity. This test checked the internal validity of the data collection tools and reported high scores for all scale items. The total scale score was below 0.01. The positive scores that underlined the correlation between the questionnaire scales and the questionnaire items further affirmed the internal validity of the research instrument. This outcome meant that the measures used to assess the questionnaire items had a high validity.

Consistency

This paper measured the internal consistency of the findings using the Cronbach alpha coefficient tool. Again, this test measured the questionnaire scales. Results from the Cronbach alpha had values that ranged from 0.784 to 0.917. These values show that the results had a high level of consistency. Therefore, it is possible to apply the results in a practical setup.

Normality Test

Statistically, researchers use the normality test to find out if a set of data is within a normal distribution. To do so, this paper used the variables-data method to find out the likelihood of normal distribution of a random variable. The findings showed that the data was out of the limits of normal distribution. This is because it was statistically non-significant (0.01). This outcome affirms the failure of the data set to show proper modelling.

Demographic Results

The demographic survey showed the professions, ages, nationality, gender, experience, and educational levels of the participants. Its findings appear below

Table 5.1: Distribution of Sample Respondents According to Professions.

The table above shows that project consultants were the majority respondents who participated in the survey. Civil engineers were the second highest group of professionals, followed by contractors and project managers who had only three representatives each. The least number of professionals was quality engineers, project engineers, information technology managers, inspectors, and engineers who had only one representative each. The total number of professionals who participated in the study was 27.

Table 5.2: Distribution of Sample Respondents according to Age.

According to the table above, the youngest respondent was 26 years old, while the oldest respondent was 56 years old. Based on this outcome, the mean age was 38.67 years.

Table 5.3: Distribution of Sample Respondents according to Nationality.

The table above shows a wide distribution of respondents across different nationalities. Although there were some respondents with missing information about their countries of origin, most respondents were either Saudi or Indian. The lowest number of research participants came from Europe (Sweden, Spain, and Britain), Syria, Pakistan and the Philippines. These nationalities had only one representative each. Overall, this analysis mirrors the nationalities of most employees who work in the Saudi construction industry.

Table 5.4: Distribution of the Respondents According to Educational Levels.

Although there were some missing statistics about some respondents’ educational levels, most of the participants had a BSc (33.3%). About 25.9% of the participants had a master’s degree. Finally, only one person in the sample population had a high school qualification. He represented 3.7% of the respondents.

Table 5.5: Distribution of the Respondents According to Gender.

Since men comprise the majority population in the Saudi construction industry, it was inevitable for the sample study to be 100% comprised of this gender. Furthermore, this gender bias shows the patriarchal nature of the Saudi society.

Table 5.6: Distribution of the Respondents According to Experience.

According to the diagram above, the respondent with the least experience worked in the construction industry for only two years. The most experienced respondent had worked for 30 years. Therefore, all the respondents had averagely worked for 13.53 years in the Saudi construction industry.

Survey Results

Questionnaire results comprised the survey results. The table below shows how different respondents ranked possible factors of project delay and poor quality projects in this analysis

Table 5.7: Scale 1 Results.

* Maximum mean = 4

The table above assessed the respondent’s impression of the factors that caused project delays and poor quality construction. These factors included project-related factors, labour, construction materials, consultants, project proprietors, contractors, building equipment, structural designers, and other external factors. The findings show that the mean of study sample response, for the first scale, reached 2.64. The standard of deviation was 0.50. This figure shows that the impression of the study sample of scale 1 is “Sometimes”. Overall, the above findings show that the responses obtained from the research participants range from “high” to “low impression.” Structural design was the most notable item, in the survey, which gave the respondents the highest impression. It had a 3.15 level of agreement among the respondents. Its standard of deviation was 0.91. Lastly, the attribute “sometimes” denoted the degree of agreement among the respondents.

Table 5.8: Scale Two Results.

The maximum mean from the above table was “four.” However, the responses provided by the researchers reached a maximum mean of 2.87. The standard of deviation was 0.67. Similar to the findings highlighted in scale one, “sometimes” was the overall response to the second scale.

Table 5.9: Scale Three Results.

Although the maximum mean for the above table was “4,” the findings of the respondents reached a maximum mean of 2.30. Similarly, the standard of deviation was 0.60. Based on these two indices, the general impression of the research participants towards scale three was “often.”

Table 5.10: Scale Four Findings.

The responses given by the research participants regarding scale three had a mean of 2.94 (the maximum mean was “4”). The standard of deviation was 0.93. These indices show that the research participants had a general impression of “sometimes.”

Interview Results

This study interviewed ten top-level managers who had a lot of experience on the research topic. They came from the public and private sectors. Their responses also differed along this continuum. The following sub-sections of this paper show their views on the possible causes of project delays and poor quality project outcomes

Employee Incompetency

The private sector managers said that employee incompetency was the main cause of delays and poor quality construction in the sector. They added that the quest for employees (especially low-skilled employees) to earn a living was their main impediment to offer quality labour. In fact, one manager said, “they just come to get the money, no matter what the work entails.” To mitigate this problem, one company vice president said they had formed a group of about ten companies whose main objective was to petition the government to allow them to form an educational institution to train these employees. They believe that this way, only employees who have passed a test (offered by the school) should work at the construction sites.

Bribery

Some of the interviewees said that bribery was another issue that affected the quality of construction work and the delays seen in the sector. To support this assertion, one respondent said, “Whoever is responsible for certain projects, from the government side, will try not to issue certificates for payment until he gets some money under the table from the contractor.” However, bribery was more common in the public sector than in the private sector. It complicated the construction processes and made it harder to meet organisational goals. One respondent said, in such circumstances, the wishes of the contractor often precede public, or client, interests. For example, a contractor would finish a project early and bribe the officials to approve their work, even when they have not met the quality standard. Alternatively, some contractors often bribe officials to simplify a project. This way they would finish the project early and receive payments. Often, such outcomes happen at the expense of the project’s quality.

Lack of Knowledge

Some of the respondents sampled in the interviews said that their clients (mostly the government) lack knowledge about the construction industry. Contractors exploit this gap and tender for contracts with poor quality materials and unrealistic time schedules. Surprisingly, they win such contracts. The outcome is poor quality and project delays.

Culture

Some of the respondents highlighted the role of poor organisational and national cultures as causes of project delays and poor project quality. For example, one respondent said the failure of clients to appreciate quality projects often makes it “acceptable” for some contractors to provide poor quality work. Similarly, since many people are not sensitive about time, project delays are equally “acceptable.” To affirm this assertion, one respondent said, “You see, Saudi Arabia is not like the western world where people are conscious of the time. Here, we take things slowly. However, we still get things done.” Overall, these factors emerged as the main causes of poor project quality among the respondents interviewed.

Discussion

The heterogeneous nature of the data collected highlighted different challenges in the data analysis process because it questioned the validity of the responses. Therefore, it was not possible to rank total mean scores. To understand this challenge it is, first, important to understand the nature of the responses given by the research participants according to their professional backgrounds. For example, could all the professional groups have given correct responses? If not, which group gave the most credible findings, especially considering how the questions portrayed their professional credibility, or how it affected their image? In this analysis, it is also important to question whether some of the respondents gave their opinions based on their true professional views, or they simply tried to protect the image of their professions. To understand the above issues, we need to review the respondents’ professions.

As shown in chapter five of this paper, most of the respondents worked as consultants in the construction industry. This means that they were relatively knowledgeable about the intrigues of the industry. However, the responses given by other professional groups were higher than the contractor group. One possible reason for this outcome was that, based on the nature of the questions asked, the contractors could have given subtle responses because they were more at fault for poor project delays and poor quality projects than other professional groups. Therefore, some of them could have been unwilling to admit that most of the faults stemmed from their failure to conduct their duties as expected. Another plausible reason for this outcome is that the contractors better understood their roles (more than other professionals did) and similarly understood the negative project outcomes better than other professionals did. This reason would also mean that the contractors provided the most credible views about the research problem.

If this was the case, it would mean that the contractor group had more knowledge about the true causes of project delays and poor project quality because they are more privy to pieces of information that relate to the technical aspects of the project, compared to other professionals (such as consultants). This analogy would partly explain why labour-related issues emerged as a popular cause of project delays and poor project outcomes among the research participants sampled. The same analogy would be factual when explaining the contract-related effects of poor project outcomes because contractors have more to lose if a project has a negative outcome (compared to consultants or designers). If this were the case, there would be an endless cycle of blame for poor project quality and project delays among all the professionals sampled in this paper.

Other researchers have encountered the same problem. For example, Al-Kharashi & Skitmore (2009) found out that contractor issues and consultant issues closely related to a client’s contribution to poor project outcomes. In their analysis, Al-Kharashi & Skitmore (2009) also found out that many contractors often blamed their clients and their clients blamed the contractors for undesirable project outcomes. Here, one could easily say that the consultant blames the contractor for negative project outcomes, while the contractor blames the client for the same negative outcomes. A broader look at the same cycle reveals that the contractor and the consultant blame the client for the negative project outcomes. Joyce (2001) says that the passivity of the client in this blame cycle stems from his lack of understanding of the construction industry. Overall, this cycle shows the role that most contractors and consultants play in determining project outcomes.

Civil engineers were the second highest professional group to participate in the research. Although they are knowledgeable about the construction industry, their expertise mainly focuses on some sections of the construction industry. For example, their skills and experiences are mainly limited to construction projects that involve infrastructure growth. This limitation may also spread to the responses given by the participants because their views on project quality and project delays (could) only relate to infrastructure projects. Three project managers, three contractors, two designers and one quality engineer took part in the study. Unlike the civil engineers, their views related to the general construction industry. Furthermore, these professionals sit in strategic positions of an organisational hierarchy process, thereby making them privy to classified information that other lower-level employees may not know.

Furthermore, based on the educational levels of the respondents who participated in this paper, it is important to point out that most of this chapter’s findings are reliable because most of the respondents had a university (degree) qualification. Nine of them had a Bachelor of Science (BSc) degree, while seven of them had a master’s degree. Only one respondent had a high school education. This demographic outcome shows that most of the respondents gave their views from a point of knowledge. Furthermore, since the construction field is a scientific discipline, it is crucial to highlight the congruence of the BSc degree (that most respondents had) to the construction industry. This analogy means that most of the respondents had a scientific background that helped them to make informed decisions about the views asked in the questionnaires. Based on these facts, it is crucial to point out the possibility of generalising most of the responses obtained from the above-mentioned professionals across the entire construction industry.

National Culture

Many researchers have highlighted the role played by national cultures in defining project outcomes in the construction industry (such as project delays and project quality) (Baumann 2013). For example, Bezelga & Brandon (2006) say, in the Middle East, national cultures lead to project delays and project failures. Some researchers have had deeper analyses of this issue and say, to understand the impact of national culture on Middle East construction projects, it is first important to contextualise our analysis on the East-West divide and establish how the corresponding national cultures affect project outcomes (Baumann 2013).

However, to understand the impact of national cultures on the Saudi construction industry, it is, first, important to understand Hofstede’s cultural model, which describes national cultures as high power distance cultures, long-term oriented, avoiding uncertainty, masculine, or individualistic (Paul 2011). Often, different countries associate with one of these cultural models. Saudi Arabia associates with the high power distance model. This is similarly true for many Middle East countries, such as Kuwait, Jordan, and Syria (Baumann 2013). The high power distance model requires people to accept an unequal power distribution in the society.

Zuo & Zillante (2008) used the above framework to understand how British and Chinese national cultures affected project outcomes. He found out that both cultures had many differences. For example, the Chinese culture promoted intra-team relations in the workplace. People worked (almost) like family units. Comparatively, the British people had limited interactions at work because of their individualistic cultural orientation (Zuo & Zillante 2008).

While they shared a good relationship at their workplaces, their cooperation did not go beyond the work context. Mainly, this difference highlighted the “individualism vs. collectivist” model that many researchers have used to differentiate Eastern and Western cultures. Zuo & Zillante (2008) also used the same understanding to investigate how the Australian national culture affected the performance of its construction industry. They compared how this national culture compared with the dominant culture in the Chinese construction industry.

Their analysis showed that both countries had significant cultural differences. For example, the Australian people associated with low power distance and masculine cultures (Zuo & Zillante 2008). Similarly, unlike their Chinese counterparts, they were individualistic. Based on these cultural attributes, the researchers said that relationship contracting was more conducive to the Australian national culture, compared with the Chinese culture (Zuo & Zillante 2008).

Therefore, while many Chinese people work because their passion drives them to pursue different projects, Australians feel motivated by the power of their minds. Zuo & Zillante (2008) investigated how these cultural differences affected project outcomes. They found out that although different cultures had different conceptions of employee relationships, they all valued the importance of having good relationships in the workplace. These relationships affected different aspects of organisational performance, including one’s attitude towards uncertainty, contractor-subcontractor relationships, and project execution modalities.

When understanding the role of national cultures in project outcomes, it is also important to understand that a national culture is subject to a project culture. In fact, the project culture often overrides the interests of national cultures, whenever a conflict arises between the two. This is because the project culture has more influence on employees. Using this analogy, Zuo & Zillante (2008) define project culture as “the shared values, basic assumptions and beliefs that the participants involved in a project hold, which determine how they understand the project and the relationship with one another in the project environment” (p. 1).

The Saudi construction industry has the same challenges highlighted by the above studies (Baumann 2013). In fact, its situation could be worse because the construction industry accommodates people from many cultures. Western countries outline the origin of many foreign workers in the kingdom (Simmons 2013). However, recently, there had been an increase of immigrants from Africa and Southeast Asia. Although there are workers from other Arab countries, they do not have a significant cultural impact on working practices in the construction industry because Arab countries also have a high power distance model. Therefore, the main challenge comes from merging the working practices of workers from Southeast Asia, Africa, and western countries.

They do not share the same cultural inclination as workers from the Middle East do. For example, westerners always have an “I did this” attitude, while workers from Southeast Asia have a “we did this” attitude. Moreover, religion has a notable influence on Arab business practices (Baumann 2013). Comparatively, African and Asian employees do not often link their work practices with religion. Furthermore, these three employee groups (Arab, Southeast Asians, and Africans) have different religious inclinations (Simmons 2013). Their different religious backgrounds may create ideological differences in working practices. Furthermore, they may create different expectations when working to meet organisational goals. Therefore, it is difficult to merge such multiple cultural inclinations to create a homogenous organisational synergy.

The nationalities of the respondents highlighted in this paper could have presented the same challenge (highlighted above) because the respondents came from Britain, Spain, Saudi Arabia, Syria, America, Pakistan, and Philippines. These countries have different cultures. A deep analysis of this demographic finding shows that the main cultural inclinations of the respondents are European cultural practices, American cultural practices, Arab cultural practices, and Asian cultural practices. If we compare these cultures with the Hofstede cultural model we see a clash between individualistic and collectivist cultures. American and British employees are often individualistic, while Asian and Arab employees are collectivist (Paul 2011). These cultural inclinations may affect how they carry out their duties. More specifically, they may affect how they perceive factors that cause project delays and poor quality construction projects.

For example, while Americans and Britons may be more unforgiving about quality compromises, South Asian and Arab employees may have more tolerances for such quality compromises (Paul 2011). Similarly, employee cultural inclinations may have affected their perceptions of the role of human factors in poor project quality. For example, the nationalities of the respondents may have affected their perceptions of the role of employee intentions in causing poor project quality. Here, it is important to understand that some respondents believed employee attitudes towards work contributed to poor project quality. For example, some managers believed that some employees worked to make money, at the expense of project quality. Such views could easily resonate with western managers who allocate blame on personalities (Paul 2011).

This view may stem from their individualistic cultural inclination. However, managers who come from collectivist cultures may have a different opinion on the same issue. For example, they may not (necessarily) assume that the employees are to blame for the poor work quality. Since they have a “we” attitude, they may believe that all levels of employees (including managers) may have a role to play in causing poor quality project outcomes.

From a different analytical spectrum, some researchers believe that the Middle East culture could improve project outcomes by improving communication (Baumann 2013). Again, this thinking comes from the collectivist culture that Arab employees have. In other words, individualistic people may not have the same cohesion that most collectivists have. They are more socially isolated than people who identify with the collectivist culture (Paul 2011). This difference may play out in shaping project quality outcomes because it affects teamwork, which also affects project outcomes. Since researchers have affirmed a positive correlation between improved communication, cultural orientations, and positive project outcomes (Paul 2011), it is proper to say that national culture had a significant impact on the perceptions of the employees regarding project quality and project delays.

Bribery

Some of the respondents highlighted in this paper said that bribery affected the quality of construction projects and caused project delays (mainly, the managers held this view). This view is not new. Other researchers have affirmed the role of bribery in causing project delays and compromising project quality. In fact, Transparency International (2014) says bribery “damages companies, resulting in tendering uncertainty, wasted tender expenses, increased project costs, economic damage, reduced project opportunities, extortion and blackmail, criminal prosecutions, fines, blacklisting, and reputational risk” (p. 1).

The construction industry has suffered from many cases of bribery. A 2013 European Commission report (cited in K&L Gates 2014) shows that this problem is widespread because more than 50% of all stakeholders in this sector believe that bribery is a significant problem in the sector. Furthermore, according to the diagram below, bribery and corruption are prevalent in the construction industry and relate to other factors that cause project delays and poor project outcomes.

The above pie chart is the product of an analysis by the Chartered Institute of Building (2013) after it investigated the main reasons for the high prevalence of corruption in the construction industry. It asked the respondents for their views about the causes of the high prevalence of bribery and corruption in the construction industry. The respondents said the lack of strict enforcement standards, absent anti-bribery laws, the lack of personnel training about anti-bribery and fraud policies, lack of anti-bribery policies, long supply chains, economic reasons, and cultural reasons were the main causes of bribery and corruption in the construction industry (Chartered Institute of Building 2013). The diagram above shows that culture was the main reason for the high prevalence of corruption in this sector.

Among all the responses given by the research participants, culture had a score of 27%, while economic reasons, long supply chains, lack of anti-corruption policies, failure to train officers about anti-bribery policies, and the lack of enforcement of anti-bribery policies polled 23%, 13%, 8%, 5%, and 17% respectively. Based on these statistics, we see that bribery shares a close relationship with culture. Therefore, it is unsurprising that our research respondents highlighted the two factors as possible causes of project delay and poor quality project outcomes. A culture that condones corruption is likely to experience the negative effects of bribery in many aspects of its economic development. This is the case for the Saudi Arabian construction industry because it reports a higher number of bribery and corruption cases. Relative to this discussion, many researchers have highlighted the growing number of bribery cases in countries perceived to have a hidden tendering process (Chartered Institute of Building 2013).

In the Middle East, the judiciary has found about 60,000 people guilty of bribery and corruption charges (Chartered Institute of Building 2013). Such litigations have often amounted to millions of dollars exchanging hands. For example, Balfour-Betty (a Middle East company) paid 2.25 million after losing a case, which accused its officials of bribing Egyptian officials to win a tender to construct the Bibliotheca Alexandrina (K&L Gates 2014). A similar case arose in Korea, where a company paid more than $5 million to settle a bribery case, which involved its officials in a bribery case that sought to secure a tender to construct the Incheon Bridge, in 2009 (K&L Gates 2014).

The above cases are not only exclusive to the developing world because the same allegations exist in Europe and America. For example, the biggest bribery case happened in Britain, where the Mabey Group (a London-based Company) pleaded guilty to bribery charges. The company admitted to bribing state officials in Ghana, Jamaica, and Iraq to win state contracts for participating in lucrative infrastructure projects in the countries (K&L Gates 2014). Observers have also reported bribery claims in Russia. For example, the Russian government awarded a company a contract to construct sports facilities for the multibillion-dollar Sochi winter Olympic Games. Initially, the contract had a budget of about $12 billion, but, because of bribes and kickbacks paid to state officials, it later increased to $51 billion (K&L Gates 2014).

Observers have reported bigger numbers involving bribery claims in France, where a French engineering firm paid more than $240 million to bribe Nigerian state officials and win a tender to participate in the Bonny Island construction Project, in 2011 (K&L Gates 2014). Another Japanese company also paid $218 million in bribes to win the same tender (K&L Gates 2014). Observers also mentioned other UK and US companies (Kellogg Brown and Root LLC) in the scandal for paying bribes to Nigerian state officials (K&L Gates 2014).

Based on the above cases, Kochan & Goodyear (2011) say that the construction industry has a high number of corruption cases. In fact, the 12^th global survey on fraud showed that bribery was a common practice in the construction sector (Kochan & Goodyear 2011). Many factors predispose the Saudi construction industry to bribery. For example, before contractors get a job, they must undergo a lengthy tendering process that is prone to bribery (Mitra & Wee-Kwan-Tan 2012). Similarly, donors, the government, and public-private partnerships (PPP) fund many projects in the kingdom. Their activities often involve intense interactions with public institutions and corrupt government officials. Relying on third parties (sub-contracting) is also a prevalent practice in the construction industry (Mitra & Wee-Kwan-Tan 2012). Some of these parties may often solicit for bribes, thereby affecting project quality, or cause project delays, through compromised quality standards.

The prevalence of joint ventures in the construction industry also promotes bribery because the Saudi law requires foreign companies to collaborate with local companies to undertake construction projects in the kingdom (Mitra & Wee-Kwan-Tan 2012). Such requirements give way to intense opportunities for negotiations between interested parties. Some people may use this opportunity to leverage their financial positions for more commercial gains. Furthermore, third party involvement in the negotiation process may provide more loopholes for bribery to occur (Mitra & Wee-Kwan-Tan 2012).

Massive construction projects in Saudi Arabia also leave the decision-making process to only a few individuals (managers) who have political connections with authorities. Their engagements often lack public scrutiny, or public involvement, thereby creating opportunities for bribery to occur. Lastly, organised criminal networks may use labour crises that occur in the construction industry to advance their commercial interests. Some of these actions often lead to bribery (Mitra & Wee-Kwan-Tan 2012).

Lack of Knowledge

Some respondents sampled in this study said that a lack of knowledge about construction practices contributed to poor project quality and project delays. Evidence of this factor, as a cause of project delays, emerged in the early 1980s (Al-Kharashi & Skitmore 2009). Researchers said poor qualification of technical staff often led to poor quality projects and cost overruns. They also attributed the same cause to project delays. Part of this problem stemmed from inadequate skilled labour. In fact, contractors have always experienced a challenge where many Saudi nationals shun jobs in the construction sector for more prestigious work in the society. To address this problem, contractors employ many immigrant workers who are often unskilled and incompetent (Al-Kharashi & Skitmore 2009). However, this approach has not always worked in their favour because these workers do substandard jobs.

This problem closely relates with the views of project managers (in the interview results) who said most of the workers, who look for a job in the construction industry, seek “quick money.” Therefore, there is no emphasis on job quality. Although the managers also highlighted the lack of client knowledge, as another reason for poor project quality and delays, current practices in the construction industry show that many clients have devised a way to overcome their “ignorance” by paying for projects after completion (Al-Kharashi & Skitmore 2009). This practice has permeated through different facets of the market (public and private sectors). For example, since contractors get contracts to undertake massive construction projects in the public sector, government agencies are uncomfortable paying for the projects up-front because they are unfamiliar with the industry (Al-Kharashi & Skitmore 2009).

Although Mitra & Wee-Kwan-Tan (2012) agree with the above findings, they add that contractor issues also affect project delays. Particularly, they draw our attention to conflicts among contractors as a major cause of project delays. Although the research respondents did not identify this issue, it highlights the role of confusion among contractors, in the project management process, as a possible cause of project delays. Other researchers have highlighted the same problem as part of contractor-related issues that lead to poor project outcomes. For example, Mitra & Wee-Kwan-Tan (2012) affirm that some contractors lack the knowledge needed to undertake massive construction projects, thereby causing significant project delays and poor quality project outcomes. For example, improperly scheduling construction projects show the lack of knowledge by some contractors to undertake massive construction projects. Researchers also say some contractors suffer from the same problem (Al-Kharashi & Skitmore 2009).

The views of the AWWA Staff (2011) closely align with the above ideology because they also draw our attention to the contractor-related issues as a major cause of project delays and poor project quality. For example, they say a lack of knowledge does not only relate to clients alone because some contractors also lack the knowledge to do what they should do (AWWA Staff 2011). Only one researcher analysed the same problem in Saudi Arabia and arrived at the same conclusion (Al-Kharashi & Skitmore 2009). He made this assertion after investigating contractor experiences during the Saudi Arabian economic spurt (1970s). At the time, the country had introduced several economic projects that involved massive construction projects. Many contractors did not have the skills needed to undertake such projects. However, they won many lucrative state contracts to build mega projects (Al-Kharashi & Skitmore 2009).

Unlike other researchers, the Oxford Business Group (2007) does not differentiate contractor inexperience (or lack of skills) with employee incompetence (lack of skilled labour). It perceives both of them as the same thing because workers are part of the contractor team (Oxford Business Group 2007). Therefore, although some researchers analyse worker issues differently, Al-Kharashi & Skitmore (2009) believe that unskilled labour, as a possible cause of project delays and poor project outcomes, is part of several issues about contractors that lead to negative project outcomes. If we use this analogy to analyse the lack of knowledge among contractors, as a plausible cause of poor project outcomes, we see that the first researchers to note the same issue emerged in the early 1980s (Oxford Business Group 2007).

Again, the main reason for this observation is an imbalance between economic growth and adequate skilled personnel to conduct duties that are equal to such economic progress. Researchers have affirmed the same cause (contractor inefficiencies) in the 1990s (Al-Kharashi & Skitmore 2009). In fact, researchers who have investigated this matter (deeply) say that most contractors have often failed to finance their projects on time, even when they have the money to do so (Mitra & Wee-Kwan-Tan 2012). Many companies have suffered a reputation damage in this regard. In fact, because of the unprofessionalism of some contractors, the Saudi government stopped paying contractors in advance (Mitra & Wee-Kwan-Tan 2012). The government stopped this practice in 1987 (Al-Kharashi & Skitmore 2009).

Unskilled Labour

Some research respondents in this paper identified unskilled labour as a major cause of project delays and poor quality construction projects. Many countries in the Middle East have a labour shortage problem. This paper has already shown that most of them employ foreign workers to address this problem. Compared to other countries in the Gulf region, Saudi Arabia does not have a high population of foreign workers (Simmons 2013). In fact, according to the graph below, the kingdom has the lowest population of foreign workers, compared to a similar population of foreign workers in the UAE, Bahrain, Oman, Qatar, and Kuwait.

Many researchers have shared their opinions about how the labour shortage in Saudi Arabia affects different aspects of its economic development (Simmons 2013). Some of them have focused on the construction industry by saying that many contractors have to employ unskilled labourers, because they have to devise ways of managing this problem without stalling their projects (Mitra & Wee-Kwan-Tan 2012; Al-Kharashi & Skitmore 2009). Therefore, they employ unskilled labour to meet their labour shortages. However, contractors have had to contend with poor quality job outcomes and increased conflicts with their clients (for the same reason) since these labourers do not have the skills needed to do a high quality job.

For example, the Oxford Business Group (2007) says unskilled labourers are often illiterate and unable to communicate effectively. Therefore, they have problems communicating with their employers, thereby inhibiting their ability to complete projects on time. Similarly, poor communication skills inhibit their ability to communicate among themselves (Oxford Business Group 2007). Their lack of training also makes them unsuitable candidates for undertaking the massive and complicated construction projects we see in Saudi Arabia today (Mitra & Wee-Kwan-Tan 2012; Al-Kharashi & Skitmore 2009). Often, these workers do substandard projects, which force the contractor to redo. This process takes time and since they are often unscheduled, they lead to project delays. Often, many contractors who find themselves in this situation have to pay liquidated damages to their clients for failing to complete the projects on time (Oxford Business Group 2007).

Employing unskilled labour to work on construction projects also lead to project delays and poor quality project outcomes because project managers are unable to focus on time management, cost controls, and total quality management (Mitra & Wee-Kwan-Tan 2012; Al-Kharashi & Skitmore 2009). For example, the Oxford Business Group (2007) says that many contractors who fail to get skilled labour spend a lot of time looking for the skilled labourers, thereby spending little time on the ground. Their absence makes it difficult for them to control project quality. Similarly, this problem inhibits them from making sure that the project follows a specific time outlay. A 2009 survey showed that construction projects, which experience time delays because of unskilled labour could complete their projects six months after their scheduled completion time (Mitra & Wee-Kwan-Tan 2012; Al-Kharashi & Skitmore 2009).

Similarly, because of poor communication with employees, contractors are unable to manage employee activities well, in a way that they can meet their client’s expectations. Contractors who want to work with the employees spend a lot of time trying to establish a working relationship with them, thereby affecting their productivity (Mitra & Wee-Kwan-Tan 2012; Al-Kharashi & Skitmore 2009).

Recommendations

Bribery

This paper already shows that there is a high perception of bribery in Saudi Arabia. In fact, Transparency International (2014) says that many high profile corruption scandals in Europe and America have involved officials from the Middle East. Consequently, there is an urgent need to curb this problem. This paper recommends a raft of recommendations that focus on contractor strategies and administrative strategies of preventing bribery.

Administrative Strategies

Most of the strategies highlighted in this section of the paper focus on the failure of state authorities to implement existing anti-bribery laws in Saudi Arabia, as a serious administrative challenge in the anti-bribery fight. In fact, Saudi Arabia trails the list of countries that are striving to fight corruption and bribery among emerging global economies of the world (American International Group 2013). The following graph shows the kingdom’s position in this regard because China, Iraq, Nigeria, India, Mexico, Brazil, Russia, Indonesia, and Argentina (which have a “bribery problem”) have a better record in the anti-bribery fight.

The above graph shows that Saudi Arabia needs to improve its anti-bribery fight because the kingdom has legislations that prevent bribery and corruption practices. The American International Group (2013) and Transparency International (2014) say that Saudi Arabia is among many Middle Eastern states that have adopted localised approaches of preventing bribery and corruption by subscribing to internationally recognised working practices against bribery practices. For example, Arab countries have subscribed to the United Nations Convention against corruption (American International Group 2013; Transparency International 2014). Although Saudi Arabia is a signatory to this convention, it is not a ratified member. However, its participation is a first step in solving the bribery menace in the country. Implementation is the main problem that affects this fight (American International Group 2013; Transparency International 2014).

In this regard, there is a strong need for the Saudi government to improve its implementation efforts to curb the vice. For example, the kingdom needs to strengthen its anti-corruption laws. Furthermore, Saudi construction companies should provide clear guidelines to all their employees about acceptable and unacceptable business practices. Similarly, the companies need to orient their workers with the procedures they should follow when they see a bribery case. Indeed, implementation of existing laws is an important part in the bribery fight. Other countries have proved the volume of success that they can achieve by implementing existing anti-bribery laws, aggressively. For example, the US Department of Justice has reported significant gains in the anti-bribery campaign because the government has given the institution full support to investigate and prosecute bribery cases (K&L Gates 2014).

This department acts as a supervisory body for local and foreign companies. Therefore, even if foreign companies want to import their “bribery culture” in the US, they are unable to do so because they risk prosecution (American International Group 2013; K&L Gates 2014). Similarly, if US companies participate in bribery cases abroad, they are liable for their actions domestically. Saudi Arabia needs to show the same commitment when investigating and prosecuting bribery cases in the kingdom. For example, it should show all citizens that nobody is above the law (American International Group 2013; Transparency International 2014).

If people suspect a company of bribing other people, the government should undertake proper investigations and arrest the culpable persons. This action should occur, regardless of how well a person is “politically connected,” or not. Furthermore, many countries are willing to collaborate with countries, such as Saudi Arabia, to investigate and prosecute bribery cases (American International Group 2013; Transparency International 2014). The UK is one such country because it has positioned itself as a global anti-bribery jurisdiction (K&L Gates 2014). The UK Bribery Act 2010 outlines its commitment to help other countries investigate and prosecute bribery cases (K&L Gates 2014).

This legislative piece has been very instrumental in investigating and prosecuting bribery cases that involve UK companies and other foreign companies that trade in the UK. For example, the Act has made these companies criminally responsible for any bribery, or corruption cases that they participate in, anywhere in the world (American International Group 2013; Transparency International 2014). Prosecutions may occur, regardless of whether the bribery cases have a UK connection, or not (K&L Gates 2014).

Saudi Arabia should collaborate with such countries to improve their effectiveness in prosecuting and investigating bribery and corruption cases in the construction industry. Other developing countries, like Brazil and China (that the kingdom competes with), have made progress by revamping their anti-bribery laws (K&L Gates 2014). For example, Brazil recently introduced new sets of anti-bribery laws to empower law enforcement agencies to investigate and prosecute bribery cases. Similarly, China has improved its anti-bribery campaign by investigating senior company officials for such cases (K&L Gates 2014).

For example, it recently prosecuted a former director of GlaxoSmithKline for bribing Chinese state officials (K&L Gates 2014). These examples show that western countries are not the only nations that are committed to fight bribery. Developing countries are also joining the fray and Saudi Arabia needs to do so as well. Therefore, regardless of one’s geographical position, there is a growing resentment towards corruption and bribery, globally (American International Group 2013; Transparency International 2014). Saudi Arabia should join this war by improving its implementation standards.

Contractor Strategies

Although the above examples highlight different strategies that Saudi Arabia may adopt to improve its anti-bribery campaign, local contractors can join the fight by undertaking domesticated strategies for mitigating the risks of bribery. Indeed, as K&L Gates (2014) says, different levels of the construction process may attract corrupt people. This paper has already identified the tendering process as a notable “den” of bribery.

However, the vice may also thrive in the procurement process, supply stage, and construction stage. These vulnerable stages highlight the need to conduct a risk analysis at the company level and the transaction level. Their findings will provide enough materials for creating an anti-bribery compliance program. Such a program would be beneficial for construction companies because it will reduce their vulnerability to bribery and corruption cases (K&L Gates 2014). Furthermore, such a program strengthens a company’s defence for bribery and corruption cases, if they occur. After investigating the efficacy of such anti-bribery programs in the Middle East, K&L Gates (2014) says, “The gold standard is an individualised bespoke risk profile risk assessment as the basis for a compliance program” (p. 2).

Seeking permits and licensing is a notable risk area that many researchers have not only identified in the Middle East, but other parts of the world as well (American International Group 2013; Transparency International 2014). Indeed, many researchers have documented incidences where state officials require bribes to issue construction licenses (K&L Gates 2014). A highly regulated business environment and a stringent set of policy requirements often encourage contractors to pay these bribes (American International Group 2013; Transparency International 2014). While some types of personal payments may be “acceptable” (legally), it is important for Saudi companies to see the licensing process as a risk area that requires immediate attention. Kickbacks to contractors and their subcontractors, cutting the cost of building materials, unlawful subcontracting, corrupt joint ventures and cartel behaviours are other areas that need special consideration in the risk assessment phase (K&L Gates 2014).

Overall, Transparency International (2014) affirms the efficacy of the above interventions because it believes that the best way for eliminating bribery in the construction sector is if all players in the sector increase cooperation. Particularly, it draws our attention to the need to address the demand and supply sides of corruption (Transparency International 2014).

Clarify the Tendering Process

Authorities also need to clarify the tender process to eliminate possibilities of ambiguities that may create bribery cases. For example, authorities need to conduct an effective due diligence process to make sure that the company, which wins the tender, is up to the task (American International Group 2013; Transparency International 2014). This measure could easily help company owners manage quality problems because most of the quality issues that arise in the construction process stem from the improper allocation of construction projects to companies that cannot do a good job (American International Group 2013; Transparency International 2014).

Set the Tone from the Top

If Saudi companies want to eliminate bribery and improve the efficiency of their operations, they need to involve senior managers of such organisations in the anti-bribery fight. These managers need to demonstrate their intolerance to corruption by setting the tone from the top (American International Group 2013; Transparency International 2014). This strategy would eliminate bribery by lower-level employees, as they would understand that the vice is intolerable in the organisation. Managers can adopt different strategies for meeting this goal. For example, they can review, or introduce, training programs for educating employees about the demerits of corruption and bribery (American International Group 2013; Transparency International 2014).

This strategy would help them cement a desired corporate culture for fighting bribery. Delgado-Hernandez & Aspinwall (2008) say that some organisations have such programs, but few employees are aware of them. The 12^th annual fraud survey, conducted by Ernst and Young (cited in Delgado-Hernandez & Aspinwall 2008), showed that more than 55% of company employees are unaware of such programs. Therefore, alongside setting the tone of anti-bribery practices, managers need to sensitise their employees about the benefits of having a “bribery-free” organisation (American International Group 2013; Transparency International 2014).

Due Diligence

This paper highlights the need for companies (especially foreign ones) to conduct due diligence before they collaborate with local Saudi companies. This process would help them identify “rogue” contractors and subcontractors who do not want to “play fair” (Delgado-Hernandez & Aspinwall 2008; Transparency International 2014). They should avoid such companies and do business with credible organisations that have a good business record. This way, they would avoid the potential problems of working with untrustworthy contractors. Similarly, they would also protect the quality of the products or services they offer (Delgado-Hernandez & Aspinwall 2008; Transparency International 2014).

Lack of Knowledge

This paper has highlighted the lack of knowledge as a critical factor that leads to poor quality projects and project delays. Usually, clients are vulnerable in this regard because they depend on the expertise of the contractor to produce quality project outcomes because they know little information about construction projects (Joyce 2001).

Involve the Expertise of Third Parties (Quantity Surveyors)

To mitigate this problem, clients should use quantity surveyors, whose main role is to minimise project costs and make sure that all clients get value for their money (Delgado-Hernandez & Aspinwall 2008; Joyce 2001). Furthermore, although quantity surveyors work in different economic sectors, they are often knowledgeable about the construction industry. Therefore, they can advise their clients about the issues they have about construction projects (Delgado-Hernandez & Aspinwall 2008; Joyce 2001).

To make this intervention effective, it is important to anchor this requirement in law. In other words, the law should require clients to seek the report of a quantity surveyor before they can sign contractual agreements with a client. Since, it may be difficult to implement such as strategy in the private sector, the public sector should lead the way in this regard. The government could protect many public funds using this strategy because the contractors would do business with someone who understands the industry. Consequently, the quality of construction projects would increase. This model would also cause a decline in the number of project delays (Delgado-Hernandez & Aspinwall 2008; Joyce 2001).

Contractors Should Inform Clients about Construction Processes

Solving the challenges that arise from clients having little knowledge about the construction industry could also come from a legal and policy background. Contractors need to involve governments and policy makers in making laws that require practitioners to inform clients about design, safety laws, and other construction-related issues that the customer may need to know. This initiative should come from the contractor because the customer would not know what to do about construction matters. Using a legal framework, contractors should (legally) inform their clients about all the important steps and issues that concern their construction needs (Delgado-Hernandez & Aspinwall 2008; Joyce 2001). Joyce (2001) says some countries have adopted this strategy successfully. For example, the UK law deems it an offence for a contractor to fail to inform a client about existing construction laws if they are aware that the client does not know such laws (Joyce 2001).

Since some contractors may say they informed a customer of existing laws (without proof), the law demands that there should be written communications between contractors and clients, always. Besides existing regulations, clients also need to understand the types of materials and technology used in the construction process. The law should force contractors to disclose such details before undertaking the construction project. Therefore, when the project starts, the contractors and the clients should have common sets of knowledge about its details. Without an existing law to moderate such contractor-client relationships, exploitation may occur. Such an eventuality would tarnish the name of the profession (construction contracting) and limit the possibilities of contractors and clients conducting future business (Delgado-Hernandez & Aspinwall 2008; Joyce 2001).

Based on this model, Saudi Arabia should introduce new legislations that bind contractors to disclose all information regarding a project. Furthermore, they should be legally bound to explain to their clients all the materials and technologies they use in their construction projects. Therefore, when a project is complete, the client should not be surprised with its outcome.

Unskilled Labour

Some contractors have devised some innovative strategies for managing some of the problems associated with employing unskilled labourers. For example, some of them have adopted an overtime system, which allows them to work extended hours and avoid project delays that may arise from employing unskilled labourers. However, even such approaches have a problem because workers often get tired and are unable to provide quality work, as expected. Therefore, there is a need to formulate more innovative strategies for solving this problem. Particularly, there is a strong need to understand the labour problem as a labour shortage challenge. Indeed, this paper shows that because of labour shortage problems, contractors have to employ unskilled labourers. This section of the paper recommends extending the retirement age, improving working conditions in the construction industry, using more advanced and simplified construction methods, training and advancements, as viable strategies for solving this problem.

Improving Working Conditions

One reason for the failure of Saudi construction companies to attract skilled labour is poor working conditions. According to the Construction Industry Development Board (cited in the Chartered Institute of Building 2013), the image of the construction industry is important in developing an attractive environment for skilled professionals. A 2008 Labour Shortage Action Plan supports this assertion because it identifies negative perceptions of the Saudi construction industry as a hindrance to attracting skilled labour (Chartered Institute of Building 2013). Therefore, there needs to be a concerted effort by all players in the industry to reduce unwanted elements of the construction industry, which create a negative perception about it.

Such elements may include poor safety standards, inadequate pay, and excessive noise (among others). Companies and governments need to undertake such measures at different operational levels. For example, at a policy level, the Saudi government should formulate health and safety laws that require employers to provide their employees with safe working conditions. At an organisational level, Saudi contractors should provide their employees with safety equipment, health insurance and other facilitative elements that could improve their working environment (Chartered Institute of Building 2013). Many skilled labourers would be attracted to such an environment. They would also provide existing companies with the expertise needed to undertake complicated and massive construction projects.

Extend the Retirement Age

The construction industry is a special industry because it involves dangerous activities and has a high “wear and tear” for its employees (Chartered Institute of Building 2013). Stated differently, workers in this sector often undertake physical activities in a stressful environment. This environment predisposes them to illnesses and other negative health outcomes. Indeed, as the OECD (2005) says, “There is a general acceptance within the construction workforce that injury and illnesses go hand-in-hand with the job” (p. 1). Moreover, the OECD (2005) says that all illnesses cause the construction sector up to 8.5% of all project costs. A combination of these negative environmental factors (coupled with the natural ageing process) makes it difficult for employees to work when they are past 50 years old. However, because the Saudi construction industry experiences a shortage of skilled workers, this paper proposes an extension of the retirement age of the workers to allow contractors to continue tapping into the wealth of experience and knowledge that the older workers have.

This strategy is a short-term measure that Saudi Arabian construction companies could use to solve their labour issue. They already have a pool of skilled labourers who have reached the retirement age, but are willing to work longer. Employers should allow such employees to work longer because their expertise is invaluable to such firms (Chartered Institute of Building 2013). However, it is important for contractors to know two factors when pursuing this strategy. One factor is the need to involve the government in the proposed strategy because extending the retirement age is a policy issue, which requires legal interventions to succeed (OECD 2005).

Policy makers need to extend the retirement age so that when employers request employees to work longer than their retirement age permits, they can legally do so. The failure to consider a legal redress to this issue may amount to breaking the law, if employers allow their retired workforce to continue working. The second issue that all employers need to consider is having an informed consent from their retired employees to continue working (OECD 2005; Chartered Institute of Building 2013). Stated differently, the employees need to work because they want to, and not because their employees force them to do so. Forcing employees to continue working past their retirement age, without their consent, could lead to problems that are more complicated for employers, such as low employee morale and reduced organisational productivity. Therefore, it is important for employers to respect the wishes of their employees when pursuing the proposed strategy.

The main drawback of extending the retirement age of Saudi employees who work in the construction industry is the increased risk of injury that most employers would experience when they allow an ageing population to continue working in the industry. However, the main argument in the proposed strategy is the sheer volume of experience that older workers would bring to the industry. Research already shows that these employees are more committed and valuable than their younger counterparts (OECD 2005; Chartered Institute of Building 2013). However, there needs to be a “smart” trade-off between the skills and physical fitness of these employees (OECD 2005; Chartered Institute of Building 2013).

Using Simplified Construction Methods

This paper highlights the use of advanced technology in the Saudi construction industry as a strategy for solving labour-related issues in the construction industry. Furthermore, it shows that the kingdom has many massive construction projects that use advanced technology. While it is important to use advanced technology to cut construction costs, improve project quality, and shorten the project time, contractors should consider using simplified methods of construction to reduce the demand for skilled labour (Chartered Institute of Building 2013). This strategy should not (necessarily) reduce the quality of the construction projects because it only proposes to use simplified construction methods that could incorporate the benefits of using advanced technology. This strategy may also stretch to the types of materials used in the sector.

For example, contractors can use less complicated types of building materials that do not require skilled labour. Malaysia has adopted this strategy by using pre-fabricated materials in the construction industry (Chartered Institute of Building 2013). It also experiences the same labour challenges that Saudi Arabian construction workers do. Using industrialised building systems could also minimise the dependency on skilled labour. In fact, some building societies encourage contractors to adopt them because they require less employee input, minimise wastages, and improve quality control (Chartered Institute of Building 2013).

These benefits are important to the Saudi construction industry because it suffers from poor quality control and delayed project outcomes because of unskilled labour. However, increasing the demand of simplified technology in the construction industry is part of the government’s responsibility. Indeed, Saudi government agencies should consider reducing the taxes and providing more incentives to improve research and development efforts to support local contractors as they adopt these technologies (Chartered Institute of Building 2013). They should understand that such technologies would reduce the demand for workers and, more specifically, reduce the demand for skilled labour in the construction industry.

Train Existing Employees

Employee training programs should be a last resort for local Saudi contractors to mitigate the challenge of having inadequate skilled labour. This strategy involves accepting the unskilled labourers as part of the “team” and improving their competencies as they work. Governments and construction companies could spearhead such training initiatives. In fact, one respondent sampled in this paper said that they were planning to form an organisation (with other contractors) that would train existing employees on current technologies in the construction industry (organisational level). At the governmental level, some institutions, in Islamic countries, have taken a proactive initiative to support training programs for construction workers.

For example, the Malaysian government has taken a proactive step to simplify training programs for unskilled workers in the country (Chartered Institute of Building 2013). In line with this strategy, the government has introduced apprenticeship programs for helping new employees to learn from older and more experienced employees. Such programs have mainly focused on promoting the technical competencies of such employees. This strategy aims to make employees more competent about their work. Similarly, it aims to improve employee specialisation skills so that they can meet the different sector needs of the construction industry. Experts say such training programs are beneficial to local contractors because they can help them to reduce their dependence on foreign labour (Chartered Institute of Building 2013). Similarly, by improving the skill levels of available employees, contractors could reduce wage rates. Similarly, the overall employee productivity is likely to increase by pursuing this strategy (Chartered Institute of Building 2013).

National Culture

The link between industry, or organisational performance, and culture stems from literatures that have often perceived companies as “little societies.” Proponents of such views say such organisations have a social system characterised by unique norms (Allaire & Firsirotu 1984). They also believe that since these companies are miniature societies, they should show distinct cultural traits (Allaire & Firsirotu 1984). This analogy spreads to the national level because as people express their individuality through their personalities, countries also express their uniqueness through their national cultures. This framework explains the model that the respondents used to highlight cultural factors as having an effect on project delays and project quality. Different theories explain the same phenomenon. For example, the ecological adaptation theory says systems of socially transmitted behaviours often affect how people view their work practices (Allaire & Firsirotu 1984; Simmons 2013).

Employees adapt to these systems because it is the only way to accommodate their ecological surroundings. Dialectic interplays characterise this relationship because it explains how social and cultural systems influence people’s perceptions of success and working practices (Allaire & Firsirotu 1984; Simmons 2013). Reciprocal causality often underlies this relationship. Here, it is important to understand the different contextual meanings of environment and culture because no concept is definitive. However, researchers define each concept in terms of the other (Bezelga & Brandon 2006; Allaire & Firsirotu 1984). This analogy underscores the importance of understanding the environment as a set of contextual factors that shape national cultures, and more. However, it is instrumental in shaping how these cultures evolve (this relationship later influences the environmental characteristics) (Bezelga & Brandon 2006; Allaire & Firsirotu 1984).

This school of thought differs from the historical “diffusionist” ideology because the latter considers historical circumstances as having the greatest impact on the working practices of employees (Allaire & Firsirotu 1984). Proponents of such ideologies are mainly concerned with how cultural attributes migrate from one region to another, or from one system to another. Their framework has created the ideological background for the presentation of culture as a system of ideas and processes that influence industry performance (Bezelga & Brandon 2006; Allaire & Firsirotu 1984).

To explain this fact, Allaire & Firsirotu (1984) say, “Their ideational components (patterns of shared meanings and values, and systems of knowledge and beliefs) are meshed with the social structure component in a holistic concept of organisations” (p. 199). Such statements mainly underlie the framework that cultural systems use to influence organisational performance. Some of the respondents highlighted in this paper acknowledged this relationship by associating poor project outcomes with national cultures (Bezelga & Brandon 2006; Allaire & Firsirotu 1984).

It is from the same basis that in chapter six, this paper highlighted Hofstede’s cultural framework to explain the cultural inclination of Arab countries. Using the same model, this paper highlighted the negative effects of the high power distance culture that characterises the Saudi construction industry. Evidences from past research studies show that most cultures affect organisational outcomes by influencing people’s attitude towards success and working practices (Piepenburg 2011).

Since it evolves over a long time, it is difficult to change existing cultures or introduce new cultures that promote new working practices. Furthermore, it is more difficult to do so on a national scale and get support from people who have had years of cultural programming to accept new models of doing business. However, introducing a new and parallel cultural alignment model, that should change industry practices at an organizational level, is a new solution. The solution involves introducing a new framework of project culture. The project culture model has a greater impact on project outcomes because it defines project goals, project costs, project contexts and other aspects of operations that affect project quality (Bezelga & Brandon 2006; Allaire & Firsirotu 1984).

Here, it is important to highlight the advantages of a unified project culture in the construction industry because it can easily improve the working practices of project members, for the benefit of the entire industry (Zuo & Zillante 2008). It is the responsibility of project managers to introduce project culture as a progressive model for improving project outcomes. Mainly, experts encourage them to foster organisational cultures that improve team cohesion and employee morale (Zuo & Zillante 2008). Similarly, they should promote cultures that support quick decision-making processes and eliminate instances of conflict among key professionals in the construction industry, such as contractors, consultants, clients, designers and the likes. An ideal project culture has unique attributes that foster common values of development, such as flexibility, straight talk, collective decision-making, employee commitment, and has no “blame games” (Bezelga & Brandon 2006; Allaire & Firsirotu 1984).

Although this paper encourages construction companies to introduce project cultures that promote organisational development, they should not lose sight of the impact that national cultures would have on this strategy. Based on this fact, they need to devise a framework that blends aspects of the project and national cultures. Researchers have tried this approach before. For example, Zuo & Zillante (2008) investigated how construction companies can merge aspects of the project and national cultures to boost their organisational performance. They found that the project culture should build on different subcultures that involve several aspects of the national subculture, industry, and company ownership (Zuo & Zillante 2008).

They also said that these subcultures should further build on operational subcultures that include several aspects of safety culture, learning culture, and quality culture (Zuo & Zillante 2008). Types of members in the business, types of tasks to be undertaken, ethnic factors, social status, religion and similar factors are other attributes that should form part of the project culture. Zuo & Zillante (2008) used the following conceptual framework to explain how project managers could realise organisational synergy by merging Chinese and Australian sub-cultures

Saudi Arabian construction companies should borrow the structure of the above model to formulate their project cultures. Stated differently, managers should substitute the Chinese and Australian national cultures, with organisational cultures and the Saudi national culture. Their difference should explain how project members behave and outline the cultural differences that underlie both cultures. The project culture should also merge this difference by influencing how project team members behave (Zuo & Zillante 2008).

Although this paper has highlighted the effects of national culture on project quality and project delays, existing literatures that have investigated the same phenomenon take an indirect approach to understand the impact of national cultures on the leadership practices of construction companies (Bezelga & Brandon 2006; Allaire & Firsirotu 1984). Similarly, they have extended the scope of cultural influence on construction projects by merging national and construction projects alike. They affirm the findings of the respondents by saying that these cultures affect project outcomes. Relative to this discussion, Dikbas & Scherer (2004) paid a close attention to the Turkish construction industry and said its national culture influenced state-business relations.

Families own most construction companies in the country. Similarly, family members characterise the management boards of such companies (Dikbas & Scherer 2004). This framework influences how such companies relate to state authorities because family members are privy to such relationships. This framework increases the vulnerability of such organisations to bribery and other underhand dealings that occur in the sector. Moreover, the lack of transparency in such organisations keeps some employees “out of the loop” regarding what is going on in the industry and in the company. At an operational level, the Turkish construction industry could also suffer from poor quality labour because companies do not promote workers because of their merit. Overall, these intrigues show the cultural influence on organisational performance. Therefore, managers need to introduce new subcultures that override the negative effects of the national culture.

Conclusion

The research aim of this study was to analyse the causes of poor quality and project delays in the Saudi Arabian construction industry. Interview and survey findings showed the views of different categories of professionals in the industry about this issue. Their views summed the nature of the industry today and described how its future would look like, if industry stakeholders take corrective actions to address some of the main challenges affecting the sector.

Limitations of Study

Some sections of this study allude to the need for treating the findings of this paper with care because the study presents them as a set of opinions and views from respondents who similarly have different sets of ideas and professional backgrounds. For example, this paper has shown the difference in opinions between contractors and consultants. It has also highlighted how some of these professionals blame one another for the shortcomings of the industry. However, one issue that has (clearly) emerged in this analysis is the role of labour-related issues in causing project delays and poor quality project outcomes. A shortage of qualified and experienced personnel is one issue that continues to affect this industry because the supply of workers has never met the demand created by the increase of massive construction projects. Therefore, it is proper to say that the same problems that characterised the Saudi construction industry (lack of skilled labour), in the past, still affect the industry today.

Theoretical and Policy Implications

Several implications arise in this paper regarding the role that all stakeholders have to play in improving the industry performance of the construction sector. Four issues emerge as having the greatest impact on the quality of construction projects and project delays. One issue is the failure of experts to develop strategic plans for scheduling construction projects and preventing delays in completing construction projects. Here, labour-related issues are of important concern. For example, the working conditions of construction workers, and the level of demand for construction workers in the kingdom, are of significant concern. This paper also showed that project delays and poor quality project outcomes slow down progress in the Saudi construction industry.

Based on this study’s findings, we see that this view is factual because such negative outcomes undermine the credibility of industry professionals and understate the potential of the sector. To mitigate the effects of these negative attributes of the industry, this paper sought to understand the main causes of poor project quality and project delays. The framework of this analysis stemmed from the concern that these negative outcomes hurt the Saudi construction industry and slow down the economic growth of the kingdom, as a whole. This paper also sought to understand possible strategies for improving the industry performance of the Saudi construction sector. The study sought the views of industry experts and analysed their responses by comparing past studies that have investigated the same issue in other countries.

From the onset, this paper hypothesised financial reasons as a factor that contributed to poor project quality and project delays in the Saudi construction industry. However, this hypothesis turned out to be false. None of the respondents highlighted this factor as a possible reason for project delays or poor project quality. Since some literatures highlight this factor as a possible reason for the above-mentioned negative outcomes, this paper shows that the respondents felt that financial issues were “not significant enough” to affect project quality and project delays.

Based on this analysis, this paper shows that the main issues affecting the above project outcomes are culture, labour, lack of knowledge of construction practices, and bribery. This finding does not presuppose that the four factors are the only ones that affect project outcomes in the construction industry. However, it is important to understand that these factors are only contextual to the Saudi construction industry. For example, other countries may not have a significant issue with bribery as Saudi Arabia does. Therefore, it is pertinent to understand the context of these findings.

Nonetheless, this paper recommends a raft of recommendations that should address most of the challenges highlighted to cause poor project quality and project delays. For example, to solve the bribery problem, this paper recommends that the solution is two-pronged. The first approach involves government intervention through increased enforcement of anti-bribery laws. This is an administrative strategy. The second approach is a contractor strategy that encourages Saudi construction firms to formulate organisational policies against bribery. Furthermore, this paper encourages such companies to conduct proper due diligence before collaborating with other companies (subcontracting), clarify the tendering process, and adopt a “no-nonsense” approach to corruption and bribery (setting the tone from the top).

To address issues that relate to the lack of knowledge among contractors, this paper proposes that potential clients should involve third parties (quantity surveyors) when negotiating with a contractor. This paper also encourages legislators to introduce a legal framework that should compel all contractors to inform potential clients about safety and regulation issues (among other details that may benefit them) in the construction process. However, solving the challenges of unskilled labour requires short-term solutions like extending the retirement age and improving the working conditions in the construction industry. More long-term strategies involve training existing employees about current construction practices and adopting simple construction methods that do not compromise construction quality. Lastly, this paper encourages project managers to introduce new project cultures to address the negative impact of national cultures on project quality and project completion times. The following table summarises these recommendations

Recommendations for Future Studies

This study sought the views of contractors, consultants, designers and other professionals who directly work in the construction industry. However, most of these professionals mentioned the client as another party that plays a role in shaping project outcomes. For example, the respondents linked the lack of knowledge, as a cause of project delay, to the client. Many researchers, who have undertaken similar studies, have also highlighted the client’s role in shaping project outcomes. For example, Joyce (2001) found out that client approval affected project outcomes in the construction industry. This reason mainly concerned using new materials (that the client did not approve) in the construction process. Slow decision-making (by some clients) is also another reason highlighted by some contractors for project delays (Joyce 2001).

This paper did not seek the views of clients on the research questions. They could have provided vital information regarding their expectations about the desired project outcomes and their views about how their relationship with contractors and other stakeholders affect the project outcomes. Future research should not ignore their contributions in this regard. Furthermore, they should analyse how their views compare with the views of other knowledgeable professionals in the industry.

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Executive Summary

Project scheduling, estimating, and costing controls are the main factors of a project management system. For companies engaged in future construction, the right forecast of the future project cost is quite significant. The construction project is the basis of project scheduling and cost control. The paper looks at various scenarios in the construction project. They include using normal time, crashing, and using the PERT technique. In all of them, the project remains within budget. However, the duration keeps changing.

Introduction

This project seeks to construct a new house for a family in Dubai. The company will incorporate the use of experts in the development of the house design and will use internally developed architects. The whole project will last for approximately 73 weeks. It will have various stages including planning, construction, interiors design, and painting. The project manager estimates that the project (constructing one customized home) will cost about $2.5. The project will increase the product portfolio of the company. Hence, it will increase the company’s competitive advantage. The company plans to construct eleven such houses annually.

Project Objectives

The company commissioned this project to develop and launch high quality customized homes in the entire Dubai market. The homes, meant to give customers aesthetic options and to expand the product portfolio of Ahmed and Mohamed Construction Company, was to roll out in cities in the United Arab Emirates before spreading in other countries. Other objectives were to expand the company’s bottom line by at least 50% and improve the customers’ satisfaction by an acceptable level of at least 50%.

Project Stakeholders

The stakeholders in this project were happy with the outcome. Customers appreciated the introduction of customized products that would increase their options in the market place when purchasing homes. The design, aesthetics, and durability of the homes elated the management of Ahmed and Mohamed Ltd Company. The company staffs involved in the process of the construction, advertising, launching and promoting the homes, prior and after the launch, we’re happy with the experience.

Normal Project Scheduling

Project scheduling, estimating, and cost controls are the main factors of a project management system. For companies engaged in future construction, the right forecast of the future project cost is very significant. The AHMED Project Plan, mentioned above, is the basis of the project scheduling and costing control. Once the prospective subcontractors have been informed of the deadline for completion of their subcontracts, they submit their bids. Those, which fit within the AHMED project plan parameters of time cost and quality, are selected and permitted to proceed. This is carried out at the specification phase. However, this is an ongoing process, as a subcontractor may go over budget. This is the responsibility of the particular subcontractor involved, who will cover all extra costs.

Scheduling often begins tentatively; detailed schedules are developed as along the process. This requires consistent communication between the project manager and project stakeholders, as they will need to be informed of scheduling changes or delays in implementation. It is due to the tentative nature of scheduling that cost control is also a dynamic process. The initial schedule and cost estimates need to be revised in the light of new information acquired during the project lifespan. This means that scheduling and cost control will fluctuate during the project, as the project manager adjusts to changing circumstances.

Scheduling

The project manager at AHMED controls and coordinates the project through the managerial actions of planning, organizing, and leading, among others. Project managers’ actions are constantly aimed at change, while other managers’ jobs involve maintaining a stable working environment (Chase & Jacobs 56).

Thus, the AHMED project manager has to be a team manager, by interacting with project members, from the General Manager, Construction Managers, and Engineers to the builders, drillers, and technicians at the site. As the AHMED project involves international expertise, the project manager has to build team ethos in a multicultural and multilingual group of project staff. Earning the respect of the team is crucial for the project manager; therefore, he/she must be a person of utmost honesty, integrity, and vision (Barrat 76). The project manager shall control the project constraints to ensure that everything goes as planned. The constraints are time constraints, quality constraints, cost constraints, and scope constraints. The manager will do this by checking project specifications, schedule, and budget allocations. The project manager will use the tools outlined below for that purpose (Gray & Larson 136).

Interpretation of findings

In normal time, the project will complete at 79 weeks, which is behind schedule by 6 weeks. However, it will be within budget using around $2.02M. The budget is $2.5M.

Crashing

Crash schedule

As the above figure indicates, a Gantt chart has several benefits to the project manager. First, it diagrammatically represents the whole project, which makes it easy for the project manager to identify the activities to complete first and clearly shows the relationships between tasks. Second, it shows the duration of a project. The construction project is likely to take 61 weeks as shown in the Gantt chart. However, in as much as it may show the tasks clearly, it does not indicate dependencies among tasks and the project manager may not know from the Gantt chart how the delay of one task may affect another. For this purpose, the project manager will have to use the network diagram.

Interpretation of findings

In crashed conditions, the project will complete at 61 weeks, which is on schedule. The timeline beats the projected deadline by 12 weeks. Additionally, it will be within budget using less than the budget ($2.5M) on all crashed scenarios.

PERT Project Scheduling and Cost

There are two types of network diagrams. These are very useful tools in project control. There are two types of network diagrams: Project Evaluation and Review Technique (PERT) and Critical Path Analysis (CPM). They are complex decision-making tools that enable project managers to organize work and plan workflows. They provide necessary information that is vital in scheduling and budgeting. This information includes the earliest start times of a project, the latest completion times, time floats, and the critical path. The critical path is the longest route in a network diagram that indicates the time the project will take. It is hard to construct a network diagram for a project with complex times and huge budgets but the availability of software for that purpose makes it easy. In this project, the techniques may be useful to the project manager in evaluating the progress of the project (Graham 87).

PERT schedule

Use of a Gantt chart

This project’s project manager may find it quite useful to engage the use of a Gantt chart in managing complexity in cost and time. A Gantt chart is an intricate tool used for the management of interrelated tasks with different durations. When using a Gantt chart, the project manager assumes that the tasks are linear and their durations can be determined beforehand with a high degree of precision. However, management should have duration estimates with the relevant possible contingencies.

A Gantt chart has some benefits to the project manager. First, it diagrammatically represents the whole project. This makes it easy for the project manager to identify the activities to complete first and clearly, shows the relationships between tasks. Second, it shows the duration of a project. However, in as much as it may show the tasks clearly, it does not indicate dependencies among tasks and the project manager may not know from the Gantt chart how the delay of one task may affect another. For this purpose, the project manager will have to use the network diagrams. Figure 2 below shows the Gantt chart for the AHMED project. It indicates the start times and durations for each activity. However, it does indicate the costs. The durations are indicated in weeks (Kloppenborg 89).

Interpretation of findings

Using PERT, the project will complete at 63 weeks, which is on schedule. The timeline beats the projected deadline by 10 weeks. Additionally, it will be within budget using less than the budget ($2.5M) on all scenarios.

Conclusions and Recommendations

Measuring performance is used to determine the success or failure of a project. The project is successful if it has been completed according to specifications and on time. However, for a long-term project such as AHMED, these criteria cannot be used to assess the entire project while it is still ongoing. However, they can be used to measure the performance of project tasks, which are an indicator of the eventual outcome of the project. As the project parameters are time, cost, and performance, the first measurement parameter for AHMED is whether the subcontracts have been completed on time and within budget. In terms of performance, some aspects of the project can only be assessed when it is complete. Nevertheless, if quality control is done for each segment of the project as and when it is completed, the likelihood of the completed project meeting and /or exceeding performance requirements will be increased.

Works Cited

Barrat, Whitehead. Buying for Business: Insight in Purchasing and Supply Management, New York: Wiley, 2004. Print.

Chase, Richard, and Jacobs Richard. Operations Management for Competitive Advantage, New York: McGraw Irwin, 2006. Print.

Graham, Smith. Competition, Regulation and New Economy, New York: Hart Publishing, 2004. Print.

Gray, Carlos, and Larson, Edwin. Project Management: The Managerial Process, Singapore: McGraw–Hill Education, 2008. Print.

Kloppenborg, Timothy. Contemporary Project Management, New York: Cengage Learning, 2011. Print.

Introduction

The construction industry has experienced exponential growth over the past few years due to new opportunities for improving the quality of the end product, managing available information, and supervising all the essential communication processes (Robinson, Symonds, Gilbertson & Ilozor 2015). Creating and realizing a building project has become both more challenging, due to a greater variety of options, and, at the same time, simpler because of the new tools that can assist in drafting and implementing the project (Martínez-Jurado & Moyano-Fuentes 2013). However, when it comes to choosing a specific area in the construction industry that has been affected by recent changes and the introduction of breakthrough technologies to the greatest extent, there is a very strong argument for choosing the process of procurement.

Within procurement, the latest tools for data management, an array of processes associated with procurement, including logistics, transportation, transfer of the relevant data, etc., have been simplified considerably. Moreover, the extensive options for controlling these processes have made it possible to improve the quality of services significantly. Therefore, exploring new opportunities for improving procurement-related operations in the construction industry is bound to lead to a significant improvement in overall product quality and safety.

‘Buildability’/Constructability

The concept of ‘buildability’, also known as constructability, is crucial to the successful implementation of procurement methods within the construction industry. According to the definition provided by Turina, Car-Pušić, and Radujković (2013), buildability, or constructability, is “the optimum integration of construction knowledge and experience into all project activities, starting from feasibility and continuing throughout the life of the project, to achieve the desired project objectives” (Turina et al. 2013, p. 167). In other words, the phenomenon of constructability implies that every stage of the planned construction process should be revisited and evaluated carefully before the actual construction should start. The specified notion, therefore, concerns evaluating the ease of building a particular construction (Bako 2016). Even though new opportunities have emerged for improving buildability rates in the construction industry, maintaining the levels of constructability remains a problem, mainly due to the continuous demands for quality and the increasingly high complexity of structures (Turina et al. 2013).

Procurement plays a crucial role in increasing the degree of buildability of a particular construction. The enhancement of procurement entails a significant rise in the involvement of key participants, including the contractor and the client. Thus, the communication process intensifies, leading to a significant drop in the number of misconceptions and, thus, a more productive process overall. The choice between the four types of procurement available in the construction industry leads to a sharp rise in the quality of the result.

In particular, the use of the traditional method allows the process to remain uninterrupted and sets rigid quality standards for the end product. It should be noted, though, that because of the high number of intermediaries, and the possibility of delays, the application of the traditional tools for reinforcing the buildability of a particular project may lead to a drop in productivity and customer dissatisfaction. Furthermore, the lack of consistent communication between a contractor and a client creates numerous opportunities for misinterpretation of the available information and, as a consequence, the delivery of poor results (Turina et al. 2013).

The introduction of the Design and Build strategy, in turn, offers a better communication process and, therefore, lowers the instances of misunderstanding since it implies a direct conversation between a contractor and a client (Bako 2016). The amount of detail provided by the contractor regarding the project, its goals, and the expected outcomes, serves as the foundation for producing the building that meets the customer’s expectations precisely. Furthermore, the fact that the communication process between the employer and the employee is completely uninhibited implies that the time management issue will also be addressed by reducing the time spent on transferring messages from one side to another (Turina et al. 2013).

However, despite the numerous advantages that it provides, the Design and Build framework is also likely to lead to a steep increase in the number of responsibilities and roles that a contractor must accept. The framework known as the Management Contracting Method, in turn, creates the environment in which the conversation between the contractor and the employee remains consistent, yet a range of responsibilities is delegated to other participants. The management contractor, in turn, handles the design process. This specified approach can be used in the scenario when there is a significant lack of time; however, careful planning and consistent control over every stage of the process is still required (Bako 2016).

Finally, the adoption of the Public-Private Partnership Method as the means of carrying out procurement processes in the construction industry should be noted. The specified strategy implies that a contractor should handle all processes associated with the construction process. Given that the identified framework puts a considerable strain on the manager as the sole person responsible for making the workplace processes run smoothly, managing risks, and carrying out all financial transactions, this approach should be viewed as only applicable to very small projects (Turina et al. 2013).

Productivity

With the adoption of more efficient procurement tools, it is expected that production processes will improve. For instance, raw materials will be delivered on time, preventing delays in production. The concept of off-site production can be introduced into the context of the construction industry. The phenomenon of off-site production might seem a rather challenging way of managing the process of building, yet, with the reinforcement of procurement techniques, it becomes increasingly easier. Indeed, the incorporation of efficient procurement strategies allows for a detailed analysis of the local infrastructure and a choice of routes that will allow expeditiously delivering the necessary materials. As a result, the improved delivery of the necessary inventory, raw materials, equipment, and other items required for the construction process provides a significant boost to the productivity rates (Robinson et al., 2015).

A closer look at the factors that define the productivity of the construction process reveals that there are four primary factors defining success;

1. concrete workability;
2. reinforcing steel congestion;
3. volume of pours; and
4. height relative to ground level (Robinson et al., 2015, p. 96).

The workability of concrete is a notion that serves as the umbrella term for a range of properties of concrete, as well as all the factors that contribute to its usage in the construction industry. For instance, factors such as the ratio of water to cement, the size and shape of the target area, and the admixtures included in the solution all affect the workability of cement. The uses of procurement techniques, especially the ones that involve the adoption of the latest IT technologies, contribute to the quality of the additive. For instance, the time used to transport the additive can be constricted greatly, thus, allowing the additive to retain its properties so that a high-quality solution can be produced (Robinson et al., 2015).

The phenomenon of steel congestion must also be included among the factors that affect the productivity levels in the construction industry and that can be improved by using the appropriate procurement tools. For example, the incorporation of efficient procurement strategies reduces the threat of corrosion and, thus, leads to a significant improvement in the quality of the end product (Turina et al. 2013). Furthermore, the fact that procurement methods address the problems associated with the volume of pours also needs to be listed among the advantages of this strategy. There is a strong need to set the schedule for the tasks associated with concreting so that the volume of pours can be maximized fully. The incorporation of a successful procurement framework, in turn, will allow the introduction of an intense schedule that will help keep the pours at their maximum volume (Robinson et al., 2015).

Last, but not least, the fact that procurement retains the height of the construction relative to the ground should be mentioned. Controlling the relative height of the equipment is essential to the precision of operations and the quality of the end product (Turina et al. 2013). The application of an adequate procurement framework, based on the enhancement of the information transfer, in turn, leads to an opportunity to elevate or lower the equipment to the necessary level so that the result is accurate and meets all quality standards and specifications (Kotsovos, Vougioukas & Kotsovos 2013). Therefore, the promotion of innovative procurement tools into the construction industry leads to a massive rise in output of the production process, as well as an increase in the quality of the end products.

Supply Chain

As highlighted above, the incorporation of different procurement strategies implies the availability of different tools for managing the supply chain. For instance, the emphasis on the communication process between the participants that the adoption of different procurement tools provides in the context of the construction industry leads to a rapid enhancement of this area. It should be borne in mind, though, that some of the procurement strategies involving the introduction of third parties can complicate data management and create obstacles for carrying out a flawless transfer of relevant information. Nevertheless, with the enhancement of the procurement process, one is likely to have wider control over the environment in which the construction supply chain is built and, thus, can ensure greater efficiency.

When considering the effects that procurement has on the development of supply chain management (SCM) in the construction industry, one can list the incredible opportunities that the enhancement of procurement strategies has on the development of the information management process. With the focus on procurement-based techniques and the application of IT tools, it is possible to improve the data transfer process considerably. However, it is also necessary to take a closer look at the chances that altered procurement techniques create for the enhancement of logistics strategies.

For example, improvement of the transportation process will allow for rapid enhancement of the SCM processes due to the improved communication process between suppliers. Also, the reconsideration of the procurement framework, and its further reinforcement, will mean that it is possible to take into consideration both the specific circumstances of a client and those of a supplier. Consequently, a massive drop in the number of delays and misconceptions is expected. The specified changes, in turn, are bound to lead to a continuous improvement of the SCM process. A drop in delays and the promotion of more efficient transportation of necessary materials and inventory increases the likelihood of building a well-managed supply chain (Papadopoulos, Zamer, Gayialis & Tatsiopoulos 2016).

Also, procurement is often viewed as not only the tool for carrying out the tasks associated with logistics and transportation but also as the means of exploring and analyzing the structure of the industry so that any problems can be addressed accordingly (Kotsovos et al. 2013). Thus, by deconstructing the industry and assessing the processes that take place within it, it is possible to rationalize them and offer new and improved frameworks for their successful management.

Lean Construction

Procurement as an essential addition to the construction industry framework is also bound to build the foundation for the implementation of lean management principles. According to the existing definition, lean management is a notion that promotes steady improvement in the context of an organization by introducing the principles of efficient waste management, corporate social responsibility (SCR), and a set of rigid quality standards and ethical principles (Martínez-Jurado & Moyano-Fuentes 2013). The phenomenon, thus, contributes to the reorganization of a company’s priorities and the redesigning of values based on which decisions are made (Kotsovos et al. 2013). By cutting the number of delays, this approach ultimately addresses the issue of waste management. To be more accurate, the amount of produced waste will drop. Furthermore, the application of lean management principles is bound to trigger a steep rise in the competitiveness of an organization, which, in turn, will lead to an increase in its performance and profit margins (Martínez-Jurado & Moyano-Fuentes 2013).

The incorporation of innovative procurement strategies affects the promotion of lean management principles in the environment of a construction firm significantly. Furthermore, the use of efficient procurement tools sets the premise for developing and launching the lean construction process (Turina et al. 2013). The concept of lean construction is similar to the lean management framework since it is also concerned with the rearrangement of current principles of decision-making and usage of resources toward a sustainability-based approach (Martínez-Jurado & Moyano-Fuentes 2013).

Lean construction can be successfully utilized with the help of an appropriate choice of a procurement strategy. However, it should also be borne in mind that the connection between lean management and procurement is reciprocal (Turina et al. 2013). Therefore, once the foundation for lean management is built, this is bound to support the further enhancement of the procurement processes:

Further contextual variables that might affect the outcomes produced by lean, agile, and leagile mechanisms are suggested by other procurement and supply chain academics. Here, we again see the appearance of both power and business behavior, with some arguing that certain power structures and behaviors within supply chains can make the successful implementation of lean, agile, and leagile supply chain practices and techniques problematic. (‘Chapter 6. Evidence on the impact of procurement and supply chain management practices and techniques’, 2015, par. 135)

The connection between the philosophy of lean manufacturing in construction and procurement is quite evident. By focusing on the reduction of waste, organizations can introduce a cost-efficient framework for managing their financial resources. As a result, the significance of choosing the purchasing technique that will ultimately lead to even more careful use of the company’s financial assets becomes essential.

Sustainability

Improvement in waste management processes will create a more sensible resource management framework. Consequently, the foundation for environmental and economic sustainability will be designed. The recent focus on the promotion of green technology and its active use in a variety of industries has sparked further enhancement of environmentally friendly approaches to procurement in the realm of the construction industry. A recent study showed that the identification of the procurement strategies based on selecting the approach that will lead to a rapid reduction in the amount of waste produced, as well as the number of resources consumed during the production process, shows that the identified approach entails a massive improvement in the efficacy of the supply chain (Robinson et al., 2015). Indeed, the introduction of procurement techniques, in general, and the principles of green procurement, in particular, allows for a massive increase in the productivity and waste management of an organization:

While the high technology manufacturers and global supply chains are facing a competitive market environment and cost pressure for survival, using green materials and component procurement for sustainability requires practical models, such as component procurement collaborations and SSCM that incorporate the triple objectives of social, environmental, and economic requirements, as the benchmarks for industrial applications. (Yan, Chien, & Yang 2016, p. 117)

In other words, the introduction of new technology tools allows for a massive improvement in the overall quality of procurement processes, particularly, the use of the available resources. Furthermore, the reconsideration of the procurement framework and the introduction of innovative approaches can be regarded as a platform for promoting the principles of sustainable usage of the available resources. Apart from helping an organization to maintain an environmentally friendly approach, which is especially important in the area of construction, where natural resources are used extensively, a framework based on principles of sustainability will contribute to the development of a rational approach toward managing any corporate resources, including inventory, finances, staff members, etc. As a result, the productivity levels in the building firm are bound to rise significantly.

It would be wrong to assume, though, that the concept of sustainability as a vital part of the construction industry revolves solely around the principles of environmentalism. Quite the contrary, the subject matter also concerns the options for generating benefits for all stakeholders involved, including not only the current population but also future generations (Martínez-Jurado & Moyano-Fuentes 2013). The enhancement of procurement as a crucial part of construction processes, in turn, should be acknowledged as a crucial addition to existing sustainability frameworks. Particularly, the incorporation of the latest procurement strategies based on the application of innovative technologies and a reduction in waste levels is bound to lead to the usage of the triple bottom lines (TBL) of sustainability. A TBL is typically defined as the “distinction of the economic and social dimensions of sustainability, which have been absorbed by the environmental dimension of sustainability” (Govindan, Khodaverdi & Jafarian 2013, p. 346). Therefore, it has to be viewed as one of the fundamental principles on which the sustainability-based approach must be built.

By incorporating the ideas of sustainable uses of resources, one addresses the issue of footprint, which usually remains unresolved: “The reports often refer to ‘sustainability’ and ‘sustainable development’, but leave virtually unaddressed issues of footprints, carrying capacities, equity, and social justice” (Milne & Gray 2013, p. 17). The focus on the enhancement of procurement strategies leads to a rethinking of the issue of ecological footprints and contributes massively to the rearrangement of existing approaches to environmental resource allocation. In other words, the enhancement of procurement approaches based on the principles of sustainability is likely to entail an increase in the significance of the footprint issue, which is currently overlooked.

Innovation and Technology

Once the waste levels drop and the financial strategy is redefined, a construction company will be capable of investing in the purchase of updated equipment and the latest technological innovations. Therefore, procurement processes are inseparable from the concept of innovation and the introduction of the latest technological advances into the process of acquiring new items for the company’s inventory. By stimulating construction agencies and suppliers to use innovative technology, one can improve the processes associated with procurement to a considerable extent. First and most obvious, the effects of technology and innovation on the communication process must be mentioned. Once the latest IT tools have been implemented for communication purposes, the ability to address instances of misconception and misunderstanding between a vendor and a contractor will be much greater. Furthermore, one must also keep in mind that procurement itself can be utilized as the means of incorporating innovative technologies into the context of a construction agency. Thus, the basis for reinventing the very concept of communication in the environment of the construction industry will be built (Yan et al.2016).

The incorporation of modern concepts of communication, and its value in the era of information technology, will help view the very concept of procurement as the process of sourcing not raw materials, equipment, and other inventory but, instead, sourcing innovative ideas that will become the bulk of the new approach toward establishing relationships between the key stakeholders involved in the construction process. Therefore, one must also keep a close focus on the incorporation of technological innovations, in general, and disruptive innovations, in particular, as the means of boosting the productivity of an organization and promoting efficient communication (Yan et al. 2016).

Value Engineering

The promotion of value engineering, typically defined as a systematic approach toward boosting production processes (Kelly, ‎ Male ‎& Graham 2014), will also become possible once procurement processes are enhanced. As a result, a significant rise in quality is expected. With the implication of the development of opportunities for saving costs associated with construction processes, in general, and procurement, in particular, the specified framework integrates technical knowledge and general strategies to produce an approach that will lead to a significant drop in the costs of managing the value chain. For instance, with the enhancement of the communication process as a result of deploying innovative IT devices, one will be able to reduce the waste levels significantly. As a result, the value of the end product can be increased considerably because of a rise in quality and a drop in waste levels (Martek & Chen 2016).

The introduction of innovative procurement techniques as the means of reducing expenses taken to replenish the firm’s inventory is bound to lead to engineering the value of the end product successfully. For instance, procurement approaches allowing the purchase of necessary items for a price that is lower than the traditional one will create an environment in which a company can build resources that may be used for unexpected costs. By setting the pricing strategy that will both make the company retain its competitiveness levels in the context of the target market and, at the same time, provide enough financial resources for the purchase of necessary materials and investment in other areas of the organization’s operations, it is possible to boost the value of the end product significantly. For example, apart from rearranging the value-price correlation, one may consider investing available resources in R&D processes and marketing campaigns. As a result, the quality of the buildings produced by a construction company will rise, while the promotion campaigns of the firm’s products will attract a larger number of clients. Coupled with sensible pricing policy, this approach could help generate an impressive profit by increasing the value of the end product (Martek & Chen 2016).

BIM

Building Information Modeling (BMI) can provide extensive opportunities for boosting the development of procurement strategies in a construction company. Indeed, the focus on the active use of IT tools as a key part of the Supply Chain Management (SCM) process provides the foundation for implementing the Building Information Modeling framework due to the availability of an array of IT data management tools and, therefore, the chance to systematize the existing data effectively (Costa & Grillo 2015). The BIM framework is a comparatively recent concept that introduces the principles of smart management to construction companies (Costa & Grillo 2015).

According to the existing definition, BIM is a tool that allows the creation of intricate systems for carrying out construction-related processes by setting priorities and introducing a set of specific and well-thought-out steps for implementing the suggested strategy (Robinson et al., 2015). The BIM approach is implemented with the help of a range of IT tools that contribute to designing the strategy for a linear workflow (Costa & Grillo 2015). The introduction of order into the construction process primarily implies that the contractor and the employee have an opportunity to discuss emerging issues in detail and plan the work process carefully. Consequently, the incorporation of the principles of BIM into the construction process is likely to lead to a significant improvement in the result and a rise in customer satisfaction rates.

E-procurement

The use of electronic tools will enable the transfer of a range of procurement-related processes into the digital realm. Moreover, when considering the opportunities for improving the quality of the construction process and the end product, one must mention the concept of e-procurement. The integration of this identified notion into the construction industry leads to an impressive improvement in the management of key supply chain processes. According to the existing definition, e-procurement can be defined as the procurement strategy involving the use of digital tools that allow the procurement process. It also automates a range of processes associated with the transfer of relevant data and controls the delivery of items necessary for the construction process (Lee & Wang 2013). The incorporation of groundbreaking IT innovations contribute a massive boost in the information management process and leads to a rapid increase in the accuracy of operations carried out in the context of a construction supply chain, the reduction in the number of delays, the drop in the waste levels and the number of defects produced in the course of construction, etc. (Martek & Chen 2016). Furthermore, e-procurement can be used in the context of B2B and B2G frameworks (Lee & Wang 2013).

Conclusion

Procurement is a crucial concept defining the success of any organization. However, the subject matter is especially important in the environment of the construction industry. By focusing on the opportunities that efficient procurement strategies offer, one will be able to increase a company’s performance levels extensively. In particular, the significance of innovative IT tools as the means of controlling the crucial processes associated with procurement needs to be addressed. The incorporation of devices and strategies allowing for enhanced management of the available data has led to a significant drop in the number of misconceptions, misunderstandings, and delays caused by them. This, in turn, has triggered a massive improvement in the quality of the end product. Therefore, new opportunities for exploring procurement options in the construction industry must be analyzed carefully to assess whether traditional methods could be combined with innovative approaches. Through such a combination, it is expected that the efficacy of procurement processes in the construction industry will reach its peak.

Reference List

Bako, S S 2016, ‘An Overview Of Procurement Methods And Techniques For Effective Delivery Of Construction Projects’, International Journal of Advanced Research in Engineering, vol. 2, no. 3, pp. 1-5.

‘Chapter 6. Evidence on the impact of procurement and supply chain management practices and techniques’, 2015, NCBI. Web.

Costa, AA & Grillo, A 2015, ‘BIM-based e-procurement: an innovative approach to construction e-procurement’, Scientific World Journal, vol. 2015, no. 905390, 1-15.

Govindan, K, Khodaverdi, B & Jafarian, A 2013, ‘A fuzzy multi criteria approach for measuring sustainability performance of a supplier based on triple bottom line approach’, Journal of Cleaner Production, vol. 47, pp. 345-354.

Kelly, ‎ J, Male, S ‎& Graham, D 2014, Value management of construction projects, John Wiley & Sons, New York, NY.

Kotsovos, GM, Vougioukas, E & Kotsovos, MD 2013, ‘Reducing steel congestion without violating seismic performance requirements’, ACI Structural Journal, vol. 110, no. 3, 427-436.

Lee, HY & Wang, NJ 2013, ‘The implementation of integrating e-procurement, e-contracting and e-invoice platforms for the B2B E-MarketPlace web-based system’, International Journal of Engineering Research, vol. 2, no. 4, pp. 300-309.

Martek, I & Chen, C 2016, ‘Value chain supply procurement strategies in international construction: cases of foreign constructors in China’, Management Decision, vol. 54, no. 2, pp. 501-521.

Martínez-Jurado, PJ & Moyano-Fuentes, J 2013, ‘Lean management, supply chain management and sustainability: a literature review’, Journal of Cleaner Production, vol. 85, pp. 134-150.

Milne, MJ & Gray, R 2013, ‘W(h)ither ecology? The triple bottom line, the global.

Papadopoulos, GN, Zamer, A, Gayialis, SP & Tatsiopoulos, IP 2016, ‘Supply chain improvement in construction industry’, Universal Journal of Management, vol. 4, no. 10, pp. 528-534.

Robinson, H, Symonds, B, Gilbertson, B & Ilozor, B 2015, Design economics for the built environment: impact of sustainability on project evaluation, John Wiley & Sons, New York, NY.

Turina, N, Car-Pušić, D & Radujković, M 2013, ‘Possibilities and limitations of constructability concept in construction industry in Croatia’, Thenički Vjesnik, vol. 20, no. 1, 167-176.

Yan, MR, Chien, KN & Yang, TN 2016, ‘Green component procurement collaboration for improving supply chain management in the high technology industries: a case study from the systems perspective’, Sustainability, vol. 8, no. 2, 105-120.

This article focuses on finding the origin of the balloon frame that modern American society uses in building processes. The article looks at the origin, as well as highlights the journey that the balloon frame has undergone over the centuries.

The article begins by acknowledging that home construction has significantly changed from how it was during the 19th century to what it is at present. The article describes the construction in the 19th century as one that used large timbers to build frame houses. Construction was then a complicated affair. It was a preserve of experts, and normally consumed a lot of time. The article also seeks to challenge the conventional historical tradition that the modern-day construction technique referred to as the balloon frame was randomly invented.

According to the author, the current construction technique was coined “the balloon frame” in the early nineteenth century. The article adds that, unlike the traditional house construction style that uses interlocked heavy timbers, the balloon frame involved the use of boards that were less than 2 by 12 inches. The boards were then spaced strategically to form a basket-like structure that was both strong and durable. The balloon frame further relied on the other lighter products that were left from the mass production of lumber. Thus, it was able to cut on the time required to complete the building house drastically. Also, the work was completed using basic skills.

However, the author is not clear on the origin of this method. The article adds that the balloon-frame house is the closest style to the one used in modern-day America. Notably, the major difference between them is that, whereas the balloon frame method had frames that reached the two-story height, the modern construction employs walls that reached greater heights. According to Cavanagh (1999), the balloon frame is very efficient in terms of the structure and the material used.

The article asserts that the first person to publish designs on the balloon frame was William Bell. His construction manual was written in 1858. The article adds that Bell, who was a carpenter from Illinois, had been constructing houses for more than fifteen years using the balloon frame technique. In his manual, Bell sought to present the balloon-frame as an organized system. He further provided suggestions on the material and procedures that were best suited for certain buildings.

The article adds that the benefits that the new technology was presenting were very luring. However, according to the article, the benefits are yet to be fully reaped. The author attributes this to the existence of some kind of inertia that has prevented the full automation of the home construction process. The balloon-frame has been persistent due to its resistance to change. This separates it from other innovations in the home construction industry.

The author says that the full embrace of the balloon frame started during the nineteenth century in the Midwest. The adoption of innovation was a result of increased demand for houses. The author adds that the nineteenth century witnessed a lot of growth. Most American towns were founded during this time. The author argues that the innovation of the balloon–frame must have occurred during this time. It was a trend for builders to move in groups, and the same applied to the construction. The author challenges the conventional history of the invention, which says the invention was dramatic. The author hypothesizes that several innovations by different builders must have given rise to this new method.

The article also gives the traditional and conventional story, which he points out to be a controversial topic. According to the story, the invention was made by Augustine Taylor in 1833 after he was asked to construct several houses, and he used the balloon frame method. The author observes that St Mary’s Catholic Church in Chicago is regarded as the first balloon frame by those who subscribe to this school of thought.

Interestingly, the author points out that there exists no record for any of these builders laying claim to the invention that historians have attributed to them exists. Thus, this shows that the invention was not from one builder. The argument that the builders may have been ignorant can be challenged. In this regard, the inventions were made at a time when patents and property rights were highly contested.

The second point in the author’s argument is that a well-known builder would not have risked using lumber at that time in history. Thus, the article can be acknowledged as resourceful, and one that historians will find interesting.

References

Cavagh, T. (1999). Who invented your house? The Magazine of Technology 15 (2). Web.

Materials in construction and design

The use of different materials in construction and design means the focus on different production processes which are associated with the materials’ qualities, and these qualities guarantee the concrete design outcomes. The first material to be discussed is stone. Ancient people chose two different ways to work with stone as the material for construction. Thus, ancient people carved caves in rocks to build the shelter and also carved stone blocks to build separate strong constructions. The Egyptians’ pyramids are examples of such solid constructions made of large stone blocks putting on each other.

Wool is the next important material that can be used for construction. Wool is the animal-based textile that was traditionally produced as a result of washing, drying, beating, oiling, spinning, and weaving during the Ancient Times and Middle Ages. The technology of producing the woolen material improved with the help of wire-toothed boards and looms. Then, the woolen cloth was widely used to build tents by Native Americans and Bedouins because of the material’s flexibleness.

Wood is the material that is used to build constructions during the centuries because of the possibility to handle wood in many ways to receive the definite qualities of the material. The wooden blockhouses are still popular because of the easiness of the material’s production and further construction. Moreover, much attention is paid to the timber frame tradition in the Eastern and Western countries.

Steel is the most popular material today. Steel is the alloy of iron which is characterized by extreme hardness. Being smelted with carbon as a result of the heat influence, steel is used to build strong constructions and carcasses for different buildings to guarantee their stability. The production of steel based on combining iron and carbon under the effect of high temperatures contributes to improving the steel’s qualities.

Resources in construction and design

The large tropical island provides a lot of resources to feed people for a long period. Gathering and hunting activities in the forest can be used only during the early period of living on the island because the main goal is to make chickens and deer become domestic birds and animals. Furthermore, the agricultural activities should include the preparedness of lands for planting more corn. It is rational to use the territories where the cornfields are found originally.

The flax fields are the great sources of the material for making clothes. In order not to destroy the natural balance, it is necessary to cultivate the flax fields independently, while choosing open territories near the river because they should be protected from strong winds by the forests.

The best place for constructing shelters in the territory which is far from the volcano and close to the forest from one side and river from the other one. The buildings can be constructed from wood found in the forests. The necessary tools for agricultural activities can be made of copper found in the rock supplies. Dishes and the necessary furniture can be made of the clay found near the river.

To live sustainably under the described conditions, it is necessary to use the energy of the fast-flowing river, the power of the fire, and the energy of winds observed in the rocky territories. Furthermore, it is necessary to focus on increasing the number of available resources with the help of agricultural activities. Less attention should be paid to hunting and gathering, and much attention should be paid to planting and breeding animals to feed and clothe all the community’s members.

Introduction

Airports in the country can have far-reaching benefits that may lead to sustainable progress and development. Concerning the expansion and construction of the German Airports was an important decision made by the State. In Germany, the authorities that are at the state level and the government are responsible for making decision and regulations. Airports are important components of the infrastructure that contribute to increased economic standards. They accomplish this by raising the number of people travelling between points and the volume of cargo moved to and from various sites.

As a result, in 1990, after German reunification, a plan was proposed by the authorities for building a larger airport for accommodating the newly established Berlin’s needs. The authorities chose Juterbog and Spreneberg towns as the location for the Airport since they were both furnished with airfields (Sedlin et al., 2020). Six years after the reviewal of the plan, the Berlin State, in conjunction with the Federal government of Germany, declined the plan and opted for expansion of initially existing airports. Schonefeld airport was recommended for development not just for its economic benefits to neighboring countries, but also for its closeness to the city.

Therefore, Schonefeld was expanded to form Berlin Brandenburg International Airport.

During the expansion, the process to form Berlin Brandenburg International Airport involved the German federal government, the airlines, the city mayor, the Brandenburg state, the workers, Berlin citizens, and the passengers. The stakeholders played various roles in the course of the construction and had various influences on the project. During the construction project, successes and failures were also realized. Finally, many challenges were encountered during the process, which were addressed in different ways. Therefore, the remainder of this paper will fully discuss the preceding aspects of the Berlin Brandenburg International Airport construction project.

Project Overview

Berlin Brandenburg Airport is a large international airport situated in Schonefeld, south of Germany in Brandenburg State. Berlin Brandenburg Airport has two runways that are parallel to each other with a spacing in between them of 6200 feet (Wang et al., 2019). The spacing allows for flight operations without any interference from turbulence. The runaway of Berlin Brandenburg Airport from the north is the southern runaway of the initial Schonefeld Airport, and it has been functional for a long time. For people to get used to the newly established Airport, renovation and lengthening have been done from 9800 feet to 12000 feet (Wang et al., 2019). The southern runaway has also been expanded up to 13000 feet to increase its efficiency.

As stated earlier by the German local government, the initial scope of the Berlin Brandenburg Airport project was purposely to serve as a backup and help fix the major problems experienced by the two Airports, Berlin-Schonefeld and Berlin-Tegel. The scope was the real means to an end of such problems. In his article, Hierarchy of Purpose, Antonio Nieto-Rodriguez argues that the sponsors of the project should have well defined the rationale of the project. He further argues that the purpose of the project should have been enabling Berlin to meet their demand of receiving many visitors through air traffics.

The Berlin Brandenburg Airport project has a lot of benefits to both the German local government and the German citizens. First, the geographical location of Berlin Brandenburg Airport offers very short times of flights to people visiting Asia. Trading between Germany and Asia becomes increasingly easier and more efficient in various sectors such as automotive and semiconductor industries. It also hastens the selling and disposal of perishable goods between the two geographical areas. Second, Berlin Brandenburg Airport creates a favorable economic environment for the German citizens with regard to payroll charges and taxes. Along with a strong economic background, the Airport serves as a hub for the sensible decision required for other cooperative initiatives. The Airport serves as an attractive property for German citizens because it is a place where modern offices, logistics space, and favorable and excellent transportation links are found. Therefore, it attracts most of the people within and outside Berlin.

Project Stakeholders and Their Roles

The performance of the program is highly dependent on the players’ involvement. Further, it starts by identifying the key and primary stakeholders, considering how important they are to the project, the outlook, and role in the project. The setting of mutual agreement and expectations calls for stakeholder management intervention. The primary stakeholders play a great role all around the project’s life cycle. The need for primary stakeholders varies depending on the information, inputs, decision making, and processing but the major focus and aim of these stakeholders is the achievement of the projects’ objectives and goals (Fasna, 2020). Therefore, in the whole lifecycle of the project, the stakeholders give immense support in the management of the project, and the endpoint of the project needs to meet the expectation set by stakeholders.

The stakeholders’ expectations can be vividly explained at the initial stages of project development due to various reasons. The expectations can be easily traced because of different perspectives among different stakeholders, provision of a wider view of the situation by the stakeholders, and different stakeholder expectations. Therefore, at the beginning of the project, it is important to understand every stakeholders’ requirement to create a strong relationship and develop confidence in them to safeguard the accomplishment of the project.

The active participation of each stakeholder in project development greatly depends on the close communication between the stakeholders and idea-sharing. Good communication and commitment by the stakeholders improve the channels for communication, save on cost, reduce risks of every kind, and define the requirements of the project (Thomson and El-Haram, 2019). Good rapport between the stakeholders also helps in the gathering of information regarding budgeting requirements feedback on the progress and success of the business. Some components are considered in the participation in the project. Some of the components are that every stakeholder must be allowed to express their views, every stakeholders’ participation and views should be considered while making decisions regarding the project. Each stakeholder must take part in the project as early as possible.

Several techniques are involved in the exchange of ideas between the stakeholders and the managers. These techniques ensure the involvement of stakeholders in the project as well as the strengthening of relationships. Some of the advantages of the involvement of stakeholders in the project are that; they enhance effective communication, facilitate sustainability of the project, and lead to reflection of a priority out of planning. Hence, in order to achieve real development in the project, the emphasis should be laid on people-centered and not process and result-centered

In the Berlin Brandenburg Airport developmental project, many stakeholders were involved. These are the people who had an interest in the development and the outcome of the Berlin Brandenburg Airport establishment project. The key stakeholders of the Berlin Brandenburg Airport project are the Brandenburg state, the Berlin citizens, the German federal government, Airlines, the city manager, the passengers, and the other two airports in Berlin (Sölch et al., 2021). These stakeholders played various roles to ensure the successful establishment of Berlin Brandenburg Airport. The roles played by the stakeholders are as discussed below.

The first role of the stakeholders in the construction of the Airport is the role in the work breakdown structure (WBS). The work in the project can be easily broken down and decomposed depending on the hierarchy of the scope. Every task is different and easily distinguished from other tasks within the project. Breakdown and decomposing of the project tasks help in the assigning of duties and roles amongst the stakeholders. It also helps in recognizing the interdependency of the priorities that are work-based. Lastly, the work breakdown structure where the stakeholders take part helps in determining the time of task implementation.

The structure accuracy is possible after the incorporation of the ideas and views from stakeholders. The pool of meetings should be conducted to gather all the necessary arguments from the stakeholders. The stakeholders, in this case, should be allowed to define the project scope and make their own decisions. The involvement of the stakeholders as the project progresses hastens decision-making. In the initial stages of the project, the stakeholders become an ideal information source, and they play an active role in the work breakdown structure (WBS) charter. The outcomes in the WBS are based on the stakeholders’ inputs, which are achievable as the effort of the project. The production of WBS greatly depends on the experience of the stakeholder gained from the same type of project, such as the schedule of the project, requirements list, and budgeting (Udokwu et al., 2021). Therefore, the statements of the project are essential in determining the items to be included in WBS.

The second role of stakeholders in the management of scope. The scope of Berlin Brandenburg Airport includes the task that is supposed to be done and the objectives to achieve in order to accomplish the project goal. Thus, the scope of the Berlin Brandenburg Airport project covers the project goals and features, functions, costs, tasks, deadlines, and outcomes. The project stakeholders can significantly control the scope and, therefore, becomes easy in drawing lines and avoiding the possible interference of the project’s progress. In most cases, the project manager conducts meetings with all the stakeholders when the project begins to define the project scope and assure each other of the meeting of project needs.

The third role of stakeholders in the Berlin Brandenburg Airport project is schedule management. The stakeholders can influence the management of the schedule significantly. However, as most impact relies on the power degree and influence of the stakeholders, they can as well affect the management of the schedule. Major stakeholders such as the Berlin state and the Berlin citizens impact the schedule significantly. Failure of meeting the stakeholders’ expectations delays may be evident in the required resources. Therefore, the stakeholders’ understanding is highly desirable as it encourages the timely conduction of actions and minimizes the chances of conflicts among them. Any project creates a schedule before it starts. Creating a schedule is purposely done to know the date of the project’s start and completion within the desired quality and budget. Thus, a keen and close examination of the schedule should be taken into consideration.

Failures of Berlin Brandenburg Airport Project

Against the stakeholders’ expectations, the Berlin Brandenburg Airport project has given Germany a bad reputation due to its failure. The failure of the Berlin Brandenburg Airport project is a result of poor financial management and the incompetent administration of the public (Sedlin et al., 2020). The Berlin Brandenburg Airport project failed in budget estimation, planning and procurement, and communication. It has been pointed out that the initial costs for the project were highly underestimated. The underestimation of prices and construction costs of the Airport caused many problems throughout the project’s execution process. The political leadership is the people behind the overrunning of these costs. It is so because they kept on estimating the costs as low as possible in order to strengthen and achieve political support (McCarthy and Noseleit, 2021). Therefore, failure and inaccurate estimation of the budget leads to the Berlin Brandenburg Airport project failure as a whole. The failure was a result of financial constraints in the execution of the project.

The failure in the planning and procurement during the establishment of the Berlin Brandenburg Airport project lead to its halt. The contracts for the construction of the Airport were awarded in 2009, but in the real sense, the Airport was to be opened in 2011 (Koseoglu et al., 2018). The Court Auditors from Europe recognized the weakness in the preparation process due to the lack of planning documents. The documents had to be modified during the processes of tendering, which lead to an overrun of costs. Due to poor planning, the operating agency severally awarded additional contracts without following the legal procedures of bidding. The award meant that the Airport had violated public directives, which halted every kind of progress in the execution (McCarthy and Noseleit, 2021). The project also failed in internal communication as this derailed delivery. The communication lines between the management entities and the governance were asymmetrical, particularly regarding the opening date of the Airport. The uneven communication line is due to poor project supervision and limited expertise (McCarthy and Noseleit, 2021). Lack of symmetrical lines of communication led to public communication issues hence management difficulties.

Challenges over the Course of the Project

The first challenge that faced the execution of the project was financial constraints. Financial constraints are a result of poor financial planning and a lack of budgeting for the project. The rough cost for the establishment of the Berlin Brandenburg Airport project was 2.83 billion euros (Derakhshan et al., 2019). The budget was made by the federal government of Germany and the Brandenburg State. During the process, the money that had been set aside to run the project was found to be little in relation to the number of operations that required funding. As a result, most operations were halted, and the project’s progress tampered with hence failure.

Another challenge over the course of the project was the high number of stakeholders. The higher the number of stakeholders, the higher the number of views that every stakeholder puts across that are different. Every stakeholder in the project had different views concerning the establishment of the Airport (McCarthy and Noseleit, 2021). The differing views and perspectives among stakeholders hindered them from reaching a common goal. The more stakeholders in a project as well lead to poor management because every stakeholder gives their opinion as far as management is concerned (McCarthy and Noseleit, 2021). Since opinions from every stakeholder are considered while making decisions, it led to the making of decisions that are not satisfactory. As the saying goes, “too many cooks spoil the broth” (McCarthy and Noseleit, 2021, p. 25). The adage is in line with stakeholders being too many for the management procedures.

Innovations in the Berlin Brandenburg Airport Project Delivery

Innovation involves improving the processes, products, and services incorporated in the project’s execution process. In the Berlin Brandenburg Airport construction project, most of the innovations were incorporated to improve efficiency (Xiong et al., 2022). Some of the innovations incorporated in the Airport were equipping the modern gates and taxiways, construction of ICE train station with high speed, and installation of a control tower.

The Berlin Brandenburg Airport was equipped with modern gates and taxiways. The taxiways were the solution to jam problems since they accommodated a large number of superjumbos. Some of the superjumbos that were accommodated were A380. The Airport was also integrated into the new rail infrastructure. The new rails reduced the traveling distances and facilitated efficient communication among the people of central Berlin and the rest of Germany. The innovation of transportation facilities in the Airport also includes a motorway connecting to A113. The connection that was made gives the Airport full access to the German network.

Another innovation in the Berlin Brandenburg Airport project was the construction of the ICE train that had very high speed. The station was constructed underneath a terminal that had an accommodating potential of two ICE trains at a time. The train was purposely for the improvement of the transportation services which was likely to take the shortest time possible. An express connection of the train also had the capability of into the city center of Berlin in under 10 minutes (Udokwu et al., 2021). The train allowed for the differentiation of Berlin and the capital of Europe.

Advanced control towers are crucial to airport and aircraft safety. A modern control tower managed by DFS Deutsche Flugsicherung was additionally installed at the airport (Kostka, 2018). The tower is outfitted with cutting-edge automation technology as well as an intuitive and adaptable interface. Tailored to the needs, several air traffic control modules can be added into the interface. Additionally, DFS Deutsche Flugsicherung integrated its Phoenix radar data processing technology within the interface (Kostka, 2018). Through this system, the meteorological and situational data are shown for both the terrain and the air. Overall, these features were designed to separate Berlin Brandenburg Airport from others since not many airports had implemented similar technologies.

Conclusion

In conclusion, for the successful execution of the project into the final stages, the discussed aspects should be looked at very closely. The case study has analyzed the Berlin Brandenburg Airport project in detail using some characteristics. The case study has analyzed the project overview, the list of the stakeholders and their roles in the execution process, failures of the project, and finally, the challenges. The case study has also analyzed the role of innovation in the delivery of the Berlin Brandenburg Airport project.

Reference List

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Hinterleitner, M. (2019) ‘Salami tactics and the implementation of large-scale public projects.’Journal of European public policy, 26(11), pp. 1696-1714.

Koseoglu, O., Sakin, M. and Arayici, Y. (2018) ‘Exploring the BIM and lean synergies in the Istanbul Grand Airport construction project.’Engineering, construction and architectural management.

Kostka, G. (2018) Large infrastructure projects in Germany. Springer-Verlag Berlin Heidelberg.

McCarthy, K.J. and Noseleit, F. (2021) ‘Too many cooks spoil the broth: on the impact of external advisors on mergers and acquisitions.’Review of Managerial Science, pp. 1-36.

Sedlin, T., Beckmann, V. and Tan, R. (2020) ‘Public participation and airport development: the case of the site selection for Berlin Brandenburg airport (BER) in Germany.’Sustainability, 12(24), p.10535.

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Thomson, C.S. and El-Haram, M.A. (2019) ‘Is the evolution of building sustainability assessment methods promoting the desired sharing of knowledge amongst project stakeholders?’Construction Management and Economics, 37(8), pp. 433-460.

Udokwu, C., Norta, A. and Wenna, C. (2021) ‘Designing a collaborative construction-project platform on blockchain technology for transparency, traceability, and information symmetry.’ In 2021 2nd Asia service sciences and software engineering conference (pp. 1-9).

Wang, S. et al. (2019) ‘Understanding the social network of stakeholders in hydropower project development: An owners’ view.’Renewable Energy, 132, pp. 326-334.

Xiong, C., Tian, Y., Liu, X., Tan, R. and Luan, Q. (2022) ‘The different impacts of airports on the ecological environment under distinct institutional contexts.’Land, 11(2), p. 291.

Abstract

Construction projects because of their exclusive characteristics are vulnerable and they are subjected to the influence of many external and internal factors. A large number of project participants because of their actions cause variations to the scope and design of the projects. In some cases natural causes also contribute to variation requests to construction projects. Variations have many adverse impacts on construction projects. The construction industry in the Sultanate of Oman is also subject to the influence of many factors, which are specific to the country. In this context, this research seeks to investigate the causes and impacts of variations in construction projects in Oman. The study apart from an extensive literature review, adopted a quantitative survey among engineers and construction management professionals working in public and private construction projects in Oman. Based on the review of the literature and the survey, the study concludes that lack of coordination among the parties and changes in specifications by the owners are the important factors leading to variations. The study also concludes that time overruns and cost escalations are the major impact of variations in construction projects. The survey findings indicate that terms of price an agreement on time are the factors that are considered by the contracting companies in Oman for finalizing the contracts. The research has provided few areas for further research and extension of knowledge in the field.

Introduction

Unscheduled changes in construction contracts cannot be ruled out and they often cause additional work than planned. Such extra works are likely to cause additional cost and time to complete the construction project. Understanding of the terms of the contract by the parties is bound to vary, which may give rise to changes in the scope of work. However, since the parties to the construction contract have diverse viewpoints chances for disputes to arise between owners, contractors and subcontractors are more. Moreover, in the present day’s context, because of the fact that construction schedules are compressed for faster completion, building activity starts even before the final design is completed (Chen & Hsu, 2007). This might lead to the following of inaccurate design. Because of the changes in the needs and preferences of the industry, changes in the employers’ needs from the contractors are inevitable. All these factors have led to significant increase in the change orders in construction projects, often leading to disputes among various parties involved in the project. It is to be accepted that owners and design professionals must have the liberty to provide change orders, so that appropriate changes can be made in the construction projects to suit particular needs of the employers. Any construction project is subject to change orders and change is defined t o include any modification in the original scope of the construction contract. Such changes may have significant implications on time, cost and quality of construction. If the contractor is unable to manage the changes swiftly, it might lead to serious issues in project completion giving rise to claims.

The contractors must also be willing to carry out these change orders; but they must be compensated properly for the additional time and cost involved in executing the changes. Although the owners realize that change orders are likely to have an effect on specific tasks, they fail to appreciate the ripple effects such changes might bring to the entire project schedule. Coffman (1996) observe that in mechanical construction, because of the interconnection between different activities, changes in one activity are likely cause changes throughout the entire project.

The additional cost of change orders to the contractors will reflect in the form of requirement of additional materials, conflicts in the schedule of existing project activities, occasions of rework of work already executed, stoppage in the momentum of the project progress and reduced labor efficiency. Financial impact of change order on most of the items affected by the change orders can be measured. However, it is difficult to precisely measure the effect of change orders on labor efficiency. Change orders thus might seriously impede the progress of the construction projects. Because change orders present a risk for both the contractor and the employer, they must be accepted and managed properly. In this context, this research attempts to find out from the all the project stakeholders such as clients, consultants, contractors and subcontractors, the impact of variation orders, the problems encountered because of the variation orders and the possible resolution to the problems and issues resulting from variation orders. Variations in the construction industry in Oman appear to be a common phenomenon as the working in the industry is affected by several factors such as weather conditions, lack of cost data, shortage of resources, lack of experienced contractors and frequent design changes by employers.

Variation Order – a Background

A variation order or change order as it is sometimes called, can be defined as a “written authorization provided to a contractor approving a change from the original plans, specifications, or other contract documents, as well as a change in the cost” (Means, 1991). For the purpose of this research a variation order is a modification provided in writing after the construction contract has been signed. Therefore, some of the variation orders can occur before the commencement of construction activity. The variation order includes

“(1) additional or modified scope of work; (2) errors and omissions in plans and specifications; (3) changes required by governmental entities; (4) design changes; (5) overruns or underruns in quantities; and (6) conditions impacting on schedule, the time of completion or the method or manner of performance of the work,” (Libor, n.d).

Most of the construction contracts provide for such variations by including a “changes” clause. Such a “Changes” clause is beneficial to both the contractor and owner as in increases the flexibility of construction contracts by providing for the variations without the necessity for a new contract for incorporating any addition, deletion or modification of a project requirement. The “Changes” clause allows suitable modifications to be made to plans and specifications, which would precisely reflect the intended project outcomes of design personnel and the employer. These modifications can be carried out without breaking contractual requirements, when the “changes” is present in the construction contract (Libor, n.d).

The clause provides the procedure for assessing the impact of changes to compensate the contractor for the additional work in respect of the variation orders. Another advantage of including the changes clause is that it enables the contractor to highlight modifications that will improve the project performance, as he is sure of receiving the differential cost for the extra tasks, which he is expected to perform following the variation orders. However, there are limitations on the employer to issue variation orders. For instance, the employer may not issue variation order which has the effect of brining fundamental changes in the scope of the contract. In view of the significant impact of variation orders on the project outcomes and the financial implications they have on the stakeholders, this paper attempts to explore the causes and effects and the likely remedies for the impact of variation orders.

Rationale and Purpose of the Study

The purpose of the current research is to explore the impact of variation orders on construction projects from the purview of clients, consultants, contractors and subcontractors, who are the major stakeholders of a construction contract. The impact is explored to ascertain the problems encountered by the stakeholders and the eventual resolution to the issues.

Engineer has the power to make any variation orders of the form, quality or quantity of the Works or part thereof subject to the approval of the Employer. Such order would result in increase or decrease the quantity of any work included in the contract. There are instances of omissions of work from the scope. Further the Engineer is empowered to change the character or quality or kind of any such work. This may result in change the levels, lines position and dimensions of any part of the works. At times it becomes compulsory, on the part of the Engineer to order for additional work of any kind necessary for the completion of the work. Further the faulty designs although the consultant fails to accept causes more concern, conflicts, cost and time over run. There are cases of interferences by the client results in variations. This state of affairs makes the consultant and contractor at tacit unease. Because of the misunderstanding created on account of variation orders, disputes and claims become a constant affair in the construction industry. In this context, the results of the current study are expected to add to the existing knowledge on the ways to resolve the problems encountered because of variation orders in construction contracts.

It is to be emphasized that such variation orders shall in anyway vitiate or invalidate the contract. The law provides the contractor to get compensated in a manner that valuation of such variations shall be taken into account when ascertaining the contract price. It’s being provided that orders for variations to be in writing but confirmation of verbal instructions considered as an order in writing. The basis of prices for variations shall be the rates and prices set out in the contract as decided by the Engineer who shall agree a suitable rate with the contractor, failing which the rates shall be fixed by the Engineer. Contractor’s prices at times found to be below the market prices. Contractors may at a loss if such prices are fixed for the variations. In such cases a controversy occurs between all parties concerned. The law is impartial by compensating the contractor on variations exceeding ten percent on certified completion of the works.

Though the procedures look simple but in reality a disagreement prevails between all the parties directly involved as to the agreement on time, money and quality. Though the consultancy agreement emphasizes the Consultant to obtain three or more quotations; in majority of the cases this activity is performed by the contractor who takes time until favorable quotations as to money and time are received at his hand before submitting to Engineer.

In Oman interdepartmental differences exist on payment issues. It takes more than three months to get the formal approval of such variation orders. Certain departmental circulars prevent the contractor from claiming this money through interim payment applications. Contractor’s long wait make them to seek various means; including and not limited to negotiating the quality or inflating the prices. This in turn leads to time over run and the contract price going beyond the budget. In case no savings on re-measurements or contingency is available, contractors again compelled to wait for longer period. This state of affairs prevents the client to establish a supply chain management. The delay of payment makes the other contractors refrain from actively participating in the future tenders too.

Objectives

The main objectives of the study can be summarized as follows:

1. To verify the type of variations issued.
2. To verify the circumstances under which such variations are ordered.
3. Pricing policies carried out under usual circumstances
4. Problem confronted by clients, consultants, contractors and subcontractors
5. Analyzing the problems and means of resolving them.

Structure of the Dissertation

To present a comprehensive research report this dissertation is structured to have seven chapters. Chapter One introduces the research topic, provides the rational for the research and establishes aims and objectives and hypotheses to conduct the research. Chapter Two outlines the generic review of variation orders in construction contracts. In Chapter Three the reasons behind variation orders in construction projects are explored through a literature review. Chapter Four presents a description of the impacts of variation orders on construction contracts. Chapter Five restates the research objectives and illustrates the methodology that was used to achieve these objectives. The justification of using the questionnaire is stated. This chapter also describes the questionnaire design, survey sample scoring system and methods of analysis. Chapter Six contains data collected through the questionnaire and the analysis of the results from the questionnaire. The results are illustrated using bar charts and graphs. This chapter includes results interpretation and discussion on the results. Chapter Seven summarizes the research findings and based on the results of the research a relevant conclusion is drawn. Recommendations to avoid problems relating to variation orders and recommendations for further research in the area form part of this concluding chapter.

Variation Orders in the context of Oman Construction Industry

Introduction

Several studies have been conducted on the impact of change orders on the productivity and efficiency of construction projects. Alnuaimi et al (2010) studied the causes and effects of change orders on public construction projects in Oman. The research undertook case studies of four large projects. The study found that altering owner requirements is the most important cause of changes in the construction projects in Oman and the study also found that such changes led to delays in completion of the projects and cost overruns. Moselhi et al (2005) studied the effect of variation orders on labor productivity and presented a model to measure the losses on variation orders.

This model identified several factors affecting the productivity and highlighted the timing of change orders to have a large impact on project completion within schedule. Keane et al (2010) presented the several suggestions to avoid or to minimize the number of change orders in construction projects. Lee et al (2003) worked on the impact of multiple change orders on productivity and suggested methods for quantification of loss of productivity resulting from the influence of change orders. Work of Hanna and Swanson (2007) focused on the type of changes on different construction projects and suggested compensation that might payable to contractors for each type of change. The results of all these studies have relevance to the functioning of the construction industry in Oman, where the number of change orders is more because of frequent changes in the owners’ requirements.

Prior Studies on Variations in Construction Projects

Literature on construction project management has identified that variation orders are common to all types of construction activities (Thomas et al. 2002, Oladapo, 2007). According to Ssegawa et al (2002) because of the presence of variation clauses in all types of construction contracts, it can be inferred that every project will have some type of variation or other. Change orders are most likely to have negative impact on both completion time as well as cost of projects. Design changes will eventually result in both cost and time overruns. Because designs in construction contracts have never been perfect, owners often need the flexibility for making revision in the plans and take benefit from the adoption of better technological advancements. Alternatively, in certain instances the owner might want the contractor to take of the risk of unanticipated events

Hanna & Swanson (2007) observed three types of changes – actual or directed changes, which are requested by the owner or his representation and which have the consent of all parties, constructive changes which arise because of different interpretation by the owner and the contractor about the scope of the contract, whether they are included in the contract document or not and cardinal changes, which are considered breach of contractual terms. Cardinal changes may occur when the contractor is authorized by the owner to undertake tasks which are beyond the scope of the contract and when the owner requests a number of changes which might lead to comprehensive changes from the original terms of the contract agreed between the parties. Alnuaimi et al (2010) observe that the causes for issuing variation orders may vary from one country to another. The authors found that the number of change orders issued in developing countries generally is more than those issued in developed countries.

Al-Momani (2000) found that changes initiated by the owners are one of the major reasons that led to delayed completion of projects in 130 cases studied. Goudreau (2001) found that delayed payments to contractors, change orders initiated and discrepancy in contract documents were among the important elements that increase cost and time of completion of construction projects. According to Acharya et al (2006) change orders were the third important factor identified for the occurrence of conflicts in construction projects. Out of the studies conducted on 76 projects in Saudi Arabia Assaf and Al-Heiji (2006) most common reason for project delays as reported by clients, consultants and contractors was “change order.” The results of all these prior studies confirm the impact of change orders on the construction projects in Oman. However the reasons for change orders may vary from country to country and between one project and another.

Causes for Variation Orders in Oman

Many reasons can be attributed for requesting changes in a construction contract. These changes become necessary for continuing with the projects after modification instead of terminating the projects. Hanna & Swanson (2007) define change to include any “activity that lead to modification in the original scope of the work, in the completion time of project, and in the cost of project and become part of most construction project due to limited resources.” Fisk & Reynolds (2009) define change order as “formal document that alters some conditions in the contract documents, such as changing in: the cost of project plans and specifications, project payments schedule.”

Keane et al. (2010) listed causes such as budgetary constraints of owners, improper determination of project goals, hard and tough nature of the owner, changes in scope and specifications by the owner and the quality of obstructing effective decisions, as related to owner-related causes for variations. Hanna et al (2002) identified the addition or deletion requested by the owner may lead to variations. Alnuaimi et al (2010) observed that not meeting the responsibility of the owner in supplying the materials and/or equipments, which are to be supplied by him, will also lead to changes to be requested by the owner at a later date.

Alnuaimi et al (2010) identified design errors and changes made to designs and failure of the consultant to suggest the best alternative design for project during the feasibility study as the changes relating to consultant’s acts. Keane et al (2010) found conflicts in contract documents and lack of information on the availability of materials and equipments are consultant-related causes for variations in construction agreements. Keane et al (2010) also identified lack of coordination among the parties as one of the most important causes for change requests relating to consultant. Change in specification suggested by the consultant and insufficient details in drawing leading to poor understanding of the parties are also consultant-related causes for variation orders.

In this context, Alnuaimi et al (2010) out of their case study of a water transmission project identified the issuance of four change orders for different reasons. They are (i) first one was issued to include the cost of rerouting a pipeline. This was necessitated because the project had to provide a right-of-way for a main highway. The change was necessary to change the water storage foundations adopting piles instead of raft footing; (ii) second change order was to be issued because of the delay caused by the first change order. This order included the cost of leveling some area of land and the construction of additional facilities which were not covered by the original contract scope; (iii) third change order was issued to provide for the cost of delay in providing various facilities at the inception of the project; and (iv) fourth change order was issues for rerouting the pipelines to pass through a different route away from the lands and houses of private parties. The total cost of these changes was US $ 7,539,216, which was 14% of the originally estimated cost of the project.

On an analysis of these four change orders, it may be inferred that the variations can be grouped under two types – consultant-related and client-related. The consultant-related variation orders include the changes requested because of design errors. The second group of variations has been necessitated because of additional scope requirements. In addition to the cost overrun, the project was granted additional time of 8.57% more than the scheduled time. Alnuaimi et al. (2010) observe that the first group of variations could have been avoided by undertaking soil investigation in a proper way, with precise knowledge of local regulations and proper coordination with other government departments. The authors are of the opinion that the second category of variations could have been reduced by proper planning and phasing of the projects.

Summary

Factors or causes of variations are not cognate at every project but these vary from project to project according to the nature, location and complexity. Variations in the construction industry are frequent and they are critical issues for the management to address. The timely completion of a construction project right from inception has always has a great importance in the construction industry. Variations and the resultant delays in completion of the projects cause financial losses to the project owner. Because of the financial losses incurred by the project, the project owner may find it difficult to settle the payments to the suppliers as well as wages and salaries to the project team members. Consequent to the liquidity issues, the delayed completion of the project affects the economy of the country.

Completion of construction projects within the allotted time is always difficult. Most of the time construction schedules have been revised due to various delay factors including variations. “Completing projects on time is an indicator of efficiency, but the construction process is subject to many variables and unpredictable factors, which result from various sources,” (Assaf and Al-Heiji, 2006). This causes the initiation of change orders.

Project delays caused by variations result from the poor performance of parties connected with the project. For example, delay in supply of materials by the suppliers will lead to delay. Similarly non-availability of resources like men and materials at the required time will also impede the progress of the project. Environmental conditions affect the progress of the project and lead to delays in the completion. Above all, lack of coordination among project stakeholders including contractors is the main cause of delays in completing the projects.

Globalization, research and use of IT in production industry have reduced the risk of delay but construction industry due its volatile nature still suffers delays. These delays are normally related to the project planning, owner’s decision making (variations), manpower, supervision, late issue of drawing, slow decision making by government authorities and lack of coordination. In recent years due to global recession, many projects were abandoned or delayed due to lack of finance. Today’s construction project has become a very complex, high-risk, and multiparty endeavor. Construction projects are composed of many interrelated elements of labor, cost, material, schedule, other resources, and lot of coordination, making it difficult to define, which factors were the main causes for delay on a given project. Identifying the main causes of delay in large construction projects is very difficult and often leads to disputes about responsibility for the delay. This review leads to the research question “What are the general causes of variations in the construction industry of Oman?”

Types and Causes of Variations

Variations become an inevitable element in almost all construction projects (Ibbs et al. 2001). Owner may prefer to change the scope of the contract at any time during the progress of the project to meet his various needs. Similarly market conditions may necessitate some changes in the parameters of the project. Based on the latest technological developments the engineer might decide to alter the design or construction method, which will also lead to variations in the construction project.

“The engineer’s review of the design may bring about changes to improve or optimize the design and hence the operations of the project. Furthermore, errors and omissions in engineering or construction may force a change. All these factors and many others necessitate changes that are costly and generally un-welcomed by all parties” (Arain & Pheng, 2010).

Thus, variations may be the result of a number of factors. This chapter presents a discussion on different factors that are likely to cause variations in construction projects.

Types of Variations

Based on the purposes, changes can be classified in different ways. Changes in a construction project can be classified depending on the cause that necessitated the change. Classification of changes based on originator facilitates better calculation of the cost impact of changes and hence are considered ideal. Number of causes has been identified, which lead to issue of change orders. Design changes, which are the major source of variation orders, have been found to cause more than 52% of the variations (Burati et al. 1992). Design changes can be categorized into (i) variations resulting from improvements in design process – changes necessitated based on review of designs, advancement in technologies or review of activities from constructability aspects are some of the examples of this type. (ii) Owner initiated changes, which include changes in the scope of the contract and (iii) process changes introduced by the architect or consultant based on his expertise – this type include changes like addition of instrumentation that might have an impact on the facility.

A classification of changes can be made based on the net effect of such variations on the scope of the contract. They are (i) additive change involving additional work to the scope, (ii) deductive change eliminating some activity and thus reducing the scope of the contract, (iii) rework caused by deficiency in quality of work already executed, (iv) changes necessitated by force majeure – these changes entitle the contractor a revision in the project schedule in addition to cost adjustments subject however to the conditions of the contract.

A third way of classifying the changes is based on the procedure followed to effect the respective changes. This type of categorization of the changes is considered important from a legal purview. The changes are (i) formal or directed change – when the owner or his representation introduces the change by operation of a change clause under the contract, (ii) Constructive change necessitated by the acts or omission to do certain acts by the owner or his representative. Normally, the changes effected by the acts or failure of the owner are not regarded as changes and hence are potential sources of disputes and resultant claims. Mistakes in the contract documents or wrong understanding of the clauses by the stakeholders happen because of lack of attention of the employers. (iii) cardinal changes are changes that take place in a construction project, which are outside the scope of the contract. These changes are executed only after the entire contract is renegotiated or the complete scope of the contract is redefined.

Causes for Variations

Aibinu and Jagboro (2002) studied the impact of delays on construction projects. The authors identified “time overrun, cost overrun, dispute, arbitration, total abandonment and litigation” as the effects of delay. According to Koushki et al (2005) observed that material selection time and their availability in the local market would result in cost and time overrun. Delays in construction projects influence the performance of the contractors and lead to disputes among the parties, low productivity and increased construction costs.

Sambasivan and Yau (2007) observed that contractor-related and client-related factors such as lack of experience on the part of the contractor and interference of the owner would result in time overrun. Koushki et al (2005) found contractor-related issues, material-related issues and financial constraints as the main causes for cost overruns in construction projects. Wiguna and Scott (2005) increased material cost because of inflation, changes in design requested by client, defects in design, inclement weather conditions, delayed settlement of bills of contractors and quality issues in construction works lead to disputes and resultant delays in construction projects. Hegab and Nassar (2005) found that delays in commencement of the project led to subsequent time overruns.

Ebsworth and Ebsworth (2008) found that misleading information at the tendering stage results in delays and consequent claims. Semple et al. (1994) observed that 37.5 % of the samples selected for their study cited weather conditions as a contributing factor for the delay. Delays and huge claims may arise because of major redesigning of foundations caused by different ground conditions, which would not have been revealed by field surveys undertaken before the commencement of the project. Assaf and Al-Hejji (2006) found delays in approval of drawings, changes in designs and conflicts in work schedules of sub contractors were the significant causes of delays in construction projects in Saudi Arabia. Delays become an inevitable element in construction projects (Ibbs et al. 2001).

Arain and Pheng (2010) find that review of designs will result in delays and increase the cost of the project. Design changes, which are the major source of variation orders, have been found to cause more than 52% of the delays (Burati et al. 1992). Variation orders requested because of many reasons cause delays in construction projects. Harbans, (2003) point out that even if careful planning has been done in respect of a project, it is possible that some variations might become necessary as the construction progresses and these will cause delay in the completion of the projects. Therefore, construction contracts provide for possible variations considering the nature of the works involved covering all the above causes (Finsen, 2005). Variations can occur because of number of reasons including improvements in constructions (Ssegawa et al., 2002). Most of the variation orders result in construction delays.

Variations during the Progress of the Project

The construction process is subject to the influence of changes in various events, the course of which is difficult to predict. These variables may emanate from various sources. “These sources include the performance of construction parties, availability of resources, environmental conditions, involvement of other parties and contractual relations,” (Furaih, n.d). Interestingly some of these factors give rise to opportunities for making additions to the existing construction works. This section discusses the variations resulting from additions to the construction works.

Additions normally are suggested by the owners so that the construction project meets his expectations. Owners are likely to change the plans or scope of the work because of insufficient planning at the stage where the project scope is defined. Addition to works may also be caused by the reason of the lack of involvement of the owner in the planning and designing phase of the project. Under normal conditions the cost of additions will have to be bear by the owner if the additions are introduced in the works to facilitate the owner. There may be instances where the contractor might suggest some additions to improve the performance of the project so that the project can be completed before schedule. Even in such instances variation orders issued by the owner for effecting such improvement may have to be carried out by the contractor at the expense of the owner as the owner will become the ultimate beneficiary of such additions to the contract works.

Additions may also result because of changes in health and safety consideration of workers. For example, it might be necessary to add health centers or children crèches in an industrial building on the consideration that number of employees is likely to increase and such provisions are mandated by the applicable labor laws.

Variation requests may arise because of the omission to include some precise requirements of the project. Omissions to include certain requirements of the owner in the contract documents or the design specifications will lead to the necessity of issuing variation orders (Hanna et al. 2002). It may so happen that the design team has omitted to consider peculiar ground conditions or the neighborhood considerations while planning the construction project. Some of these factors may lead to variations in construction contracts. The omissions may also relate to some of the health and safety conditions overlooked by the design team. Although most contracts provide for the possible variations of these omissions in the form of a variation clause included in the construction clause, certain omissions are likely to have significant impact on the work schedule and cost. In these cases the variations on account of omissions are to be discussed among the parties to agree on the cost and time before a variation order is issued amending the existing contract conditions.

Similarly, alterations in construction works are common. The alterations may be suggested to facilitate either the owner or the contractor. In some instances the alterations may be needed to carry out the construction activities in an efficient manner. These alterations may be in the construction method or in the work already executed. In any case the cost impact of the variations because of the alterations suggested is an important factor to consider for fixing the responsibility on a particular party. In case the alterations are suggested to facilitate the contractor the variation orders have to be executed at the cost of the contractor. A mutual agreement may be arrived in sharing the cost and in providing additional time in cases where the alterations need to be undertaken for efficient performance of the project

In the context of Oman variation requests resulting from addition, omissions and alterations to be undertaken during the construction process can be found more common. The reason behind the increased variation requests is that the owners do not possess some technical knowledge to understand the work of the design team or what the design specifications signify. The owners also do not involve them in the discussions on the technical aspects of the construction projects. Only when the structure is physically constructed they will find that some of the design features are not up to their expectations. Because the owners are not in a position to explain in clear terms, their expectations on the project, they would request for frequent changes in the designs in the form of additions, deletions or alterations. In some instances, the owners may change their mind to change the construction designs based on current economic trends. Since construction projects have a long gestation period, the economic scenarios may change over the period during the process of construction. Depending on the economic changes the owners would prefer to have the constructions altered. This would give rise to more variation requests from the owners.

Variation Requests from the Clients and Contractors

Variation in a construction contract may be classified as “one of the following: an unavoidable variation; a variation for the convenience of the client; or a variation for the convenience of the Contractor (or Consultant),” (New South Wales Government, 2008). Variations to facilitate the client include those changes requested by the owner because of a change in his expectations. These changes do not represent unavoidable variations, because it is possible to continue and complete the project even without carrying out the proposed changes. The variations initiated for the convenience of the clients are most likely to change the scope of the contract and almost in all instances will lead to additional costs.

Even the variations suggested to reduce the scope of the work may entail some additional cost.

“This is because variations are valued by adding the cost of the extra work, plus a margin and subtracting the contractual value of the work taken out of the contract. The actual cost of the added work can often be greater than the contractual value of the work taken out of the contract,” (New South Wales Government, 2008).

Reworks suggested under the variation and the delay and disruptions caused by variations ordered to facilitate the client will have associated costs increasing the total outlay on the project.

It is essential to provide the required money and to approve the variations, before any variations to facilitate the clients are ordered to be carried out. The money provided should be adequate to cover the additional cost needed to carry out the changes. The cost in the case of variations may include the actual expenses and losses of the contractor and other additional amounts of fees if any.

Al-Moumani (2000) studied the impact of change order in public construction projects undertaken in the Sultanate of Oman. The study included case studies and field survey and found that alterations in owner requirements is the most frequent cause of changes in the construction projects. The research also concluded that changes in requirements lead to delays in completion and cost overruns and consequent claims on parties to the contract.

Variations requested by the contractor are the ones which are issued for the convenience of the contractors. These variations represent “unavoidable variations”. It is not obligatory on the part of the owner to agree for a variation which is intended to facilitate the contractor. However, the variation may add to the value of the project. Whenever a contractor makes a variation request to facilitate himself, the owner may consider the request just to keep better relations with the contractor. It is important that the contractor provides sufficient details to the owner to make proper evaluation of the variation request of the contractor. The owner may choose not to authorize the variation to facilitate the contractor, until he evaluates the variation request and agrees for the full impact of such variation. The owner may also insist that the contractor takes full responsibility to ensure that the proposed variation does not affect the remainder of the activities of the project.

Variations because of Other Reasons

Variations in a construction contract may arise because of a number of factors including design factors. Normally a construction project started before the completion of the design aspects is likely to face more number of variation requests (Finsen, 2005). The variations in works contracts may occur because of defects, errors or omissions in designing or in planning. These errors and omissions include mistaken quantity estimates, mistakes in planning, lack of adequate arrangement of contract interfaces, lack of consistency between drawings and site conditions, improper citation of specifications in the contract documents. The responsibility for variations because of design factors will fall on the planning and design department.

Variations may be requested by either the owner or the contractor to ensure health and safety of workers.

“In certain construction processes, there are unforeseeable situations where the contractor needs to do whatever it takes to maintain the work schedule by making certain changes without violating safety regulations. Such changes can be either as minor as to lead the construction to clearing out an unplanned site path or vehicle route, or so overwhelming as to have to reschedule project activities or even adopt a new construction method,” (Hseih et al., 2004).

Where there is the need to change the construction method, it is necessary to issue a variation order.

Natural incidents such as typhoons and torrential rains affecting the safe progress of the construction work. In these instances and in other instances such as landslides, flooding it may become necessary to change the original schedule of the project by issuing necessary variation orders. Change of work rules is another significant cause of variation, especially when the project runs for a longer duration. The work rules and regulations which were effect at the planning and design stage might be changed by the governing authority later at the construction stage necessitating the issue of requests for variations. Similarly, changes in decision-making authority during the period the project continues give room for variations in construction contracts. With the change in decision-making authorities, the interpretation of regulations might vary and the risk to the continuance of the project because of changes that are not within the control of both the contractor and the owner must be mitigated by issuing variation orders. It is usual that in any construction project the neighborhood concerns are taken into account at the planning and design stage to avoid expensive variations at a later stage of construction. However, in some instances factors like “lack of experience, absence of proper authorization or simple shortage of time” the neighborhood considerations might have been omitted to be considered and some of them might arise at a later stage leading to variations in contract terms.

Conclusion

In practice, a number of factors lead to the generation of variation orders in construction contracts. This chapter contained a discussion on some of the major causes for the variations to arise. Owners might decide to change the scope of the construction work to meet any change in their expectations from the contract outcomes. Under such circumstances the owners might add new works to the scope of the contract which is an important cause of variation. Omissions by the planning and design team also are a factor that leads to large number of variations in construction projects. Apart from additions and omissions, there may be instances where the consultant, the contractor or the owner might suggest some alterations to the existing working methods or work completed. The alterations may be suggested for an effective improvement in the project performance. Change of lines and levels may also be an element brining in variations. Variations in construction contracts may be categorized to include variations because of unavoidable events, variations to facilitate either the client or the contractor. Changes in designs may also lead to variations and the chapter also cited a number of other reasons for variations to arise. The next chapter presents a discussion on the impact of variations. This review gives rise to the research questions:

1. What are the owner-related causes of variations in the Oman construction industry?
2. What are the contractor-related causes of variations in the Oman construction industry?

Impact of Variations

Types of Impacts

Impact of variation orders has been the subject matter of several research works. This chapter presents a discussion on the impact of variation orders on the construction projects. According to Jawad, et al. (2009),

“The impacts of a variation are classified as follows:

• Direct cost impact
• Direct schedules impact
• Indirect or Consequential impact”

The direct cost effects are limited to the construction activities in which the variations are to be applied. The owner may experience a positive or negative impact of the change, which in turn will be the opposite for the contractor. In some instances, the changes may not have any effect for both the contractor and the owner. Direct cost impact comprises of two elements – labor cost and material cost. It is always easier to determine the material cost impact with certain level of accuracy. On the other hand, it is not easy to calculate the effect of labor charges precisely because of the impact of variations on labor productivity and the uncertainty on the scope of the changes on the works. Impact of labor cost may lead to degradation in productivity, delays in completion and demolition of already constructed portions and rework of them.

Direct impact of changes on the schedule of construction activity can be documented easily after the change is effected, because one could get all the necessary data for estimating the effect. However, such estimation is not possible before carrying out the variations because of unexpected changes in labor productivity, accessibility of required materials and schedule changes. When there is a penal provision in the contract, the loss on account of changes in schedule may become very expensive.

It is the normal tendency of the project stakeholders to overlook the indirect or consequential impacts of changes in construction contracts. Indirect or consequential impact may affect the progress of other associated works at a later date and thus will lead to delay in the completion of the total project. Therefore, it becomes important that the owner and the contractor take into account the direct and indirect impact of variations, while incorporating a change clause in the construction contract.

Thus variations in construction contracts lead to consequences that significantly affect the progress of different work packages and thus causing delay in the entire project.

Variation Requests and Cost Overrun

When the contracts are supported by proper planning and schedules, they will be completed smoothly and in time and with the expected quality of construction. However, seldom construction projects are completed in time to meet the original time table because of the influence of several factors including design slippage and amendments (Al-Hakim, 2005). Frequent incidence of variation orders has a negative effect on the progress of construction projects (Thomas et al. 2002). By adversely affecting productivity and project costs, variation orders impede project performance largely. Arain and Pheng (2005) observe that variation requests, though undesirable cannot be eliminated altogether. Hanna et al (2002) are of the opinion that projects with many variation orders affect productivity and thus lead to delay in execution of the contracts. Variation orders affect the project performance in terms of cost overruns.

Variations may be categorized as beneficial and detrimental variations. Beneficial variations include those variations which help improving quality of construction and reduction of cost overruns. They also help in improving project performance by better scheduling and reduce the degree of difficulty in executing the project. Ibbs et al (2001) find detrimental variations will affect the project performance negatively and will result in a reduction in the value to the client. Variations involving cost of the project may be beneficial or detrimental depending on their impact on the total project cost. Because the need to order for changes in the construction contract is a matter of practical reality, the owner has to be careful in requesting variation orders resulting in additional costs to the project. On the other hand the project team may be able to take advantage of beneficial variations which work to reduce the cost of the project. Variations in construction contracts may result in significant variations in direct and indirect cost of the project. The variations and variation orders involving changes in costs may be detrimental to all the parties.

Material costs are a major cause of escalation of costs in construction projects. Construction projects involve two major phases – preconstruction phase and construction phase, with the construction phase consuming more resources than the preconstruction phase. Therefore, in the construction phase more attention is focused on cost planning. The employers are keen to know the total cost of completion of the project in advance and they also prefer to have the cost of completion equal their original estimate as per the tender.

Nevertheless, many of the construction projects are subject to cost overruns. It is to be noted that all variation orders do not result in cost overruns. Variation orders that cause deletion of works lead to reduction in costs, while on the other hand variation orders involving additional works lead to escalation of project expenditure (Ssegawa et al. 2002; Arain and Pheng, 2006). Arain and Pheng (2005) found that change orders issued during institutional building constructions have led to considerable escalation of construction expenses. Mohamed (2001), based on the study of the impact of change orders in different sewer overflow projects found that expenses increased up to 7% of the estimated costs. Bower (2000) identified the following direct costs, as being associated with change orders.

“Bower (2000) identified the following direct costs associated with variation orders: Time and material charges related to immediately affected tasks; Recalculation of network, increased time-related charges and overheads; Reworks and standing time; Timing effects for example winter time; Inflation, change to cash flow and loss of earnings; and Management time, head office and site charges. While the direct costs associated with a variation order can be easily calculated, Bower (2000) argued that indirect costs are more difficult to quantify,” (Ndihokubwayo, 2008).

Any change or alteration in the design of a project is most likely to result in increased project cost. In order to protect against the cost impact of variations involving additional cost because of unexpected events, every construction contract provides for a contingency sum at a certain percentage of total project cost. The purpose of the contingency amount is to ensure that the project progresses without difficulty even in case of the occurrence of any detrimental variations. Increase in indirect cost results from the necessity to supply additional materials to take care of reworks or additional works taken up as a result of the change order initiated. Loss of productivity because of change order may also have an effect on the direct and indirect cost of the project. When the productivity of labor is affected because of variations the contractor may have to employ additional workers to complete the work within the agreed schedule. Loss of productivity however cannot be measured precisely to arrive at the addition to the project cost because of variation orders issued. Change in scope of work is the most significant variation that is likely to have an adverse impact on the project cost. Change in the scope of work is again within the decision of the owner. Therefore, the owner has a significant role to play in preventing the occurrence of any cost variation in the project.

Variation Requests and Time Overrun

It is the wish of the clients that their construction projects are completed within the scheduled time and they expect to achieve monetary gains, when the project is completed within the shortest time possible. The employers apply heavy penalties to the contractors when they exceed the original project schedule and prolong the delivery period. The contractor is made to make good the losses incurred by the client because of delays in completion. Variation orders have been found to be one of the causes of time overruns in many construction projects (Mohamed, 2001). Change orders issued at different stages of construction projects result in time overruns and lead to delays in completion (Koushki, et al. 2005). Hanna et al (2002) found that frequent change orders lead to considerable reduction in productivity. Reduced productivity leads to time overruns and consequent delays in completion. Yogeswaran et al (1997) have categorized time overruns into excusable and non-excusable. Excusable delays, “relieves the contractor of liability for liquidated damages and the latter is due to the contractor’s culpable delay,” (Ndihokubwayo, 2008). Non-excusable delays arise because of the culpability of the contractor.

Other Impacts of Variations

Number of other construction project aspects is affected by the variation requests, irrespective of the party who has made the requests. The following sections present a discussion on these impacts.

Quality Issues

In contracts with considerable degree of risk for unexpected events, in the fear of having to pay damages for time overruns, contractors have a tendency to cut corners on quality of materials so that they may be able to maximize their earnings from the contracts. If variation orders occur frequently because of uncertainties, it will affect the quality of the construction. “Quality may be compromised as contractors try to compensate for losses they are not optimistic about recovering” (Ndihokubwayo, 2008). It is observed that the quality of the work may become poor because of frequent variation orders issued, as the contractor may attempt to make good his losses by compromising on the quality of materials and project outcomes. Low productivity caused by variations may also lead to quality issues as the contractor may have to employ new manpower some of whom may not have the required experience.

Health and Safety Issues

Provision of health and safety measures may have to be revisited in case of frequent incidence of change orders. For instance Clause 5.3 (e) of the OHS (2003) prescribes that in the case of variations, the contractors must be provided with sufficient information on health and safety considerations, where there is variation orders issued in respect of construction projects. The contractor must also be provided with appropriate resources for maintaining good health and safety conditions. This requirement becomes valid because variations in construction procedures, supplies and implements may need extra provision of health and safety measures (Arain & Pheng, 2005). Clause 5.14 of the OHS (2003) places an obligation on the contractor to provide adequate information to the principal contractor on the health and safety of workers who might be affected by the variations in the construction works. The principal contractor must be informed about the circumstances which might need a review of health and safety plans because of variations.

Misunderstandings among Parties

A construction project cannot be considered just a business venture; but it leads to the creation of a professional association among the parties to the construction contract. With the completion of each project the experience of the participants go up and their reputation also enhances. However, variation orders lead to disputes and claims among the parties, as a result of which misunderstandings may arise. Opportunities for misunderstandings may arise because of the dissatisfaction of the contractor with the valuation process of the variation orders by the consultant. Variation orders give rise to arguments over the cost, time for completion and payment of compensation under variation orders (Bower, 2000).

“Possibly because contractors are not confident about the outcome of such negotiations, they usually request higher values for variation orders than the actual cost incurred. Bower (2000) opined that consequently there is tension between parties as the contractor continually pushes the client to settle claims for additional costs while invariably feeling that the reimbursement has been insufficient,” (Ndihokubwayo, 2008).

This misunderstanding affects the relationship between the parties (Bower, 2000). Mismanagement of variation orders is most likely to lead to disputes between the owner and the contractor (Charoenngam et al. 2003).

Loss of Reputation

Variations in construction projects arise mainly because of misinterpretations of the clauses of the contract, as it is always not possible that the employer can precisely express the project objectives and his expectations by incorporating them in the clauses of the construction contracts. The ambiguity in some of the provisions will lead to misunderstanding among the parties (Sun & Meng, 2009). In cases where the parties are unable to reach an amicable resolution of the issue, disputes arise necessitating the submission to arbitration for settlement. Some of the issues may have to be decided by the courts if they cannot be resolved through arbitration. When the dispute as a result of variation orders is submitted to courts for settlement, such instances create negative publicity for both the contractor and the owner.

Any supplier or other counterparties transacting with the owner or creditor may consider the transaction with either of them undesirable and therefore would become cautious in dealing with the parties under dispute. This represents loss of credibility to the contractor and the owner. Similarly, when the contractor or owner is not successful in executing his claim and recover damages from the other party, financial constraints may ensue affecting the progress of the construction activities. This may result in withholding the payments to others including its employees and suppliers. The withholding of the payments by the contractor or owner will be viewed as the step leading to the insolvency of the parties and will act to reduce the credibility of the parties acting under the construction contract.

Loss of Chain Management

Variation orders in construction projects are likely to cause serious disruptions in construction supply chain management. Impact of these change orders will have serious impact resulting in team effect of claims, which eventually will result in extension of time and productivity degradation including quality issues. Reduced work pace in some schedules of the construction project, because of variations is most likely to affect the progress of work in the other project activities. Consequently there will be disruption in the chain management, which is likely to impede the progress of the construction project. (Hanna et al. 2005).

Negative Impact of Variation Requests

In general variation requests result in significant increase in the project costs and delays in the completion of the projects. Such escalation in time and cost are the most frequent effects of variations in the construction industry. In many construction projects, the cost and time overruns have a combined effect to result in reduced earnings to the owner. Especially in the Omani construction industry variations affect the productivity adversely because of the frequency of variation requests. In many instances, variations will result in difficulties for the contractor to meet his financial obligations. Earlier research has found negative correlation between variations in contracts and the productivity. Variations in construction projects, while affecting the present working schedule of the projects are likely to impede the future schedules leading to delays in completion. In the context of Oman, because project completion is delayed by variation orders issued by owners and other project stakeholders, the contractor may be inclined to proceed with certain project activities in an accelerated phase affecting the quality of work completed. This in many projects would lead to rework.

One of the most important effect of variations in that the owner and the contractor are most likely to lose the floats available in the different project activities because of the time lost in the process of claiming and settling the disputes among them. In the Omani construction industry, such instances have led to delays in the completion of several projects. The major harmful effect is the strain on the relationship between the contractor and the employer. Since claims arise from changes in the contractual terms, which define such relationship, any claim is bound to affect the normal and cordial relationship between the two parties. Differences in understanding the reasons for variations in contractual terms lead to claims and counter claims. Variations in construction contracts make the contractor face financial issues, which in turn may lead to use of inferior quality materials in the construction affecting the quality of final outcome of the project.

Conclusion

Variation orders leading to disputes and resultant claims in the construction industry impede the progress of the construction project largely. The impact of variations may lead to strained relationship among people resulting in slow pace of work. Variations also affect the quality of construction and lead to lesser lower employee morale and higher staff turnover. Cost-related issues such as extra payments to the contractors and problems in cash flows, extra funds required to replace the materials and equipments are the result of frequent variation orders. Besides creating strained relationships among the participants to the construction project, Variations may also result in loss of reputation in the market and health and safety issues concerning the workers involved in the construction project.

The construction activity in the entire Gulf region including Oman witnessed an unprecedented construction boom during early 2008, with more number of large construction projects taking place. This increase in the construction activity has strained the available construction labor and material resources and as a result the prices labor and commodities increased significantly. The effect of increase in prices and scarcity of materials made some project sponsors decide to scale down their operations by either cancelling or amending the scope of their projects or by using alternative contracting structures. This situation had given rise to a number of variation requests in the construction industry of Oman. Recently labor has been one of the subjects of escalation clauses in some of the construction contracts. The request for increase in labor costs by the contractors also leads to number of variation requests. The discussion in this chapter leads to the following research question – what is the major impact of variations in the Oman construction industry?

Research Methodology

Introduction

Denzin and Lincoln (2003) state that a researcher has the liberty to choose a research design which in his opinion will enable him to achieve the objectives of his research. However, it is critical that the researcher considers the nature and scope of the research inquiry in his selection of the research design. While choosing the research method it is imperative that the factors affecting the research process are taken into consideration. It is also critically important that the research method proposed to be used by the researcher assist him in finding plausible answers to the research questions and the research method must take place within the scope of the research subject. For choosing the research method for the current research, the researcher considered all the associated factors and chose the quantitative approach to achieve the objectives of the research. The objective of this chapter is to describe the research methodology adopted for the current research.

Research Design

The first step in formulating the research design is to define the research issue clearly and well-defined research problem will lead to the formulation of an appropriate research design suitable for the research (Fisher, 2007). Theorists have observed that it is not possible to use a single method for all types of research inquiries. Over the year several research techniques have been developed in the field of social research to enhance the validity of research findings. This has increased the options of the social researcher about the methods that he could adopt. However, in many instances the researcher has to consider some trade-offs, while selecting the research method (Bryman, & Bell, 2007). The quality of data, cost of data collection, time involved in data collection and number of samples are some of the factors which influence the choice of the research method. The cost and time factors are the most important factors that determine the research method. Social research may follow a descriptive or causal design. Descriptive research goes into the details of the generation of a research issue and the manner in which the research issue develops. On the other hand Causal studies have the objective of studying the impact of one variable on another.

The research process for the current study incorporate various elements like research technique, research tool and data collection and analysis method which are which have adequately covered the scope and nature of the research inquiry. The complete details regarding these elements constitute the research methodology and the research strategy covers the way in which the research was conducted including the procedure for collecting the required data. The research process is explained in the following sections.

Basic Research Approaches

Social researches follow either a quantitative or qualitative approach depending on the nature of research inquiry. In the case of quantitative research, the approach is to follow an analysis based on numerical values of the variables. Data for the purpose of quantitative research is collected as numerical figures and later statistically analyzed (Bernard, 2000).

Research using quantitative method makes use of the research techniques of questionnaire surveys and structured interviews. Large number of empirical studies on varied social research contexts has used surveys as the research technique. Variables like local social and political conditions, laws governing construction activities, attitude of the owners and other project participants seemed to affect the selection of the quantitative methods as these are some subjective factors having a large influence on the construction management practices. Therefore, studies conducted to assess the perceptions and opinions of the construction industry population are found to be usually prescriptive in nature, although most of the studies engage quantitative research method. These aspects make the results of a quantitative study weak; however they can be generalized covering the total population.

Several criticisms have been raised against the quantitative research technique of survey method, even though the results of the survey could be generalized. One of the major criticisms is that the method does not facilitate the prescription of precise directions on the best practices in construction management. Another criticism against the approach is that because of extensive usage of survey method, the studies tend to give results which are dispersed in nature. The findings are also likely to be superficial and simple, without the rigor required for effective implementation of any new practices. The reason behind the lackluster findings of the research can be attributed to the non-availability of descriptive empirical data about the operation and performance of different organizations within the industry. Fragmentation of the industry may probably be another reason for ineffective data gathering. With the result earlier researches have provided large volume of theoretical contribution on the industry best practices.

Qualitative approach in social research on the other hand involves the study of the perceptions and opinions of people involved in the research inquiry. The researcher takes into account the viewpoints of the participants on the research issue for further analysis and reporting. One of the major limitations of this approach is that the approach normally uses smaller sample size, the study of which may not facilitate the generalization of the findings extending to the entire population. The method does not use any data collection method, where quantitative data or information is collected as a part of the research (Lofland & Lofland, 1984). The focus of qualitative studies is on the quality of information collected, analyzed and presented to the readers rather than on the quantitative considerations. Based on the consideration of the nature of current research inquiry on the impact of variations in the construction industry of Oman and because of the relative merits of the quantitative approach, the current research engaged the quantitative research method.

Social science theorist and practitioners have developed a deductive and inductive approach for pursuing the research processes. Saunders et al. (2009) describe the deductive approach in which the researcher evolves different hypotheses. Based on the hypotheses developed, a research strategy is arrived at to test the hypotheses. Therefore, formulation of a general idea about the research issue is the starting point for following the research approach. The researcher then chooses those research techniques and tools which would help him in testing the hypotheses. When the findings of the research are able to test the hypotheses positively, then the original idea generated by the researcher about the research issue could be considered as correct.

On the other hand in the inductive approach, the researcher adopts data collection as the first step in the research process. Then he proceeds to develop a theory based on the data collected. Creswell (2003) observes that inductive approach enables the researcher to get a better understanding of meanings attached by human beings to events and therefore this approach supports qualitative studies aptly. One of the shortcomings of inductive approach is that there is the chance that the researcher may lose track of the original emphasis of the research as the approach, with its flexibility to provide varied information may affect the focus of the researcher. The major limitation of inductive approach is that it cannot possibly assist generalization of the findings of the research. On a consideration of the relative merits and demerits of both deductive and inductive approaches, the current research engages a deductive approach.

Sources of Data

A methodology of data collection has significant importance in research work and directly influences the results. Research studies use primary and secondary data collection methods. Primary data is the data collected by a researcher for the first time in respect of a research topic by engaging different research instruments. The researcher can retrieve secondary data from any of the sources currently available. The secondary data is collected by people other than the researcher and for a purpose other than the proposed research (Proctor, 2005). Data and information collected from the respondents to the survey form the primary data for the current study. Secondary data may be collected from many sources like professional publications and prior research findings. Secondary data carries the benefit of providing significant theoretical support to the research inquiry. This research uses case study method and interviews under qualitative research as the primary research method for data collection.

Survey

The current study engaged a quantitative survey for data collection. The survey used a self-administered questionnaire as the instrument for collecting the primary data from the samples. The questionnaire was distributed to the target samples via e-mail with a request to send the responses back to the researcher. Using e-mail was found to be a convenient means of distributing the questionnaire to the chosen respondents and thus collecting the primary data for analysis. From the time and cost perspectives electronic surveys can be considered the appropriate means of data collection. Yin (2003) observed that survey as one of the effective means of primary data collection in any social research. Because surveys use knowledgeable samples as data source, the method has been preferred by many social researchers. Survey technique is adopted, “To get a detailed and comprehensive view about the data obtained, which will be used for mapping” (Denscombe 1998). This technique has the advantages of an extensive and wide coverage and the data collected relates to the period, when the research is undertaken. Experimental researches can be conducted successfully using this research technique.

Ability to represent the findings of the study in numerical form has enabled survey method to be a popular research design. In many quantitative researches, the simplicity of the questions contained in the questionnaire promotes wider participation and retrieval of data from informed sources (Creswell, 2003). Validity of the research findings increases because a large population can be attracted to take part in the surveys.

Designing the Questionnaire

A self-administered questionnaire containing questions on variations in the construction projects of Oman formed the research instrument for collecting primary data for the current study. Questionnaire in a quantitative survey is an important document which is designed to enable the respondents to provide data and information within their knowledge, so that the data collected can be subjected to further analysis and reporting. Designing the questionnaire assumes great importance in the context of any quantitative survey as the questions must be able to draw as much precise and relevant information as possible from the respondents. The questions are constructed based on the information retrieved from the review of the literature and on the surveys conducted under earlier studies.

Questions in the area of variations in the construction industry of Oman were designed based on the information of the researcher about the industry because of his close association with the industry. Because of the utility of questionnaire in data collection in quantitative researches, this research instrument is preferred by most of social researchers (Creswell, 2003). Questionnaire as research instrument is highly valued because of its ability to collect the required data systematically from a wider section of the population. Such data collection also facilitates the analysis to be completed easily (De Witte and van Muijen, 1999). Different variables like the variation causes that originate from the clients, contractors and consultants are derived by the researcher based on the review of the prior studies. The following sections deal with the designing of the questionnaire as the research instrument for the current research.

Contents of the Questionnaire

The researcher considered many options of different questions to be included in the questionnaire. After several alterations in the contents of the questionnaire, the final questionnaire containing two sections was designed. Appendix I exhibits the sample of the questionnaire for the information of the readers. Questions on the personal details as well as details about the organizations to which the samples belonged, formed part of the first section of the questionnaire. The details pertain to details like educational background and experience of the samples and turnover and contract methods of the organizations. Questions to collect data and information on the issue of variations and the impact of such variations on the Oman construction industry were included in the second part of the question. The questions in the second part were closed-ended questions providing different options to the participant. In order to assign importance or preferences, the participants were asked to adopt a five-point Likert scale. Based on their perceptions, experience and knowledge, the participants were asked to rank the different options in order of their importance using the Likert scale, where “5” represents a highly important variable while a “1” is a least important variable.

Samples for the Survey

The success of any research depends largely on the selection of samples for the survey. Although the researcher need not precisely define his target samples, he has to use his expertise and judgment in selecting the samples, so that he can rely on the quality of data and information retrieved from such samples. The researcher has to arrive at the nature and size of the samples keeping in mind the research goals. In many instances the total population to be studied may not be large to warrant the selection of samples. In such cases, the researcher can consider extending the survey to the total population. In cases where the research inquiry covers a large population, the researcher has the responsibility to adopt a suitable method for selecting the samples so that the samples possess the characteristics of the total population. It is important that the samples represent the qualities of the population it represents. Social researches use probability or non-probability sampling techniques for choosing their respective samples. Under probability sampling the researcher will be able to consider each of the units in the population to represent the total population as sample. For the current research, the researcher selected the samples using a random sampling method under probability sampling.

First, a list of engineers working in the Ministry of Municipalities and Water Works and the contractors and consulting firms registered with the Ministry with available demographic details was prepared to select the sample, who could respond to the survey. Employees with reasonable professional qualifications who would be able to understand the impact of variations in construction industry were selected. An elimination process was undertaken to remove those professionals having lesser years of experience with the company. Out of 97 engineers screened, 56 engineers were identified as capable of answering the survey questions. Questionnaires were sent to 56 employees of whom 38 returned the survey questionnaire duly filled. The responses of six samples could not be considered making the effective response from 32 professionals. This has resulted in a response rate of 57.1% which can be considered a better response rate in this type of social researches. For example, Ellhag and Boussabaine (1999) consider such a response rate as good.

Validity

The extent to which the results of a research are found to be valid determines the level of acceptance of the data collected in the context of any social research. The purpose of testing the validity in any research is to confirm whether the research could achieve the proper measuring of the elements, which the research expected to measure. The accuracy of the findings can be estimated using experiments of validity. It is for the researcher to define the limits of validity of the research. In quantitative approach the validity of the findings can be tested using some techniques. While in qualitative research there are no such provisions. It is to be mentioned that, “to disregard validity is to put the trustworthiness of your work in question and to call into question others confidence in results” (Tariq, 2009). The quality of research report is determined by the degree of validity and reliability of the data collected under the research. Therefore, validity becomes an important element in the conduct of any social research. The philosophical stance taken about the issues involved in the research inquiry determines the application of validity to any conclusions of any research. The scientific nature of the research methodology adopted for carrying out the research contributes and enhances the validity of the findings of a research.

Summary

This chapter presented a discussion on the research methodology adopted for the current study. Research approach and techniques were discussed in detail within this chapter. Designing of the survey instrument of questionnaire and selection of samples are the other focuses of this chapter. The next chapter presents the findings of the survey and an analysis of the findings.

Results and Analysis

This research undertook to analyse the causes and impacts of variation requests in Oman construction industry. An extensive literature review formed part of the secondary data collection method for the research. The primary data was collected using a quantitative survey among the construction industry professionals working in private and public sector projects of Oman. The survey was conducted among 32 samples selected from the private construction firms and the Ministry of Municipalities of Oman on a random basis. The professional engineers have been able to respond to the questions based on their knowledge acquired from their personal experience in the industry. The questionnaire being the survey instrument was sent to the participants through e-mail. Out of 56 questionnaires sent 38 responses were received and 32 were taken for consideration of the responses. The response rate of 57.1%

Demographic Details of Respondents

The results of the survey reveal that most of the respondents are working as engineers with various departments of government ministries. The participants are civil engineers who have worked in different construction projects within Oman and other GCC countries. Review of the personal details for selection of the samples revealed the information that some of the participants have worked in large infrastructural projects in different geographical locations. This implies that the participants have considerable knowledge in the construction industry practices. However, for selecting the samples the research followed a non-probability sampling technique. Therefore, the samples cannot be said to have consistency in certain demographic characteristics meeting the statistical requirements for analysis. The experiences and educational backgrounds of the participants vary; however, the variations have not affected the results of the research significantly, as the participants have been working in the construction industry for periods ranging from eight to twenty years. Irrespective of the imbalances in sample characteristics, the survey has evoked reasonable response providing support to the findings of the research. Another important feature of the demographic information is that a majority of the participants to the survey were working in the management level and hence it can be assumed that they had sufficient knowledge in dealing with variation issues in the construction industry of Oman and are capable of answering the survey questions with authority. This increases the validity of the results of the survey.

The responses to the question on educational qualifications of respondents to the survey reveal that most of them have acquired higher educational qualifications of master’s degree and some of them have doctoral degree. This increases the capabilities of the respondents to answer the survey questions with profound knowledge, as with the qualifications, they would have acquired considerable expertise in the construction industry practices with respect to variation requests and their impact on the projects. Out of the 32 respondent organizations, 30 of them had turnover of more than R.O 10 million. A majority of the respondents has reported that they have been involved in construction projects valued between R.O 1 and 10 million. The turnover and individual project values indicate that the participants must be having good exposure to the construction industry issues including handling the variation requests and their impacts on the individual projects. Demographic details of the participants are helpful in evaluating the homogeneity of the samples and its effect on the research results. The possibility of generalizing the results can be judged based on the homogeneity of the sample population. This section contains the summary of responses on the questions on the demographic details of the participants.

From the responses to the question on the organizational belonging, it is observed that 22 of the engineers were working with departments of government ministries and 10 of them work with private sector. None of them were working for any public private partnerships as such form of organization is rare in the context of Oman. The following diagram shows the organizational belongings of the samples.

For the question on the nature of the business of the respondent organization, 81% of the respondents replied that they belong to owner organizations, 12.5% of them belonged to contracting firm and 6.5% were belonging to consultants’ firms. The results are represented in the following graph.

The turnover of the respondent organization is presented in the following diagram.

The following table indicates the professional capacity and position of the respondents in their respective organization.

Table 6.1: Position in the Organization.

The responses to the question on the number of years of experience the participants have are represented by the following graph.

The question on the educational qualifications was responded to by the participants in the following manner.

Survey Findings on Variations in Oman Construction Industry

The second part of the questions contained questions on the issue of variations n the construction industry in general and in Oman. The findings of the survey from the responses of the participants are presented in the following sections.

General Information on Construction Industry

The first question in the second section of the questionnaire asked the respondents t indicate the procurement method followed by their respective organizations. Most of the respondents have indicated that their organizations follow the general contracting method. While cost plus contracts and design and build methods are also in use in the context of Oman, because of the more number of participants from government departments, the respondents have cited general contracting as the procurement method followed by their organizations. The responses to this question are represented in the following graph.

The next question required the participants to indicate the importance of different considerations taken into account by their respective organization while finalizing the contracts. The participants were given seven options and were asked to indicate the relative importance of each of the options by categorizing them in the scale of 1 to 5, where 5 denoted the most important and “1” implied the least important consideration. Because of the smaller number of samples and the nature of research inquiry, the researcher proposed to use simple statistical analysis method for presenting the results of the survey. Statistical measures like standard deviation, skewness and kurtosis are not feasible to use when the sample size is small. On the other hand a simple mean may not represent the choices of the respondents precisely. Therefore, the responses provided by the individual participant were averaged using weighted average method. The weights were given according to the importance attached to each factor. The mean values are represented in the following graph. Majority of the respondents have indicated that agreement on time is the most important factor for finalizing the contract by their respective companies.

The next question sought the opinion of the respondents on the most important factor causing variations. The participants were given eight options including lack of construction materials, change in design by consultant, errors in Design, conflicts in contract documents, lack of coordination among parties, change in specification by owner, problems in contractor’s company, lack of Supervision. The participants were asked to rank these options in order of importance in their perceptions. The participants found lack of coordination among the parties and change in specification by the owners as the most important factors for variations. The following graph presents the summary of the responses to this question represented by the mean values for the respective options.

The next question considered the opinion of the participants on the impact of variations. The questionnaire presented the options of cost escalation, disputes among parties, delays in completion, quality issues in construction, time overrun and issues of claims and loss of productivity as the factors to be considered. From the summary of responses it is observed that the issue of variation is critical to the progress of construction projects. This is evident from the fact that the participants have indicated time overruns, cost escalation and loss of productivity as the most important impacts of variations. Other issues like quality issues, completion delays and disputes among the parties have also been identified as important impacts of variations. The following graph presents the results.

Variations by the Actions of Project Stakeholders

By offering various options, the respondents were asked to rank the circumstances which had resulted in variations by the actions of different project stakeholders.

Variations originated by Client

The questionnaire presented the options of increase in scope, change in mind out of choice, changes forced, poor brief by client, inadequate preparation of contract document, shortage of funds being the circumstances under which the client might have been the reason for the variation requests. The participants were requested to rank these circumstances in order of importance according to their opinion. The participants have observed that the change in mind out of choice and poor brief by the client are the most important factors that are originated from the actions of the clients to cause variation requests in construction projects. The following graph prepared based on the mean values of the responses illustrates this position.

Variations originated by Consultants

The next question provided different options for the causes originated by the consultants. The options were change in design, defects in design, inadequate consideration of design, incorrect assessment of brief, defects in bill of quantities, shortcomings in contract documents and inadequate site investigation. The participants were requested to rank the options according to importance in their opinion. The results indicate that changes in design and incorrect assessment of clients’ briefs as the main

causes for variations in construction projects in Oman. The following graph shows this position based on the mean values of the responses.

Variations originated by Unforeseen Events

The questionnaire presented the options of restrictions due to neighbourhood demands, natural causes and land acquisition problems as the causes that originate from unforeseen events that lead to variations in construction projects. The participants were requested to rank the options in order of importance according to their perceptions. The respondents have identified restrictions due to neighbourhood demands as the most important cause for variations that originate from unforeseen events. The following graph shows the summary of responses from the respondents.

The respondents were requested to indicate any other reasons not listed in the questionnaire that might result in variation requests. Some of the respondents indicated changes in designs instructed by government departments as one of the main reasons for variations in construction projects in Oman. The respondents have offered various suggestions for avoiding frequent variation request, which are discussed in the next chapter.

Analysis

Because of large capital outlays and long gestation periods, large construction projects face significant risks in terms of cost and the time required for completion. Actions of the large contingent of project stakeholders and natural and economic factors affect the progress of the construction projects resulting in delays in completion and consequent claims and disputes among the parties. In many instances clients or consultants on their behalf initiate changes to meet the changed requirements of the client or for any other purpose. The extensive review of the literature undertaken as a part of this research dealt with the types and causes for such changes in construction projects. The progress of the construction projects is also affected greatly because of such change requests causing additions, deletions or alterations to the already constructed areas. The effects of these changes are felt in the form of time and cost overruns affecting the owner as well as other project stakeholders financially. This research sought to examine the causes and impacts of variations in the construction industry of Oman by undertaking a quantitative survey among the construction industry professionals.

Previous section of this chapter presented the findings of the survey.

The participants have been asked to indicate the type of contracting followed by their respective organizations, as the procurement method will have an influence on the frequency of the variation requests. Especially in design and build method of contracting, where the contractor undertakes the responsibility for designs, chances o variation requests are likely to be more, when the owners do not involve themselves fully in the construction projects from the inception of the contract. In the review of the literature it was observed that Hanna and Swanson (2007) categorized constructive changes arising from the different interpretations of the owner and the contractor. The chances of constructive changes in the case of design and build contracts, especially the private contracts in the context of Oman therefore depend on the procurement method being followed by the organization. In the current study because most of the participants belong to government departments, general contracting has been reported as the contracting method.

Before finalizing the contracts the contracting company may have to consider the impact of a number of factors on the project performance. These factors may be external or internal to the organizations and are likely to affect the speed with which the project activities could be carried out. The factors will have an influence on the financial performance of the project. Because of the fact that the construction projects have long gestation period, changes in the economic situations are likely to affect the cost of materials and thus may lead to variations in the contracts.

Therefore the factors that the organizations consider for finalizing the contract become important from the variations perspective. Time and price are the two important elements that determine the success of construction projects. The respondents have reported that their organizations consider the agreement on time as the most important factor in finalizing their contracts. Harbans (2003) observe that even if careful planning has been undertaken in respect of the execution of a construction project, variations are likely to occur as the construction work progresses. Therefore there is validity in this finding that in the context of Oman the contracting companies focus more on agreement of time to avoid variations.

The next important issue dealt with by the research is identifying the factors causing variations in the construction projects in Oman. Based on the responses from the participants to the survey, it is found that lack of coordination among parties and change in specifications by the owners are the most important factors that contribute to frequent variations in the construction projects in Oman. Lack of coordination may lead to frequent variation requests and time overruns in mega construction project. In the absence of proper coordination, the project participants may not have the opportunity to understand the project goals from the same perspective, which naturally will result in variations. Coordination is important in the context of a multi-participant environment. With due diligence in coordination, it is possible to manage the detrimental variations which the affect the projects adversely even at the early stages of the construction projects. Variations, disputes and claims in the projects may arise as consequential effects of lack of coordination (Keane et al 2010). Project management has a great responsibility in coordinating the activities of all the project participants even from the inception of the contract so that number of occasions giving rise to variations and consequent disputes among the parties could be avoided. Proper coordination will assist in reducing design discrepancies as with effective coordination, parties concerned will have the opportunity to review the contract documents and drawings for eliminating any misunderstanding and resultant variations.

Change in specification is the next important factor identified by the participants as causing variations in construction projects. Arain and Pheng (2010) found hat review of designs lead to variation requests. In the context of Oman variation requests resulting from addition, omissions and alterations to be undertaken during the construction process are common phenomena and lack of technical knowledge on the part of owners often lead to changes in specifications. It is also the case in Oman that the owners also do not involve them in the discussions on the technical aspects of the construction projects. Owners may find that the design features are not up to their expectations at an advanced stage of construction and request for variations. In addition the owners may not be in a position to explain in precise terms their project goals which might also lead to changes in specifications and consequent variation requests. In some instances, it may so happen that the owners change their mind during the progress of construction and change the specifications through variation requests. Quite recently changes in the global economic scenario as well as in the Middle East have necessitated several variations in large construction projects in Oman as well as other GCC countries.

The next important consideration of the research was the impact of variations on construction contracts in the context of Oman. Based on their professional background and personal experience in the industry, the participants to the survey have reported that the construction projects in Oman suffer from time and cost overruns as well as loss of productivity because of variation requests. This finding is in agreement with the findings of the previous studies. For instance, Koushki et al (2005) found that change orders issued at different stages of construction projects result in time overruns and lead to delays in completion, Hanna et al (2002) found that frequent change orders lead to considerable reduction in productivity. Arain and Pheng (2005) found that change orders issued during institutional building constructions have led to considerable escalation of construction expenses.

The study considered the impact of variations by the actions of different stakeholders and found that changes in the mind of owners out of choice and poor brief by the clients are the reasons for variations originated by the actions of the clients in the context of Oman. These situations are peculiar to the conditions prevailing in Middle Eastern countries like Oman, where there is no involvement of owners in the progress of construction projects. Lack of technical knowledge on the part of the owners also leads to different actions by the consultants in requesting variations. Mostly this is the reason that the respondents have identified changes in design and incorrect assessment of brief as the actions originated by the consultants in requesting variations in construction projects in Oman.

Summary

This chapter presented the findings of the survey and a detailed analysis of the findings. The important findings of the survey are cost and time escalations and loss of productivity are the important impacts of variations on construction projects in Oman. Lack of coordination among the parties and changes in specifications by owners have been found to be the important factors causing variations in the context of the construction industry in the Sultanate of Oman.

Conclusion

Introduction

The objective of the current research is to examine the causes and impacts of variations in the construction industry of the Sultanate of Oman. A quantitative survey was undertaken as a part of the research to collect primary data from the samples represented by construction professionals working in the construction industry of Oman. The survey used the research instrument of a questionnaire containing closed ended questions to draw information on variations in the construction industry of Oman. A detailed survey of the relevant literature provided theoretical support to the research. The review helped in adding to the existing knowledge on the causes and impacts of variations in the construction industry of Oman.

The research had specific objectives to achieve. The first objective formulated was to verify the type of variations requests in the construction industry of Oman. The literature review provided information on different types of variations and their causes. The next objective was to verify the circumstances under which such variations are ordered. The findings from the survey provided information on the circumstances originating from the actions of the clients, consultants and also from natural events. The third objective was to investigate the pricing policies carried out under usual circumstances. Although the survey covered the procurement methods followed by contracting companies, no concrete evidence could be produced to investigate the pricing policies, because of the limited scope of the research. The fourth objective was to assess the problems confronted by clients, consultants, contractors and subcontractors. The impacts of variations are the problems faced by these project stakeholders and these were examined by the survey and the review of literature. The last objective of analyzing the problems and means of resolving them was achieved by the survey findings.

Findings from the Research

Extended knowledge on the causes and impacts of variations on construction projects in general could be acquired by the extensive review of literature. The responses of the sample subjects to the questions on variations contained in the questionnaire survey covered the factors leading to variations and impacts of such variation requests. The questionnaire gave different choices of variables for the samples to choose in respect of the various aspects concerning causes and impacts of variation requests in construction projects. Based on the responses of the samples, the research concludes that lack of coordination among the parties and changes in specifications by owners are the most important factors causing variation requests in construction projects. The research also concludes that contracting companies consider terms of price and agreement on time before finalizing the construction contracts in Oman.

The study finds that changes in mind out of choice by the owners and poor brief by the clients are the causes for variations originated by clients. Changes in designs and incorrect assessment of brief were the causes originated by consultant for variation requests in the context of Oman. On the variations caused by natural causes, the study found that restrictions due to neighbourhood demands were the important factor for causing variations. The research has found that cost escalation and time overruns as the serious impacts of variations in the case construction projects in Oman. The important finding of the research is that lack of coordination is the most important factor leading to variation requests in the construction projects of Oman.

Conclusion

The review of the literature and the survey conducted being the research designs for the current study concludes that lack of coordination among the parties and changes in specifications by the owners are the important factors leading to variations. The study also concludes that time overruns and cost escalations are the major impact of variations in construction projects. The survey findings indicate that terms of price an agreement on time are the factors that are considered by the contracting companies in Oman for finalizing the contracts. The next section provides the implications for the owners, consultants and contractors and few recommendations for further research.

Recommendations

The findings of the current study have wider implications for all project participants like clients, consultants, contractors and subcontractors involved in large construction projects.

Few of the participants to the survey suggested that it is important that the contractor must check the accuracy and adequacy of design specifications before commencing the work on the project. This would reduce the chances of variation requests at a later stage of the project. In the context of Oman, because of the lack of involvement of the owners in the project progress, this process of checking the accuracy of designs becomes important to avoid variations. The study suggests that the contractor must have frequent meetings with the clients to ensure that the clients are updated on the progress of the project. This will facilitate an effective communication between both the parties and will reduce the opportunities for variations.

The project manager must ensure that he coordinates the project activities effectively so that all project participants understand the project goals and work towards achieving them. The project manager must apprise the owners the intricacies of the construction designs so that the owners are able to assess whether the designs would enable meeting their expectations. This study further suggests that the project management must institute and use sophisticated software applications in the project environment to improve the efficiency of the project team.

The research has greater implications for the clients of construction projects in Oman. The clients will be able to avoid the frequency of variation requests by prescribing their requirements and expectations without any ambiguity. Because poor briefing leads to improper understanding of the project goals, it is important that the owners take the advice of their clients in time to specify their requirements clearly. When the owners are able to avoid frequent variation requests in construction projects they would be able to avoid possible claim situations and protect their financial losses. In many instances commencing the construction before the completion of the designs give rise to variation requests and therefore the owners must insist on the completion of the designs before the construction activities are started.

The research findings have some implications for the consultants also. The consultant by extending proper and timely advice to the client on designs and on the progress of the project will be able to help the avoidance of frequent variation requests. The consultant must meet the client and the contractor frequently to apprise them of the deficiencies in the process if any and avoid variation requests. Consultants based on their expert knowledge can assist the clients to a proper understanding of the goals.

Recommendations for Future Research

Because the factors affecting the construction projects in Oman are different than those prevailing in other countries, variation requests may arise in different circumstances. A comparative study of the causes and effects of variations in construction industries of different countries with Oman will provide enhanced knowledge on the area. Results of an empirical study assessing the financial implications of variations in two different projects would yield meaningful results on the effects of variations on construction projects.

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